Document:

Revolving Credit Agreement, dated 03/29/2010

 Exhibit 10.1 
 CREDIT AGREEMENT 
 relating to a 
 US$2,500,000,000 REVOLVING CREDIT FACILITY 
 (including a US$700,000,000 swingline option) 
 Dated as of 29 March
2010 
 among 
 PHILIP MORRIS INTERNATIONAL INC. 
 and 
 THE INITIAL LENDERS NAMED HEREIN 
 and 
 J.P. MORGAN EUROPE LIMITED 
 as Facility Agent 
 and 
 JPMORGAN CHASE BANK, N.A. 
 as Swingline Agent 
 and 
 J.P. MORGAN PLC 
 DEUTSCHE BANK SECURITIES INC. 
 CITIGROUP GLOBAL MARKETS LIMITED 
 CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH 
 GOLDMAN SACHS CREDIT PARTNERS L.P. 
 RBS SECURITIES INC. 

as Mandated Lead Arrangers and Bookrunners 
 HUNTON & WILLIAMS LLP 
 New York 

 Table of Contents 
  

					
	 	  	 	  	Page
			
	 1.
	  	DEFINITIONS AND ACCOUNTING TERMS	  	1
			
	 1.1.
	  	Certain Defined Terms	  	1
			
	 1.2.
	  	Computation of Time Periods	  	11
			
	 1.3.
	  	Accounting Terms	  	11
			
	 2.
	  	AMOUNTS AND TERMS OF THE ADVANCES	  	12
			
	 2.1.
	  	The Revolving Credit Advances	  	12
			
	 2.2
	  	Type of Revolving Credit Advances	  	12
			
	 2.3.
	  	Making the Revolving Credit Advances	  	12
			
	 2.4.
	  	Repayment of Revolving Credit Advances	  	14
			
	 2.5.
	  	Interest on Revolving Credit Advances	  	14
			
	 2.6.
	  	Absence of Interest Period for Revolving Credit Advances	  	14
			
	 2.7.
	  	Interest Rate Determination for Revolving Credit Advances	  	14
			
	 2.8.
	  	The Swingline Advances	  	15
			
	 2.9.
	  	Making the Swingline Advances	  	16
			
	 2.10.
	  	Repayment of Swingline Advances	  	18
			
	 2.11.
	  	Interest on Swingline Advances	  	18
			
	 2.12.
	  	Fees	  	19
			
	 2.13.
	  	Optional Termination or Reduction of the Commitments	  	19
			
	 2.14.
	  	Prepayments of Advances	  	19
			
	 2.15.
	  	Increased Costs	  	20
			
	 2.16.
	  	Illegality	  	21
			
	 2.17.
	  	Payments and Computations	  	22
			
	 2.18.
	  	Taxes	  	23
			
	 2.19.
	  	Sharing of Payments, Etc.	  	26
			
	 2.20.
	  	Evidence of Debt	  	26
			
	 2.21.
	  	Defaulting Lenders	  	27
			
	 2.22.
	  	Use of Proceeds	  	28

  

 i 

 Table of Contents 
 (continued) 
  

					
	3.	  	CONDITIONS TO EFFECTIVENESS AND LENDING	  	28
			
	3.1.	  	Conditions Precedent to Effectiveness	  	28
			
	3.2.	  	Initial Advance to Each Designated Subsidiary	  	30
			
	3.3.	  	Conditions Precedent to Each Borrowing	  	30
			
	4.	  	REPRESENTATIONS AND WARRANTIES	  	31
			
	4.1.	  	Representations and Warranties of PMI	  	31
			
	5.	  	COVENANTS OF PMI	  	32
			
	5.1.	  	Affirmative Covenants	  	32
			
	5.2.	  	Negative Covenants	  	33
			
	6.	  	EVENTS OF DEFAULT	  	35
			
	6.1.	  	Events of Default	  	35
			
	6.2.	  	Lenders’ Rights upon Event of Default	  	37
			
	7.	  	THE AGENTS	  	37
			
	7.1.	  	Authorization and Action	  	37
			
	7.2.	  	Agents’ Reliance, Etc.	  	38
			
	7.3.	  	JPMEL and Affiliates	  	38
			
	7.4.	  	Lender Credit Decision	  	38
			
	7.5.	  	Indemnification	  	39
			
	7.6.	  	Successor Agents	  	40
			
	7.7.	  	Mandated Lead Arrangers and Bookrunners	  	40
			
	8.	  	GUARANTY	  	40
			
	8.1.	  	Guaranty	  	40
			
	8.2.	  	Guaranty Absolute	  	40
			
	8.3.	  	Waivers	  	41
			
	8.4.	  	Continuing Guaranty	  	41

  

 ii 

 Table of Contents 
 (continued) 
  

					
	9.	  	MISCELLANEOUS	  	42
			
	9.1.	  	Amendments, Etc.	  	42
			
	9.2.	  	Notices, Etc.	  	42
			
	9.3.	  	No Waiver; Remedies	  	43
			
	9.4.	  	Costs and Expenses	  	44
			
	9.5.	  	Right of Set-Off	  	45
			
	9.6.	  	Binding Effect	  	45
			
	9.7.	  	Assignments and Participations	  	45
			
	9.8.	  	Designated Subsidiaries	  	48
			
	9.9.	  	Governing Law	  	49
			
	9.10.	  	Execution in Counterparts	  	49
			
	9.11.	  	Jurisdiction, Etc.	  	49
			
	9.12.	  	Confidentiality	  	50
			
	9.13.	  	Integration	  	51
			
	9.14.	  	USA Patriot Act Notice, Etc.	  	51
			
	9.15.	  	Judgment	  	51

 SCHEDULE 
  

					
	 Schedule 1
	  	-	 	List of Applicable Lending Offices
	 Schedule 2
	  	-	 	Certain Subsidiary Information
	 Schedule 3
	  	-	 	Calculation of Mandatory Cost
	 Schedule 4
	  	-	 	Revolving Credit Commitments
	 Schedule 5
	  	-	 	Swingline Commitments
		
	 EXHIBITS
	 	
			
	 Exhibit A
	  	-	 	Form of Revolving Credit Note
	 Exhibit B-1
	  	-	 	Form of Notice of Revolving Credit Borrowing
	 Exhibit B-2
	  	-	 	Form of Notice of Swingline Borrowing
	 Exhibit C
	  	-	 	Form of Assignment and Acceptance
	 Exhibit D
	  	-	 	Form of Designation Agreement
	 Exhibit E-1
	  	-	 	Form of Opinion of Counsel for PMI
	 Exhibit E-2
	  	-	 	Form of Opinion of Counsel for PMI

  

 iii 

 Table of Contents 
 (continued) 
  

					
	 Exhibit F
	  	-	 	Form of Opinion of Counsel for Designated Subsidiary
	 Exhibit G
	  	-	 	Form of Opinion of Counsel for Facility Agent
	 Exhibit H
	  	-	 	Form of Confidentiality Agreement

  

 iv 

 THIS AGREEMENT was made on 29 March 2010 
 AMONG 
  

	 	(1)	PHILIP MORRIS INTERNATIONAL INC., a Virginia corporation (“PMI”); 

  

	 	(2)	THE FINANCIAL INSTITUTIONS AND OTHER INSTITUTIONAL LENDERS (the “Initial Lenders”) listed on the signature pages hereof;

  

	 	(3)	J.P. MORGAN EUROPE LIMITED (“JPMEL”), as facility agent (the “Facility Agent”); 

  

	 	(4)	JPMORGAN CHASE BANK, N.A. (“JPMCB”), as swingline agent (the “Swingline Agent”); and 

  

	 	(5)	J.P. MORGAN PLC, DEUTSCHE BANK SECURITIES INC., CITIGROUP GLOBAL MARKETS LIMITED, CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, GOLDMAN SACHS CREDIT PARTNERS L.P. and
RBS SECURITIES INC., as mandated lead arrangers and bookrunners (each, in such capacity, a “Mandated Lead Arranger and Bookrunner”) for the Lenders (as hereinafter defined). 

 IT IS AGREED as follows: 
  

	1.	DEFINITIONS AND ACCOUNTING TERMS 

  

	1.1.	Certain Defined Terms. As used in this Agreement, the following terms shall have the following meanings (such meanings to be equally applicable to both the
singular and plural forms of the terms defined): 

 “Advance” means a Revolving
Credit Advance or a Swingline Advance. 
 “Agents” means the Facility Agent and the Swingline
Agent. 
 “Applicable Interest Rate Margin” means, for any Interest Period, a percentage per
annum equal to 0.5000%. 
 “Applicable Lending Office” means, with respect to each Lender, such
Lender’s lending office set forth on Schedule 1 hereto or in the Assignment and Acceptance pursuant to which it became a Lender, or such other office of such Lender as such Lender may from time to time specify to PMI and the Facility Agent.

 “Assignment and Acceptance” means an assignment and acceptance entered into by a Lender and
an Eligible Assignee, and accepted by the Facility Agent, in substantially the form of Exhibit C hereto. 
 “Board” means the Board of Governors of the Federal Reserve System of the United States (or any successor). 

 “Borrowers” means, collectively, PMI and each Designated
Subsidiary that shall become a party to this Agreement pursuant to Section 9.8. 
 “Borrowing” means a Revolving Credit Borrowing or a Swingline Borrowing. 
 “Business Day” means a day on which banks are open for business in London and the Trans-European Automated Real-time Gross settlement Express Transfer System (TARGET) is operating and, if the applicable Business Day relates
to any LIBOR Advances or Swingline Advances, on which banks are not required or authorized by law to close in New York City. 
 “Commitments” means the Revolving Credit Commitments and the Swingline Commitments. 
 “Consolidated EBITDA” means, for any accounting period, the consolidated net earnings (or loss) of PMI and its Subsidiaries plus, without duplication and to the extent included as a
separate item on PMI’s consolidated statements of earnings or consolidated statements of cash flows in the case of clauses (a) through (e) for such period, the sum of (a) provision for income taxes, (b) interest and other
debt expense, net, (c) depreciation expense, (d) amortization of intangibles, (e) any extraordinary, unusual or non-recurring expenses or losses or any similar expense or loss subtracted from “Gross profit” in the
calculation of “Operating income” and (f) the portion of loss included on PMI’s consolidated statements of earnings of any Person (other than a Subsidiary of PMI) in which PMI or any of its Subsidiaries has an ownership interest
and any cash that is actually received by PMI or such Subsidiary from such Person in the form of dividends or similar distributions, and minus, without duplication, the sum of (x) to the extent included as a separate item on PMI’s
consolidated statements of earnings for such period, any extraordinary, unusual or non-recurring income or gains or any similar income or gain added to “Gross profit” in the calculation of “Operating income,” and (y) the
portion of income included on PMI’s consolidated statements of earnings of any Person (other than a Subsidiary of PMI) in which PMI or any of its Subsidiaries has an ownership interest, except to the extent that any cash is actually received by
PMI or such Subsidiary from such Person in the form of dividends or similar distributions, all as determined on a consolidated basis in accordance with accounting principles generally accepted in the United States for such period, except that if
there has been a material change in an accounting principle as compared to that applied in the preparation of the financial statements of PMI and its Subsidiaries as at and for the year ended 31 December 2009, then such new accounting principle
shall not be used in the determination of Consolidated EBITDA. A material change in an accounting principle is one that, in the year of its adoption, changes Consolidated EBITDA for any quarter in such year by more than 10%. 
 “Consolidated Interest Expense” means, for any accounting period, total interest expense of PMI and its
Subsidiaries with respect to all outstanding Debt of PMI and its Subsidiaries during such period, all as determined on a consolidated basis for such period and in accordance with accounting principles generally accepted in the United States for

  

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such period, except that if there has been a material change in an accounting principle as compared to that applied in the preparation of the financial statements of PMI and its Subsidiaries as
at and for the year ended 31 December 2009, then such new accounting principle shall not be used in the determination of Consolidated Interest Expense. A material change in an accounting principle is one that, in the year of its adoption,
changes Consolidated Interest Expense for any quarter in such year by more than 10%. 
 “Consolidated
Tangible Assets” means the total assets appearing on a consolidated balance sheet of PMI and its Subsidiaries, less goodwill and other intangible assets and the minority interests of other Persons in such Subsidiaries, all as determined in
accordance with accounting principles generally accepted in the United States, except that if there has been a material change in an accounting principle as compared to that applied in the preparation of the financial statements of PMI and its
Subsidiaries as at and for the year ended 31 December 2009, then such new accounting principle shall not be used in the determination of Consolidated Tangible Assets. A material change in an accounting principle is one that, in the year of its
adoption, changes Consolidated Tangible Assets at any quarter in such year by more than 10%. 
 “Debt” means, without duplication, (a) indebtedness for borrowed money or for the deferred purchase price of property or services, whether or not evidenced by bonds, debentures, notes or similar instruments,
(b) obligations as lessee under leases that, in accordance with accounting principles generally accepted in the United States, are recorded as capital leases, (c) obligations as an account party or applicant under letters of credit (other
than trade letters of credit incurred in the ordinary course of business) to the extent such letters of credit are drawn and not reimbursed within five Business Days of such drawing, (d) the aggregate principal (or equivalent) amount of
financing raised through outstanding securitization financings of accounts receivable, and (e) obligations under direct or indirect guaranties in respect of, and obligations (contingent or otherwise) to purchase or otherwise acquire, or
otherwise to assure a creditor against loss (including by way of (i) granting a security interest or other Lien on property or (ii) having a reimbursement obligation under or in respect of a letter of credit or similar arrangement (to the
extent such letter of credit is not collateralized by assets (other than Operating Assets) having a fair value equal to the amount of such reimbursement obligation), in either case in respect of, indebtedness or obligations of any other Person of
the kinds referred to in clause (a), (b), (c) or (d) above). For the avoidance of doubt, the following shall not constitute “Debt” for purposes of this Agreement: (A) any obligation that is fully non-recourse to PMI or any
of its Subsidiaries, (B) intercompany debt of PMI or any of its Subsidiaries, (C) any appeal bond or other arrangement to secure a stay of execution on a judgment or order, provided that any such appeal bond or other arrangement issued by
a third party in connection with such arrangement shall constitute Debt to the extent PMI or any of its Subsidiaries has a reimbursement obligation to such third party that is not collateralized by assets (other than Operating Assets) having a fair
value equal to the amount of such reimbursement obligation, (D) unpaid judgments, or (E) defeased indebtedness. 
  

 3 

 “Default” means any event specified in Section 6.1
that would constitute an Event of Default but for the requirement that notice be given or time elapse or both. 
 “Defaulting Lender” means any Lender that has (a) failed to fund any portion of its Advances within one Business Day of the date required to be funded by it hereunder, (b) notified the Borrowers, the Facility
Agent or any Lender in writing, or otherwise indicated through a public statement, that it does not intend to comply with its funding obligations generally under agreements in which it commits to extend credit, (c) failed, within three Business
Days after request by the Facility Agent, to confirm that it will comply with the terms of this Agreement relating to its obligations to fund prospective Advances, (d) otherwise failed to pay over to the Facility Agent or any other Lender any
other amount required to be paid by it hereunder within three Business Days of the date when due, unless the subject of a good faith dispute, or (e)(i) become insolvent or has a parent company that has become insolvent or (ii) become the
subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee or custodian appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding
or appointment or has a parent company that has become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee or custodian appointed for it, or has taken any action in furtherance of, or indicating its
consent to, approval of or acquiescence in any such proceeding or appointment. No Lender shall be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in such Lender or a parent company thereof by a
Governmental Authority or an instrumentality thereof. 
 “Designated Subsidiary” means any
wholly-owned Subsidiary of PMI designated for borrowing privileges under this Agreement pursuant to Section 9.8. 
 “Designation Agreement” means, with respect to any Designated Subsidiary, an agreement in the form of Exhibit D hereto signed by such Designated Subsidiary and PMI. 
 “Dollars” and the “$” sign each means lawful currency of the United States of America.

 “Effective Date” has the meaning specified in Section 3.1. 
 “Eligible Assignee” means (i) a Qualifying Bank organized under the laws of the United States, or any
State thereof, and having total assets in excess of $10,000,000,000; (ii) a Qualifying Bank organized under the laws of any other country which is a member of the Organization for Economic Cooperation and Development (or any successor)
(“OECD”), or a political subdivision of any such country, and having total assets in excess of $10,000,000,000, provided that such Qualifying Bank is acting through a branch or agency located in the country in which it is organized
or another country which is also a member of the OECD or the Cayman Islands; (iii) the central bank of any country which is a member of the OECD; (iv) any Lender; and (v) any other bank or other financial institution approved in
writing by PMI, which approval shall be notified to

  

 4 

 
the Facility Agent; provided, however, that in the case of clauses (i) through (iv), the applicable assignee shall not have a credit rating of lower than A by
Standard & Poor’s or A2 by Moody’s. 
 “Equivalent” (i) in Dollars of
Euro on any date, means the quoted spot rate at which the Facility Agent’s principal office in London offers to exchange Dollars for Euro in London as of 11:00 A.M. (London time) on such date and (ii) in Euro of Dollars on any date, means
the quoted spot rate at which the Facility Agent’s principal office in London offers to exchange Euro for Dollars in London as of 11:00 A.M. (London time) on such date. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the
regulations promulgated and rulings issued thereunder. 
 “ERISA Affiliate” means any Person
that for purposes of Title IV of ERISA is a member of any Borrower’s controlled group, or under common control with any Borrower, within the meaning of Section 414 of the Internal Revenue Code. 
 “ERISA Event” means (a) (i) the occurrence with respect to a Plan of a reportable event, within
the meaning of Section 4043 of ERISA, unless the 30-day notice requirement with respect thereto has been waived by the Pension Benefit Guaranty Corporation (or any successor) (“PBGC”), or (ii) the requirements of
subsection (1) of Section 4043(b) of ERISA (without regard to subsection (2) of such section) are met with respect to a contributing sponsor, as defined in Section 4001(a)(13) of ERISA, of a Plan, and an event described in
paragraph (9), (10), (11), (12) or (13) of Section 4043(c) of ERISA is reasonably expected to occur with respect to such Plan within the following 30 days; (b) the application for a minimum funding waiver with respect to a Plan;
(c) the provision by the administrator of any Plan of a notice of intent to terminate such Plan, pursuant to Section 4041(a)(2) of ERISA (including any such notice with respect to a plan amendment referred to in Section 4041(e) of
ERISA); (d) the cessation of operations at a facility of any Borrower or any of its ERISA Affiliates in the circumstances described in Section 4062(e) of ERISA; (e) the withdrawal by any Borrower or any of its ERISA Affiliates from a
Multiple Employer Plan during a plan year for which it was a substantial employer, as defined in Section 4001(a)(2) of ERISA; (f) the conditions set forth in Section 302(f)(1)(A) and (B) of ERISA to the creation of a lien upon
property or rights to property of any Borrower or any of its ERISA Affiliates for failure to make a required payment to a Plan are satisfied; (g) the adoption of an amendment to a Plan requiring the provision of security to such Plan, pursuant
to Section 307 of ERISA; or (h) the termination of a Plan by the PBGC pursuant to Section 4042 of ERISA, or the occurrence of any event or condition described in Section 4042 of ERISA that constitutes grounds for the termination
of, or the appointment of a trustee to administer, a Plan. 
 “EURIBOR” means an interest rate
per annum equal to either: 
  

 5 

 (a) the offered rate per annum at which deposits in Euro appear on Reuters
Page EURIBOR01 (or any successor page) as of 11:00 A.M. (Brussels time) two Business Days before the first day of such Interest Period for a period equal to such Interest Period, as determined by the European Banking Federation, or 
 (b) if EURIBOR does not appear on Reuters Page EURIBOR01 (or any successor page), then EURIBOR will be determined by taking
the arithmetic mean (rounded upward to the nearest whole multiple of 1/16 of 1% per annum, if such arithmetic mean is not such a multiple) of the rates per annum at which deposits in Euro are offered by the principal office of each of the
Reference Banks to prime banks in the European interbank market at 11:00 A.M. (Brussels time) two Business Days before the first day of such Interest Period for an amount substantially equal to the amount that would be the Reference Banks’
respective ratable shares of such Borrowing outstanding during such Interest Period and for a period equal to such Interest Period, as determined by the Facility Agent, subject, however, to the provisions of Section 2.7.

 “EURIBOR Advance” means a Revolving Credit Advance denominated in Euro that bears interest as
provided in Section 2.5(a). 
 “Euro” and the “€” sign each mean the
single currency of the Participating Member States. 
 “Event of Default” has the meaning
specified in Section 6.1. 
 “Existing Revolving Credit Facilities” means the 5-Year
Revolving Credit Facility pursuant to the Credit Agreement, dated as of 12 May 2005, among PMI, the lenders and agents party thereto and the 3-Year Revolving Credit Facility pursuant to the Credit Agreement, dated as of 4 December 2007,
among PMI, the lenders and agents party thereto. 
 “Facility” means the Revolving Credit
Facility or the Swingline Facility. 
 “Facility Agent” has the meaning specified in the
preamble. 
 “Facility Agent’s Account” means (a) for transactions in Euro, the
account of JPMEL (Swift-CHASGB22), maintained by J.P. Morgan AG (Swift-CHASDEFX), at its office in Frankfurt, Germany, Account No. DE93501108006001600037, (b) for transactions in Dollars, an account of JPMEL or JPMCB, as is designated in
writing from time to time by JPMEL or JPMCB, to PMI and the Lenders for such purpose or (c) such other account of JPMEL, as is designated in writing from time to time by JPMEL, to PMI and the Lenders for such purpose. 
 “Federal Bankruptcy Code” means the United States Bankruptcy Reform Act of 1978, as amended from time to
time. 
 “Federal Funds Effective Rate” means, for any period, a fluctuating interest rate per
annum equal, for each day during such period, to the weighted average of the rates on

  

 6 

 
overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published for such day (or, if such day is not a Business Day, for the next
preceding Business Day) on Reuters Page FEDFUNDS1 (or any successor page), or, if such rate is not so published for any day that is a Business Day, the average of the quotations for such day on such transactions received by JPMEL from three Federal
funds brokers of recognized standing selected by it. 
 “Guaranty” has the meaning specified in
Section 8.1. 
 “Home Jurisdiction Withholding Taxes” means (a) in the case of PMI,
withholding for United States income taxes, United States back-up withholding taxes and United States withholding taxes and (b) in the case of a Designated Subsidiary, withholding taxes imposed by the jurisdiction under the laws of which such
Designated Subsidiary is organized or any political subdivision thereof. 
 “Initial Lenders”
has the meaning specified in the preamble. 
 “Interest Period” means (a) for each
Revolving Credit Advance comprising part of the same Revolving Credit Borrowing, the period commencing on the date of such Revolving Credit Advance and ending on the last day of the period selected by the Borrower requesting such Borrowing pursuant
to the provisions below and (b) for each Swingline Advance comprising part of the same Swingline Borrowing, one period commencing on the date of such Swingline Advance and ending on a Business Day with a duration not to exceed five Business
Days. The duration of such Interest Period for a Revolving Credit Advance shall be one, two, three or six months, or, if available to all Lenders, nine or twelve months, as such Borrower may select upon notice received by the Facility Agent not
later than 11:00 A.M. (London time) on the third Business Day prior to the first day of such Interest Period; provided, however, that: 
 (a) such Borrower may not select any Interest Period that ends after the Termination Date; 
 (b) with respect to Revolving Credit Borrowings only, whenever the last day of any Interest Period would otherwise occur on a day other than a Business Day, the last day of such Interest Period shall be
extended to occur on the next succeeding Business Day, provided that if such extension would cause the last day of such Interest Period to occur in the next following calendar month, the last day of such Interest Period shall occur on the
immediately preceding Business Day; and 
 (c) with respect to Revolving Credit Borrowings only, whenever the
first day of any Interest Period occurs on a day of an initial calendar month for which there is no numerically corresponding day in the calendar month that succeeds such initial calendar month by the number of months equal to the number of months
in such Interest Period, such Interest Period shall end on the last Business Day of such succeeding calendar month. 
  

 7 

 “Internal Revenue Code” means the United States Internal
Revenue Code of 1986, as amended from time to time, and the regulations promulgated and the rulings issued thereunder. 
 “JPMEL” has the meaning specified in the preamble. 
 “JPMCB” has the
meaning specified in the preamble. 
 “Lenders” means the Initial Lenders and their respective
successors, which are Qualifying Banks or which have been approved in writing by PMI, and permitted assignees (and includes the Swingline Lenders unless the context otherwise requires). 
 “LIBOR” means an interest rate per annum equal to either: 
 (a) the offered rate per annum at which deposits in Dollars appear on Reuters Page LIBOR01 (or any successor page) as of
11:00 A.M. (London time) two Business Days before the first day of such Interest Period for a period equal to such Interest Period, or 
 (b) if LIBOR does not appear on Reuters Page LIBOR01 (or any successor page), then LIBOR will be determined by taking the arithmetic mean (rounded upward to the nearest whole multiple of 1/16 of
1% per annum, if such arithmetic mean is not such a multiple) of the rates per annum at which deposits in Dollars are offered by the principal office of each of the Reference Banks to prime banks in the London interbank market at 11:00 A.M.
(London time) two Business Days before the first day of such Interest Period for an amount substantially equal to the amount that would be the Reference Banks’ respective ratable shares of such Borrowing outstanding during such Interest Period
and for a period equal to such Interest Period, as determined by the Facility Agent, subject, however, to the provisions of Section 2.7. 
 “LIBOR Advance” means a Revolving Credit Advance denominated in Dollars that bears interest as provided in Section 2.5(b). 
 “Lien” has the meaning specified in Section 5.2(a). 
 “Major Subsidiary” means any Subsidiary (a) more than 50% of the voting securities of which is owned
directly or indirectly by PMI, (b) which is organized and existing under, or has its principal place of business in, the United States or any political subdivision thereof, any country which is a member of the European Union on the date hereof
or any political subdivision thereof, or Switzerland or Japan or any of their respective political subdivisions, and (c) which has at any time total assets (after intercompany eliminations) exceeding $1,000,000,000. 
 “Mandated Lead Arranger and Bookrunner” has the meaning specified in the preamble. 
  

 8 

 “Mandatory Cost” means the percentage rate per annum
calculated by the Facility Agent in accordance with Schedule 3. 
 “Margin Stock” means margin
stock, as such term is defined in Regulation U. 
 “Moody’s” means Moody’s Investors
Service, Inc., and any successor to its ratings agency business. 
 “Multiemployer Plan” means a
multiemployer plan, as defined in Section 4001(a)(3) of ERISA, to which any Borrower or any ERISA Affiliate is making or accruing an obligation to make contributions, or has within any of the preceding five plan years made or accrued an
obligation to make contributions, such plan being maintained pursuant to one or more collective bargaining agreements. 
 “Multiple Employer Plan” means a single employer plan, as defined in Section 4001(a)(15) of ERISA, that (a) is maintained for employees of any Borrower or any ERISA Affiliate and at least one Person other than
such Borrower and the ERISA Affiliates or (b) was so maintained and in respect of which such Borrower or any ERISA Affiliate could have liability under Section 4064 or 4069 of ERISA in the event such plan has been or were to be terminated.

 “Note” means a promissory note of any Borrower payable to the order of any Lender, delivered
pursuant to a request made under Section 2.20(a) in substantially the form of Exhibit A hereto, evidencing the aggregate indebtedness of such Borrower to such Lender resulting from the Revolving Credit Advances made by such Lender to such
Borrower. 
 “Notice of Revolving Credit Borrowing” has the meaning specified in
Section 2.3(a). 
 “Notice of Swingline Borrowing” has the meaning specified in
Section 2.9(a). 
 “Obligations” has the meaning specified in Section 8.1. 

“Operating Assets” means, for any accounting period, any assets included in the consolidated balance
sheet of PMI and its Subsidiaries as “Inventories,” or “Property, plant and equipment” or “Receivables” for such period. 
 “Other Taxes” has the meaning specified in Section 2.18(c). 
 “Participating Member State” means any member state of the European Communities that adopts or has adopted the Euro as its lawful currency in accordance with legislation of the European
Community relating to Economic and Monetary Union. 
 “Person” means an individual, partnership,
corporation (including a business trust), joint stock company, trust, unincorporated association, joint venture, limited

  

 9 

 
liability company or other entity, or a government or any political subdivision or agency thereof. 
 “Plan” means a Single Employer Plan or a Multiple Employer Plan. 
 “PMI” has the meaning specified in the preamble. 
 “Qualifying Bank” means any legal entity which is recognized as a bank by the banking laws in force in its country of organization and which has as its principal purpose the active conduct of banking business and conducts
such banking business through its own personnel (which have decision making authority) and on its own premises. 
 “Reference Banks” means Citibank, N.A., New York Branch, Credit Suisse AG, Cayman Islands Branch, The Royal Bank of Scotland plc and JPMorgan Chase Bank, N.A. 
 “Register” has the meaning specified in Section 9.7(d). 
 “Regulation A” means Regulation A of the Board, as in effect from time to time. 
 “Regulation U” means Regulation U of the Board, as in effect from time to time. 
 “Required Lenders” means at any time Lenders holding at least 50.1% of the aggregate Revolving Credit
Commitments at such time. 
 “Revolving Credit Advance” means an advance by a Lender to any
Borrower as part of a Revolving Credit Borrowing and refers to a EURIBOR Advance or a LIBOR Advance (each of which shall be a “Type” of Revolving Credit Advance). 
 “Revolving Credit Borrowing” means a borrowing consisting of simultaneous Revolving Credit Advances of the
same Type made by each of the Lenders pursuant to Section 2.2(a). 
 “Revolving Credit
Commitment” means as to any Lender (i) the Dollar amount set forth opposite such Lender’s name on Schedule 4 hereof or (ii) if such Lender has entered into an Assignment and Acceptance, the Dollar amount set forth for such
Lender in the Register maintained by the Facility Agent pursuant to Section 9.7(d), in each case as such amount may be reduced pursuant to Section 2.13. 
 “Revolving Credit Facility” means, at any time, the aggregate amount of the Lenders’ Revolving Credit
Commitments at such time. 
 “Single Employer Plan” means a single employer plan, as defined in
Section 4001(a)(15) of ERISA, that (a) is maintained for employees of any Borrower or any ERISA Affiliate and no Person other than such Borrower and the ERISA Affiliates or (b) was so maintained and in respect of which such Borrower
or any ERISA Affiliate could

  

 10 

 
have liability under Section 4069 of ERISA in the event such plan has been or were to be terminated. 
 “Standard & Poor’s” means Standard & Poor’s Ratings Services, a division of
McGraw-Hill Companies, Inc., and any successor to its ratings agency business. 
 “Subsidiary”
of any Person means any corporation of which (or in which) more than 50% of the outstanding capital stock having voting power to elect a majority of the Board of Directors of such corporation (irrespective of whether at the time capital stock of any
other class or classes of such corporation shall or might have voting power upon the occurrence of any contingency) is at the time directly or indirectly owned or controlled by such Person, by such Person and one or more of its other Subsidiaries or
by one or more of such Person’s other Subsidiaries. 
 “Swingline Advance” means an advance
by a Swingline Lender to any Borrower as part of a Swingline Borrowing. 
 “Swingline Agent” has
the meaning specified in the preamble. 
 “Swingline Borrowing” means a borrowing consisting of
simultaneous Swingline Advances made by each of the Swingline Lenders pursuant to Section 2.8. 
 “Swingline Commitment” means as to any Lender (i) the Dollar amount set forth opposite such Lender’s name on Schedule 5 hereof or (ii) if such Lender has entered into an Assignment and Acceptance, the Dollar
amount set forth for such Lender in the Register maintained by the Facility Agent pursuant to Section 9.7(d), in each case as such amount may be reduced pursuant to Section 2.13. 
 “Swingline Facility” means, at any time, the aggregate amount of the Swingline Lenders’ Swingline
Commitments at such time. 
 “Swingline Lender” means any Lender that has a Swingline
Commitment. 
 “Taxes” has the meaning specified in Section 2.18(a). 
 “Termination Date” means the earlier of (a) 30 September 2013, and (b) in each case, the date
of termination in whole of Commitments pursuant to Section 2.13 or 6.2. 
  

	1.2.	Computation of Time Periods. In this Agreement in the computation of periods of time from a specified date to a later specified date, the word “from”
means “from and including” and the words “to” and “until” each mean “to but excluding.” 

  

	1.3.	 Accounting Terms. All accounting terms not specifically defined herein shall be construed in accordance with accounting principles generally
accepted in the United States of America, except that if there has been a material change in an accounting principle affecting the definition of an accounting term as compared to that applied in the preparation of the financial statements of PMI as
of and for the year ended 31 December

  

 11 

	 	 
2009, then such new accounting principle shall not be used in the determination of the amount associated with that accounting term. A material change in an accounting principle is one that, in
the year of its adoption, changes the amount associated with the relevant accounting term for any quarter in such year by more than 10%. 

  

	2.	AMOUNTS AND TERMS OF THE ADVANCES 

  

	2.1.	The Revolving Credit Advances. Each Lender severally agrees, on the terms and conditions hereinafter set forth, to make Revolving Credit Advances to any Borrower
from time to time on any Business Day during the period from the Effective Date until the Termination Date in an aggregate amount outstanding not to exceed at any time such Lender’s Revolving Credit Commitment; provided, however,
that the aggregate amount of the Revolving Credit Commitments shall be deemed used from time to time to the extent of the aggregate amount of the Swingline Advances then outstanding; provided, further, that each Lender’s Revolving
Credit Commitment shall be deemed used from time to time to the extent of the Swingline Advances made by it or its affiliate that is a Swingline Lender. 

  

	2.2.	(a) Type of Revolving Credit Advances. Each Revolving Credit Borrowing shall consist of Revolving Credit Advances of the same Type made on the same day by the
Lenders ratably according to their respective Revolving Credit Commitments. Within the limits of each Lender’s Revolving Credit Commitment and subject to this Section 2.2, any Borrower may borrow under this Section 2.2, prepay
pursuant to Section 2.14 or repay pursuant to Section 2.4 and reborrow under this Section 2.2. 

 (b) Amount of Revolving Credit Borrowings. Each Revolving Credit Borrowing consisting of EURIBOR Advances shall be in an aggregate amount of no less than €50,000,000 or an integral multiple of €1,000,000 in excess thereof.
Each Revolving Credit Borrowing consisting of LIBOR Advances shall be in an aggregate amount of no less than $50,000,000 or an integral multiple of $1,000,000 in excess thereof. 
  

	2.3.	Making the Revolving Credit Advances. (a) Notice of Revolving Credit Borrowing. Each Revolving Credit Borrowing shall be made on notice, given not
later than 11:00 A.M. (London time) on the third Business Day prior to the date of the proposed Revolving Credit Borrowing, by the Borrower to the Facility Agent which shall give to each Lender prompt notice thereof by facsimile. Each such notice of
a Revolving Credit Borrowing (a “Notice of Revolving Credit Borrowing”) shall be by facsimile, such notice to be in substantially the form of Exhibit B-1 hereto, specifying therein the requested: 

 (i) date of such Revolving Credit Borrowing, 
 (ii) Type of Revolving Credit Advances, 
 (iii) aggregate amount of such Revolving
Credit Borrowing, and 
 (iv) the initial Interest Period for each such Revolving Credit Advance. 
  

 12 

 (b) Funding Revolving Credit Advances. Each Lender shall, before 2:00 P.M. (London
time) on the date of such Revolving Credit Borrowing, make available for the account of its Applicable Lending Office to the Facility Agent at the Facility Agent’s Account, in same day funds, such Lender’s ratable portion of such Revolving
Credit Borrowing. After receipt of such funds by the Facility Agent and upon fulfillment of the applicable conditions set forth in Article 3, the Facility Agent will make such funds available to the relevant Borrower as specified in the applicable
Notice of Revolving Credit Borrowing. 
 (c) Irrevocable Notice. Each Notice of Revolving Credit Borrowing of any Borrower
shall be irrevocable and binding on such Borrower. The Borrower requesting a Revolving Credit Borrowing shall indemnify each Lender against any loss, cost or expense incurred by such Lender as a result of any failure to fulfill on or before the date
specified in such Notice of Revolving Credit Borrowing for such Revolving Credit Borrowing the applicable conditions set forth in Article 3, including, without limitation, any loss (excluding loss of anticipated profits, indirect losses and special
or consequential damages), cost or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired by such Lender to fund the Revolving Credit Advance to be made by such Lender as part of such Revolving Credit
Borrowing when such Revolving Credit Advance, as a result of such failure, is not made on such date. 
 (d) Lender’s
Ratable Portion. Unless the Facility Agent shall have received notice from a Lender prior to 2:00 P.M. (London time) on the day of any Revolving Credit Borrowing that such Lender will not make available to the Facility Agent such Lender’s
ratable portion of such Revolving Credit Borrowing, the Facility Agent may assume that such Lender has made such portion available to the Facility Agent on the date of such Revolving Credit Borrowing in accordance with Section 2.3(b) and the
Facility Agent may, in reliance upon such assumption, make available to the Borrower proposing such Revolving Credit Borrowing on such date a corresponding amount. If and to the extent that such Lender shall not have so made such ratable portion
available to the Facility Agent such Lender and such Borrower severally agree to repay to the Facility Agent forthwith on demand such corresponding amount together with interest thereon, for each day from the date such amount is made available to
such Borrower until the date such amount is repaid to the Facility Agent at: 
 (i) in the case of such Borrower, the higher of
(A) the interest rate applicable at the time to Revolving Credit Advances comprising such Revolving Credit Borrowing and (B) the cost of funds incurred by the Facility Agent in respect of such amount, and 
 (ii) in the case of such Lender, the cost of funds incurred by the Facility Agent in respect of such amount. 
 If such Lender shall repay to the Facility Agent such corresponding amount, such amount so repaid shall constitute such Lender’s Revolving Credit
Advance as part of such Revolving Credit Borrowing for purposes of this Agreement. 
  

 13 

 (e) Independent Lender Obligations. The failure of any Lender to make the Revolving
Credit Advance to be made by it as part of any Revolving Credit Borrowing shall not relieve any other Lender of its obligation, if any, hereunder to make its Revolving Credit Advance on the date of such Revolving Credit Borrowing, but no Lender
shall be responsible for the failure of any other Lender to make the Revolving Credit Advance to be made by such other Lender on the date of any Revolving Credit Borrowing. 
  

	2.4.	Repayment of Revolving Credit Advances. Each Borrower shall repay to the Facility Agent for the ratable account of the Lenders on the applicable Termination Date
the unpaid principal amount of the Revolving Credit Advances then outstanding. 

  

	2.5.	Interest on Revolving Credit Advances. Subject to Section 2.7(c), each Borrower shall pay interest on the unpaid principal amount of each Revolving Credit
Advance owing by such Borrower to each Lender from the date of such Revolving Credit Advance until such principal amount shall be paid in full, at the following rates per annum: 

 (a) EURIBOR Advances. During such periods as such Revolving Credit Advance is a EURIBOR Advance, a rate per annum equal at all times
during each Interest Period for such Revolving Credit Advance to the sum of (x) EURIBOR for such Interest Period for such Revolving Credit Advance plus (y) the Applicable Interest Rate Margin plus (z) Mandatory Cost, if
any, payable in arrears on the last day of such Interest Period and, if such Interest Period has a duration of more than six months, on the day that occurs during such Interest Period six months from the first day of such Interest Period and on the
date such EURIBOR Advance shall be paid in full. 
 (b) LIBOR Advances. During such periods as such Revolving Credit
Advance is a LIBOR Advance, a rate per annum equal at all times during each Interest Period for such Revolving Credit Advance to the sum of (x) LIBOR for such Interest Period for such Revolving Credit Advance plus (y) the Applicable
Interest Rate Margin plus (z) Mandatory Cost, if any, payable in arrears on the last day of such Interest Period and, if such Interest Period has a duration of more than six months, on the day that occurs during such Interest Period six
months from the first day of such Interest Period and on the date such LIBOR Advance shall be paid in full. 
  

	2.6.	Absence of Interest Period for Revolving Credit Advances. If any Borrower shall fail to select the duration of any Interest Period for any Revolving Credit
Advances in accordance with the provisions contained in the definition of the term “Interest Period,” the Facility Agent will forthwith so notify such Borrower and the Lenders and the Interest Period for such Advances will automatically,
on the last day of the then existing Interest Period therefor, be one month. 

  

	2.7.	 Interest Rate Determination for Revolving Credit Advances. (a) Methods to Determine EURIBOR and LIBOR. The Facility Agent shall
determine EURIBOR and LIBOR by using the methods described in the definition of the terms “EURIBOR” and “LIBOR,”

  

 14 

	 	 
respectively, and shall give prompt notice to the Borrower and the Lenders of each such EURIBOR or LIBOR. 

 (b) Role of Reference Banks. In the event that EURIBOR or LIBOR cannot be determined by the method described in clause (a) of the
definitions “EURIBOR” or “LIBOR,” respectively, each Reference Bank agrees to furnish to the Facility Agent timely information for the purpose of determining EURIBOR or LIBOR, as the case may be, in accordance with the method
described in clause (b) of the definitions thereof. If any one or more of the Reference Banks shall not furnish such timely information to the Facility Agent for the purpose of determining EURIBOR or LIBOR, the Facility Agent shall determine
such interest rate on the basis of timely information furnished by the remaining Reference Banks. 
 (c) Market
Disruption. (i) If the applicable Reuters Page is unavailable and fewer than two Reference Banks furnish timely information to the Facility Agent for determining EURIBOR for any EURIBOR Advances or LIBOR for any LIBOR Advances, as the case
may be, or (ii) with respect to Revolving Credit Advances under any Facility, the Lenders owed or required to lend at least 50.1% of the aggregate principal amount thereof notify the Facility Agent that EURIBOR or LIBOR for any Interest Period
will not adequately reflect the cost to such Lenders of making, funding or maintaining their respective Revolving Credit Advances for such Interest Period (each, a “Market Disruption Event”) then the rate of interest on each
Lender’s share of that Revolving Credit Advance for the Interest Period shall be the rate per annum which is the sum of (x) the Applicable Interest Rate Margin plus (y) the rate notified to the Facility Agent and the Borrower
by that Lender in a certificate (which sets out the details of the computation of the relevant rate and shall be prima facie non-binding evidence of the same) as soon as practicable and in any event before interest is due to be paid in
respect of that Interest Period, to be that which expresses as a percentage rate per annum the cost to that Lender of funding its participation in that Revolving Credit Advance from whatever source it may reasonably select plus
(z) Mandatory Cost, if any, applicable to that Lender’s participation in the Revolving Credit Advance. 
 (d) If a
Market Disruption Event occurs and the Facility Agent or the applicable Borrower so requires: 
 (i) the Facility Agent, PMI and
such Borrower shall enter into negotiations (for a period of not more than thirty (30) days) with a view to agreeing on a substitute basis for determining the interest rate; and 
 (ii) any alternative basis agreed upon pursuant to clause (i) above shall, with the prior consent of all the Lenders, PMI and such
Borrower, be binding on all such parties hereto. 
  

	2.8.	 The Swingline Advances. (a) Obligation to Make Swingline Advances. Each Swingline Lender severally agrees, on the terms and
conditions hereinafter set forth, to make Swingline Advances to any Borrower from time to time on any Business Day during the

  

 15 

	 	 
period from the Effective Date until the Termination Date in an aggregate amount outstanding not to exceed at any time such Swingline Lender’s Swingline Commitment.

 (b) Amount of Swingline Borrowings. Each Swingline Borrowing shall be in an aggregate amount of no
less than $1,000,000. 
 (c) Relationship with the Revolving Credit Facility. 
  

	 	(A)	The Revolving Credit Facility may be used by way of Swingline Advances. The Swingline Facility is not independent of the Revolving Credit Facility.

  

	 	(B)	Notwithstanding any other term of this Agreement, a Swingline Lender is only obliged to participate in a Revolving Credit Advance or a Swingline Advance to the extent
that it would not result in the participation by it and its affiliate that is a Lender in such Revolving Credit Advances and Swingline Advances exceeding its Revolving Credit Commitment or that of its affiliate that is a Lender.

  

	 	(C)	Where, but for the operation of paragraph (B) above, a Lender’s participation (including the participation of its affiliate that is a Swingline Lender
hereunder) in the Revolving Credit Advances and Swingline Advances would have exceeded its Revolving Credit Commitment, the excess will be apportioned among the other Lenders participating in the relevant Revolving Credit Advance pro rata according
to their relevant Revolving Credit Commitments. This calculation will be applied as often as necessary until the Revolving Credit Advance is apportioned among the relevant Lenders in a manner consistent with paragraph (B) above.

  

	2.9.	Making the Swingline Advances. (a) Notice of Swingline Borrowing. Each Swingline Borrowing shall be made on notice, given not later than 12:00 P.M.
(New York time) on the date of the proposed Swingline Borrowing, by the Borrower to the Swingline Agent which shall give to the Swingline Lenders prompt notice thereof by facsimile. Each such notice of a Swingline Borrowing (a “Notice of
Swingline Borrowing”) shall be by facsimile, such notice to be in substantially the form of Exhibit B-2 hereto, specifying therein the requested: 

 (i) date of such Swingline Borrowing, 
 (ii) aggregate amount of such Swingline
Borrowing, and 
 (iii) the Interest Period for each such Swingline Advance. 
  

 16 

 (b) Funding Swingline Advances. Each Swingline Lender shall, before 1:30 P.M. (New
York time) with respect to Notices of Swingline Borrowing given before 12:00 P.M. (New York time), on the date of such Swingline Borrowing, make available for the account of its Applicable Lending Office to the Swingline Agent, in same day
funds, such Swingline Lender’s ratable portion of such Swingline Borrowing. After receipt of such funds by the Swingline Agent and upon fulfillment of the applicable conditions set forth in Article 3, the Swingline Agent will make such funds
available to the relevant Borrower as specified in the applicable Notice of Swingline Borrowing. 
 (c) Irrevocable
Notice. Each Notice of Swingline Borrowing of any Borrower shall be irrevocable and binding on such Borrower. The Borrower requesting a Swingline Borrowing shall indemnify each Swingline Lender against any loss, cost or expense incurred by such
Swingline Lender as a result of any failure to fulfill on or before the date specified in such Notice of Swingline Borrowing for such Swingline Borrowing the applicable conditions set forth in Article 3, including, without limitation, any loss
(excluding loss of anticipated profits, indirect losses and special or consequential damages), cost or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired by such Swingline Lender to fund the Swingline
Advance to be made by such Swingline Lender as part of such Swingline Borrowing when such Swingline Advance, as a result of such failure, is not made on such date. 
 (d) Swingline Lender’s Ratable Portion. Unless the Swingline Agent shall have received notice from a Swingline Lender prior to 1:30 P.M. (New York time) with respect to Notices of Swingline
Borrowing given before 12:00 P.M. (New York time), on the day of any Swingline Borrowing that such Swingline Lender will not make available to the Swingline Agent such Swingline Lender’s ratable portion of such Swingline Borrowing, the
Swingline Agent may assume that such Swingline Lender has made such portion available to the Swingline Agent on the date of such Swingline Borrowing in accordance with Section 2.9(b) and the Swingline Agent may, in reliance upon such
assumption, make available to the Borrower proposing such Swingline Borrowing on such date a corresponding amount. If and to the extent that such Swingline Lender shall not have so made such ratable portion available to the Swingline Agent such
Swingline Lender and such Borrower severally agree to repay to the Swingline Agent forthwith on demand such corresponding amount together with interest thereon, for each day from the date such amount is made available to such Borrower until the date
such amount is repaid to the Swingline Agent at: 
 (i) in the case of such Borrower, the higher of (A) the interest rate
applicable at the time to Swingline Advances comprising such Swingline Borrowing and (B) the cost of funds incurred by the Swingline Agent in respect of such amount, and 
 (ii) in the case of such Swingline Lender, the cost of funds incurred by the Swingline Agent in respect of such amount. 
  

 17 

 If such Swingline Lender shall repay to the Swingline Agent such corresponding amount, such amount so repaid
shall constitute such Swingline Lender’s Swingline Advance as part of such Swingline Borrowing for purposes of this Agreement. 
 (e) Independent Swingline Lender Obligations. The failure of any Swingline Lender to make the Swingline Advance to be made by it as part of any Swingline Borrowing shall not relieve any other Swingline Lender of its obligation
hereunder to make its Swingline Advance on the date of such Swingline Borrowing, but no Swingline Lender shall be responsible for the failure of any other Swingline Lender to make the Swingline Advance to be made by such other Swingline Lender on
the date of any Swingline Borrowing. 
  

	2.10.	Repayment of Swingline Advances. (a) Each Borrower shall repay to the Swingline Agent for the ratable account of the Swingline Lenders on the last day of
the applicable Interest Period, the unpaid principal amount of any Swingline Advance then outstanding. 

 (b) In
the event that a Borrower does not repay a Swingline Advance made to it in full on the last day of its Interest Period, on the Business Day immediately following such day, that Borrower shall be deemed to have served a Notice of Revolving Credit
Borrowing for a LIBOR Advance to be made on the third Business Day thereafter in the amount (including accrued interest) of such Swingline Advance and with an Interest Period of one month and such LIBOR Advance shall be made on the third Business
Day in accordance with Section 2.1 (without regard to clause (b) thereof) and the proceeds thereof applied in repayment of such Swingline Advance. Notwithstanding anything contained herein to the contrary, for the time period from the day
immediately following the end of the Interest Period for any such Swingline Advance that is not repaid on the last day of its Interest Period until and including the third Business Day thereafter, Section 2.17(e) shall apply to the unpaid
principal amount of any such Swingline Advance. 
 (c) Section 3.3 shall not apply to any LIBOR Advance to which this
Section 2.10 refers. 
 (d) In the circumstances set out in paragraph (b) above, to the extent that it is not possible
to make a LIBOR Advance due to the insolvency of a Borrower, the Lenders will indemnify (pro-rata according to their Revolving Credit Commitments) the Swingline Lenders for any loss that they incur as a result of the relevant Swingline Borrowing.

  

	2.11.	 Interest on Swingline Advances. Subject to Section 2.10(b), each Borrower shall pay interest on the unpaid principal amount of each
Swingline Advance owing by such Borrower to each Swingline Lender from the date of such Swingline Advance until such principal amount shall be paid in full, a rate per annum equal at all times during the Interest Period for such Swingline Advance to
the highest of (a) the rate of interest announced publicly by JPMorgan Chase Bank, N.A. in New York, New York, from time to time, as JPMorgan Chase Bank, N.A.’s prime rate, (b) one-half of one percent above

  

 18 

	 	 
the Federal Funds Effective Rate and (c) LIBOR for a one-month Interest Period, payable in arrears on the last day of such Interest Period. 

  

	2.12.	Fees. (a) Commitment Fee. PMI agrees to pay to the Facility Agent for the account of each Lender, 0.1500% per annum on the aggregate amount of
the unused portion of such Lender’s Revolving Credit Commitment (it being understood that any Swingline Advances shall be deemed to use the Revolving Credit Commitment of each Swingline Lender or its affiliate that is a Lender hereunder) from
the date hereof in the case of each Lender that is an Initial Lender and from the effective date specified in the Assignment and Acceptance pursuant to which it became a Lender in the case of each other Lender until the Termination Date, in each
case payable on the last Business Day of each March, June, September and December until the Termination Date and on the Termination Date. 

 (b) Utilization Fee. PMI agrees to pay the Facility Agent for the account of each Lender an amount equal to (x) 0.100% on the aggregate principal amount of all Advances outstanding with
respect to each day on which the aggregate principal amount of all Advances outstanding exceeds 33 1/3% of total Commitments or (y) 0.350% on the aggregate principal amount of all Advances outstanding with respect to each day on which the
aggregate principal amount of all Advances outstanding exceeds 66 2/3% of total Commitments, payable on the last Business Day of each March, June, September and December until the Termination Date and on the Termination Date, to the extent
applicable. 
 (c) Agent’s Fees. PMI shall pay to the Facility Agent and Swingline Agent for its own account such
fees as may from time to time be agreed between PMI and such Agent. 
  

	2.13.	Optional Termination or Reduction of the Commitments. PMI shall have the right, upon at least three Business Days’ notice to the Facility Agent, to
terminate in whole or reduce ratably in part the unused portions of the respective Revolving Credit Commitments of the Lenders; provided that each partial reduction shall be in the aggregate amount of no less than $50,000,000 or the remaining
balance if less than $50,000,000 and shall be ratable among the Lenders affected thereby in accordance with their Commitments; and provided, further, that any such termination or reduction of Revolving Credit Commitments shall not
affect the Swingline Commitments unless, after giving effect to such termination or reduction, the aggregate Swingline Commitments would exceed the aggregate Revolving Credit Commitments, in which case the Swingline Commitments shall be reduced
ratably. 

  

	2.14.	Prepayments of Advances. (a) Optional Prepayments. (i) Revolving Credit Advances. Each Borrower may, upon at least three Business
Days’ notice to the Facility Agent stating the proposed date and aggregate principal amount of the prepayment, and if such notice is given such Borrower shall, prepay the outstanding principal amount of the Revolving Credit Advances comprising
part of the same Revolving Credit Borrowing in whole or ratably in part; provided, however, that each partial prepayment shall be in an aggregate principal amount of no less than €50,000,000 or $50,000,000, as the case may be, or
the remaining balance if less than €50,000,000 or $50,000,000. 

  

 19 

 (ii) Swingline Advances. Each Borrower may, upon notice to the Swingline Agent by
9:00 A.M. (London time) on the date of the prepayment stating the aggregate principal amount of the prepayment, and, if such notice is given such Borrower shall, prepay the outstanding principal amount of the Swingline Advances comprising part of
the same Swingline Borrowing in whole or ratably in part; provided, however, that each partial prepayment shall be in an aggregate principal amount of no less than $1,000,000. 
 (b) Mandatory Prepayments. (i) If the Facility Agent notifies PMI that, on any interest payment date, the sum of (A) the
Equivalent in Dollars (determined on the third Business Day prior to such interest payment date) of the aggregate principal amount of the Revolving Credit Advances denominated in Euro plus (B) the aggregate principal amount of all Revolving
Credit Advances denominated in Dollars then outstanding and Swingline Advances then outstanding exceeds 105% of the aggregate Revolving Credit Commitments of the Lenders on such date, PMI and each other Borrower shall, within two Business Days after
receipt of such notice, prepay the outstanding principal amount of any Revolving Credit Advances and Swingline Advances owing by such Borrower in an aggregate amount sufficient to reduce such sum to an amount not to exceed 100% of the aggregate
Revolving Credit Commitments of the Lenders on such date. 
 (ii) The Facility Agent shall give prompt notice of any prepayment
required under this Section 2.14(b) to the Borrowers and the Lenders. Prepayments under this Section 2.14(b) shall be allocated first to Swingline Advances, ratably among the Swingline Lenders; and any excess amount shall then be allocated
to Revolving Credit Advances comprising part of the same Revolving Credit Borrowing selected by the applicable Borrower, ratably among the Lenders. 
 (c) Each prepayment made pursuant to this Section 2.14 shall be made together with any interest accrued to the date of such prepayment on the principal amounts prepaid and any additional amounts
which such Borrower shall be obligated to reimburse to the Lenders in respect thereof pursuant to Section 9.4(b). 
  

	2.15.	 Increased Costs. (a) Costs from Change in Law or Authorities. If, due to either (i) the introduction of or any change (other
than any change by way of imposition or increase of reserve requirements to the extent such change is included in Mandatory Cost) in or in the interpretation of any law or regulation or (ii) the compliance with any guideline or request from any
central bank or other governmental authority (whether or not having the force of law), there shall be any increase in the cost to any Lender of agreeing to make or making, funding or maintaining Advances (excluding for purposes of this
Section 2.15 any such increased costs resulting from (i) Taxes or Other Taxes (as to which Section 2.18 shall govern) and (ii) changes in the basis of taxation of overall net income or overall gross income by the United States or
by the foreign jurisdiction or state under the laws of which such Lender is organized or has its Applicable Lending Office or any political subdivision thereof), then the Borrower of the affected Advances shall from time to time, upon demand by such
Lender (with a copy of such demand to the Facility Agent), pay to the Facility Agent for the account of such Lender additional amounts

  

 20 

	 	 
sufficient to compensate such Lender for such increased cost; provided, however, that before making any such demand, each Lender agrees to use reasonable efforts (consistent with
its internal policy and legal and regulatory restrictions) to designate a different Applicable Lending Office if the making of such a designation would avoid the need for, or reduce the amount of, such increased cost and would not, in the reasonable
judgment of such Lender, be otherwise disadvantageous to such Lender. A certificate as to the amount of such increased cost, submitted to such Borrower and the Facility Agent by such Lender, shall be conclusive and binding for all purposes, absent
manifest error. 

 (b) Reduction in Lender’s Rate of Return. In the event that, after the date
hereof, the implementation of or any change in any law or regulation, or any guideline or directive (whether or not having the force of law) or the interpretation or administration thereof by any central bank or other authority charged with the
administration thereof, imposes, modifies or deems applicable any capital adequacy or similar requirement (including, without limitation, a request or requirement which affects the manner in which any Lender allocates capital resources to its
commitments, including its obligations hereunder) and as a result thereof, in the sole opinion of such Lender, the rate of return on such Lender’s capital as a consequence of its obligations hereunder is reduced to a level below that which such
Lender could have achieved but for such circumstances, but reduced to the extent that Borrowings are outstanding from time to time, then in each such case, upon demand from time to time PMI shall pay to such Lender such additional amount or amounts
as shall compensate such Lender for such reduction in rate of return; provided that, in the case of each Lender, such additional amount or amounts shall not exceed 0.15 of 1% per annum of such Lender’s Commitment. A certificate of
such Lender as to any such additional amount or amounts shall be conclusive and binding for all purposes, absent manifest error. Except as provided below, in determining any such amount or amounts each Lender may use any reasonable averaging and
attribution methods. Notwithstanding the foregoing, each Lender shall take all reasonable actions to avoid the imposition of, or reduce the amounts of, such increased costs, provided that such actions, in the reasonable judgment of such
Lender, will not be otherwise disadvantageous to such Lender, and, to the extent possible, each Lender will calculate such increased costs based upon the capital requirements for its Commitment hereunder and not upon the average or general capital
requirements imposed upon such Lender. 
  

	2.16.	 Illegality. Notwithstanding any other provision of this Agreement, if (a) any Lender shall notify the Facility Agent that the introduction
of or any change in or in the interpretation of any law or regulation makes it unlawful, or any central bank or other governmental authority asserts that it is unlawful, for such Lender or its Applicable Lending Office to perform its obligations
hereunder to make Advances or to fund or maintain Advances or (b) any Lender notifies PMI and the Facility Agent that it is unlawful for such Lender or its Applicable Lending Office to make Advances or to fund or maintain Advances to a
Designated Subsidiary due to the jurisdiction of organization of such Designated Subsidiary, then, in each case, the obligation of such Lender to make such Advances shall be suspended until the Facility Agent shall notify PMI and the Lenders that
the circumstances causing such suspension no longer exist and the relevant aggregate Commitments shall be temporarily reduced by the amount of such Lender’s share of the

  

 21 

	 	 
Commitments affected by such illegality for the duration of the suspension with respect to such Advances; provided, however, that each Lender agrees to (i) use reasonable
efforts (consistent with its internal policy and legal and regulatory restrictions) to designate a different Applicable Lending Office if the making of such a designation would allow such Lender or its Applicable Lending Office to continue to
perform its obligations to make Advances or to continue to fund or maintain Advances and would not, in the judgment of such Lender, be otherwise disadvantageous to such Lender and (ii) to make or fund Advances to a different Borrower designated
by PMI if the making of such designation would allow such Lender to continue to perform its obligations to make Advances or to continue to fund or maintain Advances. 

  

	2.17.	Payments and Computations. (a) Time and Distribution of Payments. PMI and each Borrower shall make each payment hereunder, without set-off or
counterclaim, not later than 11:00 A.M. (London time) on the day when due to the Facility Agent at the Facility Agent’s Account in same day funds. The Facility Agent will promptly thereafter cause to be distributed like funds relating to the
payment of principal or interest or commitment or utilization fees ratably (other than amounts payable pursuant to Section 2.15, 2.18 or 9.4(b)) to the Lenders for the account of their respective Applicable Lending Offices, and like funds
relating to the payment of any other amount payable to any Lender to such Lender for the account of its Applicable Lending Office, in each case to be applied in accordance with the terms of this Agreement. From and after the effective date of an
Assignment and Acceptance pursuant to Section 9.7, the Facility Agent shall make all payments hereunder in respect of the interest assigned thereby to the Lender assignee thereunder, and the parties to such Assignment and Acceptance shall make
all appropriate adjustments in such payments for periods prior to such effective date directly between themselves. 

 (b) Computation of Interest and Fees. All computations of interest and commitment and utilization fees shall be made by the Facility Agent or the Swingline Agent on the basis of a year of 360 days, or in the case of interest payable
pursuant to Section 2.11, 365/366 days, in each case for the actual number of days (including the first day but excluding the last day) occurring in the period for which such interest or commitment or utilization fees are payable. Each
determination by the Facility Agent or the Swingline Agent of an interest rate hereunder shall be conclusive and binding for all purposes, absent manifest error. 
 (c) Payment Due Dates. Whenever any payment hereunder shall be stated to be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day, and such
extension of time shall in such case be included in the computation of payment of interest or commitment or utilization fees, as the case may be; provided, however, that if such extension would cause payment of interest on or principal
of Revolving Credit Advances to be made in the next following calendar month, such payment shall be made on the immediately preceding Business Day. 
 (d) Presumption of Borrower Payment. Subject to Section 2.10(b), unless the Facility Agent receives notice from any Borrower prior to the date on which any payment is due 
  

 22 

 to the Lenders hereunder that such Borrower will not make such payment in full, the Facility
Agent may assume that such Borrower has made such payment in full to the Facility Agent on such date and the Facility Agent may, in reliance upon such assumption, cause to be distributed to each Lender on such due date an amount equal to the amount
then due such Lender. If and to the extent such Borrower has not made such payment in full to the Facility Agent, each Lender shall repay to the Facility Agent forthwith on demand such amount distributed to such Lender together with interest
thereon, for each day from the date such amount is distributed to such Lender until the date such Lender repays such amount to the Facility Agent at the cost of funds incurred by the Facility Agent in respect of such amount. 
 (e) Default Interest. Upon the occurrence and during the continuance of an Event of Default, each Borrower shall pay interest on the
unpaid principal amount of each Advance owing to each Lender, payable in arrears on the dates referred to in Section 2.5 or Section 2.11, at a rate per annum equal at all times to 1% per annum above the rate per annum required to be
paid on such Advance. 
  

	2.18.	Taxes. (a) Any and all payments by each Borrower and PMI hereunder shall be made, in accordance with Section 2.17, free and clear of and without
deduction for any and all present or future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with respect thereto, excluding, (i) in the case of each Lender and each Agent, taxes imposed on its net income,
and franchise taxes imposed on it, by the jurisdiction under the laws of which such Lender or Agent (as the case may be), is organized or any political subdivision thereof, (ii) in the case of each Lender, taxes imposed on its net income, and
franchise taxes imposed on it, by the jurisdiction of such Lender’s Applicable Lending Office or any political subdivision thereof, (iii) in the case of each Lender and each Agent, taxes imposed on its net income, franchise taxes imposed
on it, and any tax imposed by means of withholding to the extent such tax is imposed solely as a result of a present or former connection (other than the execution, delivery and performance of this Agreement or a Note) between such Lender or Agent
(as the case may be) and the taxing jurisdiction, and (iv) in the case of each Lender and each Agent, taxes imposed by the United States by means of withholding tax if and to the extent that such taxes shall be in effect and shall be applicable
on the date hereof to payments to be made to such Lender’s Applicable Lending Office or to such Agent (all such non-excluded taxes, levies, imposts, deductions, charges, withholdings and liabilities in respect of payments hereunder being
hereinafter referred to as “Taxes”). 

 (b) If any Borrower or PMI shall be required by law to
deduct any Taxes from or in respect of any sum payable hereunder to any Lender or Agent, (i) the sum payable shall be increased as may be necessary so that after making all required deductions (including deductions applicable to additional sums
payable under this Section 2.18) such Lender or Agent (as the case may be), receives an amount equal to the sum it would have received had no such deductions been made, (ii) such Borrower or PMI shall make such deductions and
(iii) such Borrower or PMI shall pay the full amount deducted to the relevant taxation authority or other authority in accordance with applicable law. If clause 
  

 23 

 (i) of this Section 2.18(b) is unenforceable for any reason in respect of any Borrower,
then: 
  

	 	(A)	for each period during which a deduction or withholding for or on account of any Taxes is required to be made by the Borrower with respect to the payment of interest
under this Agreement (the “Tax Deduction”), in lieu of application of clause (i) of this Section 2.18(b), the rate of interest on the Advances as set out in Sections 2.5 and 2.11 shall be the percentage rate per annum
which is the aggregate of the applicable: 

 (i) Interest Rate Margin, 
 (ii) EURIBOR, LIBOR, or interest rate on Swingline Advance (determined under Section 2.11), as applicable; and 
 (iii) Mandatory Cost, if any, 
 divided by a factor equal to one (1) minus the amount of the Tax Deduction expressed as a multiplier (i.e., ten (10) percent will be expressed as 0.10 and not as 10%); and 
  

	 	(B)	all references to a rate of interest under Sections 2.5 and 2.11 shall be construed thereafter as adjusted in accordance with this Section 2.18(b).

 (c) In addition, each Borrower or PMI shall pay any present or future stamp or documentary taxes or any other
excise or property taxes, charges or similar levies that arise from any payment made hereunder or from the execution, delivery or registration of, performing under, or otherwise with respect to, this Agreement (hereinafter referred to as
“Other Taxes”). 
 (d) Each Borrower and PMI shall indemnify each Lender and each Agent for and hold it harmless
against the full amount of Taxes or Other Taxes (including, without limitation, Taxes and Other Taxes imposed by any jurisdiction on amounts payable under this Section 2.18) paid by such Lender or Agent (as the case may be), and any liability
(including penalties, interest and expenses) arising therefrom or with respect thereto, whether or not such Taxes or Other Taxes were correctly or legally asserted. This indemnification shall be made within 30 days from the date such Lender or Agent
(as the case may be), makes written demand therefor. 
 (e) Within 30 days after the date of any payment of Taxes, each Borrower
and PMI shall furnish to the relevant Agent at its address referred to in Section 9.2, the original or a certified copy of a receipt evidencing such payment. If any Borrower or PMI determines that no Taxes are payable in respect thereof, such
Borrower or PMI shall, at the request of the relevant Agent, furnish or cause the payor to furnish, such Agent and each Lender an opinion of counsel reasonably acceptable to such Agent stating that such payment is exempt from Taxes. 
  

 24 

 (f) Each Lender, on or prior to the date of its execution and delivery of this Agreement in
the case of each Initial Lender and on the date of the Assignment and Acceptance pursuant to which it becomes a Lender in the case of each other Lender, shall provide each of the Agents, PMI and each other Borrower with any form or certificate that
is required by any taxing authority (including, if applicable, two original Internal Revenue Service Forms W-9, W-8BEN or W-8ECI, as appropriate, or any successor or other form prescribed by the Internal Revenue Service), certifying that such Lender
is exempt from or entitled to a reduced rate of Home Jurisdiction Withholding Taxes on payments pursuant to this Agreement. Thereafter, each such Lender shall provide additional forms or certificates (i) to the extent a form or certificate
previously provided has become inaccurate or invalid or has otherwise ceased to be effective or (ii) as requested in writing by any Borrower, PMI or the relevant Agent. Unless the Borrowers, PMI and the Agents have received forms or other
documents satisfactory to them indicating that payments hereunder are not subject to Home Jurisdiction Withholding Taxes or are subject to Home Jurisdiction Withholding Taxes at a rate reduced by an applicable tax treaty, such Borrowers, PMI or
Agents shall withhold taxes from such payments at the applicable statutory rate in the case of payments to or for any Lender. 
 (g) Any Lender claiming any additional amounts payable pursuant to this Section 2.18 agrees to use reasonable efforts (consistent with its internal policy and legal and regulatory restrictions) to select or change the jurisdiction of
its Applicable Lending Office if the making of such a selection or change would avoid the need for, or reduce the amount of, any such additional amounts that may thereafter accrue and would not, in the reasonable judgment of such Lender, be
otherwise economically disadvantageous to such Lender. 
 (h) No additional amounts will be payable pursuant to this
Section 2.18 with respect to (i) any Home Jurisdiction Withholding Taxes that would not have been payable had the Lender provided the relevant forms or other documents pursuant to Section 2.18(f); or (ii) in the case of an
Assignment and Acceptance by a Lender to an Eligible Assignee, any Home Jurisdiction Withholding Taxes that exceed the amount of such Home Jurisdiction Withholding Taxes that are imposed prior to such Assignment and Acceptance, unless such
Assignment and Acceptance resulted from the demand of PMI. 
 (i) No additional amounts will be payable pursuant to this
Section 2.18 with respect to any taxes imposed by the United States by means of withholding tax on payments made by any Borrower to any Lender’s Applicable Lending Office or to any Agent, even if such taxes are imposed as a result of the
treatment of payments made by a Borrower that is not organized under the laws of the United States as having been made by a United States person for United States federal income tax purposes, including as a result of an election made to treat such
Borrower as a disregarded entity for United States federal income tax purposes (regardless of whether such election was made after such Borrower became a Borrower under this Agreement), if and to the extent such taxes were in effect and would have
been applicable as of the date hereof to payments to be made by a United States person to such Lender’s Applicable Lending Office or to such Agent (as the case may be). 
  

 25 

 (j) If any Lender or Agent, as the case may be, obtains a refund of any Tax for which
payment has been made pursuant to this Section 2.18, which refund in the good faith judgment of such Lender or Agent, as the case may be, (and without any obligation to disclose its tax records) is allocable to such payment made under this
Section 2.18, the amount of such refund (together with any interest received thereon and reduced by reasonable costs incurred in obtaining such refund) promptly shall be paid to the Borrower to the extent payment has been made in full by the
Borrower pursuant to this Section 2.18. 
  

	2.19.	Sharing of Payments, Etc. If any Lender shall obtain any payment (whether voluntary, involuntary, through the exercise of any right of set-off, or otherwise) on
account of the Revolving Credit Advances owing to it (other than pursuant to Sections 2.15, 2.18 or 9.4(b)) in excess of its ratable share of payments on account of the Revolving Credit Advances obtained by all the Lenders, such Lender shall
forthwith purchase from the other Lenders such participations in the Revolving Credit Advances made by them as shall be necessary to cause such purchasing Lender to share the excess payment ratably with each of them; provided, however,
that if all or any portion of such excess payment is thereafter recovered from such purchasing Lender, such purchase from each Lender shall be rescinded and such Lender shall repay to the purchasing Lender the purchase price to the extent of such
recovery together with an amount equal to such Lender’s ratable share (according to the proportion of (i) the amount of such Lender’s required repayment to (ii) the total amount so recovered from the purchasing Lender) of any
interest or other amount paid or payable by the purchasing Lender in respect of the total amount so recovered, provided further, that, so long as the obligations under this Agreement and the Notes shall not have been accelerated, any
excess payment received by any Lender shall be shared on a pro rata basis only with the other Lenders. Each Borrower agrees that any Lender so purchasing a participation from another Lender pursuant to this Section 2.19 may, to the fullest
extent permitted by law, exercise all its rights of payment (including the right of set-off) with respect to such participation as fully as if such Lender were the direct creditor of such Borrower in the amount of such participation.

  

	2.20.	Evidence of Debt. (a) Lender Records; Notes. Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the
indebtedness of each Borrower to such Lender resulting from each Advance owing to such Lender from time to time, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder in respect of Advances. Each
Borrower shall, upon notice by any Lender to such Borrower (with a copy of such notice to the Facility Agent) to the effect that a Note is required or appropriate in order for such Lender to evidence (whether for purposes of pledge, enforcement or
otherwise) the Revolving Credit Advances owing to, or to be made by, such Lender, promptly execute and deliver to such Lender a Note payable to the order of such Lender in a principal amount up to the Revolving Commitment of such Lender.

 (b) Record of Borrowings, Payables and Payments. The Register maintained by the Facility Agent pursuant
to Section 9.7(d) shall include a control account, and a subsidiary account for each Lender, in which accounts (taken together) shall be recorded as follows: 
  

 26 

 (i) the date, amount and Facility of each Borrowing made hereunder, the Type of Advances
comprising such Borrowing and the Interest Period applicable thereto; 
 (ii) the terms of each Assignment and Acceptance
delivered to and accepted by it; 
 (iii) the amount of any principal or interest due and payable or to become due and payable
from each Borrower to each Lender hereunder; and 
 (iv) the amount of any sum received by the Facility Agent from the Borrowers
hereunder and each Lender’s share thereof. 
 (c) Evidence of Payment Obligations. Entries made in good faith by the
Facility Agent in the Register pursuant to Section 2.20(b), and by each Lender in its account or accounts pursuant to Section 2.20(a), shall be prima facie evidence of the amount of principal and interest due and payable or
to become due and payable from each Borrower to, in the case of the Register, each Lender and, in the case of such account or accounts, such Lender, under this Agreement, absent manifest error; provided, however, that the failure of
the Facility Agent or such Lender to make an entry, or any finding that an entry is incorrect, in the Register or such account or accounts shall not limit or otherwise affect the obligations of any Borrower under this Agreement. 
  

	2.21.	Defaulting Lenders. Notwithstanding any other provision of this Agreement to the contrary, if any Lender becomes a Defaulting Lender, then the following
provisions shall apply for so long as such Lender is a Defaulting Lender: 

 (a) fees shall cease to accrue on the
unfunded portion of such Defaulting Lender’s Revolving Credit Commitments pursuant to Section 2.12(a); 
 (b) the
Defaulting Lender’s Commitments shall not be included in determining whether all Lenders or the Required Lenders have taken or may take action hereunder (including any consent to any amendment or waiver pursuant to Section 9.1);
provided that any waiver, amendment or modification requiring the consent of all Lenders or each affected Lender which affects such Defaulting Lender differently than other affected Lenders shall require the consent of such Defaulting Lender;
and provided further that in the event that a Lender is a Defaulting Lender solely as the result of a failure to fund pursuant to clause (a) of the definition of the term “Defaulting Lender” and such failure to fund is the
subject of a good faith dispute, any waiver, amendment or modification pursuant to Section 9.1(b) or 9.1(d) affecting such Defaulting Lender shall require the consent of such Defaulting Lender; and 
 (c) any amount payable to such Defaulting Lender hereunder (whether on account of principal, interest, fees or otherwise and including any
amount that would otherwise be payable to such Defaulting Lender pursuant to Section 2.19) shall, in lieu of being distributed to such Defaulting Lender, subject to any applicable requirements of law, be

  

 27 

 
applied (i) first, to the payment of any amounts owing hereunder by such Defaulting Lender to JPMEL, as Facility Agent, (ii) second, to the funding of any Advance in respect of which
such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by JPMEL, as Facility Agent, and (iii) third, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction.

 In the event that JPMEL, as Facility Agent, and PMI both agree that a Defaulting Lender has adequately remedied all matters that caused such
Lender to be a Defaulting Lender, then on such date such Lender shall (i) purchase at par such portion of the Advances of the other Lenders as JPMEL, as Facility Agent, shall determine may be necessary in order for such Lender to hold such
Advances ratably in accordance with its respective Commitment and (ii) cease to be a Defaulting Lender. 
  

	2.22.	Use of Proceeds. The proceeds of the Advances shall be available (and each Borrower agrees that it shall use such proceeds) for general corporate purposes of PMI
and its Subsidiaries, including, without limitation, commercial paper backstop. 

  

	3.	CONDITIONS TO EFFECTIVENESS AND LENDING 

  

	3.1.	Conditions Precedent to Effectiveness. This Agreement shall become effective on and as of the first date (the “Effective Date”) on which the
following conditions precedent have been satisfied: 

 (a) PMI shall have notified each Lender and the Facility
Agent in writing as to the proposed Effective Date. 
 (b) On the Effective Date, the following statements shall be true and the
Facility Agent shall have received for the account of each Lender a certificate signed by a duly authorized officer of PMI, dated the Effective Date, stating that: 
 (i) the representations and warranties contained in Section 4.1 are correct on and as of the Effective Date, and 
 (ii) no event has occurred and is continuing that constitutes a Default or Event of Default. 
 (c) JPMEL, as Facility Agent, shall have received on or before the Effective Date copies of the letters from PMI dated on or before such day, terminating in whole the commitments of the banks party to the
Existing Revolving Credit Facilities. 
 (d) Prior to or simultaneously with the Effective Date, PMI shall have satisfied all of
its obligations under the Existing Revolving Credit Facilities including, without limitation, the payment of all loans, accrued interest and fees. 
 (e) The Facility Agent shall have received on or before the Effective Date the following, each dated such day, in form and substance satisfactory to the Facility Agent: 
  

 28 

 (i) Certified copies of the resolutions of the Board of Directors of PMI approving this
Agreement, and of all documents evidencing other necessary corporate action and governmental approvals, if any, with respect to this Agreement. 
 (ii) A certificate of the Secretary or an Assistant Secretary of PMI certifying the names and true signatures of the officers of PMI authorized to sign this Agreement and the other documents to be
delivered hereunder. 
 (iii) Favorable opinions of counsel (which may be in-house counsel) for PMI, substantially in the form of
Exhibits E-1 and E-2 hereto. 
 (iv) A favorable opinion of Simpson Thacher & Bartlett LLP, counsel for the Facility
Agent, substantially in the form of Exhibit G hereto. 
 (v) A certificate of the chief financial officer or treasurer of PMI
certifying that as of 31 December 2009 (A) the aggregate amount of Debt, payment of which is secured by any Lien referred to in clause (iii) of Section 5.2(a), does not exceed $400,000,000, and (B) the aggregate amount of
Debt included in clause (A) of this subsection (v), payment of which is secured by any Lien referred to in clause (iv) of Section 5.2(a), does not exceed $200,000,000. 
 (f) PMI shall have paid all accrued fees and reasonable expenses of the Facility Agent and the Lenders with respect to this Agreement for
which the Facility Agent shall have made reasonable demand in accordance with Section 9.4(a) on or prior to the Effective Date. 
 (g) This Agreement shall have been executed by PMI, JPMEL, as Facility Agent, JPMCB, as Swingline Agent, and J.P. Morgan plc, Deutsche Bank Securities Inc., Citigroup Global Markets Limited, Credit Suisse AG, Cayman Islands Branch, Goldman
Sachs Credit Partners L.P., and RBS Securities Inc., as Mandated Lead Arrangers and Bookrunners, and the Facility Agent shall have been notified by each Initial Lender that such Initial Lender has executed this Agreement. 
 The Facility Agent shall notify PMI and the Initial Lenders of the date which is the Effective Date upon satisfaction of all of the conditions precedent set
forth in this Section 3.1. For purposes of determining compliance with the conditions specified in this Section 3.1, each Lender shall be deemed to have consented to, approved or accepted or to be satisfied with each document or other
matter required thereunder to be consented to or approved by or acceptable or satisfactory to the Lenders unless an officer of the Facility Agent responsible for the transactions contemplated by this Agreement shall have received notice from such
Lender prior to the date that PMI, by notice to the Lenders, designates as the proposed Effective Date, specifying its objection thereto. 
  

	3.2.	 Initial Advance to Each Designated Subsidiary. The obligation of each Lender to make an initial Advance to each Designated Subsidiary following
any designation of such

  

 29 

	 	 
Designated Subsidiary as a Borrower hereunder pursuant to Section 9.8 is subject to the receipt by the Facility Agent on or before the date of such initial Advance of each of the following,
in form and substance satisfactory to the Facility Agent, and dated such date, and in sufficient copies for each Lender: 

 (a) Certified copies of the resolutions of the Board of Directors of such Designated Subsidiary (with a certified English translation if the original thereof is not in English) approving this Agreement,
and of all documents evidencing other necessary corporate action and governmental approvals, if any, with respect to this Agreement. 
 (b) A certificate of a proper officer of such Designated Subsidiary certifying the names and true signatures of the officers of such Designated Subsidiary authorized to sign the Designation Agreement and the other documents to be delivered
hereunder. 
 (c) A certificate signed by a duly authorized officer of the Designated Subsidiary, dated as of the date of such
initial Advance, certifying that such Designated Subsidiary shall have obtained all governmental and third party authorizations, consents, approvals (including exchange control approvals) and licenses required under applicable laws and regulations
necessary for such Designated Subsidiary to execute and deliver the Designation Agreement and to perform its obligations hereunder. 
 (d) The Designation Agreement of such Designated Subsidiary, substantially in the form of Exhibit D hereto. 
 (e) A
favorable opinion of counsel (which may be in-house counsel) to such Designated Subsidiary, dated the date of such initial Advance, covering, to the extent customary and appropriate for the relevant jurisdiction, the opinions outlined on Exhibit F
hereto. 
 (f) Such other approvals, opinions or documents as any Lender, through the Facility Agent may reasonably request.

  

	3.3.	Conditions Precedent to Each Borrowing. The obligation of each Lender to make an Advance on the occasion of each Borrowing is subject to the conditions precedent
that the Effective Date shall have occurred and on the date of such Borrowing the following statements shall be true, and the acceptance by the Borrower of the proceeds of such Borrowing shall be a representation by such Borrower or by PMI, as the
case may be, that: 

 (a) the representations and warranties contained in Section 4.1 (except the
representations set forth in the last sentence of subsection (e) and in subsection (f) thereof (other than clause (i) thereof)) are correct on and as of the date of such Borrowing, before and after giving effect to such Borrowing and
to the application of the proceeds therefrom, as though made on and as of such date, and, if such Borrowing shall have been requested by a Designated Subsidiary, the representations and warranties of such Designated Subsidiary contained in its
Designation Agreement are correct on and as of

  

 30 

 
the date of such Borrowing, before and after giving effect to such Borrowing and to the application of the proceeds therefrom, as though made on and as of such date; 
 (b) after giving effect to the application of the proceeds of all Borrowings on such date (together with any other resources of the Borrower
applied together therewith) no event has occurred and is continuing, or would result from such Borrowing, that constitutes a Default or Event of Default; and 
 (c) if such Borrowing is in an aggregate principal amount equal to or greater than $500,000,000, or the Equivalent in Euro thereof, and is being made in connection with any purchase of shares of such
Borrower’s or PMI’s capital stock or the capital stock of any other Person, or any purchase of all or substantially all of the assets of any Person (whether in one transaction or a series of transactions) or any transaction of the type
referred to in Section 5.2(b), the statement in (b) above shall also be true on a pro forma basis as if such transaction or purchase shall have been completed. 
  

	4.	REPRESENTATIONS AND WARRANTIES 

  

	4.1.	Representations and Warranties of PMI. PMI represents and warrants as follows: 

 (a) It is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization. 
 (b) The execution, delivery and performance of this Agreement and the Notes to be delivered by it are within its corporate powers, have been
duly authorized by all necessary corporate action, and do not contravene (i) its charter or by-laws or (ii) in any material respect, any law, rule, regulation or order of any court or governmental agency or any contractual restriction
binding on or affecting it. 
 (c) No authorization or approval or other action by, and no notice to or filing with, any
governmental authority or regulatory body is required for the due execution, delivery and performance by it of this Agreement or the Notes to be delivered by it. 
 (d) This Agreement is, and each of the Notes to be delivered by it when delivered hereunder will be, a legal, valid and binding obligation of PMI enforceable against PMI in accordance with its terms,
subject to the effect of any applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other laws affecting creditors’ rights generally and subject, as to enforceability, to general principles of equity
(regardless of whether enforcement is sought in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing. 
 (e) As reported in PMI’s Annual Report on Form 10-K for the year ended 31 December 2009, the consolidated balance sheets of PMI and its Subsidiaries as of 31 December 2009 and the
consolidated statements of earnings of PMI and its Subsidiaries for the year then ended fairly present, in all material respects, the consolidated financial position of PMI and its Subsidiaries as at such date and the consolidated results of the
operations of PMI and its Subsidiaries for the year ended on such date, all in accordance

  

 31 

 
with accounting principles generally accepted in the United States. Except as disclosed in PMI’s Annual Report on Form 10-K for the year ended 31 December 2009 and in any Current Report
on Form 8-K filed subsequent to 31 December 2009, but prior to 29 March 2010, since 31 December 2009 there has been no material adverse change in such position or operations. 
 (f) There is no pending or threatened action or proceeding affecting it or any of its Subsidiaries before any court, governmental agency or
arbitrator (a “Proceeding”), (i) that purports to affect the legality, validity or enforceability of this Agreement or (ii) except for Proceedings disclosed in PMI’s Annual Report on Form 10-K for the year ended
31 December 2009, any Current Report on Form 8-K filed subsequent to 31 December 2009, but prior to 29 March 2010 and, with respect to Proceedings commenced after the date of such filing but prior to 29 March 2010, a certificate
delivered to the Lenders, that may materially adversely affect the financial position or results of operations of PMI and its Subsidiaries taken as a whole. 
 (g) It owns directly or indirectly 100% of the capital stock of each other Borrower. 
 (h) None of the proceeds of any Advance will be used, directly or indirectly, for the purpose of purchasing or carrying any Margin Stock or for the purpose of reducing or retiring any indebtedness which was originally incurred to purchase
or carry any Margin Stock or for any other purpose that would constitute the Advances as a “purpose credit” within the meaning of Regulation U and, in each case, would constitute a violation of Regulation U. 
  

	5.	COVENANTS OF PMI 

  

	5.1.	Affirmative Covenants. So long as any Advance shall remain unpaid or any Lender shall have any Commitment hereunder, PMI will: 

 (a) Compliance with Laws, Etc. Comply, and cause each Major Subsidiary to comply, in all material respects, with all applicable laws,
rules, regulations and orders (such compliance to include, without limitation, complying with ERISA and paying before the same become delinquent all taxes, assessments and governmental charges imposed upon it or upon its property except to the
extent contested in good faith), noncompliance with which would materially adversely affect the financial condition or operations of PMI and its Subsidiaries taken as a whole. 
 (b) Maintenance of Ratio of Consolidated EBITDA to Consolidated Interest Expense. Maintain a ratio of Consolidated EBITDA for the four
most recent fiscal quarters of PMI to Consolidated Interest Expense for such four most recent fiscal quarters of not less than 3.5 to 1.0. 
 (c) Reporting Requirements. Furnish to the Lenders or make available on the internet at www.pmi.com (or any successor or replacement website thereof), if such website includes an option to
subscribe to a free service alerting subscribers by e-mail of new

  

 32 

 
U.S. Securities and Exchange Commission filings, if available, or by similar electronic means: 
 (i) as soon as available and in any event within 60 days after the end of each of the first three quarters of each fiscal year of PMI, an unaudited interim condensed consolidated balance sheet of PMI and
its Subsidiaries as of the end of such quarter and unaudited interim condensed consolidated statements of earnings of PMI and its Subsidiaries for the period commencing at the end of the previous fiscal year and ending with the end of such quarter,
certified by the chief financial officer of PMI; 
  

	 	(A)	as soon as available and in any event within 100 days after the end of each fiscal year of PMI, a copy of the consolidated financial statements for such year for PMI
and its Subsidiaries audited by PricewaterhouseCoopers LLP (or other independent auditors which, as of the date of this Agreement, are one of the “big four” accounting firms); and 

  

	 	(B)	all reports which PMI sends to any of its shareholders, and copies of all reports on Form 8-K (or any successor forms adopted by the U.S. Securities and Exchange
Commission) which PMI files with the Securities and Exchange Commission; 

 (ii) as soon as possible and in any
event within five days after the occurrence of each Event of Default and each Default, continuing on the date of such statement, a statement of the chief financial officer or treasurer of PMI setting forth details of such Event of Default or Default
and the action which PMI has taken and proposes to take with respect thereto; 
 (iii) within 60 days after the end of each
fiscal quarter of PMI, a statement of the chief financial officer or treasurer of PMI certifying compliance with the requirements of Section 5.1(b) and setting forth the relevant calculations; and 
 (iv) such other historical information respecting the condition or operations, financial or otherwise, of PMI or any Major Subsidiary as any
Lender through the Facility Agent may from time to time reasonably request. 
  

	5.2.	Negative Covenants. So long as any Advance shall remain unpaid or any Lender shall have any Commitment hereunder, PMI will not: 

 (a) Liens, Etc. Create or suffer to exist, or permit any Major Subsidiary to create or suffer to exist, any lien, security interest or
other charge or encumbrance (other than operating leases and licensed intellectual property), or any other type of preferential arrangement (“Liens”), upon or with respect to any of its properties, whether now owned or hereafter
acquired, or assign, or permit any Major Subsidiary to assign, any right to

  

 33 

 
receive income, in each case to secure or provide for the payment of any Debt of any Person, other than: 
 (i) Liens upon or in property acquired or held by it or any Major Subsidiary in the ordinary course of business to secure the purchase price of such property or to secure indebtedness incurred solely for
the purpose of financing the acquisition of such property; 
 (ii) Liens existing on property at the time of its acquisition
(other than any such Lien created in contemplation of such acquisition); 
 (iii) Liens existing on the date hereof securing
Debt; 
 (iv) Liens on property financed through the issuance of industrial revenue bonds in favor of the holders of such bonds
or any agent or trustee therefor; 
 (v) Liens existing on property of any Person acquired by PMI or any Major Subsidiary;

 (vi) Liens securing Debt in an aggregate amount not in excess of 15% of Consolidated Tangible Assets; 
 (vii) Liens upon or with respect to Margin Stock; 
 (viii) Liens in favor of PMI or any Major Subsidiary; 
 (ix) precautionary Liens
provided by PMI or any Major Subsidiary in connection with the sale, assignment, transfer or other disposition of assets by PMI or such Major Subsidiary which transaction is determined by the Board of Directors of PMI or such Major Subsidiary to
constitute a “sale” under accounting principles generally accepted in the United States; or 
 (x) any extension,
renewal or replacement of the foregoing, provided that (A) such Lien does not extend to any additional assets (other than a substitution of like assets), and (B) the amount of Debt secured by any such Lien is not increased.

 (b) Mergers, Etc. Consolidate with or merge into, or convey or transfer its properties and assets substantially as an
entirety to, any Person, or permit any Subsidiary directly or indirectly owned by it to do so, unless, immediately after giving effect thereto, no Default or Event of Default would exist and, in the case of any merger or consolidation to which PMI
is a party, the surviving corporation is PMI or was a Subsidiary of PMI immediately prior to such merger or consolidation, which is organized and existing under the laws of the United States of America or any State thereof, or the District of
Columbia. The surviving corporation of any merger or consolidation involving PMI or any other Borrower shall assume all of PMI’s or such Borrower’s obligations under this Agreement (including without limitation with respect to PMI’s
obligations, the covenants set forth in

  

 34 

 
Article 5) by the execution and delivery of an instrument in form and substance satisfactory to the Required Lenders. 
  

	6.	EVENTS OF DEFAULT 

  

	6.1.	Events of Default. Each of the following events (each an “Event of Default”) shall constitute an Event of Default: 

 (a) Any Borrower or PMI shall fail to pay any principal of any Revolving Credit Advance when the same becomes due and payable; or any
Borrower or PMI shall fail to pay any principal of any Swingline Advance within three Business Days after the same becomes due and payable; or any Borrower shall fail to pay interest on any Advance, or PMI shall fail to pay any fees payable under
Section 2.12, within ten days after the same becomes due and payable; or 
 (b) Any representation or warranty made or
deemed to have been made by any Borrower or PMI herein or by any Borrower or PMI (or any of their respective officers) in connection with this Agreement shall prove to have been incorrect in any material respect when made or deemed to have been
made; or 
 (c) Any Borrower or PMI shall fail to perform or observe (i) any term, covenant or agreement contained in
Section 5.1(b) or 5.2(b), (ii) any term, covenant or agreement contained in Section 5.2(a) if such failure shall remain unremedied for 15 days after written notice thereof shall have been given to PMI by the Facility Agent or any
Lender or (iii) any other term, covenant or agreement contained in this Agreement on its part to be performed or observed if such failure shall remain unremedied for 30 days after written notice thereof shall have been given to PMI by the
Facility Agent or any Lender; or 
 (d) Any Borrower or PMI or any Major Subsidiary shall fail to pay any principal of or premium
or interest on any Debt which is outstanding in a principal amount of at least $100,000,000 in the aggregate (but excluding Debt arising under this Agreement) of such Borrower or PMI or such Major Subsidiary (as the case may be), when the same
becomes due and payable (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise), and such failure shall continue after the applicable grace period, if any, specified in the agreement or instrument relating to such
Debt unless adequate provision for any such payment has been made in form and substance satisfactory to the Required Lenders; or any Debt of any Borrower or PMI or any Major Subsidiary which is outstanding in a principal amount of at least
$100,000,000 in the aggregate (but excluding Debt arising under this Agreement) shall be declared to be due and payable, or required to be prepaid (other than by a scheduled required prepayment), redeemed, purchased or defeased, or an offer to
prepay, redeem, purchase or defease such Debt shall be required to be made, in each case prior to the stated maturity thereof unless adequate provision for the payment of such Debt has been made in form and substance satisfactory to the Required
Lenders; or 
  

 35 

 (e) Any Borrower or PMI or any Major Subsidiary shall generally not pay its debts as such
debts become due, or shall admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors; or any proceeding shall be instituted by or against any Borrower or PMI or any Major Subsidiary
seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization
or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, or other similar official for it or for any substantial part of its property, and, in the case of any such proceeding instituted against it
(but not instituted by it), either such proceeding shall remain undismissed or unstayed for a period of 60 days or any of the actions sought in such proceeding (including, without limitation, the entry of an order for relief against it or the
appointment of a receiver, trustee, custodian or other similar official for it or for any of its property constituting a substantial part of the property of PMI and its Subsidiaries taken as a whole) shall occur; or any Borrower or PMI or any Major
Subsidiary shall take any corporate action to authorize any of the actions set forth above in this subsection (e); or 
 (f) Any
judgment or order for the payment of money in excess of $100,000,000 shall be rendered against any Borrower or PMI or any Major Subsidiary and there shall be any period of 60 consecutive days during which a stay of enforcement of such unsatisfied
judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; provided that such 60-day stay period shall be extended for a period not to exceed an additional 120 days if (i) PMI, such Borrower or such Major
Subsidiary is contesting such judgment or enforcement of such judgment in good faith, unless, with respect only to judgments or orders rendered outside the United States, such action is not reasonably required to protect its respective assets from
levy or garnishment, and (ii) no assets with a fair market value in excess of $100,000,000 of PMI, such Borrower or such Major Subsidiary have been levied upon or garnished to satisfy such judgment; provided, further, that such
60-day stay period shall be further extended for any judgment or order rendered outside the United States until such time as the conditions in clauses (i) or (ii) are no longer satisfied; or 
 (g) Any Borrower or any ERISA Affiliate shall incur, or shall be reasonably likely to incur, liability in excess of $500,000,000 in the
aggregate as a result of one or more of the following: (i) the occurrence of any ERISA Event; (ii) the partial or complete withdrawal of any Borrower or any ERISA Affiliate from a Multiemployer Plan; or (iii) the reorganization or
termination of a Multiemployer Plan; provided, however, that no Default or Event of Default under this Section 6.1(g) shall be deemed to have occurred if the Borrower or any ERISA Affiliate shall have made arrangements
satisfactory to the PBGC or the Required Lenders to discharge or otherwise satisfy such liability (including the posting of a bond or other security); or 
 (h) So long as any Subsidiary of PMI is a Designated Subsidiary, the Guaranty provided by PMI under Article 8 hereof shall for any reason cease to be valid and binding on PMI or PMI shall so state in
writing. 
  

 36 

	6.2.	Lenders’ Rights upon Event of Default. If an Event of Default occurs or is continuing, then the Facility Agent shall at the request, or may with the
consent, of the Required Lenders, by notice to PMI and the Borrowers: 

 (a) declare the obligation of each Lender
to make further Advances to be terminated, whereupon the same shall forthwith terminate, and 
 (b) declare all the Advances then
outstanding, all interest thereon and all other amounts payable under this Agreement to be forthwith due and payable, whereupon the Advances then outstanding, all such interest and all such amounts shall become and be forthwith due and payable,
without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by the Borrowers; 
 provided, however, that in the event of an actual or deemed entry of an order for relief with respect to any Borrower under the Federal Bankruptcy Code, (i) the obligation of each Lender to make Advances shall
automatically be terminated and (ii) the Advances then outstanding, all such interest and all such amounts shall automatically become and be due and payable, without presentment, demand, protest or any notice of any kind, all of which are
hereby expressly waived by the Borrowers. 
  

	7.	THE AGENTS 

  

	7.1.	Authorization and Action. Each Lender (in its capacities as a Lender and Swingline Lender, as applicable) hereby appoints and authorizes each Agent to take such
action as agent on its behalf and to exercise such powers and discretion under this Agreement as are delegated to such Agent by the terms hereof, together with such powers and discretion as are reasonably incidental thereto. As to any matters not
expressly provided for by this Agreement (including, without limitation, enforcement or collection of the Notes), no Agent shall be required to exercise any discretion or take any action, but shall be required to act or to refrain from acting (and
shall be fully protected in so acting or refraining from acting) upon the instructions of the Required Lenders, and such instructions shall be binding upon all Lenders and all holders of Notes; provided, however, that no Agent shall be
required to take any action that exposes it to personal liability or that is contrary to this Agreement or applicable law. Each Agent agrees to give to each Lender prompt notice of each notice given to it by PMI or any Borrower as required by the
terms of this Agreement or at the request of PMI or such Borrower, and any notice provided pursuant to Section 5.1(c)(ii). JPMEL, as Facility Agent, may execute any of its duties under this Agreement by or through its affiliate, JPMorgan Chase
Bank, N.A. 

  

	7.2.	Agents’ Reliance, Etc. Neither any Agent nor any of its directors, officers, agents or employees shall be liable for any action taken or omitted to be taken
by it or them under or in connection with this Agreement, except for its or their own gross negligence or willful misconduct. Without limitation of the generality of the foregoing, each Agent: 

  

 37 

 (a) may treat the Lender that made any Advance as the holder of the Debt resulting therefrom
until, in the case of the Facility Agent, the Facility Agent receives and accepts an Assignment and Acceptance entered into by such Lender, as assignor, and an Eligible Assignee, as assignee, or, in the case of the Swingline Agent, such Agent has
received notice from the Facility Agent that it has received and accepted such Assignment and Acceptance, in each case as provided in Section 9.7; 
 (b) may consult with legal counsel (including counsel for PMI or any Borrower), independent public accountants and other experts selected by it and shall not be liable for any action taken or omitted to
be taken in good faith by it in accordance with the advice of such counsel, accountants or experts; 
 (c) makes no warranty or
representation to any Lender and shall not be responsible to any Lender for any statements, warranties or representations (whether written or oral) made in or in connection with this Agreement; 
 (d) shall not have any duty to ascertain or to inquire as to the performance or observance of any of the terms, covenants or conditions of
this Agreement on the part of PMI or any Borrower or to inspect the property (including the books and records) of PMI or such Borrower; 
 (e) shall not be responsible to any Lender for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or any other instrument or document furnished pursuant hereto; and 
 (f) shall incur no liability under or in respect of this Agreement by acting upon any notice, consent, certificate or other instrument or
writing (which may be by facsimile) believed by it to be genuine and signed or sent by the proper party or parties. 
  

	7.3.	JPMEL and Affiliates. With respect to its Commitment and the Advances made by it, JPMEL shall have the same rights and powers under this Agreement as any other
Lender and may exercise the same as though it were not an Agent; and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated, include JPMEL in its individual capacity. JPMEL and its affiliates may accept
deposits from, lend money to, act as trustee under indentures of, accept investment banking engagements from and generally engage in any kind of business with, PMI, any Borrower, any of its Subsidiaries and any Person who may do business with or own
securities of PMI, any Borrower or any such Subsidiary, all as if JPMEL was not an Agent and without any duty to account therefor to the Lenders. 

  

	7.4.	 Lender Credit Decision. Each Lender acknowledges that it has, independently and without reliance upon any Agent or any Mandated Lead Arranger
and Bookrunner, or any other Lender and based on the financial statements referred to in Section 4.1(e) and such other documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this
Agreement. Each Lender also acknowledges that it will, independently and without reliance upon any Agent, any Mandated Lead Arranger

  

 38 

	 	 
and Bookrunner, or any other Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action
under this Agreement. 

  

	7.5.	Indemnification. (a) The Lenders agree to indemnify the Facility Agent (to the extent not reimbursed by PMI or the Borrowers), from and against such
Lender’s ratable share (determined as provided below) of any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever that may be imposed on,
incurred by, or asserted against the Facility Agent in any way relating to or arising out of this Agreement or any action taken or omitted by the Facility Agent under this Agreement (collectively, the “Indemnified Costs”),
provided that no Lender shall be liable for any portion of the Indemnified Costs resulting from the Facility Agent’s gross negligence or willful misconduct. Without limitation of the foregoing, each Lender agrees to reimburse the
Facility Agent promptly upon demand for its ratable share of any out-of-pocket expenses (including counsel fees) incurred by the Facility Agent in connection with the preparation, execution, delivery, administration, modification, amendment or
enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement, to the extent that the Facility Agent is not reimbursed for such expenses by PMI or the
Borrowers. In the case of any investigation, litigation or proceeding giving rise to any Indemnified Costs, this Section 7.5 applies whether any such investigation, litigation or proceeding is brought by the Facility Agent, any Lender or a
third party. For purposes of this Section 7.5(a), the Lenders’ respective ratable shares of any amount shall be determined, at any time, according to their respective aggregate Revolving Credit Commitments at such time.

 (b) The Lenders agree to indemnify the Swingline Agent (to the extent not reimbursed by PMI or the Borrowers),
from and against such Lender’s ratable share (determined according to their respective Revolving Credit Commitments at such time) of any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever that may be imposed on, incurred by, or asserted against the Swingline Agent in any way relating to or arising out of this Agreement or any action taken or omitted by the Swingline Agent under this
Agreement, provided that no Lender shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from the Swingline Agent’s gross
negligence or willful misconduct. Without limitation of the foregoing, each Lender agrees to reimburse the Swingline Agent promptly upon demand for its ratable share of any out-of-pocket expenses (including counsel fees) payable by the Borrowers
under Section 9.4(a), to the extent that the Swingline Agent is not reimbursed for such expenses by PMI or the Borrowers. In the case of any investigation, litigation or proceeding giving rise to any indemnification hereunder, this
Section 7.5 applies whether any such investigation, litigation or proceeding is brought by the Swingline Agent, any Lender or a third party. 
  

	7.6.	 Successor Agents. Any Agent may resign at any time by giving written notice thereof to the Lenders and PMI and may be removed at any time with
or without cause by the

  

 39 

	 	 
Required Lenders. Upon any such resignation or removal, the Required Lenders shall have the right to appoint a successor Agent. If no successor Agent shall have been so appointed by the Required
Lenders, and shall have accepted such appointment, within 30 days after the retiring Agent’s giving of notice of resignation or the Required Lenders’ removal of the retiring Agent, then the retiring Agent may, on behalf of the Lenders,
appoint a successor Agent, which shall be a commercial bank organized under the laws of the United States of America or of any State thereof and having a combined capital and surplus of at least $500,000,000. Upon the acceptance of any appointment
as Agent hereunder by a successor Agent, such successor Agent shall thereupon succeed to and become vested with all the rights, powers, discretion, privileges and duties of the retiring Agent, and the retiring Agent shall be discharged from its
duties and obligations under this Agreement. After any retiring Agent’s resignation or removal hereunder as Agent, the provisions of this Article 7 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was an
Agent under this Agreement. 

  

	7.7.	Mandated Lead Arrangers and Bookrunners. Certain entities have been designated as Mandated Lead Arrangers and Bookrunners, under this Agreement, but the use of
such titles does not impose on any of them any duties or obligations greater than those of any other Lender. 

  

	8.	GUARANTY 

  

	8.1.	Guaranty. PMI hereby unconditionally and irrevocably guarantees (the undertaking of PMI contained in this Article 8 being the “Guaranty”) the
punctual payment when due, whether at stated maturity, by acceleration or otherwise, of all obligations of each Borrower now or hereafter existing under this Agreement, whether for principal, interest, fees, expenses or otherwise (such obligations
being the “Obligations”), and any and all expenses (including counsel fees and expenses) incurred by the Facility Agent or the Lenders in enforcing any rights under the Guaranty. 

  

	8.2.	Guaranty Absolute. PMI guarantees that the Obligations will be paid strictly in accordance with the terms of this Agreement, regardless of any law, regulation or
order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of the Facility Agent or the Lenders with respect thereto. The liability of PMI under this Guaranty shall be absolute and unconditional irrespective of:

 (a) any lack of validity, enforceability or genuineness of any provision of this Agreement or any other
agreement or instrument relating thereto; 
 (b) any change in the time, manner or place of payment of, or in any other term of,
all or any of the Obligations, or any other amendment or waiver of or any consent to departure from this Agreement; 
 (c) any
exchange, release or non-perfection of any collateral, or any release or amendment or waiver of or consent to departure from any other guaranty, for all or any of the Obligations; or 
  

 40 

 (d) any other circumstance which might otherwise constitute a defense available to, or a
discharge of, a Borrower or PMI. 
 This Guaranty shall continue to be effective or be reinstated, as the case may be, if at any
time any payment of any of the Obligations is rescinded or must otherwise be returned by the Facility Agent or any Lender upon the insolvency, bankruptcy or reorganization of a Borrower or otherwise, all as though such payment had not been made.

  

	8.3.	Waivers. (a) PMI hereby waives promptness, diligence, notice of acceptance and any other notice with respect to any of the Obligations and this Guaranty and
any requirement that the Facility Agent or any Lender protect, secure, perfect or insure any Lien or any property subject thereto or exhaust any right or take any action against a Borrower or any other Person or any collateral.

 (b) PMI hereby irrevocably waives any claims or other rights that it may now or hereafter acquire against any
Borrower that arise from the existence, payment, performance or enforcement of PMI’s obligations under this Guaranty or this Agreement, including, without limitation, any right of subrogation, reimbursement, exoneration, contribution or
indemnification and any right to participate in any claim or remedy of the Facility Agent or any Lender against such Borrower or any collateral, whether or not such claim, remedy or right arises in equity or under contract, statute or common law,
including, without limitation, the right to take or receive from such Borrower, directly or indirectly, in cash or other property or by set-off or in any other manner, payment or security on account of such claim, remedy or right. If any amount
shall be paid to PMI in violation of the preceding sentence at any time prior to the later of the cash payment in full of the Obligations and all other amounts payable under this Guaranty and the Termination Date, such amount shall be held in trust
for the benefit of the Facility Agent and the Lenders and shall forthwith be paid to the Facility Agent to be credited and applied to the Obligations and all other amounts payable under this Guaranty, whether matured or unmatured, in accordance with
the terms of this Agreement and this Guaranty, or to be held as collateral for any Obligations or other amounts payable under this Guaranty thereafter arising. PMI acknowledges that it will receive direct and indirect benefits from the financing
arrangements contemplated by this Agreement and this Guaranty and that the waiver set forth in this Section 8.3(b) is knowingly made in contemplation of such benefits. 
  

	8.4.	Continuing Guaranty. This Guaranty is a continuing guaranty and shall (a) remain in full force and effect until payment in full (after the Termination Date)
of the Obligations and all other amounts payable under this Guaranty, (b) be binding upon PMI, its successors and assigns, and (c) inure to the benefit of and be enforceable by the Lenders, the Facility Agent and their respective
successors, transferees and assigns. 

  

	9.	MISCELLANEOUS 

  

	9.1.	 Amendments, Etc. No amendment or waiver of any provision of this Agreement, nor consent to any departure by any Borrower or PMI therefrom, shall
in any event be

  

 41 

	 	 
effective unless the same shall be in writing and signed by the Required Lenders or if such amendment, waiver or consent relates solely to the Lenders or the Swingline Lenders, respectively, the
Lenders holding 50.1% of the aggregate Revolving Credit Commitments or Swingline Commitments, respectively, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given;
provided, however, that no amendment, waiver or consent shall, unless in writing and signed by all the Lenders affected thereby, do any of the following: (a) waive any of the conditions specified in Sections 3.1 and 3.2,
(b) increase the Commitments of the Lenders or subject the Lenders to any additional obligations, (c) reduce the principal of, or interest on, the Advances or any fees or other amounts payable hereunder, (d) postpone any date fixed
for any payment of principal of, or interest on, the Advances or any fees or other amounts payable hereunder, (e) change the percentage of the Commitments, or the number of Lenders, that shall be required for the Lenders or any of them to take
any action hereunder, (f) release PMI from any of its obligations under Article 8 or (g) amend this Section 9.1; and provided further that no amendment, waiver or consent shall, unless in writing and signed by the
Facility Agent in addition to the Lenders required above to take such action, affect the rights or duties of the Facility Agent under this Agreement or any Advance. 

  

	9.2.	Notices, Etc. (a) Addresses. All notices and other communications provided for hereunder shall be in writing (including facsimile communication) and
mailed, telecopied, or delivered, as follows: 

 if to any Borrower or to PMI, as guarantor: 
 Philip Morris International Inc. 
 120 Park Avenue 
 New York, New York 10017 USA 
 Attention: Secretary 
 Fax number: 917-663-5372 
 and 
 Philip Morris International Management S.A. 
 Avenue de Rhodanie 50 
 1001 Lausanne 
 Switzerland 
 Attention: Treasurer 
 Fax number: +41-58-242-4771; 
 and 
 Philip Morris Finance S.A. 
 Avenue de Rhodanie 50 
 1001 Lausanne 
 Switzerland

  

 42 

 Attention: Director Treasury 
 Facsimile: +41-58-242-4771; 
 if to any Initial Lender, at its Applicable Lending Office specified opposite its name on Schedule I hereto; 
 if to
any other Lender, at its Applicable Lending Office specified in the Assignment and Acceptance pursuant to which it became a Lender; 
 if to JPMEL, as Facility Agent: 
 J.P. Morgan Europe Limited 
 EMEA Loan and Agency Department 
 125 London Wall 
 London EC2Y 5AJ United Kingdom 
 Attention: Loans Agency 
 Facsimile: +44 (0) 207 77 2360 
 if to JPMCB, as Swingline Agent: 
 JPMorgan Chase Bank, N.A. 
 Loan and Agency Department 
 1111 Fannin Street, Floor 10 
 Houston, Texas 77002-6295 USA 
 Facsimile: +1 (713) 750-2956 
 as to any Borrower, PMI or the Facility Agent
at such other address as shall be designated by such party in a written notice to the other parties and, as to each other party, at such other address as shall be designated by such party in a written notice to PMI and the Facility Agent.

 (b) Effectiveness of Notices. All such notices and communications shall, when mailed or telecopied, be effective when
deposited in the mail or telecopied, respectively, except that notices and communications to the Facility Agent pursuant to Article 2, 3 or 7 shall not be effective until received by the Facility Agent. Delivery by facsimile of an executed
counterpart of any amendment or waiver of any provision of this Agreement or of any Exhibit hereto to be executed and delivered hereunder shall be effective as delivery of a manually executed counterpart thereof. 
  

	9.3.	No Waiver; Remedies. No failure on the part of any Lender or the Facility Agent to exercise, and no delay in exercising, any right hereunder or under any Note
shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any
remedies provided by law. 

  

	9.4.	 Costs and Expenses. (a) Facility Agent; Enforcement. PMI agrees to pay on demand all reasonable costs and expenses in connection
with the preparation, execution, delivery,

  

 43 

	 	 
administration (excluding any cost or expenses for administration related to the overhead of the Facility Agent), modification and amendment of this Agreement and the documents to be delivered
hereunder, including, without limitation, the reasonable fees and out-of-pocket expenses of counsel for the Facility Agent with respect thereto and with respect to advising the Facility Agent as to its rights and responsibilities under this
Agreement, and all costs and expenses of the Lenders and the Facility Agent, if any (including, without limitation, reasonable counsel fees and expenses of the Lenders and the Facility Agent), in connection with the enforcement (whether through
negotiations, legal proceedings or otherwise) of this Agreement and the other documents to be delivered hereunder. 

 (b) Prepayment of Advances. If any payment of principal of Advance is made other than on the last day of the Interest Period for such Advance or at its maturity, as a result of a payment pursuant to Section 2.11, acceleration of
the maturity of the Advances pursuant to Section 6.2, an assignment made as a result of a demand by PMI pursuant to Section 9.7(a) or for any other reason, PMI shall, upon demand by any Lender (with a copy of such demand to the Facility
Agent or the Swingline Agent, as applicable), pay to the Facility Agent or the Swingline Agent, as applicable, for the account of such Lender any amounts required to compensate such Lender for any additional losses, costs or expenses which it may
reasonably incur as a result of such payment, including, without limitation, any loss (excluding loss of anticipated profits), cost or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired by any Lender to
fund or maintain such Advance. Without prejudice to the survival of any other agreement of any Borrower or PMI hereunder, the agreements and obligations of each Borrower and PMI contained in Section 2.3(c), 2.9(c), 2.15, 2.18, and this
Section 9.4(b) shall survive the payment in full of principal and interest hereunder. 
 (c) Indemnification. Each
Borrower and PMI jointly and severally agree to indemnify and hold harmless the Facility Agent and each Lender and each of their respective affiliates, control persons, directors, officers, employees, attorneys and agents (each, an
“Indemnified Party”) from and against any and all claims, damages, losses, liabilities and expenses (including, without limitation, reasonable fees and disbursements of counsel) which may be incurred by or asserted against any
Indemnified Party, in each case in connection with or arising out of, or in connection with the preparation for or defense of, any investigation, litigation, or proceeding (i) related to any transaction or proposed transaction (whether or not
consummated) in which any proceeds of any Borrowing are applied or proposed to be applied, directly or indirectly, by any Borrower, whether or not such Indemnified Party is a party to such transaction or (ii) related to any Borrower’s or
PMI’s entering into this Agreement, or to any actions or omissions of any Borrower or PMI, any of their respective Subsidiaries or affiliates or any of its or their respective officers, directors, employees or agents in connection therewith, in
each case whether or not an Indemnified Party is a party thereto and whether or not such investigation, litigation or proceeding is brought by PMI or any Borrower or any other Person; provided, however, that neither any Borrower nor
PMI shall be required to indemnify any such Indemnified Party from or against any portion of such claims, damages, losses, liabilities or expenses that is found in a final, non-appealable judgment

  

 44 

	 	 
by a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of such Indemnified Party. No party to this Agreement shall be liable for any special,
indirect, consequential or punitive damages in connection with the Revolving Credit Facility. 

  

	9.5.	Right of Set-Off. Upon (i) the occurrence and during the continuance of any Event of Default and (ii) the making of the request or the granting of the
consent specified by Section 6.2 to authorize the Facility Agent to declare the Advances due and payable pursuant to the provisions of Section 6.2, each Lender is hereby authorized at any time and from time to time, to the fullest extent
permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other indebtedness at any time owing by such Lender to or for the credit or the account of PMI or any
Borrower against any and all of the obligations of any Borrower or PMI now or hereafter existing under this Agreement, whether or not such Lender shall have made any demand under this Agreement and although such obligations may be unmatured. Each
Lender shall promptly notify the appropriate Borrower or PMI, as the case may be, after any such set-off and application, provided that the failure to give such notice shall not affect the validity of such set-off and application. The rights
of each Lender and its affiliates under this Section 9.5 are in addition to other rights and remedies (including, without limitation, other rights of set-off) that such Lender and its affiliates may have. 

  

	9.6.	Binding Effect. This Agreement shall be binding upon and inure to the benefit of PMI, the Facility Agent, the Swingline Agent, and each Lender and their
respective successors and assigns, except that neither any Borrower nor PMI shall have the right to assign its rights hereunder or any interest herein without the prior written consent of the Lenders. 

  

	9.7.	Assignments and Participations. (a) Assignment of Lender Obligations. Each Lender may and, if demanded by PMI upon at least five Business Days’
notice to such Lender and the Facility Agent, will assign to one or more Persons all or a portion of its rights and obligations under this Agreement (including, without limitation, all or a portion of its Commitments and the Advances owing to it),
subject to the following: 

 (i) each such assignment shall be of a constant, and not a varying, percentage
of all rights and obligations under one or more Facilities under this Agreement (it being understood that any assignment under a Revolving Credit Facility shall include a proportionate assignment under the related Swingline Facility, as applicable);

 (ii) the amount of the Commitment of the assigning Lender being assigned pursuant to each such assignment (determined as of
the date of the Assignment and Acceptance with respect to such assignment) shall in no event be less than $10,000,000 for Revolving Credit Commitments (subject, in each case, to reduction at the sole discretion of PMI) and shall be an integral
multiple of $1,000,000; 
  

 45 

 (iii) each such assignment shall be to an Eligible Assignee, provided, however
that an assignment to a bank or other financial institution that is not a Qualifying Bank shall not be effective without the written approval of PMI, which approval shall be notified to the Facility Agent; 
 (iv) each such assignment made as a result of a demand by PMI pursuant to this Section 9.7(a) shall be arranged by PMI after
consultation with the Facility Agent and shall be either an assignment of all of the rights and obligations of the assigning Lender under this Agreement or an assignment of a portion of such rights and obligations made concurrently with another such
assignment or other such assignments which together cover all of the rights and obligations of the assigning Lender under this Agreement; 
 (v) no Lender shall be obligated to make any such assignment as a result of a demand by PMI pursuant to this Section 9.7(a) unless and until such Lender shall have received one or more payments from
either the Borrowers to which it has outstanding Advances or one or more Eligible Assignees in an aggregate amount at least equal to the aggregate outstanding principal amount of the Advances owing to such Lender, together with accrued interest
thereon to the date of payment of such principal amount and all other amounts payable to such Lender under this Agreement; and 
 (vi) the parties to each such assignment shall execute and the assigning Lender shall, not less than five Business Days prior to the effectiveness of any Assignment and Acceptance, deliver to the Facility Agent which shall give prompt
notice thereof to PMI by facsimile, for the Facility Agent’s acceptance and recording in the Register, an Assignment and Acceptance, together with a processing and recordation fee of $2,000 for Revolving Credit Commitments; provided
that, if such assignment is made as a result of a demand by PMI under this Section 9.7(a), PMI shall pay or cause to be paid such $2,000 fee. 
 Upon such execution, delivery, acceptance and recording, from and after the effective date specified in each Assignment and Acceptance, (x) the assignee thereunder shall be a party hereto and, to the extent that rights and obligations
hereunder have been assigned to it pursuant to such Assignment and Acceptance, have the rights and obligations of a Lender hereunder and (y) the assigning Lender thereunder shall, to the extent that rights and obligations hereunder have been
assigned by it pursuant to such Assignment and Acceptance, relinquish its rights (other than those provided under Section 9.4) and be released from its obligations under this Agreement (and, in the case of an Assignment and Acceptance covering
all or the remaining portion of an assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto), other than Section 9.12. 
 (b) Assignment and Acceptance. By executing and delivering an Assignment and Acceptance, the assigning Lender thereunder and the
assignee thereunder confirm to and agree with each other and the other parties hereto as follows: (i) other than as provided in such Assignment and Acceptance, such assigning Lender makes no representation or

  

 46 

 
warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with this Agreement or the execution, legality, validity,
enforceability, genuineness, sufficiency or value of this Agreement or any other instrument or document furnished pursuant hereto; (ii) such assigning Lender makes no representation or warranty and assumes no responsibility with respect to the
financial condition of any Borrower or PMI or the performance or observance by any Borrower or PMI of any of its obligations under this Agreement or any other instrument or document furnished pursuant hereto; (iii) such assignee confirms that
it has received a copy of this Agreement, together with copies of the financial statements referred to in Section 4.1(e) and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter
into such Assignment and Acceptance; (iv) such assignee will, independently and without reliance upon the Facility Agent, such assigning Lender or any other Lender and based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action under this Agreement; (v) such assignee confirms that it is an Eligible Assignee; (vi) such assignee represents that (A) the source of any funds it is
using to acquire the assigning Lender’s interest or to make any Advance is not and will not be plan assets as defined under the regulations of the Department of Labor of any Plan subject to Title I of ERISA or Section 4975 of the Code or
(B) the assignment or Advance is not and will not be a non-exempt prohibited transaction as defined in Section 406 of ERISA; (vii) such assignee appoints and authorizes the Facility Agent to take such action as agent on its behalf and
to exercise such powers and discretion under this Agreement as are delegated to the Facility Agent by the terms hereof, together with such powers and discretion as are reasonably incidental thereto; and (viii) such assignee agrees that it will
perform in accordance with their terms all of the obligations that by the terms of this Agreement are required to be performed by it as a Lender. 
 (c) Agent’s Acceptance. Upon its receipt of an Assignment and Acceptance executed by an assigning Lender and an assignee representing that it is an Eligible Assignee, together with any Note or
Notes subject to such assignment, the Facility Agent shall, if such Assignment and Acceptance has been completed and is in substantially the form of Exhibit C hereto, (i) accept such Assignment and Acceptance, (ii) record the information
contained therein in the Register and (iii) give prompt notice thereof to PMI. 
 (d) Register. The Facility Agent
shall maintain at its address referred to in Section 9.2 a copy of each Assignment and Acceptance delivered to and accepted by it and a register for the recordation of the names and addresses of the Lenders and the Commitment of, and principal
amount of the Advances owing to, each Lender from time to time (the “Register”). The entries in the Register shall be conclusive and binding for all purposes, absent manifest error, and PMI, the Borrowers, the Facility Agent and the
Lenders may treat each Person whose name is recorded in the Register as a Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection by PMI, any Borrower or any Lender at any reasonable time and from time to
time upon reasonable prior notice. 
  

 47 

 (e) Sale of Participation. Each Lender may sell participations to one or more
Qualifying Banks in or to all or a portion of its rights and obligations under this Agreement (including, without limitation, all or a portion of its Commitment, the Advances owing to it and any Note or Notes held by it), subject to the
following: 
 (i) such Lender’s obligations under this Agreement (including, without limitation, its Commitment to PMI
hereunder) shall remain unchanged, 
 (ii) such Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations, 
 (iii) PMI, the other Borrowers, the Facility Agent and the other Lenders shall continue to
deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement, and 
 (iv) no participant under any such participation shall have any right to approve any amendment or waiver of any provision of this Agreement, or any consent to any departure by any Borrower or PMI therefrom, except to the extent that such
amendment, waiver or consent would reduce the principal of, or interest on, the Advances or any fees or other amounts payable hereunder, in each case to the extent subject to such participation, or postpone any date fixed for any payment of
principal of, or interest on, the Advances or any fees or other amounts payable hereunder, in each case to the extent subject to such participation. 
 (f) Disclosure of Information. Any Lender may, in connection with any assignment or participation or proposed assignment or participation pursuant to this Section 9.7, disclose to the assignee
or participant or proposed assignee or participant, any information relating to PMI or any Borrower furnished to such Lender by or on behalf of PMI or any Borrower; provided that, prior to any such disclosure, the assignee or participant or
proposed assignee or participant shall agree to preserve the confidentiality of any confidential information relating to PMI received by it from such Lender by signing a confidentiality agreement substantially in the form attached hereto as Exhibit
H. 
 (g) Regulation A Security Interest. Notwithstanding any other provision set forth in this Agreement, any Lender may
at any time create a security interest in all or any portion of its rights under this Agreement (including, without limitation, the Advances owing to it and any Note or Notes held by it) in favor of any Federal Reserve Bank in accordance with
Regulation A. 
  

	9.8.	 Designated Subsidiaries. (a) Designation. PMI may at any time, and from time to time, by delivery to the Facility Agent of a
Designation Agreement duly executed by PMI and the respective Subsidiary and substantially in the form of Exhibit D hereto, designate such Subsidiary as a “Designated Subsidiary” for purposes of this Agreement and such Subsidiary shall
thereupon become a “Designated Subsidiary” for purposes of this Agreement and, as such, shall have all of the rights and obligations of a Borrower

  

 48 

	 	 
hereunder. The Facility Agent shall promptly notify each Lender of each such designation by PMI and the identity of the respective Subsidiary. 

 (b) Termination. Upon the payment and performance in full of all of the indebtedness, liabilities and obligations under this Agreement
of any Designated Subsidiary then, so long as at the time no Notice of Revolving Credit Borrowing or Notice of Swingline Borrowing in respect of such Designated Subsidiary is outstanding, such Subsidiary’s status as a “Designated
Subsidiary” shall terminate upon notice to such effect from the Facility Agent to the Lenders (which notice the Facility Agent shall give promptly, and only upon its receipt of a request therefor from PMI). Thereafter, the Lenders shall be
under no further obligation to make any Advance hereunder to such former Designated Subsidiary until such time as it has been redesignated a Designated Subsidiary by PMI pursuant to Section 9.8(a). 
  

	9.9.	Governing Law. This Agreement and the Notes shall be governed by, and construed in accordance with, the laws of the State of New York. 

 

	9.10.	Execution in Counterparts. This Agreement may be executed in any number of counterparts and by different 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. Delivery of an executed counterpart of a signature page to this Agreement by facsimile shall be effective as delivery of
a manually executed counterpart of this Agreement. 

  

	9.11.	 Jurisdiction, Etc. (a) Submission to Jurisdiction; Service of Process. Each of the parties hereto hereby irrevocably and
unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of any New York state court or Federal court of the United States of America sitting in New York City, and any appellate court from any thereof, in any action or
proceeding arising out of or relating to this Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may
be heard and determined in any such New York state court or, to the extent permitted by law, in such Federal court. Each Borrower (other than PMI) hereby agrees that service of process in any such action or proceeding brought in any such New York
state court or in such Federal court may be made upon PMI at 120 Park Avenue, New York, NY 10017, Attention: Secretary, or such other address in the United States as notified to the Facility Agent from time to time (the “Process
Agent”), and each Designated Subsidiary hereby irrevocably appoints the Process Agent its authorized agent to accept such service of process, and agrees that the failure of the Process Agent to give any notice of any such service shall not
impair or affect the validity of such service or of any judgment rendered in any action or proceeding based thereon. Each Borrower hereby further irrevocably consents to the service of process in any action or proceeding in such courts by the
mailing thereof by any parties hereto by registered or certified mail, postage prepaid, to such Borrower at its address specified pursuant to Section 9.2. Each of the parties hereto agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner

  

 49 

	 	 
provided by law. Nothing in this Agreement shall affect any right that any party may otherwise have to serve legal process in any other manner permitted by law or to bring any action or
proceeding relating to this Agreement or the Notes in the courts of any jurisdiction. 

 (b) PMI as Process
Agent. PMI hereby accepts its appointment as Process Agent and agrees that (i) it will maintain an office in New York, New York, or such other address in the United States as notified to the Facility Agent from time to time, through the
Termination Date and will give the Facility Agent prompt notice of any change of its address, (ii) it will perform its duties as Process Agent to receive on behalf of each Designated Subsidiary and its property service of copies of the summons
and complaint and any other process which may be served in any action or proceeding in any New York State or Federal court sitting in New York City arising out of or relating to this Agreement and (iii) it will forward forthwith to each
Designated Subsidiary at its then current address copies of any summons, complaint and other process which PMI receives in connection with its appointment as Process Agent. 
 (c) Waivers. Each of the parties hereto irrevocably and unconditionally waives, to the fullest extent it may legally and effectively
do so, any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or the Notes in any New York state or Federal court. Each of the parties hereto hereby
irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. Each of the parties hereto hereby irrevocably agrees that, to the extent that it now
has or may hereafter acquire any right of immunity, whether characterized as sovereign immunity or otherwise, from any legal proceedings, whether in the United States of America or elsewhere, arising out of this Agreement or the subject matter
hereof or any of the transactions contemplated hereby brought by any of the parties hereto or their successors or assigns, including without limitation immunity from service of process, immunity from jurisdiction or judgment of any court or
tribunal, immunity from execution or enforcement of a judgment and immunity of any of its property from attachment prior to any entry of judgment, it hereby expressly and irrevocably waives and agrees not to assert any such immunity and such waiver
shall be irrevocable and not subject to withdrawal in any jurisdiction, including without limitation under the Foreign Sovereign Immunities Act of 1976. EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY LAW, TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATED TO THIS AGREEMENT OR ANY OTHER RELATED DOCUMENTS. 
  

	9.12.	 Confidentiality. None of the Agents, the Mandated Lead Arrangers and Bookrunners nor any Lender shall disclose any confidential information
relating to PMI or any Borrower to any other Person without the consent of PMI, other than (a) to such Agent’s or such Lender’s affiliates, branches and representative offices in any jurisdiction and their officers, directors,
employees, agents and advisors and, as contemplated by Section 9.7(f), to actual or prospective assignees and participants, and then, in each such case,

  

 50 

	 	 
only on a confidential basis; provided, however, that such actual or prospective assignee or participant shall have been made aware of this Section 9.12 and shall have agreed
to be bound by its provisions as if it were a party to this Agreement, (b) as required by any law, rule or regulation or judicial process, (c) as requested or required by any state, federal or foreign authority or examiner regulating banks
or banking or other financial institutions, and (d) to any rating agency that provides ratings of such Lender or its affiliates. 

  

	9.13.	Integration. This Agreement and the Notes represent the agreement of PMI, the other Borrowers, the Facility Agent, the Swingline Agent and the Lenders with
respect to the subject matter hereof, and there are no promises, undertakings, representations or warranties by the Facility Agent, the Swingline Agent, PMI, the other Borrowers or any Lender relative to the subject matter hereof not expressly set
forth or referred to herein or in the Notes other than the matters referred to in Sections 2.12(c) and 9.4(a) and except for Confidentiality Agreements entered into by each Lender in connection with this Agreement. 

  

	9.14.	USA Patriot Act Notice, Etc. The Facility Agent and each Lender hereby notifies the Borrowers that pursuant to the requirements of the USA Patriot Act (Title III
of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot Act”) or any similar “know your customer” or other similar checks under all applicable laws and regulations, it is required to obtain, verify and
record information that identifies the Borrowers, which information includes the name and address of each Borrower and other information that will allow such Lender to identify such Borrower in accordance with the Patriot Act or any similar
“know your customer” or other similar checks under all applicable laws and regulations. 

  

	9.15.	Judgment. (a) If for the purposes of obtaining judgment in any court it is necessary to convert a sum due hereunder in Dollars into Euro, or to convert a
sum due hereunder in Euro into Dollars, the parties hereto agree, to the fullest extent that they may effectively do so, that the rate of exchange used shall be the Equivalent thereof on the Business Day preceding that on which final judgment is
given. 

 (b) The obligation of any Borrower in respect of any sum due from it in Euro or Dollars (the
“Primary Currency”) to any Lender or any Agent hereunder shall, notwithstanding any judgment in any other currency, be discharged only to the extent that on the Business Day following receipt by such Lender or such Agent (as the
case may be), of any sum adjudged to be so due in such other currency, such Lender or such Agent (as the case may be) may in accordance with normal banking procedures purchase the applicable Primary Currency with such other currency; if the amount
of the applicable Primary Currency so purchased is less than such sum due to such Lender or such Agent (as the case may be) in the applicable Primary Currency, the Borrowers agree, as a separate obligation and notwithstanding any such judgment, to
indemnify such Lender or such Agent (as the case may be) against such loss, and if the amount of the applicable Primary Currency so purchased exceeds such sum due to any Lender or such Agent (as the case may be) in the applicable Primary Currency,
such Lender or such Agent (as the case may be) agrees to remit to the applicable Borrower such excess. 
 [Signature pages
omitted.] 
  

 51 

 EXHIBIT A - FORM OF 
 REVOLVING CREDIT NOTE 
 Dated:
                    , 20__ 
 $                     
 FOR VALUE RECEIVED, the undersigned, [NAME OF BORROWER], a                  corporation (the
“Borrower”), HEREBY PROMISES TO PAY to the order of                  (the “Lender”) for the account of its Applicable Lending
Office on the Termination Date (each as defined in the Credit Agreement referred to below) the principal sum of $[amount of the Lender’s Revolving Credit Commitment in figures] or, if less, the aggregate principal amount of the Revolving Credit
Advances outstanding on the Termination Date made by the Lender to the Borrower pursuant to the Credit Agreement, dated as of 29 March 2010 among Philip Morris International Inc., the Lender and certain other lenders party thereto, J.P. Morgan
Europe Limited, as Facility Agent, JPMorgan Chase Bank, N.A., as Swingline Agent, and J.P. Morgan plc, Deutsche Bank Securities Inc., Citigroup Global Markets Limited, Credit Suisse AG, Cayman Islands Branch, Goldman Sachs Credit Partners L.P. and
RBS Securities Inc., as Mandated Lead Arrangers and Bookrunners for such Lenders (as amended or modified from time to time, the “Credit Agreement;” the terms defined therein being used herein as therein defined). 
 The Borrower promises to pay interest on the unpaid principal amount of each Revolving Credit Advance from the date of such Revolving Credit
Advance until such principal amount is paid in full, at such interest rate, and payable at such times, as are specified in the Credit Agreement. 
 Both principal and interest in respect of each Revolving Credit Advance are payable in Euro or Dollars, as the case may be, to J.P. Morgan Europe Limited, as Facility Agent, for the account of the Lender
at the office of J.P. Morgan Europe Limited, located in London, England for payments in Euro or New York, New York for payments in Dollars, in same day funds. Each Revolving Credit Advance owing to the Lender by the Borrower pursuant to the Credit
Agreement, and all payments made on account of principal thereof, shall be recorded by the Lender and, prior to any transfer hereof, endorsed on the grid attached hereto which is part of this Promissory Note. 
 This Promissory Note is one of the Revolving Credit Notes referred to in, and is entitled to the benefits of, the Credit Agreement. The
Credit Agreement, among other things, (i) provides for the making of Revolving Credit Advances by the Lender to the Borrower from time to time in an aggregate amount not to exceed at any time outstanding the Dollar amount first above mentioned,
the indebtedness of the Borrower resulting from each such Revolving Credit Advance being evidenced by this Promissory Note, (ii) contains provisions for determining the Dollar Equivalent of Advances denominated in Euro and (iii) contains
provisions for acceleration of the maturity hereof upon the happening of certain stated events and also for prepayments on

 
account of principal hereof prior to the maturity hereof upon the terms and conditions therein specified. 
 This Promissory Note shall be governed by, and construed in accordance with, the laws of the State of New York. 
  

			
	[NAME OF BORROWER]
		
	By	 	 
	Name:	 	
	Title:	 	

  

 2 

 REVOLVING CREDIT LOANS AND PAYMENTS OF PRINCIPAL 
  

													
	 Date
	  	Type of
Revolving
Credit
Advance	  	Amount of
Revolving
Credit
Advance	  	Interest
Rate	  	Amount of
Principal
Paid
or Prepaid	  	Unpaid
Principal
Balance	  	Notation
Made By
		  		  		  		  		  		  	

  

 3 

 EXHIBIT B-1 - FORM OF NOTICE OF 
 REVOLVING CREDIT BORROWING 
 [Date]

 J.P. Morgan Europe Limited, as Facility Agent 
     for the Lenders party to the Credit Agreement 
     referred to below 
 Attention: Loans Agency 
 Ladies and Gentlemen: 
 [NAME OF BORROWER], refers to the Credit Agreement, dated
as of 29 March 2010 (as amended or modified from time to time, the “Credit Agreement,” the terms defined therein being used herein as therein defined), among Philip Morris International Inc., the Lenders party thereto and J.P.
Morgan Europe Limited, as Facility Agent, JPMorgan Chase Bank, N.A., as Swingline Agent, and J.P. Morgan plc, Deutsche Bank Securities Inc., Citigroup Global Markets Limited, Credit Suisse AG, Cayman Islands Branch, Goldman Sachs Credit Partners
L.P. and RBS Securities Inc., as Mandated Lead Arrangers and Bookrunners, and hereby gives you notice, irrevocably, pursuant to Section 2.3 of the Credit Agreement that the undersigned hereby requests a Revolving Credit Borrowing under the
Credit Agreement, and in that connection sets forth below the information relating to such Revolving Credit Borrowing (the “Proposed Revolving Credit Borrowing”) as required by Section 2.3(a) of the Credit Agreement:

  

	 	(i)	The date of the Proposed Revolving Credit Borrowing is
                    , 201_. 

  

	 	(ii)	The Type of Advances comprising the Proposed Revolving Credit Borrowing is [EURIBOR Advances] [LIBOR Advances]. 

  

	 	(iii)	The aggregate amount of the Proposed Revolving Credit Borrowing is
[EUR][$][                    ]. 

  

	 	(iv)	The initial Interest Period for each [EURIBOR][LIBOR] Advance made as part of the Proposed Revolving Credit Borrowing is
             month(s). 

  

	 	(v)	Account to credit with funds:                     .

 The undersigned, as applicable, hereby certifies that the following statements are true on the date hereof, and
will be true on the date of the Proposed Revolving Credit Borrowing: 
  

 4 

 (a) the representations and warranties contained in Section 4.1 of the
Credit Agreement (except the representations set forth in the last sentence of subsection (e) thereof and in subsection (f) thereof (other than clause (i) thereof)) are correct, before and after giving effect to the Proposed Revolving
Credit Borrowing and to the application of the proceeds therefrom, as though made on and as of such date; 
 [if
the Borrower is a Designated Subsidiary: the representations and warranties of such Designated Subsidiary contained in its Designation Agreement are correct, before and after giving effect to the Proposed Revolving Credit Borrowing and to the
application of the proceeds therefrom, as though made on and as of such date;] 
 (b) after giving effect to the
application of the proceeds of all Borrowings on the date of such Revolving Credit Borrowing (together with any other resources of the Borrower applied together therewith), no event has occurred and is continuing, or would result from such Revolving
Credit Borrowing, that constitutes a Default or Event of Default; 
 (c) if such Proposed Revolving Credit
Borrowing is in an aggregate principal amount equal to or greater than $500,000,000, or the Equivalent in Euro thereof, and is being made in connection with any purchase of shares of the Borrower’s or PMI’s capital stock or the capital
stock of any other Person, or any purchase of all or substantially all of the assets of any Person (whether in one transaction or a series of transactions) or any transaction of the type referred to in Section 5.2(b) of the Credit Agreement,
the statement in clause (b) above will be true on a pro forma basis as if such transaction or purchase shall have been completed; and 
 (d) the aggregate principal amount of the Proposed Revolving Credit Borrowing and all other Revolving Credit Borrowings to be made on the same day under the Credit Agreement is within the aggregate unused
Revolving Credit Commitments of the Lenders, with any such determination having been made after giving effect to a calculation of the Equivalent in Dollars of any outstanding Borrowings or Proposed Revolving Credit Borrowings that are
denominated in Euro. 
  

			
	Very truly yours,
	
	PHILIP MORRIS INTERNATIONAL INC.
		
	By 	 	 
		 	Name:
		 	Title:
	
	[NAME OF BORROWER]
		
	By	 	 
		 	Name:
		 	Title:

  

 5 

 EXHIBIT B-2 - FORM OF NOTICE OF 
 SWINGLINE BORROWING 
 [Date] 
 J.P. Morgan Europe Limited, as Swingline Agent 
     for the Lenders party to the Credit Agreement 
     referred to below 
 Attention: Loans Agency 
 Ladies and Gentlemen:

 [NAME OF BORROWER], refers to the Credit Agreement, dated as of 29 March 2010 (as amended or modified from time to time,
the “Credit Agreement,” the terms defined therein being used herein as therein defined), among Philip Morris International Inc., the Lenders party thereto and J.P. Morgan Europe Limited, as Facility Agent, JPMorgan Chase Bank, N.A.,
as Swingline Agent, and J.P. Morgan plc, Deutsche Bank Securities Inc., Citigroup Global Markets Limited, Credit Suisse AG, Cayman Islands Branch, Goldman Sachs Credit Partners L.P. and RBS Securities Inc., as Mandated Lead Arrangers and
Bookrunners, and hereby gives you notice, irrevocably, pursuant to Section 2.9 of the Credit Agreement that the undersigned hereby requests a Swingline Borrowing under the Credit Agreement, and in that connection sets forth the terms on which
such Swingline Borrowing (the “Proposed Swingline Borrowing”) is requested to be made: 
  

	 	(i)	 The date of the Proposed Swingline Borrowing is
                    , 201    .1 

  

	 	(ii)	The aggregate amount of the Proposed Swingline Borrowing is
$[                    ]. 

  

	 	(iii)	The Interest Period for each LIBOR Advance made as part of the Proposed Swingline Borrowing is
             day(s). 

  

	 	(iv)	Account to credit with funds:                     .

 The undersigned, as applicable, hereby certifies that the following statements are true on the date hereof, and
will be true on the date of the Proposed Swingline Borrowing: 
  
  

	1	 Pursuant to Section 2.9(a), the Date of Borrowing can be the same date as the notice; provided the notice is given to the Facility Agent on such
date by 12:00 P.M. (New York time) subject to Section 2.11. 

 (a) the representations and warranties contained in Section 4.1 of the
Credit Agreement (except the representations set forth in the last sentence of subsection (e) thereof and in subsection (f) thereof (other than clause (i) thereof)) are correct, before and after giving effect to the Proposed Swingline
Borrowing and to the application of the proceeds therefrom, as though made on and as of such date; 
 [if the
Borrower is a Designated Subsidiary: the representations and warranties of such Designated Subsidiary contained in its Designation Agreement are correct, before and after giving effect to the Proposed Swingline Borrowing and to the application of
the proceeds therefrom, as though made on and as of such date;] 
 (b) after giving effect to the application of
the proceeds of all Borrowings on the date of such Swingline Borrowing (together with any other resources of the Borrower applied together therewith), no event has occurred and is continuing, or would result from such Proposed Swingline Borrowing,
that constitutes a Default or Event of Default; 
 (c) if such Swingline Borrowing is in an aggregate principal
amount equal to or greater than $500,000,000 and is being made in connection with any purchase of shares of the Borrower’s or PMI’s capital stock or the capital stock of any other Person, or any purchase of all or substantially all of the
assets of any Person (whether in one transaction or a series of transactions) or any transaction of the type referred to in Section 5.2(b) of the Credit Agreement, the statement in clause (b) above will be true on a pro forma
basis as if such transaction or purchase shall have been completed; and 
 (d) the aggregate principal amount of
the Proposed Swingline Borrowing and all other Swingline Borrowings to be made on the same day under the Credit Agreement is within the aggregate unused Swingline Commitments of the Lenders, with any such determination having been made after
giving effect to a calculation of the Equivalent in Dollars of any outstanding Borrowings that are denominated in Euro. 
  

			
	Very truly yours,
	
	PHILIP MORRIS INTERNATIONAL INC.
		
	By  	 	 
		 	Name:
		 	Title:
	
	[NAME OF BORROWER]
		
	By	 	 
		 	Name:
		 	Title:

  

 2 

 EXHIBIT C - FORM OF 
 ASSIGNMENT AND ACCEPTANCE 
 Reference is made to the Credit
Agreement, dated as of 29 March 2010 (as amended or modified from time to time, the “Credit Agreement,” the terms defined therein being used herein as therein defined), among Philip Morris International Inc., a Virginia
corporation, the Lenders party thereto and J.P. Morgan Europe Limited, as Facility Agent, JPMorgan Chase Bank, N.A., as Swingline Agent, and J.P. Morgan plc, Deutsche Bank Securities Inc., Citigroup Global Markets Limited, Credit Suisse AG, Cayman
Islands Branch, Goldman Sachs Credit Partners L.P. and RBS Securities Inc., as Mandated Lead Arrangers and Bookrunners for such Lenders. 
 The “Assignor” and the “Assignee” referred to on Schedule 1 hereto agree as follows: 
 1. The Assignor hereby sells and assigns to the Assignee, and the Assignee hereby purchases and assumes from the Assignor, an interest in and to the Assignor’s rights and obligations under the Credit
Agreement as of the date hereof equal to the percentage interest specified on Schedule 1 hereto of all outstanding rights and obligations under the Credit Agreement. After giving effect to such sale and assignment, the Assignee’s Commitment and
the amount of the Advances owing to the Assignee will be as set forth on Schedule 1 hereto. Each of the Assignor and the Assignee represents and warrants that it is authorized to execute and deliver this Assignment and Acceptance. 
 2. The Assignor (i) represents and warrants that it is the legal and beneficial owner of the interest being assigned by
it hereunder and that such interest is free and clear of any adverse claim; (ii) makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with the
Credit Agreement or the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Credit Agreement or any other instrument or document furnished pursuant thereto; and (iii) makes no representation or warranty and
assumes no responsibility with respect to the financial condition of any Borrower or PMI or the performance or observance by any Borrower or PMI of any of its obligations under the Credit Agreement or any other instrument or document furnished
pursuant thereto. 
 3. The Assignee (i) confirms that it has received a copy of the Credit Agreement,
together with copies of the financial statements referred to in Section 4.1(e) thereof and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and
Acceptance; (ii) agrees that it will, independently and without reliance upon J.P. Morgan Europe Limited, as Facility Agent, any other Agent, the Assignor or any other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement; (iii) confirms that it is an Eligible Assignee (if the Assignee is not a Qualifying Bank, the assignment shall not be
effective without the written approval of PMI, which approval shall be notified to the Facility Agent); (iv) represents that (A) the source of any funds it is using to acquire the Assignor’s interest or to make any Advance is not and
will not be plan assets as defined under the regulations of the Department of Labor of any Plan subject to Title I of ERISA or Section 4975 of the Code or (B) the assignment or

 
Advance is not and will be not be a non-exempt prohibited transaction as defined in Section 406 of ERISA; (v) appoints and authorizes J.P. Morgan Europe Limited, as Facility Agent, to
take such action as agent on its behalf and to exercise such powers and discretion under the Credit Agreement as are delegated to J.P. Morgan Europe Limited, as Facility Agent, by the terms thereof, together with such powers and discretion as are
reasonably incidental thereto; (vi) agrees that it will perform in accordance with their terms all of the obligations that by the terms of the Credit Agreement are required to be performed by it as a Lender; and (vii) confirms that it has
signed a confidentiality agreement substantially in the form attached as Exhibit H to the Credit Agreement. 
 4.
This Assignment and Acceptance will be delivered to J.P. Morgan Europe Limited, as Facility Agent, for acceptance and recording by J.P. Morgan Europe Limited, as Facility Agent following its execution. The effective date for this Assignment and
Acceptance (the “Effective Date”) shall be the date of acceptance hereof by J.P. Morgan Europe Limited, as Facility Agent, unless otherwise specified on Schedule 1 hereto. 
 5. Upon such acceptance and recording by J.P. Morgan Europe Limited, as Facility Agent, as of the Effective Date,
(i) the Assignee shall be a party to the Credit Agreement and, to the extent provided in this Assignment and Acceptance, have the rights and obligations of a Lender thereunder and (ii) the Assignor shall, to the extent provided in this
Assignment and Acceptance, relinquish its rights and be released from its obligations under the Credit Agreement. 
 6. Upon such acceptance and recording by J.P. Morgan Europe Limited, as Facility Agent, from and after the Effective Date, J.P. Morgan Europe Limited, as Facility Agent, shall make all payments under the Credit Agreement in respect of the
interest assigned hereby (including, without limitation, all payments of principal, interest and facility fees with respect thereto) to the Assignee. The Assignor and Assignee shall make all appropriate adjustments in payments under the Credit
Agreement for periods prior to the Effective Date directly between themselves. 
 7. This Assignment and
Acceptance shall be governed by, and construed in accordance with, the laws of the State of New York. 
 8. This
Assignment and Acceptance may be executed in any number of counterparts and by different 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. Delivery of an executed counterpart of Schedule 1 to this Assignment and Acceptance by telecopier shall be effective as delivery of a manually executed counterpart of this Assignment and Acceptance. 
 IN WITNESS WHEREOF, the Assignor and the Assignee have caused Schedule 1 to this Assignment and Acceptance to be executed by their officers
thereunto duly authorized as of the date specified thereon. 
  

 2 

 Schedule 1 
 to 
 Assignment and Acceptance 
  

					
	 Percentage interest assigned:
	  		  	        %
			
	 Assignee’s Revolving Credit Commitment:
	  		  	$                  
			
	 (including, if applicable, Assignee’s Swingline Commitment
	  	$                )	  	

			
		
	 Aggregate outstanding principal amount of Revolving Credit Advances assigned:
	  	EUR/$                

  

			
		
	 Effective Date1:
	  	                    , 201    

  
  

			
	[NAME OF ASSIGNOR], as Assignor
		
	By 	 	 
		 	Title:

  

			
	Dated:                     ,
201    
	
	[NAME OF ASSIGNEE], as Assignee
		
	By 	 	 
		 	Title:
	
	Dated:                     ,
201    
	
	Applicable Lending Office: [Address]

 Accepted this 
                  day of
                    , 201     
  

			
	 J.P. MORGAN EUROPE LIMITED,
 as Facility Agent

		
	By 	 	 
		 	Title:
		
		 	[Approved this                  day of
                    , 201    

  

			
	[NAME OF BORROWER]1
		
	By 	 	 
		 	Title:

  
  

	1	 This date should be no earlier than five Business Days after the delivery of this Assignment and Acceptance to J.P. Morgan Europe Limited, as Facility
Agent. 

	1	 Required if the Assignee is an Eligible Assignee solely by reason of clause (v) of the definition of “Eligible Assignee.”

 EXHIBIT D - FORM OF 
 DESIGNATION AGREEMENT 
 [Date]1 
 J.P. Morgan Europe Limited, as Facility Agent 
     for the Lenders party to the Credit Agreement 
     referred to below 
 Ladies and Gentlemen: 
 Reference
is made to the Credit Agreement, dated as of 29 March 2010 (as amended or modified from time to time, the “Credit Agreement,” the terms defined therein being used herein as therein defined), among Philip Morris International
Inc., [certain other borrowers party thereto], the Lenders party thereto and J.P. Morgan Europe Limited, as Facility Agent, JPMorgan Chase Bank, N.A., as Swingline Agent, and J.P. Morgan plc, Deutsche Bank Securities Inc., Citigroup Global Markets
Limited, Credit Suisse AG, Cayman Islands Branch, Goldman Sachs Credit Partners L.P. and RBS Securities Inc., as Mandated Lead Arrangers and Bookrunners for such Lenders. 
 Please be advised that PMI hereby designates its undersigned wholly-owned Subsidiary,                 
(“Designated Subsidiary”), as a “Designated Subsidiary” under and for all purposes of the Credit Agreement. 
 The Designated Subsidiary, in consideration of each Lender’s agreement to extend credit to it under and on the terms and conditions set forth in the Credit Agreement, does hereby assume each of the obligations imposed upon a
“Designated Subsidiary” and a “Borrower” under the Credit Agreement and agrees to be bound by the terms and conditions of the Credit Agreement. In furtherance of the foregoing, the Designated Subsidiary hereby represents and
warrants to each Lender as follows: 
 (a) The Designated Subsidiary is duly organized, validly existing and in
good standing under the laws of                         . 
 (b) The execution, delivery and performance by the Designated Subsidiary of this Designation Agreement and the Notes, if any,
to be delivered by it and the performance by the Designated Subsidiary under the Credit Agreement are within the Designated Subsidiary’s corporate powers, have been duly authorized by all necessary corporate action and do not contravene
(i) the Designated Subsidiary’s charter or by-laws 
  
  

	1	 For Subsidiaries that are not listed on Schedule 2, date must be at least (i) three Business Days for a Designated Subsidiary organized in the
United States or any political subdivision thereof and (ii) five Business Days for a Designated Subsidiary organized outside the United States, in each case, prior to the date of the initial Advance to such Designated Subsidiary.

 or (ii) in any material respect, any law, rule, regulation or order of any court or
governmental agency or contractual restriction binding on or affecting it. 
 (c) No authorization or approval or
other action by, and no notice to or filing with, any governmental authority or regulatory body is required for the due execution, delivery and performance by the Designated Subsidiary of this Designation Agreement or the Notes, if any, to be
delivered by it and the performance by the Designated Subsidiary under the Credit Agreement. 
 (d) This
Designation Agreement is, and the Notes, if any, to be delivered by the Designated Subsidiary when delivered will be, legal, valid and binding obligations of the Designated Subsidiary enforceable against the Designated Subsidiary in accordance with
their respective terms, subject to the effect of any applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws affecting creditors’ rights generally and the effect of general principles of equity
(regardless of whether such enforceability is sought in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing. 
 (e) There is no pending or threatened action or proceeding affecting the Designated Subsidiary or any of its Subsidiaries before any court, governmental agency or arbitrator that purports to affect the
legality, validity or enforceability of this Designation Agreement, the Credit Agreement or any Note of the Designated Subsidiary. 
 (f) [The registered address; name, telephone number, facsimile number and email address of contact person; and internet address, if available, of the Designated Subsidiary are
                        .]2 
 (g) [The Federal employer identification number of the Designated Subsidiary is
                        .]2,3 
  

			
	Very truly yours,
	
	PHILIP MORRIS INTERNATIONAL INC.
		
	By	 	 
		 	Name:
		 	Title:

  

			
	[DESIGNATED SUBSIDIARY]
		
	By	 	 
		 	Name:
		 	Title:

  
  

	2	 Does not apply to Subsidiaries listed on Schedule II. 

	3	 Does not apply to Designated Subsidiaries organized outside the United States. 

  

 2 

 EXHIBIT E-1 - FORM OF 
 OPINION OF COUNSEL 
 FOR PMI 
 [Letterhead of Hunton & Williams LLP] 
 [Effective Date] 
 To each of the Lenders party 
     to the Credit Agreement referred to below 
 Philip Morris International Inc. 
 Ladies and Gentlemen: 
 This opinion is furnished to you pursuant to Section 3.1(e)(iii) of the Credit Agreement, dated as of 29 March 2010 (the
“Credit Agreement”), among Philip Morris International Inc., the Lenders party thereto and J.P. Morgan Europe Limited, as Facility Agent, JPMorgan Chase Bank, N.A., as Swingline Agent, and J.P. Morgan plc, Deutsche Bank Securities
Inc., Citigroup Global Markets Limited, Credit Suisse AG, Cayman Islands Branch, Goldman Sachs Credit Partners L.P. and RBS Securities Inc., as Mandated Lead Arrangers and Bookrunners for such Lenders. Terms defined in the Credit Agreement are used
herein as therein defined. 
 We have acted as counsel for PMI in connection with the preparation, execution and delivery of the
Credit Agreement. 
 In that connection, we have examined the following documents: 
 (1) The Credit Agreement. 
 (2) The documents furnished by PMI pursuant to Article 3 of the Credit Agreement. 
 (3) The Articles of Incorporation of PMI and all amendments thereto (the “Charter”). 
 (4) The by-laws of PMI and all amendments thereto (the “By-laws”). 
 We have also
examined the originals, or copies certified to our satisfaction, of such corporate records of PMI, certificates of public officials and of officers of PMI and agreements, instruments and other documents, as we have deemed relevant and necessary as a
basis for the opinions expressed below. As to questions of fact material to such opinions, we have, when relevant facts were not independently established by us, relied upon the representations of PMI set forth in the Credit Agreement and upon
certificates of PMI or its officers or of public officials. Whenever the phrase “to our knowledge” is used herein, it refers to the actual knowledge of the attorneys of the firm involved in the representation of PMI in connection with the
Credit Agreement, without independent investigation. We have assumed the due execution

 
and delivery, pursuant to due authorization, of the Credit Agreement by the Initial Lenders and J.P. Morgan Europe Limited, as Facility Agent, JPMorgan Chase Bank, N.A., as Swingline Agent, and
J.P. Morgan plc, Deutsche Bank Securities Inc., Citigroup Global Markets Limited, Credit Suisse AG, Cayman Islands Branch, Goldman Sachs Credit Partners L.P. and RBS Securities Inc., as Mandated Lead Arrangers and Bookrunners. 
 Our opinions expressed below are limited to the law of the Commonwealth of Virginia, the State of New York and the Federal law of the United
States. 
 Based upon the foregoing and upon such investigation as we have deemed necessary, we are of the following opinion:

 1. PMI is a corporation duly organized, validly existing and in good standing under the laws of the
Commonwealth of Virginia. 
 2. The execution, delivery and performance by PMI of the Credit Agreement and the
Notes, and the consummation of the transactions contemplated thereby, are within PMI’s corporate powers, have been duly authorized by all necessary corporate action, and do not contravene (i) the Charter or the By-laws or (ii) any
law, rule or regulation applicable to PMI (including, without limitation, Regulation X of the Board of Governors of the Federal Reserve System) or (iii) to our knowledge, any contractual restriction binding on or affecting PMI. The Credit
Agreement and any Notes delivered on the date hereof have been duly executed and delivered on behalf of PMI. 
 3. No authorization, approval or other action by, and no notice to or filing with, any governmental authority or regulatory body or any other third party is required for the due execution, delivery and performance by PMI of the Credit
Agreement and the Notes. 
 4. The Credit Agreement is the legal, valid and binding obligation of PMI enforceable
against PMI in accordance with its terms. The Notes issued on the date hereof, if any, are the legal, valid and binding obligations of PMI, enforceable against PMI in accordance with their respective terms. 
 The opinion set forth in paragraph 4 above is subject to the effect of any applicable bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium or other laws affecting creditors’ rights generally and to the effect of general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law) and an implied covenant of good
faith and fair dealing. 
 We express no opinion with respect to: 
 (A) The effect of any provision of the Credit Agreement which is intended to permit modification thereof only by means of an agreement in
writing by the parties thereto; 
 (B) The effect of any provision of the Credit Agreement insofar as it provides that any
Person purchasing a participation from a Lender or other Person may exercise set-off or similar

  

 2 

 
rights with respect to such participation or that any Lender or other Person may exercise set-off or similar rights other than in accordance with applicable law; 
 (C) The effect of any provision of the Credit Agreement imposing penalties or forfeitures; 
 (D) The enforceability of any provision of the Credit Agreement to the extent that such provision constitutes a waiver of illegality as a
defense to performance of contract obligations; or 
 (E) The effect of any provision of the Credit Agreement relating to
indemnification or exculpation in connection with violations of any securities laws or relating to indemnification, contribution or exculpation in connection with willful, reckless or criminal acts or gross negligence of the indemnified or
exculpated Person or the Person receiving contribution. 
 In connection with the provisions of the Credit Agreement which
relate to forum selection (including, without limitation, any waiver of any objection to venue or any objection that a court is an inconvenient forum), we note that under NYCPLR § 510, a New York State court may have discretion to transfer the
place of trial, and under 28 U.S.C. § 1404(a), a United States District Court has discretion to transfer an action from one Federal court to another. 
 This opinion is being furnished to you pursuant to Section 3.1(e)(iii) of the Credit Agreement, is solely for the benefit of you and your counsel, and is not intended for, and may not be relied upon
by, any other person or entity without our prior written consent. We undertake no duty to inform you of events occurring subsequent to the date hereof. 
 Very truly yours, 
  

 3 

 EXHIBIT E-2 - FORM OF 
 OPINION OF COUNSEL 
 FOR PMI 
 [Effective Date]         
 To each of the Lenders party 
     to the Credit Agreement referred to below 
 Philip Morris International Inc. 

Ladies and Gentlemen: 
 This
opinion is furnished to you pursuant to Section 3.1(e)(iii) of the Credit Agreement, dated as of 29 March 2010 (the “Credit Agreement”), among Philip Morris International Inc. (“PMI”), the Lenders party
thereto and J.P. Morgan Europe Limited, as Facility Agent, JPMorgan Chase Bank, N.A., as Swingline Agent, and J.P. Morgan plc, Deutsche Bank Securities Inc., Citigroup Global Markets Limited, Credit Suisse AG, Cayman Islands Branch, Goldman Sachs
Credit Partners L.P. and RBS Securities Inc., as Mandated Lead Arrangers and Bookrunners for such Lenders. Terms defined in the Credit Agreement are used herein as therein defined. 
 I and members of my staff have acted as counsel for PMI in connection with the preparation, execution and delivery of the Credit Agreement.

 In that connection, we have examined originals, or copies certified to our satisfaction, of such corporate records of PMI,
certificates of public officials and of officers of PMI, and agreements, instruments and other documents, as we have deemed relevant and necessary as a basis for the opinions expressed below. As to questions of fact material to such opinions, we
have, when relevant facts were not independently established by us, relied upon certificates of PMI or its officers or of public officials. 
 Based upon the foregoing and upon such investigation as I have deemed necessary, I am of the opinion that, to the best of my knowledge, (i) there is no pending or threatened action or proceeding
against PMI or any of its Subsidiaries before any court, governmental agency or arbitrator (a “Proceeding”) that purports to affect the legality, validity, binding effect or enforceability of the Credit Agreement or the Notes, if
any, or the consummation of the transactions contemplated thereby, and (ii) except for Proceedings disclosed in PMI’s Annual Report on Form 10-K for the year ended 31 December 2009, any Current Report on Form 8-K filed subsequent to
31 December 2009, but prior to 29 March 2010 and, with respect to Proceedings commenced after the date of such filing but prior to 29 March 2010, a certificate delivered to the Lenders and attached hereto, there are no Proceedings
that are likely to have a materially adverse effect upon the financial position or results of operations of PMI and its Subsidiaries taken as a whole. 
 Very truly yours, 
  

 4 

 EXHIBIT F - FORM OF 
 OPINION OF COUNSEL 
 FOR DESIGNATED SUBSIDIARY 
 [Effective Date]     
 To each of the Lenders party 
     to the Credit Agreement referred to below

 Philip Morris International Inc. 
 Ladies and Gentlemen: 
 This opinion is furnished to you pursuant to
Section 3.2(e) of the Credit Agreement, dated as of 29 March 2010 (the “Credit Agreement”), among Philip Morris International Inc., the Lenders party thereto and J.P. Morgan Europe Limited, as Facility Agent, JPMorgan
Chase Bank, N.A., as Swingline Agent, and J.P. Morgan plc, Deutsche Bank Securities Inc., Citigroup Global Markets Limited, Credit Suisse AG, Cayman Islands Branch, Goldman Sachs Credit Partners L.P. and RBS Securities Inc., as Mandated Lead
Arrangers and Bookrunners for such Lenders. Terms defined in the Credit Agreement are used herein as therein defined. 
 We have
acted as counsel for                  (the “Designated Subsidiary”) in connection with the preparation, execution and delivery of the Designation
Agreement. 
 In that connection, we have examined the following documents: 
 (1) The Designation Agreement. 
 (2) The Credit Agreement. 
 (3) The documents furnished by the
Designated Subsidiary pursuant to Article 3 of the Credit Agreement. 
 (4) The [Articles] [Certificate] of
Incorporation of the Designated Subsidiary and all amendments thereto (the “Charter”). 
 (5)
The by-laws of the Designated Subsidiary and all amendments thereto (the “By-laws”). 
 We have also examined the originals, or
copies certified to our satisfaction, of such corporate records of the Designated Subsidiary, certificates of public officials and of officers of the Designated Subsidiary, and agreements, instruments and other documents, as we have deemed relevant
and necessary as a basis for the opinions expressed below. As to questions of fact material to such opinions, we have, when relevant facts were not independently established by us, relied upon certificates of the Designated Subsidiary or its
officers or of public officials. We have assumed the due execution and delivery, pursuant to due authorization, of the Credit Agreement by the Initial Lenders and J.P. Morgan Europe Limited, as Facility Agent, JPMorgan

 
Chase Bank, N.A., as Swingline Agent, and J.P. Morgan plc, Deutsche Bank Securities Inc., Citigroup Global Markets Limited, Credit Suisse AG, Cayman Islands Branch, Goldman Sachs Credit Partners
L.P. and RBS Securities Inc., as Mandated Lead Arrangers and Bookrunners. 
 Based upon the foregoing and upon such
investigation as we have deemed necessary, we are of the following opinion: 
 1. The Designated Subsidiary is a
corporation duly organized, validly existing and in good standing under the laws of                     . 
 2. The execution, delivery and performance by the Designated Subsidiary of the Designation Agreement and the Notes, if any,
to be delivered by it, the performance by the Designated Subsidiary under the Credit Agreement and the consummation of the transactions contemplated thereby, are within the Designated Subsidiary’s corporate powers, have been duly authorized by
all necessary corporate action, and do not contravene (i) the Charter or the By-laws or (ii) any law, rule or regulation applicable to the Designated Subsidiary (including, without limitation, Regulation X of the Board of Governors of the
Federal Reserve System) or (iii) to our knowledge, any contractual restriction binding on or affecting the Designated Subsidiary. The Designation Agreement and the Notes, if any, delivered by the Designated Subsidiary on the date hereof have
been duly executed and delivered on behalf of the Designated Subsidiary. 
 3. No authorization, approval or
other action by, and no notice to or filing with, any governmental authority or regulatory body or any other third party is required for the due execution, delivery and performance by the Designated Subsidiary of the Designation Agreement or the
Notes, if any, delivered by the Designated Subsidiary and the performance by the Designated Subsidiary under the Credit Agreement. 
 4. The Designation Agreement and the Credit Agreement are the legal, valid and binding obligations of the Designated Subsidiary enforceable against the Designated Subsidiary in accordance with their
respective terms. The Notes issued on the date hereof, if any, by the Designated Subsidiary are the legal, valid and binding obligations of the Designated Subsidiary, enforceable against the Designated Subsidiary in accordance with their respective
terms. 
 5. There is, to the best of my knowledge, no pending or threatened action or proceeding against the
Designated Subsidiary or any of its Subsidiaries before any court, governmental agency or arbitrator that purport to affect the legality, validity, binding effect or enforceability of the Designation Agreement, the Credit Agreement or any of the
Notes delivered by the Designated Subsidiary, if any, or the consummation of the transactions contemplated thereby. 
  

 2 

 The opinion set forth in paragraph 4 above is subject to the effect of any applicable
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws affecting creditors’ rights generally and to the effect of general principles of equity (regardless of whether enforcement is sought in a proceeding in
equity or at law) and an implied covenant of good faith and fair dealing. 
 Very truly yours, 
  

 3 

 EXHIBIT G 
 FORM OF OPINION OF COUNSEL 
 FOR J.P. MORGAN EUROPE LIMITED, 
 AS FACILITY AGENT 
 [Letterhead of Simpson Thacher & Bartlett LLP] 
 [Effective Date] 
 J.P. Morgan Europe Limited, 
     as Facility Agent 
 The Lenders listed on Schedule I hereto 
     which are parties to the Credit Agreement 
     on the date hereof 
  

					
	Re:	 	 Revolving Credit Facility dated as of 29 March 2010 (the “Credit Agreement”) among Philip Morris
International Inc. (the “Company”), the lending institutions identified in the Credit Agreement (the “Lenders”), J.P. Morgan Europe Limited, as Facility Agent, JPMorgan Chase Bank, N.A., as Swingline Agent, and J.P.
Morgan plc, Deutsche Bank Securities Inc., Citigroup Global Markets Limited, Credit Suisse AG, Cayman Islands Branch, Goldman Sachs Credit Partners L.P. and RBS Securities Inc., as Mandated Lead Arrangers and Bookrunners
	  	

 Ladies and Gentlemen: 
 We have acted as counsel to J.P. Morgan Europe Limited, as Facility Agent, and JPMorgan Chase Bank, N.A., as Swingline Agent, in connection with the preparation, execution and delivery of the Credit
Agreement. 
 This opinion is delivered to you pursuant to Section 3.1(e)(iv) of the Credit Agreement. Terms used herein
which are defined in the Credit Agreement shall have the respective meanings set forth in the Credit Agreement, unless otherwise defined herein. 
 In connection with this opinion, we have examined a copy of the Credit Agreement signed by the Company and by the Facility Agent, the Swingline Agent and the Lenders. 

 We also have examined the originals, or duplicates or certified or conformed copies, of such
records, agreements, instruments and other documents and have made such other investigations as we have deemed relevant and necessary in connection with the opinions expressed herein. As to questions of fact material to this opinion, we have relied
upon certificates of public officials and of officers and representatives of the Company. In addition, we have examined, and have relied as to matters of fact upon, the representations made in the Credit Agreement. 
 In rendering the opinion set forth below, we have assumed the genuineness of all signatures, the legal capacity of natural persons, the
authenticity of all documents submitted to us as originals, the conformity to original documents of all documents submitted to us as duplicates or certified or conformed copies, and the authenticity of the originals of such latter documents.

 In rendering the opinion set forth below we have assumed that (1) the Credit Agreement is a valid and legally binding
obligation of each of the Lenders parties thereto, (2) the Company is duly organized and validly existing and in good standing under the laws of the jurisdiction in which it is organized and of each other jurisdiction in which the conduct of
its business or ownership of its property makes such qualification necessary, has the corporate power and authority to execute, deliver and perform its obligations under the Credit Agreement and has duly authorized, executed and delivered the Credit
Agreement in accordance with its Articles of Incorporation and By-laws or other similar organizational documents, and (3)(a) execution, delivery and performance by the Company of the Credit Agreement do not contravene its Articles of
Incorporation or By-laws or other similar organizational documents, (b) execution, delivery and performance by the Company of the Credit Agreement do not violate, or require any consent not obtained under, the laws of the jurisdiction in which
it is organized or any other applicable laws or regulations or any order, writ, injunction or decree of any court or other governmental authority binding on the Company, and (c) execution, delivery and performance by the Company of the Credit
Agreement do not constitute a breach or violation of, or require any consent not obtained under, any agreement or instrument which is binding upon the Company. 
 Based upon and subject to the foregoing, and subject to the qualifications and limitations set forth herein, we are of the opinion that the Credit Agreement constitutes the valid and legally binding
obligation of the Company, enforceable against the Company in accordance with its terms. 
 Our opinion set forth above is
subject to (i) the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors’ rights generally, (ii) general equitable principles (whether considered
in a proceeding in equity or at law) and (iii) an implied covenant of good faith and fair dealing. 
 We express no opinion
with respect to: 
 (A) the effect of any provision of the Credit Agreement which is intended to permit modification thereof
only by means of an agreement in writing by the parties thereto; 
 (B) the effect of any provision of the Credit Agreement
insofar as it provides that any Person purchasing a participation from a Lender or other Person may exercise set-off or similar rights with respect to such participation or that any Lender or other Person may exercise set-off or

 
similar rights other than in accordance with applicable law; 
 (C) the
effect of any provision of the Credit Agreement imposing penalties or forfeitures; 
 (D) the enforceability of any provision of
the Credit Agreement to the extent that such provision constitutes a waiver of illegality as a defense to performance of contract obligations; or 
 (E) the effect of any provision of the Credit Agreement relating to indemnification or exculpation in connection with violations of any securities laws or relating to indemnification, contribution or
exculpation in connection with willful, reckless or criminal acts or gross negligence of the indemnified or exculpated Person or the Person receiving contribution. 
 In connection with the provisions of the Credit Agreement which relate to forum selection (including, without limitation, any waiver of any objection to venue or any objection that a court is an
inconvenient forum), we note that under NYCPLR § 510, a New York State court may have discretion to transfer the place of trial, and under 28 U.S.C. § 1404(a), a United States District Court has discretion to transfer an action from one
Federal court to another. 
 We are members of the Bar of the State of New York, and we do not express any opinion herein
concerning any law other than the law of the State of New York and the Federal law of the United States. 
 This opinion letter
is rendered to you in connection with the above described transaction. This opinion letter may not be relied upon by you for any other purpose, or relied upon by, or furnished to, any other person, firm or corporation without our prior written
consent. This opinion letter may be furnished to, but may not be relied upon by, a regulatory authority entitled to receive it. 
 Very truly yours, 

 EXHIBIT H - FORM OF 
 CONFIDENTIALITY AGREEMENT 
  

			
	 To:
	  	[NAME OF BANK]
		
	 Date:
	  	________, 20    
		
	 Subject:
	  	Philip Morris International Inc. $2,500,000,000 Revolving Credit Facility (the “Facility”)

 In connection with the Facility for Philip Morris International Inc. (the “Company”), you will be receiving certain information which is
non-public, confidential or proprietary in nature. That information and any other information, regardless of form, whether oral, written or electronic, concerning the Company, its subsidiaries or the Facility furnished to you by [NAME OF LENDER] or
the Company or any of their respective Representatives in connection with the Facility (at any time on, before or after the date of this Agreement), together with analyses, compilations or other materials prepared by you or your Representatives
which contain or otherwise reflect such information or your review of the Facility is hereinafter referred to as the “Information.” As used herein, “Representatives” refers to affiliates, directors, officers,
employees, agents, auditors, attorneys, consultants or advisors. In consideration of your receipt of the Information, you agree that: 
  

	 	1.	You will not, without the prior written consent of the Company, use, either directly or indirectly, any of the Information except in connection with the Facility.

  

	 	2.	You agree to reveal the Information only to your Representatives who need to know the Information for the purpose of evaluating the Facility, who are informed by you of
the confidential nature of the Information, and who agree to be bound by the terms and conditions of this Agreement. You agree to be responsible for any breach of this Agreement by any of your Representatives and to indemnify and hold the Company
and its Representatives harmless from and against any and all liabilities, claims, causes of action, costs and expenses (including attorney fees and expenses) arising out of the breach of this Agreement by you or your Representatives.

  

	 	3.	Without the prior written consent of the Company you shall not disclose to any person (except as otherwise expressly permitted herein) the fact that the Information has
been made available, that discussions are taking place between the Company and any financial institution concerning the Facility, or any of the terms, conditions or other facts with respect thereto (including the status thereof), or that the
Facility has been consummated. 

  

	 	4.	 This Agreement shall be inoperative as to any portion of the Information that (i) is or becomes generally available to the public on a
non-confidential basis through no fault or action by you or your Representatives, or (ii) is or becomes available to you on a non-confidential basis from a source other than the Company, [NAME

	 	 
OF LENDER] or their respective Representatives, which source, to the best of your knowledge, is not prohibited from disclosing such Information to you by a contractual, legal or fiduciary
obligation to the Company, [NAME OF LENDER] or their respective Representatives. 

  

	 	5.	You may disclose the Information at the request of any regulatory or supervisory authority having jurisdiction over you, provided that you request confidential
treatment of such Information to the extent permitted by law, provided that, insofar as practicable, you notify the Company in advance of such disclosure pursuant to the following paragraph. 

  

	 	6.	In the event that you or anyone to whom you transmit the Information pursuant to this Agreement becomes legally compelled to disclose any of the Information or the
existence of the Facility, you shall provide the Company with notice of such event promptly upon your obtaining knowledge thereof (provided that you are not otherwise prohibited by law from giving such notice) so that the Company may seek a
protective order or other appropriate remedy. In the event that such protective order or other remedy is not obtained, you shall furnish only that portion of the Information that is legally required and shall disclose the Information in a manner
reasonably designed to preserve its confidential nature. 

  

	 	7.	In the event that discussions with you concerning the Facility are discontinued or your relationship with [NAME OF LENDER] with respect to the Facility is otherwise
terminated, you shall deliver to the Company the copies of the Information that were furnished to you by or on behalf of the Company and represent to the Company that you have destroyed all other copies thereof, provided that you may maintain copies
of the Information, subject to the terms of this Agreement, as required by law or regulations or document retention policies applicable to you. All of your obligations hereunder and all of the rights and remedies of the Company and [NAME OF LENDER]
hereunder shall survive any discontinuance of discussions, termination of your relationship or any return or destruction of the Information. 

  

	 	8.	You acknowledge that disclosure of the Information in violation of the terms of this Agreement could have material adverse consequences, and agree that, in the event of
any breach by you or your Representatives of this Agreement, the Company and its Representatives will be entitled to equitable relief (including injunction and specific performance) in addition to all other remedies available to them at law or in
equity. 

  

	 	9.	The obligations set forth in this Agreement shall survive until the earlier of (i) five years from the date of this Agreement or (ii) the termination of the
Facility. 

  

	 	10.	This agreement shall be governed by, and construed in accordance with, the laws of the State of New York without consideration to its conflicts of laws provisions.

 This agreement is in addition to and does not supersede the confidentiality agreements contained in any credit agreements of
any affiliate of the Company to which you are a party. It is

 
understood and agreed that the Company, [NAME OF LENDER] and their respective Representatives may rely on this Agreement. 
 ACCEPTED AND AGREED as of the date written above: 
  

			
	[NAME OF BANK]
		
	By 	 	 
		 	Name:
		 	Title:Eleventh Supplemental Indenture

 Exhibit 4.1 
  
  
  
 PLAINS EXPLORATION &
PRODUCTION COMPANY 
 as the Company 
 THE GUARANTOR PARTIES NAMED HEREIN 
 as Guarantors 
 and 
 WELLS FARGO BANK, N.A. 
 as Trustee 
 ELEVENTH SUPPLEMENTAL INDENTURE 
 Dated as of
March 29, 2010 
 To 
 INDENTURE 
 Dated as of March 13, 2007 
 7.625% SENIOR NOTES DUE 2020 
  
  
  

 TABLE OF CONTENTS 
  

			
	 	  	Page
		
	 ARTICLE 1 Relation to Indenture; Definitions
	  	1
	 SECTION 1.01. Relation to Indenture.
	  	1
	 SECTION 1.02. Definitions.
	  	1
	 SECTION 1.03. General References.
	  	1
		
	 ARTICLE 2 The Series of Securities
	  	2
	 SECTION 2.01. The Form and Title of the Securities.
	  	2
	 SECTION 2.02. Amount.
	  	2
	 SECTION 2.03. Stated Maturity.
	  	2
	 SECTION 2.04. Interest and Interest Rates.
	  	2
	 SECTION 2.05. Place of Payment.
	  	2
	 SECTION 2.06. Optional Redemption.
	  	3
	 SECTION 2.07. Defeasance and Discharge; Covenant Defeasance.
	  	3
	 SECTION 2.08. Global Securities.
	  	3
	 SECTION 2.09. Subsidiary Guarantees.
	  	3
		
	 ARTICLE 3 Amendments to Original Indenture
	  	3
	 SECTION 3.01. Defined Terms.
	  	3
	 SECTION 3.02. Defaults and Remedies.
	  	30
	 SECTION 3.03. Notice of Defaults.
	  	33
	 SECTION 3.04. Compensation and Reimbursement.
	  	33
	 SECTION 3.05. Merger, Consolidation or Sale of Substantially All Assets.
	  	34
	 SECTION 3.06. Selection for and Notice of Redemption.
	  	35
	 SECTION 3.07. Redemption Upon Equity Offering.
	  	37
	 SECTION 3.08. Covenant Defeasance.
	  	37
	 SECTION 3.09. Subsidiary Guarantees.
	  	37
	 SECTION 3.10. Repurchase Offers.
	  	39
		
	 ARTICLE 4 Additional Covenants
	  	41
	 SECTION 4.01. Reports.
	  	41
	 SECTION 4.02. Taxes.
	  	42
	 SECTION 4.03. Restricted Payments.
	  	42
	 SECTION 4.04. Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries.
	  	46
	 SECTION 4.05. Incurrence of Indebtedness and Issuance of Preferred Stock.
	  	48
	 SECTION 4.06. Asset Sales.
	  	51
	 SECTION 4.07. Transactions with Affiliates.
	  	53
	 SECTION 4.08. Limitation on Liens.
	  	55
	 SECTION 4.09. Offer to Repurchase upon a Change of Control.
	  	55
	 SECTION 4.10. Designation of Restricted and Unrestricted Subsidiaries.
	  	57
	 SECTION 4.11. Future Guarantors.
	  	58
	 SECTION 4.12. Covenant Termination.
	  	58
		
	 ARTICLE 5 Miscellaneous
	  	58
	 SECTION 5.01. Certain Trustee Matters.
	  	58
	 SECTION 5.02. Continued Effect.
	  	59
	 SECTION 5.03. Governing Law.
	  	59
	 SECTION 5.04. Counterparts.
	  	59
		
	 EXHIBITS
	  	
	 Exhibit A: Form of Note
	  	

  

 Eleventh Supplemental Indenture 

 ELEVENTH SUPPLEMENTAL INDENTURE, dated as of March 29, 2010 (this
“Supplemental Indenture”), by and among PLAINS EXPLORATION & PRODUCTION COMPANY, a corporation duly organized and existing under the laws of the State of Delaware (the “Company”), each of the Guarantor parties
named on the signature pages hereof (collectively, the “Guarantors”) and WELLS FARGO BANK, N.A., a nationally chartered banking association, as trustee under the Indenture referred to below (in such capacity, the
“Trustee”). 
 RECITALS OF THE COMPANY 
 WHEREAS, the Company and the Trustee have heretofore entered into an Indenture, dated as of March 13, 2007 (the “Original
Indenture”) (the Original Indenture, as supplemented from time to time, including without limitation pursuant to this Supplemental Indenture, being referred to herein as the “Indenture”); and 
 WHEREAS, under the Original Indenture, a new series of Securities may at any time be established by the Board of Directors of the Company,
in accordance with the provisions of the Original Indenture, and the terms of such series may be established by an indenture supplemental to the Original Indenture; and 
 WHEREAS, the Company proposes to create under the Indenture a new series of Securities; and 
 WHEREAS, the Company proposes that its obligations under such new series of Securities and under the Indenture to the extent applicable to such new series of Securities be guaranteed by each of the
Guarantors in accordance with the provisions of the Indenture (including without limitation Article Fourteen of the Original Indenture and the provisions of this Supplemental Indenture); and 
 NOW, THEREFORE, in consideration of the premises, agreements and obligations set forth herein and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree, for the equal and proportionate benefit of all Holders of the Notes (as defined below), as follows: 
 ARTICLE 1 
 RELATION TO INDENTURE; DEFINITIONS 
 SECTION 1.01. Relation to Indenture. 
 With respect to the Notes, this Supplemental
Indenture constitutes an integral part of the Indenture. 
 SECTION 1.02. Definitions.

 For all purposes of this Supplemental Indenture, capitalized terms used herein and not otherwise defined herein shall have
the meanings assigned thereto in the Original Indenture. 
 SECTION 1.03. General References. 

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

					
		 		 	Eleventh Supplemental Indenture

 ARTICLE 2 
 THE SERIES OF SECURITIES 
 SECTION 2.01. The Form and Title of the Securities. 
 There is hereby established a new series of Securities to be issued under the Indenture and to be designated as the Company’s 7.625% Senior Notes due 2020 (the “Notes”). The Notes shall be substantially in the form attached
as Exhibit A hereto, in each case with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by the Indenture, and may have such letters, numbers or other marks of identification and such
legends or endorsements placed thereon as the Company may deem appropriate or as may be required or appropriate to comply with any laws or with any rules made pursuant thereto or with the rules of any securities exchange or automated quotation
system on which the Notes may be listed or traded, or to conform to general usage, or as may, consistently with the Indenture, be determined by the Officers executing such Notes, as evidenced by their execution thereof. 
 The Notes shall be executed, authenticated and delivered in accordance with the provisions of, and shall in all respects be subject to, the
terms, conditions and covenants of the Original Indenture as supplemented by this Supplemental Indenture (including the form of Note attached as Exhibit A hereto (the terms of which are incorporated in and made a part of this
Supplemental Indenture for all intents and purposes)). 
 SECTION 2.02. Amount. 
 Subject to compliance with Section 10.11 of the Indenture, the aggregate principal amount of the Notes that may be authenticated and
delivered pursuant hereto is unlimited. The Trustee shall initially authenticate and deliver Notes for original issue in an initial aggregate principal amount of up to $300,000,000, upon delivery to the Trustee of a Company Order for the
authentication and delivery of such Notes. The aggregate principal amount of the Notes to be issued hereunder may be increased at any time hereafter and the series may be reopened for issuances of Additional Notes, upon Company Order without the
consent of any Holder and without any further supplement or amendment to the Original Indenture or this Supplemental Indenture. The Notes issued on the date hereof and any such Additional Notes that may be issued hereafter shall be part of the same
series of Securities for all purposes under the Indenture. 
 SECTION 2.03. Stated Maturity. 

 The Notes may be issued on any Business Day on or after March 29, 2010, and the Stated Maturity of the Notes shall be
April 1, 2020. 
 SECTION 2.04. Interest and Interest Rates. 
 The rate or rates at which the Notes shall bear interest, the date or dates from which such interest shall accrue, the Interest Payment Dates
on which any such interest shall be payable and the Regular Record Date for any interest payable on any Interest Payment Date, in each case, shall be as set forth in the form of Note attached as Exhibit A hereto. 
 SECTION 2.05. Place of Payment. 
 As long as any Notes are Outstanding, the Company shall maintain an office or agency in the United States where Notes may be presented for
payment. Such office or agency shall initially be the office or agency of the Trustee in Dallas, Texas. 
  

					
		 	2	 	Eleventh Supplemental Indenture

 SECTION 2.06. Optional Redemption. 
 At its option, the Company may redeem the Notes, in whole or in part, in principal amounts of $1,000 or any integral multiple thereof, at any
time or from time to time, at the applicable Redemption Prices determined as set forth in the form of Note attached hereto as Exhibit A, in accordance with the terms set forth in the Notes and in accordance with Article Eleven of the Original
Indenture (as amended and supplemented by this Supplemental Indenture, including without limitation Section 3.06. hereof). 
 SECTION 2.07. Defeasance and Discharge; Covenant Defeasance. 
 Article Thirteen of the
Original Indenture (as amended and supplemented by this Supplemental Indenture) shall apply to the Notes. Furthermore, each of the following shall constitute Additional Defeasible Provisions (as such term is defined in the Original Indenture):

 (a) the covenants set forth in ARTICLE 4 of this Supplemental Indenture; and 
 (b) the limitation imposed by clause (iv) of Section 8.1(a) of the Indenture (as a result of this Supplemental Indenture).

 SECTION 2.08. Global Securities. 
 The Notes shall initially be issuable in whole or in part in the form of one or more Global Securities. Such Global Securities (i) shall
be deposited with, or on behalf of, The Depository Trust Company, New York, New York, which shall act as Depositary with respect to the Notes, (ii) shall bear the legends applicable to Global Securities set forth in Sections 2.2 and 2.4 of the
Original Indenture, (iii) may be exchanged in whole or in part for Securities in definitive form upon the terms and subject to the conditions provided in Section 3.5 of the Original Indenture and in this Supplemental Indenture and
(iv) shall otherwise be subject to the applicable provisions of the Indenture. 
 SECTION 2.09.
Subsidiary Guarantees. 
 Article Fourteen of the Original Indenture (as amended and supplemented by
this Supplemental Indenture, including without limitation Section 3.09. hereof) shall apply to the Notes. For the purposes of this Supplemental Indenture and the Notes (including without limitation the provisions of the Original Indenture to the
extent applicable thereto), the term “Guarantor” shall mean each of the Guarantor parties named on the signature pages of this Supplemental Indenture. 
 ARTICLE 3 
 AMENDMENTS TO
ORIGINAL INDENTURE 
 With respect to the Notes, the Original Indenture is hereby amended as
set forth below in this ARTICLE 3; provided, however, that each such amendment shall apply only to the Notes and not to any other series of Securities issued under the Indenture. 
 SECTION 3.01. Defined Terms. 
 Subject to the limitations set forth in the preamble to ARTICLE 3 of this Supplemental Indenture, Section 1.1 of the Original Indenture is hereby amended by inserting or restating, as the case may
be, each of the following defined terms in its appropriate alphabetical position: 
 “Acquired Debt”
means, with respect to any specified Person: 
 (1) Indebtedness of any other Person existing at the time such
other Person is merged with or into or became a Subsidiary of such specified Person, regardless of

  

					
		 	3	 	Eleventh Supplemental Indenture

 
whether such Indebtedness is incurred in connection with, or in contemplation of, such other Person merging with or into, or becoming a Restricted Subsidiary of, such specified Person, but
excluding Indebtedness which is extinguished, retired or repaid in connection with such Person merging with or becoming a Subsidiary of such specified Person; and 
 (2) Indebtedness secured by a Lien encumbering any asset acquired by such specified Person. 
 “Acquired Subordinated Indebtedness” means Subordinated Debt of the Company or any of its Restricted Subsidiaries,
that is Acquired Debt and was not incurred in connection with, or in contemplation of, another Person merging with or into, or becoming a Restricted Subsidiary of, the Company or any of its Subsidiaries. 
 “Additional Assets” means: 
 (1) any property or assets (other than Indebtedness and Capital Stock) to be used by the Company or a Restricted Subsidiary
in a Related Business; 
 (2) the Capital Stock of a Person that becomes a Restricted Subsidiary as a result of
the acquisition of such Capital Stock by the Company or a Restricted Subsidiary; 
 (3) Capital Stock
constituting a minority interest in any Person that at such time is a Restricted Subsidiary; or 
 (4) Capital
Stock of any Subsidiary of the Company; provided that all the Capital Stock of such Subsidiary held by the Company or any of its Restricted Subsidiaries shall entitle the Company or such Restricted Subsidiary to not less than a pro rata
portion of all dividends or other distributions made by such Subsidiary upon any of such Capital Stock; 
 provided further,
however, that in the case of clauses (2), (3) and (4), such Subsidiary is primarily engaged in a Related Business. 
 “Additional Notes” means an unlimited maximum aggregate principal amount of Notes (other than the Notes issued on the date hereof) issued under the Indenture pursuant to Section 2.02. of the
Eleventh Supplemental Indenture hereto dated as of March 29, 2010. 
 “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 SEC guidelines before any provincial, territorial, state, Federal or foreign income taxes, as estimated by the Company in a reserve report prepared as of the end of the Company’s most recently
completed fiscal year for which audited financial statements are available and giving effect to applicable Oil and Natural Gas Hedging Contracts, 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 
  

					
		 	4	 	Eleventh Supplemental Indenture

 (B) estimated oil and gas reserves attributable to upward revisions of
estimates of proved oil and gas reserves (including previously estimated development costs incurred during the period and the accretion of discount since the prior period end) since such year end due to exploration, development, exploitation or
other activities, in each case calculated in accordance with SEC guidelines, 
 and decreased by, as of the date of
determination, the estimated discounted future net revenues from: 
 (C) estimated proved oil and gas reserves
reflected in such reserve report produced or disposed of since such year end, and 
 (D) estimated oil and gas
reserves attributable to downward revisions of estimates of proved oil and gas reserves reflected in such reserve report 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 substantially in accordance with SEC guidelines, 
 in each case as
estimated by the Company’s petroleum engineers or any independent petroleum engineers engaged by the Company for that purpose; 
 (ii) the capitalized costs that are attributable to oil and gas properties of the Company and its Restricted Subsidiaries to which no proved oil and gas reserves are attributable, based on the
Company’s books and records as of a date no earlier than the date of the Company’s latest available annual or quarterly financial statements; 
 (iii) the Net Working Capital (excluding, to the extent included in the determination of discounted future net revenues under clause (i)(A) above, any adjustments made pursuant to FAS 143) 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 of other tangible assets of the Company and its Restricted Subsidiaries,
as of a date no earlier than the date of the Company’s latest annual or quarterly financial statements, and 
 (B) the appraised value, as estimated by independent appraisers, of other tangible assets of the Company and its Restricted Subsidiaries, as of a date no earlier than the date of the Company’s latest audited financial statements
(provided that the Company shall not be required to obtain such appraisal solely for the purpose of determining this value); minus 
 (b) the sum of: 
 (i) the net book value of shares of stock of any
class of Capital Stock of a Restricted Subsidiary that are not owned by the Company or a Restricted Subsidiary; 
 (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 SEC
guidelines (utilizing the prices utilized in the

  

					
		 	5	 	Eleventh Supplemental Indenture

 
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 SEC guidelines, attributable to reserves subject to Dollar-Denominated Production Payments which, based on the estimates of
production and price assumptions included in determining the discounted future net revenues specified in (a)(i) above, would be necessary to fully satisfy the payment obligations of the Company and its 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 or a similar method to the successful efforts method of accounting, “Adjusted Consolidated Net Tangible Assets” will continue to be calculated as if the Company were still using
the full cost or a similar method of accounting. 
 “Asset Sale” means: 
 (1) the sale, lease, conveyance or other disposition of any assets or rights (including by way of a Production Payment or a
sale and leaseback transaction); provided that the sale, lease, conveyance or other disposition of all or substantially all of the assets of the Company or the Company and its Restricted Subsidiaries taken as a whole will be governed by the
provisions of Article Eight and/or Section 10.15 of this Indenture and not by the provisions of the Asset Sale covenant set forth in Section 10.12 of this Indenture; and 
 (2) the issuance of Equity Interests in any of the Company’s Restricted Subsidiaries (other than directors’
qualifying shares) or the sale of Equity Interests held by the Company or its Subsidiaries in any of its Subsidiaries. 
 Notwithstanding the preceding, none of the following items will be deemed to be an Asset Sale: 
 (1)
any single transaction or series of related transactions that involves assets having a Fair Market Value of less than $20.0 million; 
 (2) a transfer of assets between or among the Company and its Restricted Subsidiaries; 
 (3) an issuance of Equity Interests by a Restricted Subsidiary to the Company or to a Restricted Subsidiary; 
 (4) the sale or lease of equipment, inventory, products, services, accounts receivable or other assets in the ordinary course of business, and any sale or other disposition of damaged, worn-out or
obsolete assets or assets that are no longer useful in the conduct of the business of the Company and its Restricted Subsidiaries; 
 (5) the sale or other disposition of cash or Cash Equivalents; 
 (6) a Restricted Payment that does not violate Section 10.9 of this Indenture; 
  

					
		 	6	 	Eleventh Supplemental Indenture

 (7) the consummation of a Permitted Investment, including, without
limitation, unwinding any Hedging Obligations; 
 (8) a disposition of Hydrocarbons or mineral products inventory
in the ordinary course of business; 
 (9) the sale or transfer (regardless of whether in the ordinary course of
business) of crude oil and natural gas properties or direct or indirect interests in real property; provided that at the time of such sale or transfer such properties do not have associated with them any proved reserves; 
 (10) the farm-out, lease or sublease of developed or undeveloped crude oil or natural gas properties owned or held by the
Company or such Restricted Subsidiary in exchange for crude oil and natural gas properties owned or held by another Person; 
 (11) any trade or exchange by the Company or any Restricted Subsidiaries of oil and gas properties or other properties or assets for oil and gas properties or other properties or assets owned or held by
another Person, provided that the fair market value of the properties or assets traded or exchanged by the Company or such Restricted Subsidiary (together with any cash) is reasonably equivalent to the fair market value of the properties or
assets (together with any cash) to be received by the Company or such Restricted Subsidiary, and provided further that any net cash received must be applied in accordance with the provisions of Section 10.12 of this Indenture;

 (12) the creation or perfection of a Lien (but not, except to the extent contemplated in clause
(13) below, the sale or other disposition of the properties or assets subject to such Lien); 
 (13) the
creation or perfection of a Permitted Lien and the exercise by any Person in whose favor a Permitted Lien is granted of any of its rights in respect of that Permitted Lien; 
 (14) the licensing or sublicensing of intellectual property, including, without limitation, licenses for seismic data, in the
ordinary course of business and which do not materially interfere with the business of the Company and its Restricted Subsidiaries; 
 (15) surrender or waiver of contract rights or the settlement, release or surrender of contract, tort or other claims of any kind; and 
 (16) the disposition of oil and natural gas properties in connection with tax credit transactions complying with
Section 29 of the Code or any successor or analogous provisions of the Code. 
 “Board of
Directors” means, as to any Person, the board of directors of such Person or any duly authorized committee thereof. 
 “Capital Stock” means: 
 (1) in the case of a
corporation, corporate stock; 
 (2) in the case of an association or business entity, any and all shares,
interests, participations, rights or other equivalents (however designated) of corporate stock; 
  

					
		 	7	 	Eleventh Supplemental Indenture

 (3) in the case of a partnership or limited liability company, partnership
interests (whether general or limited) or membership interests; and 
 (4) any other interest or participation
that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person, but excluding from all of the foregoing any debt securities convertible into Capital Stock, regardless of whether
such debt securities include any right of participation with Capital Stock. 
 “Capital Lease
Obligation” means, at the time any determination is to be made, the amount of the liability in respect of a capital lease that would at that time be required to be capitalized on a balance sheet in accordance with GAAP, and the Stated Maturity
thereof shall be the date of the last payment of rent or any other amount due under such lease prior to the first date upon which such lease may be prepaid by the lessee without payment of a penalty. 
 “Cash Equivalents” means: 
 (1) United States dollars; 
 (2) securities issued or directly and fully guaranteed or insured by the United States government or any agency or instrumentality of the United States government (provided that the full faith and
credit of the United States is pledged in support of those securities) having maturities of not more than one year from the date of acquisition; 
 (3) marketable general obligations issued by any state of the United States of America or any political subdivision of any such state or any public instrumentality thereof maturing within one year from
the date of acquisition thereof and, at the time of acquisition thereof, having a credit rating of “A” or better from either S&P or Moody’s; 
 (4) certificates of deposit, demand deposit accounts and eurodollar time deposits with maturities of one year or less from
the date of acquisition, bankers’ acceptances with maturities not exceeding one year and overnight bank deposits, in each case, with any domestic commercial bank having capital and surplus in excess of $500.0 million and a Thomson Bank Watch
Rating of “B” or better; 
 (5) repurchase obligations with a term of not more than seven days for
underlying securities of the types described in clauses (2), (3) and (4) above entered into with any financial institution meeting the qualifications specified in clause (4) above; 
 (6) commercial paper having one of the two highest ratings obtainable from Moody’s or S&P and, in each case,
maturing within one year after the date of acquisition; 
 (7) money market funds at least 95% of the assets of
which constitute Cash Equivalents of the kinds described in clauses (1) through (6) of this definition; and 
 (8) deposits in any currency 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 its chief executive office or is engaged in
the Related Business, provided that all such deposits are made in such accounts in the ordinary course of business. 
  

					
		 	8	 	Eleventh Supplemental Indenture

 “Change of Control” means: 
 (1) any “person” or “group” of related persons (as such terms are used in Sections 13(d) and 14(d) of the
Exchange Act), other than Permitted Holders, is or becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that such person or group shall be deemed to have “beneficial ownership” of all shares that
any such person or group has the right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of more than 50% of the total voting power of the Voting Stock of the Company (or its
successor by merger, consolidation or purchase of all or substantially all of its assets) (for the purposes of this clause, such person or group shall be deemed to beneficially own any Voting Stock of the Company held by an entity, if such person or
group “beneficially owns” (as defined above), directly or indirectly, more than 50% of the voting power of the Voting Stock of such entity); 
 (2) the first day on which a majority of the members of the Board of Directors of the Company are not Continuing Directors; 
 (3) the sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a
series of related transactions, of all or substantially all of the assets of the Company and its Restricted Subsidiaries taken as a whole to any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act); or

 (4) the adoption of a plan or proposal for the liquidation or dissolution of the Company. 
 “Change of Control Triggering Event” means the occurrence of both a Change of Control and a Rating Decline with
respect to the Notes. 
 “Consolidated Cash Flow” means, with respect to any specified Person for any
period, the Consolidated Net Income of such Person for such period plus, without duplication: 
 (1) an amount
equal to any extraordinary loss plus any net loss realized by such Person or any of its Restricted Subsidiaries in connection with an Asset Sale (together with any related provision for taxes and any related non-recurring charges relating to any
premium or penalty paid, write-off of deferred financing costs or other financial recapitalization charges in connection with redeeming or retiring any Indebtedness prior to its Stated Maturity), to the extent such losses were deducted in computing
such Consolidated Net Income; plus 
 (2) provision for taxes based on income or profits of such Person
and its Restricted Subsidiaries for such period, to the extent that such provision for taxes was deducted in computing such Consolidated Net Income; plus 
 (3) the Fixed Charges of such Person and its Restricted Subsidiaries for such period, to the extent that such Fixed Charges
were deducted in computing such Consolidated Net Income; plus 
 (4) exploration and abandonment expense
(if applicable) to the extent deducted in calculating Consolidated Net Income; plus 
 (5) depreciation,
depletion, amortization (including amortization of intangibles but excluding amortization of prepaid cash expenses that were paid in a prior period), impairment, other non-cash expenses and other non-cash items (excluding any

  

					
		 	9	 	Eleventh Supplemental Indenture

 
such non-cash expense to the extent that it represents an accrual of or reserve for cash expenses in any future period or amortization of a prepaid cash expense that was paid in a prior period)
of such Person and its Restricted Subsidiaries for such period to the extent that such depreciation, depletion, amortization, impairment and other non-cash expenses were deducted in computing such Consolidated Net Income; plus 
 (6) any interest expense attributable to any Oil and Natural Gas Hedging Contract, to the extent that such interest expense
was deducted in computing such Consolidated Net Income; plus 
 (7) the accretion of interest charges on
future plugging and abandonment obligations and future retirement benefits, to the extent such charges were deducted in computing such Consolidated Net Income; minus 
 (8) non-cash items increasing such Consolidated Net Income for such period, other than items that were accrued in the
ordinary course of business; and minus 
 (9) the sum of (a) the amount of deferred revenues that are
amortized during such period and are attributable to reserves that are subject to Volumetric Production Payments and (b) amounts recorded in accordance with GAAP as repayments of principal and interest pursuant to Dollar-Denominated Production
Payments; 
 in each case, on a consolidated basis and determined in accordance with GAAP. 
 Notwithstanding the foregoing, the provision for taxes on the income or profits of, and the depreciation, depletion and
amortization and other non-cash charges and expenses of, a Restricted Subsidiary of the referent Person shall be added to Consolidated Net Income to compute Consolidated Cash Flow only to the extent (and in the same proportion) that the Net Income
of such Restricted Subsidiary was included in calculating the Consolidated Net Income of such Person and only if a corresponding amount would be permitted at the date of determination to be dividended to the referent Person by such Restricted
Subsidiary without prior governmental approval (that has not been obtained), and without direct or indirect restriction pursuant to the terms of its charter and all agreements, instruments, judgments, decrees, orders, statutes, rules and
governmental regulations applicable to that Restricted Subsidiary or its stockholders. Furthermore, solely for the purpose of calculating Consolidated Cash Flow, any expenses attributable to stock appreciation rights will not be deducted in
computing Consolidated Net Income prior to payment of such expenses in cash. 
 “Consolidated Net
Income” means, with respect to any specified Person for any period, the aggregate of the Net Income of such Person and its Restricted Subsidiaries for such period, on a consolidated basis, determined in accordance with GAAP; provided
that: 
 (1) the Net Income (but not loss) of any Person that is not a Restricted Subsidiary or that is accounted
for by the equity method of accounting will be included only to the extent of the amount of dividends or similar distributions paid in cash to the specified Person or a Restricted Subsidiary of the Person; 
 (2) the Net Income of any Restricted Subsidiary will be excluded to the extent that the declaration or payment of dividends
or similar distributions by that Restricted Subsidiary of that Net Income is not at the date of determination permitted without any prior governmental approval (that has not been obtained) or, directly or indirectly, by operation of the terms of its
charter or any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to that

  

					
		 	10	 	Eleventh Supplemental Indenture

 
Restricted Subsidiary or its stockholders; provided, however that the operation of this clause (2) shall be suspended with respect to any Restricted Subsidiary that is acquired
by the Company or any of its Subsidiaries (regardless of whether such acquisition is effected pursuant to a merger or otherwise) (such Restricted Subsidiary being referred to as a “Newly Acquired Restricted Subsidiary”), but such
suspension shall cease immediately after the first six months following such acquisition; provided further, however that the Net Income for such period of any Newly Acquired Restricted Subsidiary that is acquired by the Company or any
of its Restricted Subsidiaries during such period, shall be included; 
 (3) the cumulative effect of a change in
accounting principles will be excluded; 
 (4) any gain (loss) realized upon the sale or other disposition of any
property, plant or equipment of such Person or its consolidated Restricted Subsidiaries (including pursuant to any sale or leaseback transaction) which is not sold or otherwise disposed of in the ordinary course of business and any gain (loss)
realized upon the sale or other disposition of any Capital Stock of any Person will be excluded; 
 (5) any asset
impairment write-downs on Oil and Gas Properties under GAAP or SEC guidelines will be excluded; 
 (6) any
non-cash mark-to-market adjustments to assets or liabilities resulting in unrealized gains or losses in respect of Hedging Obligations (including those resulting from the application of SFAS 133) shall be excluded; 
 (7) to the extent deducted in the calculation of Net Income, any non-cash or nonrecurring charges associated with any premium
or penalty paid, write-off of deferred financing costs or other financial recapitalization charges in connection with redeeming or retiring any Indebtedness will be excluded; and 
 (8) any net losses or expenses associated with the Pre-Issue Date Hedge Buyouts and/or the Oil and Natural Gas Hedging
Contracts mentioned in the definition of “Pre-Issue Date Hedge Buyouts” will be excluded. 
 “Consolidated Net Worth” means, with respect to any specified Person as of any date, the sum of: 
 (1) the consolidated equity of the common stockholders of such Person and its consolidated Subsidiaries as of such date; plus 
 (2) the respective amounts reported on such Person’s balance sheet as of such date with respect to any series of preferred stock (other than Disqualified Stock) that by its terms is not entitled to
the payment of dividends unless such dividends may be declared and paid only out of net earnings in respect of the year of such declaration and payment, but only to the extent of any cash received by such Person upon issuance of such preferred
stock. 
 “Continuing Directors” means, as of any date of determination, any member of the Board of
Directors of the Company who: 
 (1) was a member of such Board of Directors on March 13, 2007; or

  

					
		 	11	 	Eleventh Supplemental Indenture

 (2) was nominated for election or elected to such Board of Directors with
the approval of a majority of the Continuing Directors who were members of such Board of Directors at the time of such nomination or election. 
 “Credit Facilities” means, with respect to the Company or any of its Restricted Subsidiaries, one or more debt facilities (including, without limitation, the Senior Credit Agreement), commercial
paper facilities or Debt Issuances providing for revolving credit loans, term loans, receivables financing (including through the sale of receivables to any lenders, other financiers or to special purpose entities formed to borrow from (or sell such
receivables to) any lenders or other financiers against such receivables), letters of credit, bankers’ acceptances, other borrowings or Debt Issuances, in each case, as amended, restated, modified, renewed, extended, refunded, replaced or
refinanced (in each case, without limitation as to amount), in whole or in part, from time to time (including through one or more Debt Issuances) and any agreements and related documents governing Indebtedness or obligations incurred to refinance
amounts then outstanding or permitted to be outstanding, whether provided under the original agreement, indenture or other documentation relating thereto. 
 “Currency Agreement” means in respect of a Person any foreign exchange contract, currency swap agreement or other similar agreement as to which such Person is a party or a beneficiary.

 “Debt Issuances” means, with respect to the Company or any Restricted Subsidiary, one or more
issuances after March 13, 2007 of Indebtedness evidenced by notes, debentures, bonds or other similar securities or instruments. 
 “Default” means any event which is, or after notice or passage of time or both would be, an Event of Default. 
 “Disqualified Stock” means any Capital Stock that, by its terms (or by the terms of any security into which it is
convertible, or for which it is exchangeable, in each case at the option of the holder of the Capital Stock), or upon the happening of any event, matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable
at the option of the holder of the Capital Stock, in whole or in part, on or prior to the date that is 91 days after the date on which the Notes mature. Notwithstanding the preceding sentence, any Capital Stock that would constitute Disqualified
Stock solely because the holders of the Capital Stock have the right to require the Company to repurchase such Capital Stock upon the occurrence of a change of control or an asset sale will not constitute Disqualified Stock if the terms of such
Capital Stock provide that the Company may not repurchase or redeem any such Capital Stock pursuant to such provisions unless such repurchase or redemption complies with Section 10.9 of this Indenture. The amount of Disqualified Stock deemed to
be outstanding at any time for purposes of this Indenture will be the maximum amount that the Company and its Restricted Subsidiaries may become obligated to pay upon the maturity of, or pursuant to any mandatory redemption provisions of, such
Disqualified Stock, exclusive of accrued dividends. 
 “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 any Restricted Subsidiary that was formed under the laws of the United States or any state of the United States or the District of Columbia or that
Guarantees or otherwise provides direct credit support for any Indebtedness of the Company or any Guarantor. 
  

					
		 	12	 	Eleventh Supplemental Indenture

 “Equity Interests” means Capital Stock and all warrants, options
or other rights to acquire Capital Stock (but excluding any debt security that is convertible into, or exchangeable for, Capital Stock). 
 “Equity Offering” means (i) an offering for cash by the Company of its Capital Stock (other than Disqualified Stock), or options, warrants or rights with respect to its Capital Stock or
(ii) a contribution of cash to the Company in exchange for its Capital Stock (other than Disqualified Stock). 
 “Existing Indebtedness” means Indebtedness of the Company and its Subsidiaries (other than Indebtedness under the Senior Credit Agreement) in existence on March 13, 2007 (including the
$500,000,000 aggregate principal amount of 7% Senior Notes due 2017 issued by the Company on March 13, 2007 and all related Guarantees of such notes by its Subsidiaries), the $600,000,000 aggregate principal amount of 7 3/4% Senior Notes due 2015 issued by the Company on June 19, 2007
and all related Guarantees of such notes by its Subsidiaries, the $400,000,000 aggregate principal amount of 7 5/8% Senior Notes due 2018 issued by the Company on May 23, 2008 and all related Guarantees of such notes by its Subsidiaries, the $565,000,000 aggregate principal amount of 10%
Senior Notes due 2016 issued by the Company on March 6, 2009 and April 6, 2009 and all related Guarantees of such notes by its Subsidiaries and the $400,000,000 aggregate principal amount of 8 5/8% Senior Notes due 2019 issued by the Company on September 11,
2009 and all related Guarantees of such notes by its Subsidiaries, until such amounts are repaid. 
 “Fair Market Value” means the value that would be paid by a willing buyer to an unaffiliated willing seller in a transaction not involving distress or necessity of either party, determined in good faith by the Board of Directors
or management of the Company (unless otherwise provided in this Indenture), which determination will be conclusive for all purposes under this Indenture. 
 “Farm-In Agreement” means an agreement whereby a Person agrees to pay all or a share of the drilling, completion or other expenses of an exploratory or development well (which agreement may be
subject to a maximum payment obligation, after which expenses are shared in accordance with the working or participation interest therein or in accordance with the agreement of the parties) or perform the drilling, completion or other operation on
such well in exchange for an ownership interest in an oil or gas property. 
 “Farm-Out Agreement”
means a Farm-In Agreement, viewed from the standpoint of the party that transfers an ownership interest to another. 
 “Fixed Charge Coverage Ratio” means with respect to any specified Person for any period, the ratio of the Consolidated Cash Flow of such Person for such period to the Fixed Charges of such Person for such period. In the event that
the specified Person or any of its Restricted Subsidiaries incurs, assumes, guarantees, repays, repurchases, redeems, defeases or otherwise discharges any Indebtedness (other than ordinary working capital borrowings) or issues, repurchases or
redeems preferred stock subsequent to the commencement of the period for which the Fixed Charge Coverage Ratio is being calculated and on or prior to the date on which the event for which the calculation of the Fixed Charge Coverage Ratio is made
(the “Calculation Date”), then the Fixed Charge Coverage Ratio will be calculated giving pro forma effect to such incurrence, assumption, Guarantee, repayment, repurchase, redemption, defeasance or other discharge of Indebtedness, or such
issuance, repurchase or redemption of preferred stock, and the use of the proceeds therefrom, as if the same had occurred at the beginning of the applicable four-quarter reference period. 
  

					
		 	13	 	Eleventh Supplemental Indenture

 In addition, for purposes of calculating the Fixed Charge Coverage Ratio:

 (1) acquisitions that have been made by the specified Person or any of its Restricted Subsidiaries, including
through mergers, consolidations or otherwise (including acquisitions of assets used or useful in a Related Business), or by any Person or any of its Restricted Subsidiaries acquired by the specified Person or any of its Restricted Subsidiaries, and
including any related financing transactions and including increases in ownership of Restricted Subsidiaries, during the four-quarter reference period or subsequent to such reference period and on or prior to the Calculation Date, shall be deemed to
have occurred on the first day of the four-quarter reference period and the Consolidated Cash Flow for such reference period will be calculated giving pro forma effect to any expense and cost reductions that have occurred or, in the reasonable
judgment of the chief accounting or chief financial officer of the Company, are reasonably expected to occur (regardless of whether those operating improvements or cost savings could then be reflected in pro forma financial statements prepared in
accordance with Regulation S-X under the Securities Act or any other regulation or policy of the SEC related thereto); 
 (2) the Consolidated Cash Flow attributable to discontinued operations, as determined in accordance with GAAP, and operations or businesses (and ownership interests therein) disposed of prior to the Calculation Date, will be excluded;

 (3) the Fixed Charges attributable to discontinued operations, as determined in accordance with GAAP, and
operations or businesses (and ownership interests therein) disposed of prior to the Calculation Date, will be excluded, but only to the extent that the obligations giving rise to such Fixed Charges will not be obligations of the specified Person or
any of its Restricted Subsidiaries following the Calculation Date; 
 (4) any Person that is a Restricted
Subsidiary on the Calculation Date will be deemed to have been a Restricted Subsidiary at all times during such four-quarter period; 
 (5) any Person that is not a Restricted Subsidiary on the Calculation Date will be deemed not to have been a Restricted Subsidiary at any time during such four-quarter period; and 
 (6) if any Indebtedness bears a floating rate of interest, the interest expense on such Indebtedness will be calculated as if
the rate in effect on the Calculation Date had been the applicable rate for the entire period (taking into account any Hedging Obligation applicable to such Indebtedness if such Hedging Obligation has a remaining term as at the Calculation Date in
excess of 12 months). 
 “Fixed Charges” means, with respect to any specified Person for any period,
the sum, without duplication, of: 
 (1) the consolidated interest expense of such Person and its Restricted
Subsidiaries for such period, whether paid or accrued (excluding (i) any interest attributable to Production Payments and Reserve Sales, (ii) write-off of deferred financing costs and (iii) accretion of interest charges on future
plugging and abandonment obligations, future retirement benefits and other obligations that do not constitute Indebtedness, but including, without limitation, amortization of debt issuance costs and original issue discount, noncash interest
payments, the interest component of any deferred payment obligations other than that attributable to any Oil and Natural Gas Hedging Contract, the interest component of all payments associated with Capital Lease

  

					
		 	14	 	Eleventh Supplemental Indenture

 
Obligations, commissions, discounts and other fees and charges incurred in respect of letter of credit or bankers’ acceptance financings), and net of the effect of all payments made or
received pursuant to Interest Rate Agreements; plus 
 (2) the consolidated interest expense of such
Person and its Restricted Subsidiaries that was capitalized during such period; plus 
 (3) any interest
on Indebtedness of another Person (other than a Restricted Subsidiary of such specified Person) that is guaranteed by the specified Person or one or more of its Restricted Subsidiaries or secured by a Lien on assets of such specified Person or one
or more of its Restricted Subsidiaries, regardless of whether such Guarantee or Lien is called upon; plus 
 (4) all dividends, whether paid or accrued and regardless of whether in cash, on any series of preferred stock of such Person or any of its Restricted Subsidiaries, other than dividends on Equity Interests payable solely in Equity Interests
of the Company (other than Disqualified Stock) or to the Company or a Restricted Subsidiary. 
 “Guarantee” means a guarantee other than by endorsement of negotiable instruments for collection in the ordinary course of business, direct or indirect, in any manner including, without limitation, by way of a pledge of assets or
through letters of credit or reimbursement agreements in respect thereof, of all or any part of any Indebtedness (whether arising by virtue of partnership arrangements, or by agreements to keep-well, to maintain financial statement conditions or
otherwise), or entered into for purposes of assuring in any other manner the obligee of such Indebtedness of the payment thereof or to protect such obligee against loss in respect thereof (in whole or in part). 
 “Guarantor” means each Restricted Subsidiary that has become obligated under a Subsidiary Guarantee, in accordance
with the terms of the guarantee provisions of this Indenture, but only for so long as such Subsidiary remains so obligated pursuant to the terms of this Indenture. 
 “Hedging Obligations” of any Person means the obligations of such Person pursuant to any Interest Rate and Currency
Hedges and any Oil and Natural Gas Hedging Contracts. 
 “Hydrocarbons” means oil, gas, casinghead gas,
drip gasoline, natural gasoline, condensate, distillate, liquid hydrocarbons, gaseous hydrocarbons and all constituents, elements or compounds thereof and products refined or processed therefrom. 
 “Indebtedness” means, with respect to any specified Person, without duplication, any indebtedness of such Person,
regardless of whether contingent: 
 (1) in respect of borrowed money; 
 (2) evidenced by bonds, notes, debentures or similar instruments or letters of credit (or reimbursement agreements in respect
thereof); 
 (3) in respect of banker’s acceptances; 
 (4) representing Capital Lease Obligations; 
 (5) in respect of any Guarantee by such Person of production or payment with respect to a Production Payment (but not any
other contractual obligation in respect of such Production Payment); 
  

					
		 	15	 	Eleventh Supplemental Indenture

 (6) representing the balance deferred and unpaid of the purchase price of
any property or services due more than six months after such property is acquired or such services are completed, except any such balance that constitutes an accrued expense or a trade payable; or 
 (7) representing any Interest Rate and Currency Hedges, 
 if and to the extent any of the preceding items (other than letters of credit and Interest Rate and Currency Hedges) would appear as a
liability upon a balance sheet of the specified Person prepared in accordance with GAAP. In addition, the term “Indebtedness” includes (a) all indebtedness of any other Person, of the types described above in clauses (1) through
(7), secured by a Lien on any asset of the specified Person (regardless of whether such indebtedness is assumed by the specified Person), provided that the amount of such indebtedness will be the lesser of (i) the Fair Market Value of
such asset at such date of determination and (ii) the amount of such indebtedness of such other Person, and (b) to the extent not otherwise included, the Guarantee by the specified Person of any indebtedness of any other Person, of the
types described above in clauses (1) through (7). 
 Notwithstanding the foregoing, the following shall not
constitute “Indebtedness:” 
 (i) accrued expenses and trade accounts payable arising in the ordinary
course of business; 
 (ii) except as provided in clause (5) of the first paragraph of this definition, any
obligation in respect of any Production Payment and Reserve Sales; 
 (iii) any obligation in respect of any
Farm-In Agreement; 
 (iv) any indebtedness which has been defeased in accordance with GAAP or defeased pursuant
to the deposit of cash or United States government bonds (in an amount sufficient to satisfy all such indebtedness obligations at maturity or redemption, as applicable, and all payments of interest and premium, if any) in a trust or account created
or pledged for the sole benefit of the holders of such indebtedness, and subject to no other Liens, and the other applicable terms of the instrument governing such indebtedness; 
 (v) oil or natural gas balancing liabilities incurred in the ordinary course of business and consistent with past practice;

 (vi) any obligation in respect of any Oil and Natural Gas Hedging Contract; 
 (vii) any unrealized losses or charges in respect of Hedging Obligations (including those resulting from the application of
FAS 133); 
 (viii) any obligations in respect of (a) bid, performance, completion, surety, appeal and
similar bonds, (b) obligations in respect of bankers’ acceptances, (c) insurance obligations or bonds and other similar bonds and obligations and (d) any guaranties or letters of credit functioning as or supporting any of the
foregoing bonds or obligations; provided, however that such bonds or obligations mentioned in subclause (a), (b), (c) or (d) of this clause (viii), are incurred in the ordinary course of the business of the Company and its
Restricted Subsidiaries and do not relate to obligations for borrowed money; 
  

					
		 	16	 	Eleventh Supplemental Indenture

 (ix) any obligations in respect of completion bonds, performance bonds, bid
bonds, appeal bonds, surety bonds, bankers acceptances, letters of credit, insurance obligations or bonds and other similar bonds and obligations incurred by the Company or any Restricted Subsidiary in the ordinary course of business and any
guaranties and obligations of the Company or any Restricted Subsidiary with respect to or letters of credit functioning as or supporting any of the foregoing bonds or obligations; 
 (x) any obligation arising from any agreement providing for indemnities, guarantees, purchase price adjustments, holdbacks,
contingency payment obligations based on the performance of the acquired or disposed assets or similar obligations (other than guaranties of Indebtedness) incurred by any Person in connection with the acquisition or disposition of assets; and

 (xi) all contracts and other obligations, agreements instruments or arrangements described in clauses (21),
(22), (23) and (24) of the definition of “Permitted Liens.” 
 “Interest Rate
Agreement” means with respect to any Person any interest rate protection agreement, interest rate future agreement, interest rate option agreement, interest rate swap agreement, interest rate cap agreement, interest rate collar agreement,
interest rate hedge agreement or other similar agreement or arrangement as to which such Person is party or a beneficiary. 
 “Interest Rate and Currency Hedges” of any Person means the obligations of such Person pursuant to any Interest Rate Agreement or Currency Agreement. 
 “Investment Grade Rating” means a rating equal to or higher than: 
 (1) Baa3 (or the equivalent) by Moody’s; or 
 (2) BBB- (or the equivalent) by S&P, 
 or, if either such entity ceases to rate the Notes for reasons outside of the Company’s control, the equivalent investment grade credit rating from any other Rating Agency. 
 “Investment Grade Rating Event” means the first day on which the Notes have an Investment Grade Rating from a
Rating Agency and no Default has occurred and is then continuing under this Indenture. 
 “Investments” means, with respect to any Person, all direct or indirect investments by such Person in other Persons (including Affiliates) in the forms of loans (including Guarantees or other obligations), advances or capital
contributions (excluding endorsements of negotiable instruments and documents in the ordinary course of business, and commission, travel and similar advances to officers, employees and consultants made in the ordinary course of business), purchases
or other acquisitions for consideration of Indebtedness, Equity Interests or other securities, together with all items that are or would be classified as investments on a balance sheet prepared in accordance with GAAP. If the Company or any
Restricted Subsidiary sells or otherwise disposes of any Equity Interests of any direct or indirect Restricted Subsidiary of the Company such that, after giving effect to any such sale or disposition, such Person is no longer a Restricted
Subsidiary, the Company will be deemed to have made an Investment on the date of any such sale or disposition equal to the Fair Market Value of the Company’s Investments in such Restricted Subsidiary that were not sold or disposed of in an
amount determined as provided in Section 10.9(d) of this Indenture. The acquisition by the Company or any Subsidiary of the

  

					
		 	17	 	Eleventh Supplemental Indenture

 
Company of a Person that holds an Investment in a third Person will be deemed to be an Investment by the Company or such Subsidiary in such third Person in an amount equal to the Fair Market
Value of the Investments held by the acquired Person in such third Person in an amount determined as provided in Section 10.9(d) of this Indenture. Except as otherwise provided in this Indenture, the amount of an Investment will be determined
at the time the Investment is made and without giving effect to subsequent changes in value. 
 “Issue
Date” means the first date on which Notes are issued under this Indenture. 
 “Leverage Ratio”
means, with respect to any Person as of any date of determination, the ratio of (x) the total consolidated Indebtedness of such Person and its Restricted Subsidiaries as of the end of the most recent fiscal quarter for which internal financial
statements are available, which would be reflected as a liability on a consolidated balance sheet of such Person and its Restricted Subsidiaries prepared as of such date in accordance with GAAP, to (y) the aggregate amount of Consolidated Cash
Flow of such Person for the then most recent four fiscal quarters for which internal financial statements are available, in each case with such pro forma adjustments to the amount of consolidated Indebtedness and Consolidated Cash Flow as are
appropriate and consistent with the pro forma adjustment provisions set forth in the definition of Fixed Charge Coverage Ratio. 
 “Lien” means any mortgage, pledge, security interest, encumbrance, lien or charge of any kind (including any conditional sale or other title retention agreement or lease in the nature thereof).

 “Moody’s” means Moody’s Investors Service, Inc. or any successor to the rating agency
business thereof. 
 “Net Income” means, with respect to any specified Person, the net income (loss) of
such Person, determined in accordance with GAAP and before any reduction in respect of preferred stock dividends, excluding, however: 
 (1) any gain or loss, together with any related provision for taxes on such gain or loss, realized in connection with: (a) any Asset Sale; or (b) the disposition of any securities by such Person
or any of its Restricted Subsidiaries or the extinguishment of any Indebtedness of such Person or any of its Restricted Subsidiaries; and 
 (2) any extraordinary or nonrecurring gain or loss, together with any related provision for taxes on such extraordinary or nonrecurring gain or loss. 
 “Net Proceeds” means the aggregate cash proceeds received by the Company or any of its Restricted Subsidiaries in
respect of any Asset Sale (including, without limitation, any cash received upon the sale or other disposition of any non-cash consideration received in any Asset Sale), net of: 
 (1) all legal, accounting, investment banking, title and recording tax expenses, commissions and other fees and expense
incurred, and all Federal, state, provincial, foreign and local taxes required to be paid or accrued as a liability under GAAP (after taking into account any available tax credits or deductions and any tax sharing agreements), as a consequence of
such Asset Sale; 
 (2) all payments made on any Indebtedness 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; 
  

					
		 	18	 	Eleventh Supplemental Indenture

 (3) all distributions and other payments required to be made to holders of
minority interests in Subsidiaries or joint ventures as a result of such Asset Sale; and 
 (4) the deduction of
appropriate amounts to be provided by the seller as a reserve, in accordance with GAAP, or held in escrow, in either case for adjustment in respect of the sale price or for 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. 
 “Net Working
Capital” means (a) all current assets of the Company and its Restricted Subsidiaries except current assets from Oil and Natural Gas Hedging Contracts, less (b) all current liabilities of the Company and its Restricted Subsidiaries,
except current liabilities included in Indebtedness and any current liabilities from Oil and Natural Gas Hedging Contracts, in each case as set forth in the consolidated financial statements of the Company prepared in accordance with GAAP (excluding
any adjustments made pursuant to FAS 133). 
 “Non-Recourse Debt” means Indebtedness: 
 (1) as to which neither the Company nor any Restricted Subsidiary (a) provides any Guarantee or credit support of any
kind (including any undertaking, guarantee, indemnity, agreement or instrument that would constitute Indebtedness) or (b) is directly or indirectly liable (as a guarantor or otherwise), in each case other than Liens on and pledges of the Equity
Interests of any Unrestricted Subsidiary or any joint venture owned by the Company or any Restricted Subsidiary to the extent securing otherwise Non-Recourse Debt of such Unrestricted Subsidiary or joint venture; and 
 (2) no default with respect to which (including any rights that the holders thereof may have to take enforcement action
against an Unrestricted Subsidiary) would permit (upon notice, lapse of time or both) any holder of any other Indebtedness of the Company or any Restricted Subsidiary to declare a default under such other Indebtedness or cause the payment thereof to
be accelerated or payable prior to its stated maturity. 
 “Notes” means a series of Securities
designated as the Company’s 7.625% Senior Notes due 2020, issued pursuant to this Indenture, as amended and supplemented by the Eleventh Supplemental Indenture hereto dated as of March 29, 2010. 
 “Notice of Default” means a written notice of the kind specified in Section 5.1(a)(iv) or
Section 5.1(a)(v) of this Indenture. 
 “Officer” means, in the case of the Company, the Chairman
of the Board, the Chief Executive Officer, the President, the Chief Financial Officer, any Vice President, the Treasurer or the Secretary of the Company and, in the case of any Guarantor, the Chairman of the Board, the Chief Executive Officer, the
President, the Chief Financial Officer, any Vice President, the Treasurer or the Secretary of such Guarantor. 
 “Officers’ Certificate” means, in the case of the Company, a certificate signed by two Officers or by an Officer and either an Assistant Treasurer or an Assistant Secretary of the Company and, in the case of any Guarantor, a
certificate signed by two Officers or by an Officer and either an Assistant Treasurer or an Assistant Secretary of such Guarantor. 
  

					
		 	19	 	Eleventh Supplemental Indenture

 “Oil and Gas Properties” means all Properties, including equity or
other ownership interests therein, owned by such Person which contain “proved oil and gas reserves” as defined in Rule 4-10 of Regulation S-X of the Securities Act. 
 “Oil and Natural Gas Hedging Contract” means any oil and natural gas hedging agreements and other agreements or
arrangements entered into in the ordinary course of business in the oil and gas industry for the purpose of protecting against fluctuations in oil or natural gas prices. 
 “Permitted Acquisition Indebtedness” means Indebtedness or Disqualified Stock of the Company or any of the
Company’s Restricted Subsidiaries to the extent such Indebtedness or Disqualified Stock was Indebtedness or Disqualified Stock of: 
 (1) a Subsidiary prior to the date on which such Subsidiary became a Restricted Subsidiary; or 
 (2) a Person that was merged, consolidated or amalgamated into the Company or a Restricted Subsidiary, 
 provided that on the date such Subsidiary became a Restricted Subsidiary or the date such Person was merged, consolidated and amalgamated into the Company or a Restricted Subsidiary, as applicable,
after giving pro forma effect thereto, 
 (a) the Restricted Subsidiary or the Company, as applicable, would be
permitted to incur at least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in Section 10.11 of this Indenture, 
 (b) the Fixed Charge Coverage Ratio for the Restricted Subsidiary or the Company, as applicable, would be greater than the
Fixed Charge Coverage Ratio for such Restricted Subsidiary or the Company immediately prior to such transaction, or 
 (c) the Consolidated Net Worth of the Restricted Subsidiary or the Company, as applicable, would be greater than the Consolidated Net Worth of such Restricted Subsidiary or the Company immediately prior to such transaction. 
 “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, a Related Business as means of actively exploiting, exploring for, acquiring, developing, processing, gathering, marketing or transporting oil, natural gas, other hydrocarbons and minerals (including with
respect to plugging and abandonment) through agreements, transactions, interests or arrangements that permit one to share risks or costs, comply with regulatory requirements regarding local ownership or satisfy other objectives customarily achieved
through the conduct of a Related Business jointly with third parties, including without limitation, (i) ownership interests in oil, natural gas, other hydrocarbons and minerals properties or gathering, transportation, processing, storage or
related systems and (ii) any operating agreements, joint ventures, partnership agreements, working interests, royalty interests, mineral leases, processing agreements, Farm-In Agreements, Farm-Out Agreements, contracts for the sale,
transportation or exchange of oil, natural gas and other hydrocarbons, unitization agreements, pooling arrangements, joint bidding agreements, service contracts, partnership agreements, limited liability company agreements, subscription agreements,
stock purchase agreements, stockholder agreements, area of mutual interest agreements, production sharing agreements or other similar or customary agreements, transactions, properties, interests, or arrangements, and Investments and expenditures in
connection therewith or pursuant thereto. 
  

					
		 	20	 	Eleventh Supplemental Indenture

 “Permitted Holders” means (i) James C. Flores and his spouse
and lineal descendants, and their respective estates or legal representatives, (ii) trusts created for the benefit of such Persons and (iii) entities 80% or more of the Voting Stock of which is directly or indirectly owned by any of the
preceding Persons. 
 “Permitted Investments” means: 
 (1) any Investment in the Company or in a Restricted Subsidiary; 
 (2) any Investment in Cash Equivalents; 
 (3) any Investment by Company or any Restricted Subsidiary in a Person, if as a result of such Investment: 
 (a) such Person becomes a Restricted Subsidiary; or 
 (b) such Person is merged, consolidated or amalgamated with or into, or transfers or conveys substantially all of its assets
to, or is liquidated into, Company or a Restricted Subsidiary; 
 (4) any Investment made as a result of the
receipt of non-cash consideration from an Asset Sale that was made pursuant to and in compliance with Section 10.12 of this Indenture; 
 (5) any Investments received in compromise or resolution of (A) obligations of trade creditors or customers that were incurred in the ordinary course of business of the Company or any of its
Restricted Subsidiaries, including pursuant to any plan of reorganization or similar arrangement upon the bankruptcy or insolvency of any trade creditor or customer; or (B) litigation, arbitration or other disputes with Persons who are not
Affiliates; 
 (6) Investments represented by Hedging Obligations; 
 (7) advances to or reimbursements of employees for moving, entertainment and travel expenses, drawing accounts and similar
expenditures in the ordinary course of business; 
 (8) loans or advances to employees in the ordinary course of
business or consistent with past practice; 
 (9) advances and prepayments for asset purchases in the ordinary
course of business in a Related Business of the Company or any of its Restricted Subsidiaries; 
 (10)
receivables owing to Company or any Restricted Subsidiary created or acquired in the ordinary course of business and payable or dischargeable in accordance with customary trade terms; provided, however, that such trade terms may
include such concessionary trade terms as the Company or any such Restricted Subsidiary deems reasonable under the circumstances; 
  

					
		 	21	 	Eleventh Supplemental Indenture

 (11) surety and performance bonds and workers’ compensation, utility,
lease, tax, performance and similar deposits and prepaid expenses in the ordinary course of business; 
 (12)
Guarantees of Indebtedness permitted under Section 10.11 of this Indenture; 
 (13) guarantees by the
Company or any of its Restricted Subsidiaries of operating leases (other than Capital Lease Obligations) or of other obligations that do not constitute Indebtedness, in each case entered into by any Restricted Subsidiary in the ordinary course of
business; 
 (14) Investments of a Restricted Subsidiary acquired after March 13, 2007 or of any entity
merged into the Company or merged into or consolidated or amalgamated with a Restricted Subsidiary in accordance with Article Eight or Section 14.4 (as applicable) of this Indenture to the extent that such Investments were not made in
contemplation of or in connection with such acquisition, merger, consolidation or amalgamation and were in existence on the date of such acquisition, merger or consolidation; 
 (15) Permitted Business Investments; 
 (16) Investments received as a result of a foreclosure by the Company or any of its Restricted Subsidiaries with respect to
any secured Investment in default; 
 (17) any Investment in any Person solely (except to the extent of cash
payments in lieu of fractional shares) in exchange for the issuance of Equity Interests (other than Disqualified Stock) of the Company or any of its Subsidiaries 
 (18) Investments in any units of any oil and gas royalty trust; 
 (19) Investments existing on March 13, 2007, and any extension, modification or renewal of any such Investments existing
on March 13, 2007, but only to the extent not involving additional advances, contributions or other Investments of cash or other assets or other increases of such Investments (other than as a result of the accrual or accretion of interest or
original issue discount or the issuance of pay-in-kind securities, in each case, pursuant to the terms of such Investments as in effect on March 13, 2007); 
 (20) repurchases of or other Investments in the Notes; and 
 (21) other Investments in any Person having an aggregate Fair Market Value (measured on the date each such Investment was
made and without giving effect to subsequent changes in value), when taken together with all other Investments made pursuant to this clause (21) that are at the time outstanding not to exceed the greater of (a) 1.0% of Adjusted
Consolidated Net Tangible Assets or (b) $50.0 million. 
 “Permitted Liens” means, with respect to
any Person: 
 (1) Liens securing Indebtedness incurred under Credit Facilities pursuant to Section 10.11 of
this Indenture; 
 (2) Liens to secure Indebtedness (including Capital Lease Obligations) permitted by clause
(4) of Section 10.11(b) of this Indenture covering only the assets acquired with or financed by such Indebtedness; 
  

					
		 	22	 	Eleventh Supplemental Indenture

 (3) pledges or deposits by such Person under workmen’s compensation
laws, unemployment insurance laws or similar legislation, or good faith deposits in connection with bids, tenders, contracts (other than for the payment of Indebtedness) or leases to which such Person is a party, or deposits to secure public or
statutory obligations of such Person or deposits or cash or United States government bonds to secure surety or appeal bonds to which such Person is a party, or deposits as security for contested taxes or import or customs duties or for the payment
of rent, in each case incurred in the ordinary course of business; 
 (4) landlords’, carriers’,
warehousemen’s, mechanics’, materialmen’s, repairmen’s or similar Liens arising by contract or statute in the ordinary course of business and with respect to amounts which are not yet delinquent or are being contested in good
faith by appropriate proceedings; 
 (5) Liens for taxes, assessments or other governmental charges not yet
subject to penalties for non-payment or which are being contested in good faith by appropriate proceedings provided appropriate reserves required pursuant to GAAP have been made in respect thereof; 
 (6) Liens in favor of the issuers of surety or performance bonds or letters of credit or bankers’ acceptances issued
pursuant to the request of and for the account of such Person in the ordinary course of its business; provided, however, that such letters of credit do not constitute Indebtedness; 
 (7) encumbrances, easements or reservations of, or rights of others for, licenses, rights of way, sewers, electric lines,
telegraph and telephone lines and other similar purposes, or zoning or other restrictions as to the use of real properties or Liens incidental to the conduct of the business of such Person or to the ownership of its properties which do not in the
aggregate materially adversely affect the value of said properties or materially impair their use in the operation of the business of such Person; 
 (8) Liens securing Hedging Obligations, so long as the related Indebtedness, if any, is, and is permitted under this Indenture to be, secured by a Lien on the same property securing such Hedging
Obligation; 
 (9) leases and subleases of real property which do not materially interfere with the ordinary
conduct of the business of the Company and its Restricted Subsidiaries, taken as a whole; 
 (10) any attachment
or judgment Liens not giving rise to an Event of Default; 
 (11) Liens for the purpose of securing the payment
of all or a part of the purchase price of, or Capitalized Lease Obligations with respect to, or the repair, improvement or construction cost of, assets or property acquired or repaired, improved or constructed in the ordinary course of business;
provided that: 
 (a) the aggregate principal amount of Indebtedness secured by such Liens is otherwise
permitted to be incurred under this Indenture and does not exceed the cost of the assets or property so acquired or repaired, improved or constructed plus fees and expenses in connection therewith; and 
 (b) such Liens are created within 180 days of repair, improvement or construction or acquisition of such assets or property
and do not encumber any

  

					
		 	23	 	Eleventh Supplemental Indenture

 
other assets or property of the Company or any Restricted Subsidiary other than such assets or property and assets affixed or appurtenant thereto (including improvements); 
 (12) Liens arising solely by virtue of any statutory or common law provisions relating to banker’s Liens, rights of
set-off or similar rights and remedies as to deposit accounts or other funds maintained or deposited with a depositary institution; provided that: 
 (a) such deposit account is not a dedicated cash collateral account and is not subject to restrictions against access by the Company in excess of those set forth by regulations promulgated by the Federal
Reserve Board; and 
 (b) such deposit account is not intended by the Company or any Restricted Subsidiary to
provide collateral to the depository institution; 
 (13) Liens arising from Uniform Commercial Code financing
statement filings regarding operating leases entered into by the Company and its Restricted Subsidiaries in the ordinary course of business; 
 (14) Liens existing on March 13, 2007; 
 (15) Liens on
property at the time the Company or a Restricted Subsidiary acquired the property, including any acquisition by means of a merger or consolidation with or into Company or a Restricted Subsidiary; provided, however, that such Liens are
not created, incurred or assumed in connection with, or in contemplation of, such acquisition; provided further, however, that such Liens may not extend to any other property owned by the Company or any Restricted Subsidiary other than
those of the Person merged or consolidated with the Company or the Restricted Subsidiary; 
 (16) Liens on
property or shares of stock of a Person at the time such Person becomes a Restricted Subsidiary; provided, however, that such Liens are not created, incurred or assumed in connection with, or in contemplation of, such other Person
becoming a Restricted Subsidiary; provided further, however, that such Liens may not extend to any other property owned by the Company or any Restricted Subsidiary; 
 (17) Liens securing Indebtedness or other obligations of a Restricted Subsidiary owing to the Company or a Guarantor;

 (18) Liens securing the Notes, the Subsidiary Guarantees and other obligations arising under this Indenture;

 (19) Liens securing Permitted Refinancing Indebtedness of the Company or a Restricted Subsidiary incurred to
refinance Indebtedness of the Company or a Restricted Subsidiary that was previously so secured; provided that any such Lien is limited to all or part of the same property or assets (plus improvements, accessions, proceeds or dividends or
distributions in respect thereof) that secured (or, under the written arrangements under which the original Lien arose, could secure) the Indebtedness being refinanced or is in respect of property or assets that is the security for a Permitted Lien
hereunder; 
 (20) Liens in respect of Production Payments and Reserve Sales; 
 (21) Liens on pipelines and pipeline facilities that arise by operation of law; 
  

					
		 	24	 	Eleventh Supplemental Indenture

 (22) Liens arising under joint venture agreements, partnership agreements,
oil and gas leases or subleases, assignments, purchase and sale agreements, division orders, contracts for the sale, purchasing, processing, transportation or exchange of oil or natural gas, unitization and pooling declarations and agreements,
development agreements, area of mutual interest agreements, licenses, sublicenses, net profits interests, participation agreements, Farm-Out Agreements, Farm-In Agreements, carried working interest, and joint operating, unitization, royalty, sales
and similar agreements relating to the exploration or development of, or production from, oil and gas properties entered into in the ordinary course of business in a Related Business; 
 (23) Liens reserved in oil and gas mineral leases for bonus, royalty or rental payments and for compliance with the terms of
such leases; 
 (24) Liens on, or related to, properties or assets to secure all or part of the costs incurred in
the ordinary course of a Related Business for exploration, drilling, development, production, processing, transportation, marketing, storage, abandonment or operation; 
 (25) Liens arising under this Indenture in favor of the Trustee for its own benefit and similar Liens in favor of other
trustees, agents and representatives arising under instruments governing Indebtedness permitted to be incurred under this Indenture; provided that such Liens are solely for the benefit of the trustees, agents or representatives in their
capacities as such and not for the benefit of the holders of the Indebtedness; 
 (26) Liens securing obligations
of the Company and its Restricted Subsidiaries under Hedging Obligations; 
 (27) Liens on and pledges of the
Equity Interests of any Unrestricted Subsidiary or any joint venture owned by the Company or any Restricted Subsidiary to the extent securing Non-Recourse Debt of such Unrestricted Subsidiary or joint venture; and 
 (28) Liens incurred in the ordinary course of business of the Company or any Restricted Subsidiary with respect to
obligations that, at any one time outstanding, do not exceed the greater of $20.0 million and 0.5% of Adjusted Consolidated Net Tangible Assets. 
 “Permitted Refinancing Indebtedness” means any Indebtedness of the Company or any of its Restricted Subsidiaries, any Disqualified Stock of the Company or any preferred stock of any Restricted
Subsidiary issued (a) in exchange for, or the net proceeds of which are used to extend, renew, refund, refinance, replace, defease, discharge or otherwise retire for value, in whole or in part, or (b) constituting an amendment,
modification or supplement to or a deferral or renewal of ((a) and (b) above, collectively, a “Refinancing”), any other Indebtedness of the Company or any of its Restricted Subsidiaries (other than intercompany Indebtedness), any
Disqualified Stock of the Company or any preferred stock of a Restricted Subsidiary in a principal amount or, in the case of Disqualified Stock of the Company or preferred stock of a Restricted Subsidiary, liquidation preference, not to exceed
(after deduction of reasonable and customary fees and expenses incurred in connection with the Refinancing) the lesser of: 
 (1) the principal amount or, in the case of Disqualified Stock or preferred stock, liquidation preference, of the Indebtedness, Disqualified Stock or preferred stock so Refinanced (plus, in the
case of Indebtedness, the amount of premium, if any paid in connection therewith); and 
  

					
		 	25	 	Eleventh Supplemental Indenture

 (2) if the Indebtedness being Refinanced was issued with any original issue
discount, the accreted value of such Indebtedness (as determined in accordance with GAAP) at the time of such Refinancing. 
 Notwithstanding the preceding, no Indebtedness, Disqualified Stock or preferred stock will be deemed to be Permitted Refinancing Indebtedness, unless: 
 (1) such Indebtedness, Disqualified Stock or preferred stock has a final maturity date or redemption date, as applicable,
later than the final maturity date or redemption date, as applicable, of, and has a Weighted Average Life to Maturity equal to or greater than the Weighted Average Life to Maturity of, the Indebtedness, Disqualified Stock or preferred stock being
Refinanced; 
 (2) if the Indebtedness, Disqualified Stock or preferred stock being Refinanced is contractually
subordinated or otherwise junior in right of payment to the Notes, such Indebtedness, Disqualified Stock or preferred stock has a final maturity date or redemption date, as applicable, later than the final maturity date or redemption date, as
applicable, of, and is contractually subordinated or otherwise junior in right of payment to, the Notes, on terms at least as favorable to the Holders of Notes as those contained in the documentation governing the Indebtedness, Disqualified Stock or
preferred stock being Refinanced at the time of the Refinancing; and 
 (3) such Indebtedness or Disqualified
Stock is incurred or issued by the Company or such Indebtedness, Disqualified Stock or preferred stock is incurred or issued by the Restricted Subsidiary who is the obligor on the Indebtedness being Refinanced or the issuer of the Disqualified Stock
or preferred stock being Refinanced; provided that a Restricted Subsidiary that is also a Guarantor may guarantee Permitted Refinancing Indebtedness incurred by the Company, whether or not such Restricted Subsidiary was an obligor or
guarantor of the Indebtedness being renewed, refunded, refinanced, replaced, defeased or discharged. 
 “Person” means any individual, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated organization, limited liability company, government or any agency or political subdivision hereof or
any other entity. 
 “Point Arguello Partnerships” means the following partnerships of which Arguello
Inc. is a managing general partner: (a) Gaviota Gas Plant Company, (b) Point Arguello Natural Gas Line Company, (c) Point Arguello Pipeline Company and (d) Point Arguello Terminal Company. 
 “Pre-Issue Date Hedge Buyouts” means the series of transactions consummated prior to March 13, 2007 to
terminate or unwind, and the associated settlement and accounting of, Oil and Natural Gas Hedging Contracts pertaining to (i) 2006 crude oil price swaps for 15,000 barrels of oil per day at an average price of $25.28 per barrel, (ii) 2006
crude oil price collars for 22,000 barrels per day with a floor price of $25.00 and an average ceiling price of $34.76, (iii) 2007 crude oil price collars for 22,000 barrels of oil per day with a floor price of $25.00 per barrel and an average
ceiling price of $34.76 per barrel and (iv) 2008 crude oil price collars for 22,000 barrels of oil per day with a floor price of $25.00 per barrel and an average ceiling price of $34.76 per barrel. 
  

					
		 	26	 	Eleventh Supplemental Indenture

 “Principal Property” means any property owned or leased by the
Company or any Subsidiary of the Company, the gross book value of which exceeds one percent of Consolidated Net Worth of the Company. 
 “Production Payments” means Dollar-Denominated Production Payments and Volumetric Production Payments, collectively. 
 “Production Payments and Reserve Sales” means the grant or transfer by the Company or a Subsidiary of the Company
to any Person of a royalty, overriding royalty, net profits interest, Production Payment, 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, including any such grants or transfers pursuant to incentive compensation programs on terms that are reasonably customary in the oil and gas business for geologists, geophysicists and other providers of
technical services to the Company or a Subsidiary of the Company. 
 “Rating Agency” means each of
S&P and Moody’s, or if S&P or Moody’s or both shall not make a rating on the Notes publicly available, a nationally recognized statistical rating agency or agencies, as the case may be, selected by the Company which shall be
substituted for S&P or Moody’s, or both, as the case may be. 
 “Rating Decline” means the
occurrence of: 
 (1) a decrease of one or more gradations (including gradations within rating categories as well
as between rating categories) in the rating of the Notes by either Rating Agency; or 
 (2) a withdrawal of the
rating of the Notes by either Rating Agency; 
 provided, however, that such decrease or withdrawal occurs on, or
within 90 days before or after the earlier of (a) a Change of Control, (b) the date of public notice of the occurrence of a Change of Control or (c) public notice of the intention by the Company to effect a Change of Control (which
period shall be extended so long as the rating of the Notes is under publicly announced consideration for downgrade by either Rating Agency). 
 “Related Business” means any business which is the same as or related, ancillary or complementary to any of the businesses of the Company and its Restricted Subsidiaries on March 13, 2007,
which includes (a) the acquisition, exploration, exploitation, development, production, operation and disposition of interests in oil, gas and other hydrocarbon properties, and the utilization of the Company’s and its Restricted
Subsidiaries’ properties, (b) the gathering, marketing, treating, processing, storage, refining, selling and transporting of any production from such interests or properties and products produced in association therewith, (c) any
power generation and electrical transmission business, (d) oil field sales and services and related activities, (e) development, purchase and sale of real estate and interests therein, and (f) any business or activity relating to,
arising from, or necessary, appropriate or incidental to the activities described in the foregoing clauses (a) through (e) of this definition. 
 “Restricted Investment” means any Investment other than a Permitted Investment. 
 “Restricted Subsidiary” means any Subsidiary of the Company other than an Unrestricted Subsidiary. 
 “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. 
  

					
		 	27	 	Eleventh Supplemental Indenture

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

 “Senior Credit Agreement” means, with respect to the Company, one or more debt facilities
(including, without limitation, the Amended and Restated Credit Agreement, dated as of May 16, 2005, as amended by the First Amendment dated as of November 1, 2005, and the Second Amendment and Waiver, dated as of September 28, 2006,
as amended and restated as of November 6, 2007 and as amended by Amendment No. 1 thereto dated as of February 13, 2008, Amendment No. 2 thereto dated as of May 13, 2008, Amendment No. 3 thereto dated as of July 23,
2008 and Amendment No. 4 thereto dated as of March 13, 2009, among the Company, JPMorgan Chase Bank, N.A., as administrative agent, and the lenders and agents parties thereto from time to time) as provided for in one or more agreements or
instruments in each case, as amended, restated, modified, supplemented, increased, renewed, refunded, replaced (including replacement after the termination of such credit facility), supplemented, restructured or refinanced in whole or in part from
time to time in one or more agreements or instruments. 
 “Senior Debt” means: 
 (1) all Indebtedness of the Company or any of its Restricted Subsidiaries outstanding under Credit Facilities and all Hedging
Obligations with respect thereto; 
 (2) any other Indebtedness of the Company or any of its Restricted
Subsidiaries permitted to be incurred under the terms of this Indenture, unless the instrument under which such Indebtedness is incurred expressly provides that it is subordinated in right of payment to the Notes or any Subsidiary Guarantee; and

 (3) all Obligations with respect to the items listed in the preceding clauses (1) and (2). 
 Notwithstanding anything to the contrary in the preceding sentence, Senior Debt will not include: 
 (a) any intercompany Indebtedness of the Company or any of its Subsidiaries to the Company or any of its Affiliates;

 (b) any Indebtedness that is incurred in violation of this Indenture; or 
 (c) any trade payables or taxes owed or owing by the Company or any Restricted Subsidiary. 
 “Significant Subsidiary” means any Restricted Subsidiary that would be a “Significant Subsidiary” of the
Company within the meaning of Rule 1-02 under Regulation S-X promulgated by the SEC. 
 “Stated
Maturity” means, with respect to any installment of interest or principal on any series of Indebtedness, the date on which the payment of interest or principal was scheduled to be paid in the documentation governing such Indebtedness as of the
date of this Indenture, and will not include any contingent obligations to repay, redeem or repurchase any such interest or principal prior to the date originally scheduled for the payment thereof. 
 “Subordinated Debt” means Indebtedness of the Company or a Guarantor that is contractually subordinated in right of
payment, in any respect (by its terms or the terms of any document or instrument relating thereto), to the Notes or the Subsidiary Guarantee of such Guarantor, as applicable. 
  

					
		 	28	 	Eleventh Supplemental Indenture

 “Subsidiary” means, with respect to any specified Person:

 (1) any corporation, association or other business entity of which more than 50% of the total voting power of
shares of Capital Stock entitled (without regard to the occurrence of any contingency and after giving effect to any voting agreement or stockholders’ agreement that effectively transfers voting power) to vote in the election of directors,
managers or trustees of the corporation, association or other business entity is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person (or a combination thereof); and

 (2) any partnership (a) the sole general partner or the managing general partner of which is such Person
or a Subsidiary of such Person or (b) the only general partners of which are that Person or one or more Subsidiaries of that Person (or any combination thereof); 
 provided, that the Point Arguello Partnerships, Sepulveda Oil and Gas Company and Nuevo Energy Company are not Subsidiaries of the Company. 
 “Subsidiary Guarantee” means any guarantee of the Notes by any Guarantor in accordance with Article Fourteen of
this Indenture. 
 “Unrestricted Subsidiary” means any Subsidiary of the Company that is designated by
the Board of Directors of the Company as an Unrestricted Subsidiary pursuant to a resolution of such Board of Directors, but only to the extent that such Subsidiary: 
 (1) has no Indebtedness other than Non-Recourse Debt; 
 (2) except as permitted by Section 10.13 of this Indenture, is not party to any agreement, contract, arrangement or
understanding with the Company or any Restricted Subsidiary unless the terms of any such agreement, contract, arrangement or understanding are no less favorable to the Company or such Restricted Subsidiary than those that might be obtained at the
time from Persons who are not Affiliates of the Company; 
 (3) is a Person with respect to which neither the
Company nor any of its Restricted Subsidiaries has any direct or indirect obligation (a) to subscribe for additional Equity Interests or (b) to maintain or preserve such Person’s financial condition or to cause such Person to achieve
any specified levels of operating results; and 
 (4) has not guaranteed or otherwise directly or indirectly
provided credit support for any Indebtedness of the Company or any of its Restricted Subsidiaries, other than pursuant to a Subsidiary Guarantee. 
 As of the Issue Date, each of the following entities has been designated as an Unrestricted Subsidiary: Arroyo Grande Land Company, LLC, Lompoc Land Company LLC and Montebello Land Company LLC.

 “Volumetric Production Payments” means production payment obligations recorded as deferred revenue
in accordance with GAAP, together with all related undertakings and obligations. 
 “Voting Stock” of
any specified Person as of any date means the Capital Stock of such Person that is at the time entitled to vote in the election of the Board of Directors of such Person. 
  

					
		 	29	 	Eleventh Supplemental Indenture

 “Weighted Average Life to Maturity” means, when applied to any
Indebtedness at any date, the number of years obtained by dividing: 
 (1) the sum of the products obtained by
multiplying (a) the amount of each then remaining installment, sinking fund, serial maturity or other required payments of principal, including payment at final maturity, in respect of the Indebtedness, by (b) the number of years
(calculated to the nearest one-twelfth) that will elapse between such date and the making of such payment; by 
 (2) the then outstanding principal amount of such Indebtedness. 
 SECTION 3.02. Defaults and
Remedies. 
 Subject to the limitations set forth in the preamble to ARTICLE 3 of this Supplemental Indenture,
Sections 5.1 and 5.2 of the Original Indenture are hereby amended and restated in their entirety to read as follows: 
 Section 5.1 Events of Default. 
 (a) Each of the following is an “Event of
Default”: 
 (i) default in any payment of interest on any Note under this Indenture when due, continued for
30 days; 
 (ii) default in the payment of principal of or premium, if any, on any Note under this Indenture when
due at its Stated Maturity, upon optional redemption, upon required repurchase, upon declaration or otherwise; 
 (iii) failure by the Company to comply with its obligations under Article Eight of this Indenture or to consummate a purchase of Notes when required pursuant to Section 10.12 or Section 10.15 of this Indenture; 
 (iv) failure by the Company or any of its Restricted Subsidiaries for 30 days after receipt of a written notice (sent by
registered or certified mail, specifying such failure, requiring it to be remedied and stating that such notice is a “Notice of Default” under this Indenture) from the Trustee or the Holders of at least 25% in aggregate principal amount of
the then Outstanding Notes to comply with Section 10.9 or Section 10.11 of this Indenture or to comply with the provisions described under Section 10.12 or Section 10.15 of this Indenture to the extent not described in clause
(iii) of this Section 5.1(a); 
 (v) (A) except as addressed in subclause (B) of this clause (v),
failure by the Company or any of its Restricted Subsidiaries for 60 days after receipt of a written notice (sent by registered or certified mail, specifying such failure, requiring it to be remedied and stating that such notice is a “Notice of
Default” under this Indenture) from the Trustee or the Holders of at least 25% in aggregate principal amount of the then Outstanding Notes to comply with any of the other agreements in this Indenture or the Notes or (B) failure by the
Company for 180 days after such notice from the Trustee or the Holders of at least 25% in aggregate principal amount of the then Outstanding Notes to comply with Section 10.7 of this Indenture; 
 (vi) default under any mortgage, indenture or instrument under which there may be issued or by which there may be secured or
evidenced any Indebtedness for money borrowed by the Company or any of its Restricted Subsidiaries (or the payment of

  

					
		 	30	 	Eleventh Supplemental Indenture

 
which is guaranteed by the Company or any of its Restricted Subsidiaries), other than Indebtedness owed to the Company or a Restricted Subsidiary, whether such Indebtedness or guarantee now
exists, or is created after the Issue Date, which default: 
 (A) is caused by a failure to pay principal of, or
interest or premium, if any, on such Indebtedness prior to the expiration of the grace period provided in such Indebtedness (“payment default”); or 
 (B) results in the acceleration of such Indebtedness prior to its maturity; 
 and, in each case, the principal amount of any such Indebtedness, together with the principal amount of any other such Indebtedness under
which there has been a payment default or the maturity of which has been so accelerated, aggregates $50.0 million or more; 
 (vii) failure by the Company or any Significant Subsidiary or group of Restricted Subsidiaries that, taken together (as of the latest audited consolidated financial statements for the Company and its
Restricted Subsidiaries), would constitute a Significant Subsidiary to pay final judgments aggregating in excess of $50.0 million (net of any amounts that a reputable and creditworthy insurance company has acknowledged liability for in writing),
which judgments are not paid, discharged or stayed for a period of 60 days; 
 (viii) any Subsidiary Guarantee
shall be held in a judicial proceeding, or be asserted by the Company or any Guarantor, as applicable, not to be, enforceable or valid or shall cease to be in full force and effect (except pursuant to the release or termination of any such
Subsidiary Guarantee in accordance with this Indenture); 
 (ix) the Company, any Significant Subsidiary of the
Company or any group of Restricted Subsidiaries of the Company that, taken together (as of the latest audited consolidated financial statements for the Company and its Restricted Subsidiaries), would constitute a Significant Subsidiary of the
Company, pursuant to or within the meaning of Bankruptcy Law: 
 (A) commences a voluntary case, 
 (B) consents to the entry of an order for relief against it in an involuntary case, 
 (C) makes a general assignment for the benefit of its creditors, or 
 (D) generally is not paying its debts as they become due; and 
 (x) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: 
 (A) is for relief against the Company, any Significant Subsidiary of the Company or any group of Restricted Subsidiaries of
the Company that, taken together (as of the latest audited consolidated financial statements for the Company and its Restricted Subsidiaries), would constitute a Significant Subsidiary of the Company, in an involuntary case; or 
  

					
		 	31	 	Eleventh Supplemental Indenture

 (B) appoints a custodian of the Company, any Significant Subsidiary of the
Company or any group of Restricted Subsidiaries of the Company that, taken together (as of the latest audited consolidated financial statements for the Company and its Restricted Subsidiaries), would constitute a Significant Subsidiary of the
Company, or for all or substantially all of the property of the Company, any Significant Subsidiary of the Company or any group of Restricted Subsidiaries of the Company that, taken together (as of the latest audited consolidated financial
statements for the Company and its Restricted Subsidiaries), would constitute a Significant Subsidiary of the Company; or 
 (C) orders the liquidation of the Company, any Significant Subsidiary of the Company or any group of Restricted Subsidiaries of the Company that, taken together (as of the latest audited consolidated
financial statements for the Company and its Restricted Subsidiaries), would constitute a Significant Subsidiary of the Company; 
 and the order or decree remains unstayed and in effect for 60 consecutive days. 
 (b) The Company shall, so long as any of the Notes are Outstanding, deliver to the Trustee, within five Business Days after any Officer becomes aware of any Default or Event of Default, an Officers’
Certificate specifying such Default or Event of Default and what action the Company is taking or proposes to take with respect thereto. 
 Section 5.2 Acceleration of Maturity; Rescission and Annulment; Interest Rate Increase. 
 (a) To the extent permitted by applicable law, in the case of an Event of Default specified in clause (ix) or clause (x) of Section 5.1(a) of this Indenture, all then Outstanding Notes will
become due and payable immediately without further action or notice. If any other Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in aggregate principal amount of the then Outstanding Notes may declare all the
Notes to be due and payable immediately by notice in writing to the Company and, in case of a notice by Holders, also to the Trustee specifying the respective Event of Default and that it is a notice of acceleration. Upon any such declaration, the
Notes shall become due and payable immediately. 
 (b) At any time after such a declaration of acceleration with
respect to the Notes has been made and before a judgment or decree for payment of the money due has been obtained by the Trustee as hereinafter in this Article Five provided, the Holders of a majority in principal amount of the Outstanding Notes, by
written notice to the Company and the Trustee, may rescind and annul such declaration and its consequences if: 
 (i) the Company or one or more of the Guarantors has paid or deposited with the Trustee a sum sufficient to pay: 
 (A) all overdue interest on all Notes, 
 (B) the principal of (and
premium, if any, on) any Notes which have become due otherwise than by such declaration of acceleration and any interest thereon at the rate or rates prescribed therefor in such Notes, 
 (C) to the extent that payment of such interest is lawful, interest upon overdue interest at the rate or rates prescribed
therefor in such Notes, and 
  

					
		 	32	 	Eleventh Supplemental Indenture

 (D) all sums paid or advanced by the Trustee hereunder and the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel; and 
 (ii) all Events
of Default with respect to the Notes, other than the non-payment of the principal of the Notes which have become due solely by such declaration of acceleration, have been cured or waived as provided in Section 5.13 of this Indenture.

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

 (c) Notwithstanding the foregoing Section 5.2(b), if an Event of Default specified in clause (vi) of
Section 5.1(a) above shall have occurred and be continuing, such Event of Default and any consequential acceleration shall be automatically rescinded if (i) the Indebtedness that is the subject of such Event of Default has been repaid, or
(ii) if the default relating to such Indebtedness is waived or cured and if such Indebtedness has been accelerated, then the holders thereof have rescinded their declaration of acceleration in respect of such Indebtedness. 
 (d) Upon any failure by the Company for 60 days to comply with Section 10.7 of this Indenture, the interest rate on the
Notes will increase by 50 basis points (0.5%) and remain at such increased rate thereafter but only for so long as there is a Default under such Section 10.7, and upon resumption of compliance by the Company with such Section 10.7, the
interest rate on the Notes will be reset at the initial rate applicable on the Issue Date. 
 SECTION 3.03.
Notice of Defaults. 
 Subject to the limitations set forth in the preamble to ARTICLE 3 of this
Supplemental Indenture, Section 6.2 of the Original Indenture is hereby amended and restated in its entirety to read as follows: 
 Section 6.2 Notice of Defaults. 
 Within 90 days after the occurrence of any Default
hereunder with respect to the Notes, the Trustee shall transmit by mail to all Holders of Notes, as their names and addresses appear in the Security Register, notice of such Default hereunder known to the Trustee, unless such Default shall have been
cured or waived; provided, however, that, except in the case of a Default in the payment of the principal of or any premium or interest on any Note, the Trustee may withhold from Holders of Notes notice of any continuing Default or
Event of Default if the Trustee in good faith determines that the withholding of such notice is in the interest of the Holders of Notes; and, provided, further, that (i) in the case of any Default of the character specified in
Section 5.1(a)(iv), no such notice to Holders shall be given until at least 30 days after the occurrence thereof, (ii) in the case of any Default of the character specified in Section 5.1(a)(v)(A), no such notice to Holders shall be
given until at least 60 days after the occurrence thereof and (iii) in the case of any Default of the character specified in Section 5.1(a)(v)(B), no such notice to Holders shall be given until at least 180 days after the occurrence
thereof. 
 SECTION 3.04. Compensation and Reimbursement. 
 Subject to the limitations set forth in the preamble to ARTICLE 3 of this Supplemental Indenture, the third paragraph of Section 6.7 of
the Original Indenture is hereby amended and restated in its entirety to read as follows: 
 Without limiting any
rights available to the Trustee under applicable law, when the Trustee incurs expenses or renders services in connection with an Event of Default specified in Section 5.1(a)(ix) or Section 5.1(a)(x), the expenses (including the reasonable
charges and expenses of its counsel) and the compensation for the services of the Trustee are intended to constitute expenses of administration under any applicable Bankruptcy Law. 
  

					
		 	33	 	Eleventh Supplemental Indenture

 SECTION 3.05. Merger, Consolidation or Sale of Substantially All
Assets. 
 Subject to the limitations set forth in the preamble to ARTICLE 3 of this Supplemental Indenture,
Article Eight of the Original Indenture is hereby amended and restated in its entirety to read as follows: 
 ARTICLE EIGHT

 MERGER, CONSOLIDATION OR SALE OF SUBSTANTIALLY ALL ASSETS 
 Section 8.1 Company May Consolidate, Etc., Only on Certain Terms. 
 (a) The Company will not, directly or indirectly, consolidate, amalgamate or merge with or into another Person (regardless of
whether the Company is the surviving corporation), convert into another form of entity or continue in another jurisdiction, or sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of its properties or assets, in one
or more related transactions, to another Person, unless: 
 (i) either: (A) the Company is the surviving
corporation; or (B) the Person formed by or surviving any such consolidation, amalgamation or merger or resulting from such conversion (if other than the Company) or to which such sale, assignment, transfer, conveyance or other disposition has
been made is a corporation, limited liability company or limited partnership organized or existing under the laws of the United States, any state of the United States or the District of Columbia; 
 (ii) the Person formed by or surviving any such conversion, consolidation, amalgamation or merger (if other than the Company)
or the Person to which such sale, assignment, transfer, conveyance or other disposition has been made assumes all the obligations of the Company under the Notes and this Indenture pursuant to agreements reasonably satisfactory to the Trustee;
provided that, unless such Person is a corporation, a corporate co-issuer of the Notes will be added to this Indenture by agreements reasonably satisfactory to the Trustee; 
 (iii) immediately after such transaction or transactions, no Default or Event of Default exists; 
 (iv) the Company or the Person formed by or surviving any such consolidation, amalgamation or merger (if other than the
Company), or to which such sale, assignment, transfer, conveyance or other disposition has been made: 
 (A)
would have Consolidated Net Worth immediately after the transaction equal to or greater than the Consolidated Net Worth of the Company immediately preceding the transaction; 
 (B) would, on the date of such transaction after giving pro forma effect thereto and any related financing transactions as
if the same had occurred at the beginning of the applicable four-quarter period, be permitted to incur at least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in Section 10.11(a) of this Indenture;
or 
 (C) would, on the date of such transaction after giving pro forma effect thereto and any related financing
transactions as if the same had occurred at the beginning of the applicable four-quarter period, have a Fixed Charge

  

					
		 	34	 	Eleventh Supplemental Indenture

 
Coverage Ratio that is not less than the Fixed Charged Coverage Ratio of the Company and its Restricted Subsidiaries immediately prior to such transaction; and 
 (v) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such
consolidation, amalgamation, merger, conveyance, sale, transfer or lease and such supplemental indenture, if any, comply with this Article Eight and that all conditions precedent herein provided for relating to such transaction have been complied
with. 
 (b) For purposes of this Section 8.1, the sale, lease, conveyance, assignment, transfer, or other
disposition of all or substantially all of the properties and assets of one or more Subsidiaries of the Company, which properties and assets, if held by the Company instead of such Subsidiaries, would constitute all or substantially all of the
properties and assets of the Company on a consolidated basis, shall be deemed to be the transfer of all or substantially all of the assets of the Company. 
 (c) Notwithstanding the restrictions described in the foregoing clause (a)(iv), any Restricted Subsidiary may consolidate with, merge into or transfer all or part of its properties and assets to the
Company, the Company may merge into a Restricted Subsidiary for the purpose of reincorporating the Company in another jurisdiction, and any Restricted Subsidiary may consolidate with, merge into or transfer all or part of its properties and assets
to another Restricted Subsidiary. 
 Section 8.2 Successor Substituted. 
 Upon any merger or consolidation, or any sale, transfer, assignment, conveyance or other disposition of all or substantially
all of the properties or assets of the Company and its Restricted Subsidiaries in accordance with Section 8.1 of this Indenture, the successor Person formed by such consolidation or into which the Company is merged or to which such sale,
transfer, assignment, conveyance or other disposition is made, shall succeed to, and be substituted for the Company (so that from and after the date of such consolidation, merger, sale, conveyance or other disposition, the provisions of this
Indenture referring to the “Company” shall refer instead to the successor corporation and not to the Company), and may exercise every right and power of the Company under this Indenture with the same effect as if such successor Person had
been named as the Company herein. When the successor assumes all of the Company’s obligations under this Indenture, the Company shall be discharged from those obligations; provided, however, that the Company will not be released
from the obligation to pay the principal of and interest on the Notes except in the case of a sale of all of the Company’s assets in a transaction that is subject to, and that complies with the provisions of, this Article Eight. 
 SECTION 3.06. Selection for and Notice of Redemption. 
 Subject to the limitations set forth in the preamble to ARTICLE 3 of this Supplemental Indenture, Sections 11.3 and 11.4 of the Original
Indenture are hereby amended and restated in their entirety to read as follows: 
 Section 11.3 Selection by Trustee of
Securities to be Redeemed. 
 (a) If less than all of the Notes are to be redeemed at any time, the Trustee
shall select the Notes to be redeemed among the Holders of the Notes in compliance with the requirements of the principal national securities exchange, if any, on which the Notes are listed or, if the Notes are not so listed, on a pro rata basis, by
lot or in accordance with any other method

  

					
		 	35	 	Eleventh Supplemental Indenture

 
the Trustee shall deem fair and appropriate. In the event of partial redemption by lot, the particular Notes to be redeemed shall be selected, unless otherwise provided herein, not less than 30
nor more than 60 days prior to the Redemption Date by the Trustee from the Outstanding Notes not previously called for redemption. 
 (b) The Trustee shall promptly notify the Company in writing of the Notes selected for redemption and, in the case of any Note selected for partial redemption, the principal amount at maturity thereof to
be redeemed. No Notes in amounts of $1,000 or less shall be redeemed in part. Notes and portions of Notes selected shall be in amounts of $1,000 and integral multiples thereof; except that if all of the Notes of a Holder are to be redeemed, the
entire Outstanding amount of Notes held by such Holder, even if not a multiple of $1,000, shall be redeemed. Except as provided in the preceding sentence, provisions of this Indenture that apply to Notes called for redemption also apply to portions
of Notes called for redemption. 
 (c) For all purposes of this Indenture, unless the context otherwise requires,
all provisions relating to the redemption of Notes shall relate, in the case of any Notes redeemed or to be redeemed only in part, to the portion of the principal amount of such Notes which has been or is to be redeemed. 
 Section 11.4 Notice of Redemption. 
 (a) At least 30 days but not more than 60 days before a Redemption Date, the Company shall mail or cause to be mailed, by first class mail, a notice of redemption to each Holder whose Notes are to be
redeemed at its registered address; provided, however, that in the case of a redemption with the net cash proceeds of an Equity Offering, such notice may be given prior to the completion of the related Equity Offering. 
 The notice shall identify the Notes to be redeemed and shall state: 
 (i) the Redemption Date; 
 (ii) the Redemption Price; 
 (iii) if any Note is being redeemed in
part, the portion of the principal amount of such Note to be redeemed and that, after the Redemption Date upon surrender of such Note, a new Note or Notes in principal amount equal to the unredeemed portion of the original Note shall be issued in
the name of the Holder thereof upon cancellation of the original Note; 
 (iv) the name and address of the Paying
Agent; 
 (v) that Notes called for redemption must be surrendered to the Paying Agent to collect the Redemption
Price and become due on the date fixed for redemption; 
 (vi) that, unless the Company defaults in making such
redemption payment, interest, if any, on Notes called for redemption ceases to accrue on and after the Redemption Date; 
 (vii) the paragraph of the Notes and/or Section of this Indenture pursuant to which the Notes called for redemption are being redeemed; 
 (viii) that no representation is made as to the correctness or accuracy of the CUSIP number, if any, listed in such notice or printed on the Notes; and 
  

					
		 	36	 	Eleventh Supplemental Indenture

 (ix) any conditions that must be satisfied prior to the Company becoming
obligated to consummate such redemption. 
 (b) At the Company’s request, the Trustee shall give the notice
of redemption in the Company’s name and at the Company’s expense; provided, however, that the Company shall have delivered to the Trustee, at least 45 days prior to the Redemption Date (or such shorter period of time as may
be acceptable to the Trustee), an Officers’ Certificate requesting that the Trustee give such notice and setting forth the information to be stated in such notice as provided in the preceding paragraph. 
 SECTION 3.07. Redemption Upon Equity Offering. 
 Subject to the limitations set forth in the preamble to ARTICLE 3 of this Supplemental Indenture, Section 11.6 of the Original Indenture
is hereby amended by adding the following paragraph as the last paragraph of such Section: 
 Notwithstanding the
preceding provisions of this Section 11.6, notice of any redemption upon an Equity Offering may be given prior to the completion of the related Equity Offering, and any such redemption or notice may at the Company’s discretion, be subject
to one or more conditions precedent, including, but not limited to completion of the related Equity Offering. 
 SECTION 3.08. Covenant Defeasance. 
 Subject to the limitations set forth in the
preamble to ARTICLE 3 of this Supplemental Indenture, the last sentence of Section 13.3 of the Original Indenture is hereby amended and restated in its entirety to read as follows: 
 In addition, upon the Company’s exercise under Section 13.1 hereof of the option applicable to this Section 13.3, subject to
the satisfaction of the conditions set forth in Section 13.4 hereof, the following will no longer constitute an Event of Default: (a) clauses (iii), (iv), (v), (vi) and (vii) of Section 5.1(a) of this Indenture,
(b) clause (ix) (but only with respect to Subsidiaries of the Company) of Section 5.1(a) of this Indenture and (c) clause (x) (but only with respect to Subsidiaries of the Company) of Section 5.1(a) of this Indenture.

 SECTION 3.09. Subsidiary Guarantees. 
 Subject to the limitations set forth in the preamble to ARTICLE 3 of this Supplemental Indenture, Article Fourteen of the Original Indenture
is hereby amended by adding the following Sections 14.4 and 14.5 thereto: 
 Section 14.4 Guarantors May Consolidate,
etc., on Certain Terms. 
 Except as otherwise provided in Section 14.5 of this Indenture, no Guarantor
may sell or otherwise dispose of all or substantially all of its assets to, or consolidate with or merge with or into (regardless of whether such Guarantor is the surviving Person) another Person, other than the Company or another Guarantor, unless:

 (a) immediately after giving effect to such transaction, no Default or Event of Default exists; and

 (b) either: 
 (i) subject to Section 14.5 hereof, if it is not such Guarantor, the Person acquiring the property in any such sale or disposition or the Person formed by or

  

					
		 	37	 	Eleventh Supplemental Indenture

 
surviving any such consolidation or merger assumes all the obligations of that Guarantor under this Indenture (including its Subsidiary Guarantee), on the terms set forth herein, pursuant to a
supplemental indenture in form and substance reasonably satisfactory to the Trustee, in which case the Subsidiary Guarantee of such Guarantor will be released as contemplated by Section 14.5 of this Indenture; or 
 (ii) the Net Proceeds of such sale or other disposition are applied in accordance with the applicable provisions of this
Indenture, including without limitation Section 10.12. 
 In case of any such consolidation, merger, sale or
conveyance and upon the assumption by the successor Person, by supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the Trustee, of the Subsidiary Guarantee of such Guarantor and the due and punctual performance
of all of the covenants and conditions of this Indenture to be performed by the Guarantor, such successor Person will succeed to and be substituted for the Guarantor with the same effect as if it had been named herein as a Guarantor. Such successor
Person thereupon may cause to be signed any or all of the Subsidiary Guarantee notations to be endorsed upon all of the Notes issuable hereunder which theretofore shall not have been signed by the Company and delivered to the Trustee. All the
Subsidiary Guarantees so issued will in all respects have the same legal rank and benefit under this Indenture as the Subsidiary Guarantees theretofore and thereafter issued in accordance with the terms of this Indenture as though all of such
Subsidiary Guarantees had been issued at the date of the execution hereof. 
 Except as set forth in Articles
Eight and Ten of this Indenture, and notwithstanding clauses (i) and (ii) above, nothing contained in this Indenture or in any of the Notes will prevent any consolidation or merger of a Guarantor with or into the Company or another
Guarantor, or will prevent any sale or conveyance of the property of a Guarantor as an entirety or substantially as an entirety to the Company or another Guarantor. 
 Section 14.5 Releases. 
 (a) In the event of any sale
or other disposition of all or substantially all of the assets of any Guarantor, by way of merger, consolidation or otherwise, or a sale or other disposition of all of the Capital Stock of any Guarantor, in each case to a Person that is not (either
before or after giving effect to such transactions) the Company or a Restricted Subsidiary of the Company, then such Guarantor (in the event of a sale or other disposition, by way of merger, consolidation or otherwise, of all of the Capital Stock of
such Guarantor) or the corporation acquiring the property (in the event of a sale or other disposition of all or substantially all of the assets of such Guarantor) will be released and relieved of any obligations under its Subsidiary Guarantee,
provided that the Net Proceeds of such sale or other disposition are applied in accordance with the applicable provisions of this Indenture, including without limitation Section 10.12. Upon delivery by the Company to the Trustee of an
Officers’ Certificate and an Opinion of Counsel to the effect that such sale or other disposition was made by the Company in accordance with the provisions of this Indenture, including without limitation Section 10.12, the Trustee will
execute any documents reasonably required in order to evidence the release of any Guarantor from its obligations under its Subsidiary Guarantee. 
 (b) In addition, each Guarantor will be released and relieved of any obligations under its Subsidiary Guarantee: 
 (i) upon designation of such Guarantor as an Unrestricted Subsidiary in accordance with the terms of this Indenture;

  

					
		 	38	 	Eleventh Supplemental Indenture

 (ii) upon Legal Defeasance in accordance with Article Thirteen of this
Indenture or satisfaction and discharge of this Indenture in accordance with Article Four of this Indenture; 
 (iii) upon the liquidation or dissolution of such Guarantor, provided that no Default or Event of Default shall have occurred and is continuing; or 
 (iv) at such time as such Guarantor does not have outstanding any Guarantee of any Indebtedness (other than the Notes) of the
Company or any Guarantor in excess of $10.0 million in aggregate principal amount. 
 (c) Any Guarantor not
released from its obligations under its Subsidiary Guarantee as provided in this Section 14.5 will remain liable for the full amount of principal of and interest and premium, if any, on the Notes and for the other obligations of any Guarantor
under this Indenture as provided in this Article Fourteen. 
 SECTION 3.10. Repurchase Offers. 

 Subject to the limitations set forth in the preamble to ARTICLE 3 of this Supplemental Indenture, the Original Indenture is
hereby amended by adding the following Article Fifteen thereto: 
 ARTICLE FIFTEEN 
 REPURCHASE OFFERS 
 Section 15.1 Generally. 
 In the event that, pursuant
to Section 10.12 or Section 10.15 of this Indenture, the Company shall be required to commence an offer to all Holders of Notes to purchase all or a portion of their respective Notes (a “Repurchase Offer”), it shall follow the
procedures specified in such Sections and, to the extent not inconsistent therewith, the procedures specified in Section 15.2 below. 
 Section 15.2 Repurchase Offer Procedures. 
 (a) A
Repurchase Offer shall remain open for a period of no less than 30 days and no more than 60 days following its commencement, except to the extent that a longer period is required by applicable law (the “Offer Period”). No later than three
Business Days after the termination of the Offer Period (the “Purchase Date”), the Company shall purchase the principal amount of Notes required to be purchased pursuant to Section 10.12 or 10.15 of this Indenture (the “Offer
Amount”) or, if less than the Offer Amount has been tendered, all Notes tendered in response to the Repurchase Offer. Payment for any Notes so purchased shall be made in the same manner as interest payments are made. 
 (b) If the Purchase Date is on or after an interest record date and on or before the related Interest Payment Date, any
accrued and unpaid interest shall be paid to the Person in whose name a Note is registered at the close of business on such record date, and no additional interest shall be payable to Holders who tender Notes pursuant to the Repurchase Offer.

 (c) Upon the commencement of a Repurchase Offer, the Company shall send, by first class mail, a notice to the
Trustee and each of the Holders of Notes. The notice shall contain all instructions and materials necessary to enable such Holders to tender Notes pursuant to the Repurchase Offer. The Repurchase Offer shall be made to all Holders of Notes. The
notice, which shall govern the terms of the Repurchase Offer, shall state: 
 (i) that the Repurchase Offer is
being made pursuant to this Article Fifteen and Section 10.12 or Section 10.15 of this Indenture, and the length of time the Repurchase Offer shall remain open; 
  

					
		 	39	 	Eleventh Supplemental Indenture

 (ii) the Offer Amount, the purchase price and the Purchase Date; 

(iii) that any Note not tendered or accepted for payment shall continue to accrue interest; 
 (iv) that, unless the Company defaults in making such payment, any Note (or portion thereof) accepted for payment pursuant to
the Repurchase Offer shall cease to accrue interest after the Purchase Date; 
 (v) that Holders electing to have
a Note purchased pursuant to a Repurchase Offer may elect to have Notes purchased equal to $1,000 and integral multiples thereof; 
 (vi) that Holders electing to have a Note purchased pursuant to any Repurchase Offer shall be required to surrender the Note, with the form entitled “Option of Holder to Elect Purchase” on the
reverse of the Note completed, or transfer by book entry transfer, to the Company, the Depositary, if appointed by the Company, or a Paying Agent at the address specified in the notice at least three days before the Purchase Date; 
 (vii) that Holders shall be entitled to withdraw their election if the Company, the Depositary or the Paying Agent, as the
case may be, receives, not later than the expiration of the Offer Period, a telegram, telex, facsimile transmission or letter setting forth the name of the Holder, the principal amount of the Note the Holder delivered for purchase and a statement
that such Holder is withdrawing his election to have such Note purchased; 
 (viii) that, if the aggregate amount
of Notes surrendered by Holders exceeds the Offer Amount, the Trustee shall select the Notes to be purchased on a pro rata basis (with such adjustments as may be deemed appropriate by the Trustee so that only Notes in denominations of $1,000, or and
integral multiples thereof, shall be purchased); and 
 (ix) that Holders whose Notes were purchased only in part
shall be issued new Notes equal in principal amount to the unpurchased portion of the Notes surrendered (or transferred by book entry transfer). 
 (d) On the Purchase Date, the Company shall, to the extent lawful, accept for payment on a pro rata basis to the extent necessary, the Offer Amount of Notes (or portions thereof) tendered pursuant to the
Repurchase Offer, or if less than the Offer Amount has been tendered, all Notes tendered, and shall deliver to the Trustee an Officers’ Certificate stating that such Notes (or portions thereof) were accepted for payment by the Company in
accordance with the terms of this Article Fifteen. The Company, the Depositary or the Paying Agent, as the case may be, shall promptly (but in any case not later than three days after the Purchase Date) mail or deliver to each tendering Holder an
amount equal to the purchase price of Notes tendered by such Holder, as the case may be, and accepted by the Company for purchase, and the Company shall promptly issue a new Note. The Trustee, upon written request from the Company shall authenticate
and mail or deliver such new Note to such Holder, in a principal amount equal to any unpurchased portion of the Note surrendered. Any Note not so accepted shall be promptly mailed or delivered by the Company to the respective Holder thereof. The
Company shall publicly announce the results of the Repurchase Offer on the Purchase Date. 
  

					
		 	40	 	Eleventh Supplemental Indenture

 ARTICLE 4 
 ADDITIONAL COVENANTS 
 With respect to the
Notes, Article Ten of the Original Indenture is hereby amended as set forth below in this ARTICLE 4; provided, however, that each such amendment shall apply only to the Notes and not to any other series of Securities issued under the
Indenture. 
 SECTION 4.01. Reports. 
 Subject to the limitations set forth in the preamble to ARTICLE 4 of this Supplemental Indenture, Article Ten of the Original Indenture is
hereby further amended by adding the following Section 10.7 thereto: 
 Section 10.7 Reports. 
 (a) Regardless of whether required by the rules and regulations of the SEC, so long as any Notes are Outstanding, the Company
will file with the SEC for public availability, within the time periods specified in the SEC’s rules and regulations (unless the SEC will not accept such a filing, in which case the Company will furnish to the Holders of Notes or cause the
Trustee to furnish to the Holders of Notes, within the time periods specified in the SEC’s rules and regulations): 
 (i) all quarterly and annual reports that would be required to be filed with the SEC on Forms 10-Q and 10-K under the Exchange Act if the Company were required to file such reports; and 
 (ii) all current reports that would be required to be filed with the SEC on Form 8-K under the Exchange Act if the Company
were required to file such reports. 
 (b) All such reports will be prepared in all material respects in
accordance with all of the rules and regulations applicable to such reports. Each annual report on Form 10-K will include a report on the Company’s consolidated financial statements by the Company’s certified independent accountants.

 (c) If, at any time, the Company is no longer subject to the periodic reporting requirements of the Exchange
Act for any reason, the Company will nevertheless continue filing the reports specified in Section 10.7(a) with the SEC within the time periods specified above unless the SEC will not accept such a filing. The Company will not take any action
for the purpose of causing the SEC not to accept any such filings. If, notwithstanding the foregoing, the SEC will not accept the Company’s filings for any reason, the Company will post the reports referred to in the preceding paragraphs on its
website within the time periods that would apply if the Company were required to file those reports with the SEC. 
 (d) If the Company has designated any of its Subsidiaries as Unrestricted Subsidiaries, then, to the extent material, the quarterly and annual financial information required by the preceding paragraphs of this Section 10.7 will include
a reasonably detailed presentation, either on the face of the financial statements or in the footnotes thereto, and in “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” of the financial condition
and results of operations of the Company and its Restricted Subsidiaries separate from the financial condition and results of operations of the Unrestricted Subsidiaries of the Company. 
  

					
		 	41	 	Eleventh Supplemental Indenture

 SECTION 4.02. Taxes. 
 Subject to the limitations set forth in the preamble to ARTICLE 4 of this Supplemental Indenture, Article Ten of the Original Indenture is
hereby further amended by adding the following Section 10.8 thereto: 
 Section 10.8 Taxes. 
 The Company shall pay, and shall cause each of its Subsidiaries to pay, prior to delinquency, any taxes, assessments, and
governmental levies except such as are contested in good faith and by appropriate proceedings or where the failure to effect such payment is not adverse in any material respect to the Holders of the Notes. 
 SECTION 4.03. Restricted Payments. 
 Subject to the limitations set forth in the preamble to ARTICLE 4 of this Supplemental Indenture, Article Ten of the Original Indenture is
hereby further amended by adding the following Section 10.9 thereto: 
 Section 10.9 Restricted Payments.

 (a) The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly:

 (1) declare or pay any dividend or make any other payment or distribution on account of the Company’s or
any of its Restricted Subsidiaries’ Equity Interests or to the direct or indirect holders of the Company’s or any of its Restricted Subsidiaries’ Equity Interests in their capacity as such (other than dividends or distributions
payable in Equity Interests (other than Disqualified Stock) of the Company and other than dividends or distributions payable to the Company or a Restricted Subsidiary); 
 (2) purchase, redeem or otherwise acquire or retire for value (including, without limitation, any such purchase, redemption,
acquisition or retirement made in connection with any merger or consolidation involving the Company) any Equity Interests of the Company or any direct or indirect parent or other Affiliate of the Company that is not a Restricted Subsidiary;

 (3) make any payment on or with respect to, or purchase, redeem, defease or otherwise acquire or retire for
value any Subordinated Debt, except a payment of interest or principal at the Stated Maturity thereof (excluding (a) any intercompany Indebtedness between or among the Company and any of its Restricted Subsidiaries or (b) the purchase,
repurchase or other acquisition of Subordinated Debt purchased in anticipation of satisfying a sinking fund obligation, principal installment or final maturity, in each case due within one year of the date of purchase, repurchase or acquisition); or

 (4) make any Restricted Investment; 
 (all such payments and other actions set forth in clauses (1) through (4) above being collectively referred to as “Restricted
Payments”), 
 unless, at the time of and after giving effect to such Restricted Payment: 
 (i) no Default or Event of Default has occurred and is continuing or would occur as a consequence of such Restricted Payment;

  

					
		 	42	 	Eleventh Supplemental Indenture

 (ii) the Company would, at the time of such Restricted Payment and after
giving pro forma effect thereto as if such Restricted Payment had been made at the beginning of the applicable four-quarter period, have been permitted to incur at least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio
test set forth in Section 10.11(a) of this Indenture; and 
 (iii) such Restricted Payment, together with
the aggregate amount of all other Restricted Payments made by the Company and its Restricted Subsidiaries since March 13, 2007 (excluding Restricted Payments permitted by clauses (ii), (iii), (iv), (v), (vi), (vii), (viii), (ix), (x) and
(xiv) of Section 10.9(b) of this Indenture), is equal to or less than the sum, without duplication, of: 
 (A) 50% of the Consolidated Net Income of the Company for the period (taken as one accounting period) from July 1, 2006 to the end of the Company’s most recently ended fiscal quarter for which internal financial statements are
available at the time of such Restricted Payment (or, if such Consolidated Net Income for such period is a deficit, less 100% of such deficit); plus 
 (B) 100% of (1)(a) the aggregate net cash proceeds and (b) the Fair Market Value of (x) marketable securities
(other than marketable securities of the Company), (y) Capital Stock of a Person (other than the Company or an Affiliate of the Company) engaged primarily in any Related Business and (z) other assets used or useful in any Related Business,
in the case of clauses (a) and (b), received by the Company since July 3, 2002 as a contribution to its common equity capital or from the issue or sale of Equity Interests of the Company (other than Disqualified Stock) or from the issue or
sale of convertible or exchangeable Disqualified Stock or convertible or exchangeable debt securities of the Company that have been converted into or exchanged for such Equity Interests (other than Equity Interests (or Disqualified Stock or debt
securities) sold to a Subsidiary of the Company); provided, however, that the aggregate amount calculated pursuant to this clause (1) shall not include $731.6 million (representing the Fair Market Value of the common stock of
Nuevo Energy Company and shares of common stock of 3TEC Energy Corporation, in each case, received by the Company during the years 2003 and 2004 in exchange for shares of its common stock), (2) the amount by which Indebtedness of the Company or
any Restricted Subsidiary is reduced on the Company’s consolidated balance sheet upon the conversion or exchange after March 13, 2007 of any such Indebtedness into or for Equity Interests of the Company (other than Disqualified Stock or
Subordinated Debt), and (3) the aggregate net cash proceeds, if any, received by the Company or any of its Restricted Subsidiaries upon any conversion or exchange described in clause (1) or (2) above; plus 
 (C) the amount equal to the net reduction in Restricted Investments made by the Company or any of its Restricted
Subsidiaries in any Person resulting from repurchases or redemptions of such Restricted Investments by such Person, proceeds realized upon the sale of such Restricted Investment to a purchaser other than the Company or a Subsidiary of the Company,
or repayments of loans or advances or other transfers of assets (including by way of dividend or distribution) by such Person to the Company or any Restricted Subsidiary; provided, however, that no amount will be included under this
clause (C) to the extent it is already included in Consolidated Net Income; plus 
  

					
		 	43	 	Eleventh Supplemental Indenture

 (D) to the extent that any Unrestricted Subsidiary is redesignated as a
Restricted Subsidiary after March 13, 2007, the Fair Market Value of the Company’s Investment in such Subsidiary as of the date of such redesignation. 
 (b) So long as no Default has occurred and is continuing or would be caused thereby, Section 10.9(a) of this Indenture
will not prohibit: 
 (i) the payment of any dividend or the consummation of any irrevocable redemption within 60
days after the date of declaration of the dividend or giving of the redemption notice, as the case may be, if at the date of declaration or notice, the dividend or redemption payment would have complied with the provisions of this Indenture;

 (ii) the making of any Restricted Payment in exchange for, or out of the net cash proceeds from the
substantially concurrent sale (other than to a Restricted Subsidiary of the Company) of, Equity Interests of the Company (other than Disqualified Stock and other than Equity Interests issued or sold to an employee stock ownership plan, option plan
or similar trust to the extent such sale to an employee stock ownership plan, option plan or similar trust is financed by loans from or guaranteed by the Company or any of its Restricted Subsidiaries unless such loans have been repaid with cash on
or prior to the date of determination) or from the substantially concurrent contribution of common equity capital to the Company; provided that the amount of any such net cash proceeds that are utilized for any such Restricted Payment will be
excluded from clause (iii)(B) of Section 10.9(a); 
 (iii) the repurchase, redemption, defeasance or other
acquisition or retirement for value of Subordinated Debt (including the payment of any required premium and any fees and expenses incurred in connection with such repurchase, redemption, defeasance or other acquisition) with the net cash proceeds
from a substantially concurrent incurrence of Permitted Refinancing Indebtedness; 
 (iv) the defeasance,
repurchase, redemption or other acquisition or retirement for value of any Equity Interests of the Company or any Restricted Subsidiary held by any of the Company’s (or any of its Restricted Subsidiaries’) current or former directors or
employees in connection with the exercise or vesting of any equity compensation (including, without limitation, stock options, restricted stock and phantom stock) in order to satisfy the Company’s or such Restricted Subsidiary’s tax
withholding obligation with respect to such exercise or vesting; 
 (v) repurchases of Capital Stock deemed to
occur upon the exercise of stock options if such Capital Stock represents a portion of the exercise price thereof; 
 (vi) payments to fund the purchase, redemption or other acquisition for value by the Company of fractional shares arising out of stock dividends, splits or combinations, business combinations or other transactions permitted by this
Indenture; 
 (vii) any transfer to an Unrestricted Subsidiary of any direct or indirect interest of the Company
and its Restricted Subsidiaries in real property so long as such interests at the time of such sale or transfer (A) do not include any material proved Hydrocarbons and (B) include a surface interest, and any disposition (by dividend or
distribution in respect of Equity Interests of the Company or otherwise) of any such Unrestricted Subsidiary; 
  

					
		 	44	 	Eleventh Supplemental Indenture

 (viii) the defeasance, repurchase, redemption or other acquisition or
retirement for value of any Equity Interests of the Company or any Restricted Subsidiary held by any of the Company’s (or any of its Restricted Subsidiaries’) current or former directors or employees; provided that the aggregate
price paid for all such repurchased, redeemed, acquired or retired Equity Interests may not exceed $3.0 million in any twelve-month period (with unused amounts in any 12-month period being permitted to be carried over into succeeding 12-month
periods); provided, further, that the amounts in any 12-month period may be increased by an amount not to exceed (A) the cash proceeds received by the Company or any of its Restricted Subsidiaries from the sale of the
Company’s Equity Interests (other than Disqualified Stock) to any such directors or employees that occurs after March 13, 2007 (provided that the amount of such cash proceeds utilized for any such repurchase, retirement or other
acquisition or retirement will not increase the amount available for Restricted Payments under clause (iii) of Section 10.9(a)) to the extent such proceeds have not otherwise been applied to the payment of Restricted Payments plus
(B) the cash proceeds of key man life insurance policies received by the Company and its Restricted Subsidiaries after March 13, 2007; 
 (ix) the declaration and payment of regularly scheduled or accrued dividends to holders of any class or series of Disqualified Stock of the Company or any Restricted Subsidiary issued on or after
March 13, 2007 in accordance with the Fixed Charge Coverage Ratio test set forth in Section 10.11(a) below; 
 (x) the payment of any dividend (or, in the case of any partnership or limited liability company, any similar distribution) by a Restricted Subsidiary to the holders (other than the Company or any Restricted Subsidiary) of Equity Interests
(other than Disqualified Stock) of such Restricted Subsidiary; provided that such dividend or similar distribution is paid to all holders of such Equity Interests on a pro rata basis based their respective holdings of such Equity Interests;

 (xi) any Restricted Payment as long as on the date of such Restricted Payment, after giving pro forma effect
thereto and to any related financing transactions as if the same had occurred at the beginning of the Company’s most recently ended four full fiscal quarters for which internal financial statements are available, the Company’s Leverage
Ratio would not have exceeded 2.5 to 1; 
 (xii) the purchase or redemption of any Acquired Subordinated
Indebtedness of the Company or any of its Restricted Subsidiaries, by application of (A) cash provided from operations in the ordinary course of business or (B) proceeds from borrowings under the revolving portion of the Senior Credit
Agreement (so long as within 30 days prior to such purchase or redemption, a corresponding amount of borrowings under the revolving portion of the Senior Credit Agreement was repaid from cash provided from operations in the ordinary course of
business); provided, in any such case, that the Company is able to incur an additional $1.00 of Indebtedness pursuant to Section 10.11(a) after giving effect to such purchase or redemption; provided further, that this clause
(xii) shall not permit the application any proceeds from any other borrowings under any Credit Facility to effect any such purchase or redemption; 
 (xiii) repurchases of Subordinated Debt at a purchase price not greater than (x) 101% of the principal amount of such Subordinated Debt and accrued and unpaid interest thereon in the event of a
Change of Control or (y) 100% of the principal amount of such Subordinated Debt and accrued and unpaid interest thereon in the event of an Asset Sale, in each case plus accrued interest, in connection with any change of control offer or asset
sale offer required by the terms of such Subordinated Debt, but only if: 
 (A) in the case of a Change of
Control Triggering Event, the Company has first complied with and fully satisfied its obligations under Section 10.15; or 
  

					
		 	45	 	Eleventh Supplemental Indenture

 (B) in the case of an Asset Sale, the Company has complied with and fully
satisfied its obligations under Section 10.12; or 
 (xiv) other Restricted Payments in an amount not to
exceed $50.0 million. 
 (c) The amount of all Restricted Payments (other than cash) shall be the Fair Market
Value on the date of such Restricted Payment of the asset(s) or securities proposed to be paid, transferred or issued by the Company or such Restricted Subsidiary, as the case may be, pursuant to such Restricted Payment. 
 (d) The Fair Market Value of any cash Restricted Payment shall be its face amount, and the Fair Market Value of any non-cash
Restricted Payment exceeding $15.0 million shall be determined conclusively by two Officers of the Company acting in good faith whose conclusions with respect thereto shall be set forth in an Officers’ Certificate delivered to the Trustee,
provided, however, that if the Fair Market Value of any non-cash Restricted Payment exceeds $40.0 million, such Fair Market Value shall be determined conclusively by the Board of Directors of the Company and set forth in a Board
Resolution, and a certified copy of such Board Resolution shall be delivered to the Trustee. For purposes of determining compliance with this covenant, in the event that a Restricted Payment meets the criteria of more than one of the exceptions
described in clauses (i) through (xiv) of Section 10.9(b) or is entitled to be made pursuant to Section 10.9(a), the Company shall, in its sole discretion, classify such Restricted Payment, or later classify, reclassify or
re-divide all or a portion of such Restricted Payment, in any manner that complies with this Section 10.9. 
 SECTION 4.04. Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries. 
 Subject to the limitations set forth in the preamble to ARTICLE 4 of this Supplemental Indenture, Article Ten of the Original Indenture is hereby further amended by adding the following Section 10.10 thereto: 
 Section 10.10 Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries. 
 (a) The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, create or permit
to exist or become effective any consensual encumbrance or restriction on the ability of any Restricted Subsidiary to: 
 (i) pay dividends or make any other distributions on its Capital Stock to the Company or any of its Restricted Subsidiaries, or with respect to any other interest or participation in, or measured by, its profits, or pay any indebtedness
owed to the Company or any of its Restricted Subsidiaries; 
 (ii) make loans or advances to the Company or any
of its Restricted Subsidiaries; or 
 (iii) sell, lease or transfer any of its properties or assets to the
Company or any of its Restricted Subsidiaries. 
 (b) However, the preceding restrictions in
Section 10.10(a) will not apply to encumbrances or restrictions existing under or by reason of: 
 (i)
agreements governing Existing Indebtedness and Credit Facilities as in effect on March 13, 2007 and any amendments, restatements, modifications, renewals, supplements, increases, refundings, replacements or refinancings of those agreements;
provided that the amendments, restatements, modifications, renewals, supplements, increases, refundings, replacements or refinancings are no more restrictive, taken as a whole, with respect to such dividend and other payment restrictions than
those contained in those agreements on March 13, 2007; 
  

					
		 	46	 	Eleventh Supplemental Indenture

 (ii) this Indenture, the Notes and the Subsidiary Guarantees; 
 (iii) applicable law, rule, regulation, order, approval, permit or similar restriction; 
 (iv) any instrument governing Indebtedness or Capital Stock of a Person acquired by the Company or any of its Restricted
Subsidiaries as in effect at the time of such acquisition (except to the extent such Indebtedness or Capital Stock was incurred in connection with or in contemplation of such acquisition), which encumbrance or restriction is not applicable to any
Person, or the properties or assets of any Person, other than the Person, or the property or assets of the Person, so acquired; provided that, in the case of Indebtedness, such Indebtedness was permitted by the terms of this Indenture to be
incurred; 
 (v) customary non-assignment provisions in contracts, leases and licenses (including, without
limitation, licenses of intellectual property) entered into in the ordinary course of business; 
 (vi) any
agreement for the sale or other disposition of assets, including without limitation an agreement for the sale or other disposition of the Capital Stock or assets of a Restricted Subsidiary, that restricts distributions by the applicable Restricted
Subsidiary pending the sale or other disposition; 
 (vii) Permitted Refinancing Indebtedness; provided
that the restrictions contained in the agreements governing such Permitted Refinancing Indebtedness are not materially more restrictive, taken as a whole, than those contained in the agreements governing the Indebtedness being refinanced;

 (viii) Liens permitted to be incurred under the provisions of Section 10.14 that limit the right of the
debtor to dispose of the assets subject to such Liens; 
 (ix) the issuance of preferred stock by a Restricted
Subsidiary or the payment of dividends thereon in accordance with the terms thereof; provided that issuance of such preferred stock is permitted pursuant to Section 10.11 and the terms of such preferred stock do not expressly restrict
the ability of a Restricted Subsidiary to pay dividends or make any other distributions on its Capital Stock (other than requirements to pay dividends or liquidation preferences on such preferred stock prior to paying any dividends or making any
other distributions on such other Capital Stock); 
 (x) other Indebtedness of the Company or any of its
Restricted Subsidiaries permitted to be incurred pursuant to an agreement entered into subsequent to March 13, 2007 in accordance with Section 10.11; provided that the provisions relating to such encumbrance or restriction contained
in such Indebtedness are not materially less favorable to the Company and its Restricted Subsidiaries taken as a whole, as determined by the Company in good faith, than the provisions contained in the Credit Facilities and in this Indenture as in
effect on March 13, 2007; 
  

					
		 	47	 	Eleventh Supplemental Indenture

 (xi) customary provisions restricting subletting or assignment of any lease
governing a leasehold interest; 
 (xii) Hedging Obligations permitted from time to time under this Indenture;

 (xiii) restrictions on cash or other deposits or net worth imposed by customers under contracts entered into
in the ordinary course of business ; and 
 (xiv) with respect only to encumbrances or restrictions of the type
referred to in clause (iii) of Section 10.10(a): 
 (A) customary nonassignment provisions (including
provisions forbidding subletting) in leases governing leasehold interests or Farm-In Agreements or Farm-Out Agreements relating to leasehold interests in oil and gas properties to the extent such provisions restrict the transfer of the lease, the
property leased thereunder or the other interests therein; 
 (B) provisions limiting the disposition or
distribution of assets or property in, or transfer of Capital Stock of, joint venture agreements, asset sale agreements, sale-leaseback agreements, stock sale agreements and other similar agreements entered into (1) in the ordinary course of
business, consistent with past practice or (2) with the approval of the Company’s Board of Directors, which limitations are applicable only to the assets, property or Capital Stock that are the subject of such agreements; and 

(C) Capital Lease Obligations, security agreements, mortgages, purchase money agreements or similar instruments to the
extent such encumbrance or restriction restricts the transfer of the property (including Capital Stock) subject to such Capital Lease Obligations, security agreements, mortgages, purchase money agreements or similar instruments. 
 SECTION 4.05. Incurrence of Indebtedness and Issuance of Preferred Stock. 
 Subject to the limitations set forth in the preamble to ARTICLE 4 of this Supplemental Indenture, Article Ten of the Original Indenture is
hereby further amended by adding the following Section 10.11 thereto: 
 Section 10.11 Incurrence of Indebtedness
and Issuance of Preferred Stock. 
 (a) The Company will not, and will not permit any of its Restricted
Subsidiaries to, directly or indirectly, create, incur, issue, assume, guarantee or otherwise become directly or indirectly liable, contingently or otherwise, with respect to (collectively, “incur,” with “incurrence” having a
correlative meaning) any Indebtedness (including Acquired Debt), and the Company will not issue any Disqualified Stock and will not permit any of its Restricted Subsidiaries to issue any shares of preferred stock; provided, however,
that the Company may incur Indebtedness (including Acquired Debt) and issue Disqualified Stock, and Restricted Subsidiaries may incur Indebtedness (including Acquired Debt) and issue preferred stock, if the Fixed Charge Coverage Ratio for the
Company’s most recently ended four full fiscal quarters for which internal financial statements are available immediately preceding the date on which such additional Indebtedness is incurred or such Disqualified Stock or preferred stock is
issued, as the case may be, would have been at least 2.25 to 1.0, determined on a pro forma basis (including a

  

					
		 	48	 	Eleventh Supplemental Indenture

 
pro forma application of the net proceeds therefrom), as if the additional Indebtedness had been incurred or the Disqualified Stock or preferred stock had been issued, as the case may be, at the
beginning of such four-quarter period. 
 (b) Notwithstanding the foregoing, Section 10.11(a) will not
prohibit the incurrence of any of the following (the items of Indebtedness described below in this Section 10.11(b) being referred to collectively as “Permitted Debt”): 
 (i) the incurrence by the Company and any Restricted Subsidiary of Indebtedness and letters of credit under Credit Facilities
in an aggregate principal amount at any one time outstanding under this clause (i) (with letters of credit being deemed to have a principal amount equal to the maximum potential liability of the Company and its Restricted Subsidiaries
thereunder) not to exceed the greater of (x) $1.1 billion and (y) 20% of Adjusted Consolidated Net Tangible Assets, determined as of the date of the incurrence of such Indebtedness after giving pro forma effect to such incurrence and the
application of the proceeds therefrom; 
 (ii) the incurrence by the Company and its Restricted Subsidiaries of
the Existing Indebtedness; 
 (iii) the incurrence by the Company and the Guarantors of Indebtedness represented
by the Notes or the Guarantees of the Notes, to be incurred by the Company or any of the Guarantors on the Issue Date of the Notes; 
 (iv) the incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness represented by Capital Lease Obligations, mortgage financings or purchase money obligations, in each case, incurred
for the purpose of financing all or any part of the purchase price or cost of design, construction, installation or improvement of property, plant or equipment used in the business of the Company or any of its Restricted Subsidiaries, in an
aggregate principal amount, including all Permitted Refinancing Indebtedness incurred to renew, refund, refinance, replace, defease or discharge any Indebtedness incurred pursuant to this clause (iv), not to exceed $50.0 million at any time
outstanding; 
 (v) the incurrence by the Company or any of its Restricted Subsidiaries of Permitted Refinancing
Indebtedness in exchange for, or the net proceeds of which are used to refund, refinance, replace, defease or discharge Indebtedness (other than intercompany Indebtedness) or Disqualified Stock of the Company, or Indebtedness (other than
intercompany Indebtedness) or preferred stock of a Restricted Subsidiary, in each case that was permitted by this Indenture to be incurred or issued under Section 10.11(a) or clause (ii), (iii), (iv), (v) or (x) of this
Section 10.11(b); 
 (vi) the incurrence by the Company or any of its Restricted Subsidiaries of
intercompany Indebtedness between or among the Company and any of its Restricted Subsidiaries; provided, however, that (A) any subsequent issuance or transfer of Equity Interests that results in any such Indebtedness being held by
a Person other than the Company or a Restricted Subsidiary and (B) any sale or other transfer of any such Indebtedness to a Person that is not either the Company or a Restricted Subsidiary will be deemed, in each case, to constitute an
incurrence of such Indebtedness by the Company or such Restricted Subsidiary, as the case may be, that was not permitted by this clause (vi); 
  

					
		 	49	 	Eleventh Supplemental Indenture

 (vii) the issuance by any of the Company’s Restricted Subsidiaries to
the Company or to any of its Restricted Subsidiaries of shares of preferred stock; provided, however, that: 
 (A) any subsequent issuance or transfer of Equity Interests that results in any such preferred stock being held by a Person other than the Company or a Restricted Subsidiary; and 
 (B) any sale or other transfer of any such preferred stock to a Person that is not either the Company or a Restricted
Subsidiary, 
 will be deemed, in each case, to constitute an issuance of such preferred stock by such Restricted Subsidiary that
was not permitted by this clause (vii); 
 (viii) the incurrence of obligations of the Company or a Restricted
Subsidiary pursuant to Interest Rate and Currency Hedges, in each case entered into in the ordinary course of business for the purpose of limiting risks that arise in the ordinary course of business of the Company and its Restricted Subsidiaries;

 (ix) the guarantee by the Company or any of the Guarantors of Indebtedness of the Company or a Restricted
Subsidiary that was permitted to be incurred by another provision of this covenant; provided that if the Indebtedness being guaranteed is subordinated to or pari passu with the Notes, then the guarantee shall be subordinated or pari
passu, as applicable, to the same extent as the Indebtedness guaranteed; 
 (x) Permitted Acquisition
Indebtedness; 
 (xi) the incurrence by the Company or any Restricted Subsidiary of Indebtedness arising from the
honoring by a bank or other financial institution of a check, draft or similar instrument inadvertently drawn against insufficient funds, so long as such Indebtedness is covered within five Business Days; 
 (xii) Indebtedness consisting of the financing of insurance premiums in customary amounts consistent with the operations and
business of the Company and the Restricted Subsidiaries; 
 (xiii) the incurrence by the Company or any
Restricted Subsidiary of Indebtedness arising from agreements of the Company or any of its Restricted Subsidiaries providing for indemnification, adjustment of purchase price or similar obligations, in each case, incurred or assumed in connection
with the disposition of any business, assets or Capital Stock of a Subsidiary, provided that the maximum aggregate liability in respect of all such Indebtedness shall at no time exceed the gross proceeds actually received by the Company and
its Restricted Subsidiaries in connection with such disposition; 
 (xiv) the incurrence by the Company or any
Restricted Subsidiary of Indebtedness arising from Guarantees of Indebtedness of joint ventures at any time outstanding not to exceed the greater of $50.0 million and 1.0% of Adjusted Consolidated Net Tangible Assets determined as of the date of
incurrence of such Indebtedness after giving pro forma effect to such incurrence and the application of proceeds thereof; and 
 (xv) the incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness in an aggregate principal amount (or accreted value, as applicable) that, when taken together with all other
Indebtedness of the Company outstanding on the date

  

					
		 	50	 	Eleventh Supplemental Indenture

 
of such incurrence (other than Indebtedness permitted by clauses (i) through (xiv) above or Section 10.11(a)) does not exceed the greater of (x) 2.5% of Adjusted Consolidated
Net Tangible Assets determined as of the date of incurrence of such Indebtedness and (y) $125.0 million. 
 (c) For purposes of determining compliance with this Section 10.11, in the event that an item of proposed Indebtedness meets the criteria of more than one of the categories of Permitted Debt described in clauses (i) through
(xv) of Section 10.11(b), or is entitled to be incurred pursuant to Section 10.11(a), the Company will be permitted to divide and classify such item of Indebtedness on the date of its incurrence, or later divide and reclassify all or
a portion of such item of Indebtedness, in any manner that complies with this Section 10.11. The accrual of interest, the accretion or amortization of original issue discount, the payment of interest on any Indebtedness in the form of
additional Indebtedness with the same terms, the reclassification of preferred stock as Indebtedness due to a change in accounting principles, and the payment of dividends on Disqualified Stock in the form of additional shares of the same class of
Disqualified Stock will be deemed not to be an incurrence of Indebtedness or an issuance of Disqualified Stock for purposes of this covenant; provided, in each such case, that the amount of any such accrual, accretion or payment is included
in Fixed Charges of the Company as accrued. 
 (d) For purposes of determining compliance with any U.S.
dollar-denominated restriction on the incurrence of Indebtedness and issuance of preferred stock, the U.S. dollar-equivalent principal amount of Indebtedness denominated in a foreign currency shall be calculated based on the relevant currency
exchange rate in effect on the date such Indebtedness was incurred, in the case of term Indebtedness, or first committed, in the case of revolving credit Indebtedness; provided that if such Indebtedness is incurred to refinance other
Indebtedness denominated in a foreign currency, and such refinancing would cause the applicable U.S. dollar-denominated restriction to be exceeded if calculated at the relevant currency exchange rate in effect on the date of such refinancing, such
U.S. dollar-denominated restriction shall be deemed not to have been exceeded so long as the principal amount of such refinancing Indebtedness does not exceed the principal amount of such Indebtedness being refinanced. Notwithstanding any other
provision of this Section 10.11, the maximum amount of Indebtedness that the Company may incur pursuant to this Section 10.11 shall not be deemed to be exceeded solely as a result of fluctuations in the exchange rate of currencies. The
principal amount of any Permitted Refinancing Indebtedness incurred to refinance other Indebtedness, if incurred in a different currency from the Indebtedness being refinanced, shall be calculated based on the currency exchange rate applicable to
the currencies in which such Permitted Refinancing Indebtedness is denominated that is in effect on the date of such refinancing. 
 SECTION 4.06. Asset Sales. 
 Subject to the limitations set forth in the preamble to
ARTICLE 4 of this Supplemental Indenture, Article Ten of the Original Indenture is hereby further amended by adding the following Section 10.12 thereto: 
 Section 10.12 Asset Sales. 
 (a) The Company will not,
and will not permit any of its Restricted Subsidiaries to, consummate an Asset Sale unless: 
 (i) the Company
(or the Restricted Subsidiary, as the case may be) receives consideration at least equal to the Fair Market Value of the assets or Equity Interests issued or sold or otherwise disposed of; and 
  

					
		 	51	 	Eleventh Supplemental Indenture

 (ii) either (x) at least 75% of the consideration received in the Asset
Sale by the Company or such Restricted Subsidiary is in the form of cash or Cash Equivalents or (y) the Fair Market Value of all forms of consideration other than cash and Cash Equivalents received for all Asset Sales since March 13, 2007
does not exceed in the aggregate 10% of the Adjusted Consolidated Net Tangible Assets of the Company at the time each determination is made. For purposes of this provision, each of the following will be deemed to be cash: 
 (A) any liabilities, as shown on the Company’s most recent consolidated balance sheet, of the Company or any Restricted
Subsidiary (other than contingent liabilities and liabilities that are by their terms subordinated to the Notes or any Subsidiary Guarantee) that are assumed by the transferee of any such assets pursuant to a customary novation agreement that
releases the Company or such Restricted Subsidiary from further liability; 
 (B) any securities, notes or other
obligations received by the Company or any such Restricted Subsidiary from such transferee that are converted by the Company or such Restricted Subsidiary into cash within 180 days after the date of the Asset Sale, to the extent of the cash received
in that conversion; 
 (C) any stock or assets of the kind referred to in clauses (ii) or (iv) of
Section 10.12(b) below; and 
 (D) accounts receivable of a business retained by the Company or any
Restricted Subsidiary, as the case may be, following the sale of such business, provided that such accounts receivable (1) are not past due more than 90 days and (2) do not have a payment date greater than 120 days from the date of
the invoice creating such accounts receivable. 
 (b) Within 360 days after the receipt of any Net Proceeds from
an Asset Sale, the Company (or the applicable Restricted Subsidiary, as the case may be) may: 
 (i) apply such
Net Proceeds to repay Senior Debt; 
 (ii) apply such Net Proceeds to invest in Additional Assets; 
 (iii) apply such Net Proceeds to make capital expenditures in respect of a Related Business of the Company or any of its
Restricted Subsidiaries; or 
 (iv) enter into a bona fide binding contract with a Person other than an Affiliate
of the Company to apply the Net Proceeds pursuant to clauses (ii) or (iii) above, provided that such binding contract shall be treated as a permitted application of the Net Proceeds from the date of such contract until the earlier
of: 
 (A) the date on which such acquisition or expenditure is consummated, and 
 (B) the 180th day following the expiration of the aforementioned 360-day period. 
 Any Net Proceeds from Asset Sales that are not applied or invested as provided in clauses (i) through (iv) above will constitute
“Excess Proceeds.” 
  

					
		 	52	 	Eleventh Supplemental Indenture

 (c) On the 361st day (or upon the failure to close the contract referred to
in clause (iv) of Section 10.12(b) above within the 180 day time period thereafter) after the Asset Sale (or, at the Company’s option, any earlier date), if the aggregate amount of Excess Proceeds then exceeds $40.0 million, the
Company will make an offer (the “Asset Sale Offer”) to all Holders of Notes and all holders of other Indebtedness that is pari passu with the Notes containing provisions similar to those set forth in this Indenture with respect to
offers to purchase or redeem with the proceeds of sales of assets, to purchase the maximum principal amount of Notes and such other pari passu Indebtedness that may be purchased out of the Excess Proceeds. The offer price in any Asset Sale
Offer will be equal to 100% of the principal amount plus accrued and unpaid interest, to the date of purchase, and will be payable in cash. If any Excess Proceeds remain after consummation of an Asset Sale Offer, the Company may use those Excess
Proceeds for any purpose not otherwise prohibited by this Indenture. If the aggregate principal amount of Notes and other pari passu Indebtedness tendered into such Asset Sale Offer exceeds the amount of Excess Proceeds, the Trustee will
select the Notes to be purchased on a pro rata basis. Upon completion of each Asset Sale Offer, the amount of Excess Proceeds will be reset at zero. 
 (d) Notwithstanding the foregoing, the sale, conveyance or other disposition of all or substantially all of the assets of the Company, or of the Company and its Restricted Subsidiaries, taken as a whole,
will be governed by Sections 8.1 and/or 10.15 of this Indenture, as applicable, and not by this Section 10.12. 
 (e) The Company will comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with each repurchase of
Notes pursuant to an Asset Sale Offer. To the extent that the provisions of any securities laws or regulations conflict with the Asset Sale provisions of this Indenture, the Company will comply with the applicable securities laws and regulations and
will not be deemed to have breached its obligations under the Asset Sale provisions of this Indenture by virtue of such compliance. 
 SECTION 4.07. Transactions with Affiliates. 
 Subject to the limitations set forth in
the preamble to ARTICLE 4 of this Supplemental Indenture, Article Ten of the Original Indenture is hereby further amended by adding the following Section 10.13 thereto: 
 Section 10.13 Transactions with Affiliates. 
 (a) The Company will not, and will not permit any of its Restricted Subsidiaries to, make any payment to, or sell, lease,
transfer or otherwise dispose of any of its properties or assets to, or purchase any property or assets from, or enter into or make or amend any transaction, contract, agreement, understanding, loan, advance or guarantee with, or for the benefit of,
any Affiliate of the Company (each, an “Affiliate Transaction”), unless: 
 (i) the Affiliate
Transaction is on terms that are no less favorable to the Company or the relevant Restricted Subsidiary than those that would have been obtained in a comparable transaction by the Company or such Restricted Subsidiary with an unrelated Person; and

 (ii) the Company delivers to the Trustee: 
 (A) with respect to any Affiliate Transaction or series of related Affiliate Transactions involving aggregate consideration
in excess of $20.0 million, a Board Resolution of the Company set forth in an Officers’ Certificate

  

					
		 	53	 	Eleventh Supplemental Indenture

 
certifying that such Affiliate Transaction complies with this Section 10.13 and that such Affiliate Transaction has been approved by a majority of the disinterested members of the Board of
Directors of the Company; and 
 (B) with respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate consideration in excess of $40.0 million, an opinion as to the fairness to the Company or such Subsidiary of such Affiliate Transaction from a financial point of view issued by an accounting, appraisal or investment
banking firm of national standing. 
 (b) The following items will not be deemed to be Affiliate Transactions
and, therefore, will not be subject to the provisions of the prior paragraph: 
 (i) any employment, consulting
or similar agreement or other compensation, or arrangement, stock option or stock ownership plan, employee benefit plan, officer or director indemnification agreement, restricted stock agreement, severance agreement or other compensation plan or
arrangement entered into by the Company or any of its Restricted Subsidiaries in the ordinary course of business and payments, awards, grants or issuances of securities pursuant thereto; 
 (ii) transactions between or among the Company and/or its Restricted Subsidiaries; 
 (iii) transactions with a Person that is an Affiliate of the Company solely because the Company owns, directly or through a
Subsidiary, an Equity Interest in, or controls, such Person; 
 (iv) reasonable fees and expenses and
compensation paid to, and indemnity or insurance provided on behalf of, officers, directors or employees of the Company or any Restricted Subsidiaries; 
 (v) any issuance of Equity Interests (other than Disqualified Stock) of the Company to, or receipt of a capital contribution from, Affiliates (or a Person that becomes an Affiliate) of the Company;

 (vi) any Permitted Investments or Restricted Payments that do not violate Section 10.9 of this Indenture;

 (vii) loans or advances to employees in the ordinary course of business or consistent with past practice;

 (viii) advances to or reimbursements of employees for moving, entertainment and travel expenses, drawing
accounts and similar expenditures in the ordinary course of business; 
 (ix) the performance of obligations of
the Company or any of its Restricted Subsidiaries under the terms of any written agreement to which the Company or any of its Restricted Subsidiaries was a party on March 13, 2007, as these agreements may be amended, modified or supplemented
from time to time; provided, however, that any future amendment, modification or supplement entered into after March 13, 2007 will be permitted to the extent that its terms do not materially and adversely affect the rights of any
Holders of the Notes (as determined in good faith by the Board of Directors of the Company) as compared to the terms of the agreements in effect on March 13, 2007; 
  

					
		 	54	 	Eleventh Supplemental Indenture

 (x) (A) guarantees of performance by the Company and its Restricted
Subsidiaries of the Company’s Unrestricted Subsidiaries in the ordinary course of business, except for guarantees of Indebtedness in respect of borrowed money, and (B) pledges of Equity Interests of the Company’s Unrestricted
Subsidiaries for the benefit of lenders of the Company’s Unrestricted Subsidiaries; and 
 (xi) transactions
between the Company and any person, a director of which is also a director of the Company; provided, however, that such director abstains from voting as a director of the Company on any matter involving such other Person. 

SECTION 4.08. Limitation on Liens. 
 Subject to the limitations set forth in the preamble to ARTICLE 4 of this Supplemental Indenture, Article Ten of the Original Indenture is
hereby further amended by adding the following Section 10.14 thereto: 
 Section 10.14 Limitation on Liens.

 The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly,
create, incur or permit to exist any Lien (other than Permitted Liens) upon any Principal Property or any shares of stock or Indebtedness of any Restricted Subsidiary that owns or leases any Principal Property (whether such Principal Property,
shares of stock or Indebtedness are now owned or hereafter acquired), securing any Subordinated Debt or other Indebtedness, unless: 
 (a) in the case of Liens securing Subordinated Debt of the Company or a Guarantor, the Notes or Subsidiary Guarantee, as applicable, are secured by a Lien on such Principal Property or such shares of
stock or Indebtedness on a senior basis to the Subordinated Debt so secured with the same priority as the Notes or such Subsidiary Guarantee, as applicable, has to such Subordinated Debt until such time as such Subordinated Debt is no longer so
secured by a Lien; and 
 (b) in the case of Liens securing other Indebtedness of the Company or a Guarantor, the
Notes or Subsidiary Guarantee, as applicable, are secured by a Lien on such Principal Property or such shares of stock or Indebtedness on an equal and ratable basis with the other Indebtedness so secured until such time as such other Indebtedness is
no longer so secured by a Lien. 
 SECTION 4.09. Offer to Repurchase upon a Change of Control.

 Subject to the limitations set forth in the preamble to ARTICLE 4 of this Supplemental Indenture, Article Ten of the Original
Indenture is hereby further amended by adding the following Section 10.15 thereto: 
 Section 10.15 Offer to
Repurchase upon a Change of Control. 
 (a) If a Change of Control Triggering Event occurs, each Holder of
Notes will have the right to require the Company to repurchase all or any part (equal to $1,000 or an integral multiple thereof) of that Holder’s Notes pursuant to an offer (“Change of Control Offer”) on the terms set forth in this
Indenture. In the Change of Control Offer, the Company will offer a payment in cash (the “Change of Control Payment”) equal to 101% of the aggregate principal amount of Notes repurchased plus accrued and unpaid interest on the Notes
repurchased to the date of purchase (the “Change of Control Payment Date”), subject to the rights of Holders of Notes on the relevant record date to receive interest due on the relevant Interest Payment Date.

  

					
		 	55	 	Eleventh Supplemental Indenture

 
Within 30 days following any Change of Control Triggering Event, the Company will mail a notice to each Holder of Notes describing the transaction or transactions that constitute the Change of
Control Triggering Event and offering to repurchase Notes on the Change of Control Payment Date specified in the notice, which date will be no earlier than 30 days and no later than 60 days from the date such notice is mailed, pursuant to the
procedures described in Article Fifteen of this Indenture (including the notice required thereby) and described in such notice. The Company will comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and
regulations thereunder to the extent those laws and regulations are applicable in connection with the repurchase of the Notes as a result of a Change of Control Triggering Event. To the extent that the provisions of any securities laws or
regulations conflict with the Change of Control Triggering Event provisions of this Indenture, the Company will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under the Change of
Control Triggering Event provisions of this Indenture by virtue of such compliance. 
 (b) On the Change of
Control Payment Date, the Company will, to the extent lawful: 
 (i) accept for payment all Notes or portions of
Notes properly tendered pursuant to the Change of Control Offer; 
 (ii) deposit with the Paying Agent an amount
equal to the Change of Control Payment in respect of all Notes or portions of Notes properly tendered; and 
 (iii) deliver or cause to be delivered to the Trustee the Notes properly accepted together with an Officers’ Certificate stating the aggregate principal amount of Notes or portions of Notes being purchased by the Company. 

(c) The Paying Agent will promptly mail to each Holder of Notes properly tendered the Change of Control Payment for such
Notes (or, if all the Notes are then in global form, make such payment through the facilities of the Depositary), and the Trustee will promptly authenticate and mail (or cause to be transferred by book entry) to each Holder a new Note equal in
principal amount to any unpurchased portion of the Notes surrendered, if any; provided that each such new Note will be in a principal amount of $1,000 or an integral multiple thereof. Any Note so accepted for payment will cease to accrue
interest on and after the Change of Control Payment Date unless the Company defaults in making the Change of Control Payment. 
 (d) The Company will publicly announce the results of the Change of Control Offer on or as soon as practicable after the Change of Control Payment Date. 
 (e) Notwithstanding anything to the contrary in this Section 10.15, the Company will not be required to make a Change of
Control Offer upon a Change of Control Triggering Event if (i) a third party makes the Change of Control Offer in the manner, at the times and otherwise in compliance with the requirements set forth in this Indenture applicable to a Change of
Control Offer made by the Company and purchases all Notes properly tendered and not withdrawn under the Change of Control Offer, or (ii) notice of redemption with respect to the Notes has been given pursuant to this Indenture, unless and until
there is a default in payment of the applicable Redemption Price. 
 (f) A Change of Control Offer may be made in
advance of a Change of Control, and conditioned upon the occurrence of such Change of Control, if a definitive agreement is in place for a Change of Control at the time of making the Change of Control Offer. Notes repurchased by the Company pursuant
to a Change of Control Offer will have the status of Notes issued but not Outstanding or will be retired and cancelled, at the Company’s option. Notes purchased by a third party pursuant to clause (e) of this Section 10.15 will have
the status of Notes issued and Outstanding. 
  

					
		 	56	 	Eleventh Supplemental Indenture

 (g) In the event that Holders of at least 90% of the aggregate principal
amount of the Outstanding Notes accept a Change of Control Offer and the Company purchases all of the Notes held by such Holders, the Company will have the right, upon not less than 30 nor more than 60 days’ prior notice, given not more than 30
days following the purchase pursuant to the Change of Control Offer described above, to redeem all of the Notes that remain Outstanding following such purchase at a Redemption Price equal to the Change of Control Payment plus, to the extent
not included in the Change of Control Payment, accrued and unpaid interest on the Notes that remain Outstanding, to the date of redemption (subject to the right of Holders on the relevant record date to receive interest due on the relevant Interest
Payment Date). 
 SECTION 4.10. Designation of Restricted and Unrestricted Subsidiaries. 

Subject to the limitations set forth in the preamble to ARTICLE 4 of this Supplemental Indenture, Article Ten of the Original Indenture is
hereby further amended by adding the following Section 10.16 thereto: 
 Section 10.16 Designation of Restricted
and Unrestricted Subsidiaries. 
 (a) The Board of Directors of the Company may designate any Restricted
Subsidiary to be an Unrestricted Subsidiary if that designation would not cause a Default. If a Restricted Subsidiary is designated as an Unrestricted Subsidiary, the aggregate Fair Market Value of all outstanding Investments owned by the Company
and its Restricted Subsidiaries in the Subsidiary designated as Unrestricted will be deemed to be an Investment made as of the time of the designation and will reduce the amount available for Restricted Payments under Section 10.9 of this
Indenture or under one or more clauses of the definition of Permitted Investments, as determined by the Company. That designation will only be permitted if the Investment would be permitted at that time and if the Restricted Subsidiary otherwise
meets the definition of an Unrestricted Subsidiary. 
 (b) Any designation of a Subsidiary of the Company as an
Unrestricted Subsidiary will be evidenced to the Trustee by filing with the Trustee a certified copy of a Board Resolution of the Company giving effect to such designation and an Officers’ Certificate certifying that such designation complied
with the preceding conditions and was permitted by Section 10.9. If, at any time, any Unrestricted Subsidiary would fail to meet the preceding requirements as an Unrestricted Subsidiary, it will thereafter cease to be an Unrestricted Subsidiary
for purposes of this Indenture and any Indebtedness of such Subsidiary will be deemed to be incurred by a Restricted Subsidiary as of such date and, if such Indebtedness is not permitted to be incurred as of such date under Section 10.11, the
Company will be in Default of such covenant. The Board of Directors of the Company may at any time designate any Unrestricted Subsidiary to be a Restricted Subsidiary; provided that such designation will be deemed to be an incurrence of
Indebtedness by a Restricted Subsidiary of any outstanding Indebtedness of such Unrestricted Subsidiary, and such designation will only be permitted if (i) such Indebtedness is permitted under Section 10.11, calculated on a pro forma basis
as if such designation had occurred at the beginning of the four-quarter reference period; and (ii) no Default or Event of Default would be in existence following such designation. 
  

					
		 	57	 	Eleventh Supplemental Indenture

 SECTION 4.11. Future Guarantors. 
 Subject to the limitations set forth in the preamble to ARTICLE 4 of this Supplemental Indenture, Article Ten of the Original Indenture is
hereby further amended by adding the following Section 10.17 thereto: 
 Section 10.17 Future Guarantors.

 If any Domestic Restricted Subsidiary that is not a Guarantor is or becomes obligated under any Indebtedness
pursuant to a Guarantee of Indebtedness of the Company or any Guarantor (other than the Notes), and the maximum principal amount of Indebtedness of such Domestic Restricted Subsidiary under such Guarantee exceeds $10.0 million, then the Company
shall cause that Domestic Restricted Subsidiary to Guarantee the Notes and become a Guarantor, pursuant to the Subsidiary Guarantee provisions of this Indenture, by executing a supplemental indenture and delivering it to the Trustee within 30 days
after the date on which such Domestic Restricted Subsidiary Guaranteed such Indebtedness of the Company or a Guarantor; provided, however, that the Company shall not be required to cause such Domestic Restricted Subsidiary to so
Guarantee the Notes and become a Guarantor prior to the 180th day after the consummation of any transaction (including without limitation any merger, consolidation or purchase) pursuant to which such Domestic Restricted Subsidiary becomes a
Subsidiary of the Company. 
 SECTION 4.12. Covenant Termination. 
 Subject to the limitations set forth in the preamble to ARTICLE 4 of this Supplemental Indenture, Article Ten of the Original Indenture is
hereby further amended by adding the following Section 10.18 thereto: 
 Section 10.18 Covenant Termination.

 Notwithstanding any provision of this Indenture or of the Notes to the contrary, from and after the occurrence
of an Investment Grade Rating Event, the Company and its Restricted Subsidiaries will cease to be subject to Sections 10.9, 10.10, 10.11, 10.12, 10.13, 10.15 and 10.16 and 8.1(a)(iv) of this Indenture and no Default or Event of Default shall result
from any failure to comply with any of the provisions of such Sections. 
 ARTICLE 5 
 MISCELLANEOUS 
 SECTION 5.01. Certain Trustee Matters. 
 The recitals
contained herein shall be taken as the statements of the Company, and the Trustee assumes no responsibility for their correctness. 
 The Trustee makes no representations as to the validity or sufficiency of this Supplemental Indenture or the Notes or the proper authorization or the due execution hereof or thereof by the Company. 
 Except as expressly set forth herein, nothing in this Supplemental Indenture shall alter the duties, rights or obligations of the Trustee
set forth in the Original Indenture. 
 The Trustee makes no representation or warranty as to the validity or sufficiency of the
information contained in the prospectus supplement related to the Notes, except such information which specifically pertains to the Trustee itself, or any information incorporated therein by reference. 
  

					
		 	58	 	Eleventh Supplemental Indenture

 SECTION 5.02. Continued Effect. 
 Except as expressly supplemented and amended by this Supplemental Indenture, the Original Indenture shall continue in full force and effect
in accordance with the provisions thereof, and the Original Indenture (as supplemented and amended by this Supplemental Indenture) is in all respects hereby ratified and confirmed. This Supplemental Indenture and all its provisions shall be deemed a
part of the Original Indenture in the manner and to the extent herein and therein provided. 
 SECTION 5.03.
Governing Law. 
 This Supplemental Indenture and the Notes shall be governed by and construed in
accordance with the laws of the State of New York. 
 SECTION 5.04. Counterparts. 

This instrument may be executed in any number of counterparts, each of which shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same instrument. 
 [Remainder of Page Intentionally Left Blank]

  

					
		 	59	 	Eleventh Supplemental Indenture

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

			
	THE COMPANY:
	
	PLAINS EXPLORATION & PRODUCTION COMPANY
		
	By:	 	 /s/ Winston M. Talbert

	Name:	 	Winston M. Talbert
	Title:	 	Executive Vice President & Chief Financial Officer

  

					
		 		 	Eleventh Supplemental Indenture

															
		 		  	GUARANTORS:
			
		 		  	 ARGUELLO INC.
 LATIGO PETROLEUM, INC.
 PLAINS ACQUISITION CORPORATION
 PLAINS RESOURCES INC.
 POGO PARTNERS, INC.

				
		 		  	By:	  	 /s/ Winston M. Talbert

		 		  	Name:	  	Winston M. Talbert
		 		  	Title:	  	Vice President & Treasurer
			
		 		  	POGO PRODUCING COMPANY LLC
		 		  		  	By:	  	PXP Gulf Coast LLC, its sole member
		 		  		  		  	By:	  	Plains Exploration & Production Company, its sole member
		 		  	PXP AIRCRAFT LLC
		 		  		  	By:	  	Plains Exploration & Production Company, its sole member
		 		  	PXP GULF COAST LLC
		 		  		  	By:	  	Plains Exploration & Production Company, its sole member
		 		  	PXP LOUISIANA L.L.C.
		 		  		  	By:	  	Pogo Producing Company LLC, its sole member
		 		  		  		  	By:	  	PXP Gulf Coast LLC, its sole member
		 		  		  		  		  	By:	  	Plains Exploration & Production Company, its sole member
		 		  	PXP LOUISIANA OPERATIONS LLC
		 		  		  	By:	  	PXP Louisiana L.L.C., its sole member
		 		  		  		  	By:	  	Pogo Producing Company LLC, its sole member
		 		  		  		  		  	By:	  	PXP Gulf Coast LLC, its sole member
		 		  		  		  		  		  	By:	  	Plains Exploration & Production Company, its sole member
				
		 		  	By:	  	 /s/ Winston M. Talbert

		 		  	Name:	  	Winston M. Talbert
		 		  	Title:	  	Executive Vice President & Chief Financial Officer

  

					
		 		 	Eleventh Supplemental Indenture

															
		 		 	TRUSTEE:
			
		 		 	WELLS FARGO BANK, N. A.
				
		 		 	By:	  	 /s/ Patrick I. Giordano

		 		 	Name:	  	Patrick I. Giordano VP
		 		 	Title:	  	Authorized Officer

  

					
		 		 	Eleventh Supplemental Indenture

 EXHIBIT A 
 [FORM OF FACE OF NOTE] 
 [If a Global Security, insert—THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE TRANSFERRED TO, OR REGISTERED OR EXCHANGED FOR SECURITIES
REGISTERED IN THE NAME OF, ANY PERSON OTHER THAN THE DEPOSITARY OR A NOMINEE THEREOF AND NO SUCH TRANSFER MAY BE REGISTERED, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.] 
 [If a Global Security, insert—EVERY SECURITY AUTHENTICATED AND DELIVERED UPON REGISTRATION OF TRANSFER OF, OR IN EXCHANGE FOR
OR IN LIEU OF, THIS SECURITY SHALL BE A GLOBAL SECURITY SUBJECT TO THE FOREGOING, EXCEPT IN SUCH LIMITED CIRCUMSTANCES.] 
 [If
a Global Security, insert—UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND
ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.] 
 PLAINS EXPLORATION & PRODUCTION COMPANY 
 7.625% Senior Notes due 2020 
  

			
	No.             	  	U.S.$             
		
	CUSIP No. 726505AJ9	  	

 PLAINS EXPLORATION & PRODUCTION COMPANY, a company duly incorporated under the laws of the State of
Delaware (herein called the “Company”, which term includes any successor or resulting Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to
                                        , or
registered assigns, the principal sum of
                                         United
States Dollars on April 1, 2020, and to pay interest thereon from March 29, 2010 or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually on April 1 and October 1 in each
year, commencing October 1, 2010, at the rate of 7.625% per annum, until the principal hereof is paid or made available for payment; provided, however, that upon any failure by the Company for 60 days to comply with
Section 10.7 of such Indenture, the interest rate on the Securities of this series will increase by 50 basis points (0.5%) and remain at such increased rate thereafter but only for so long as there is a Default under such Section 10.7, and
upon resumption of compliance by the Company with such Section 10.7, the interest rate on the Securities of this series will be reset at the initial rate applicable on the Issue Date. Interest on overdue principal and interest on overdue
interest, if any, will accrue at the applicable interest rate on the Securities of this series. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the
Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be the March 15 or September 15 (regardless of whether a Business
Day), as the case may be, next preceding such Interest Payment Date. Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in
whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of
Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of this series may be
listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture. Interest on the Securities of this series will be computed on the basis of a 360-day year comprised of twelve 30-day months. 

 

 A-1 

 [If a Global Security, insert—Payment of the principal of (and premium,
if any) and any such interest on this Security will be made by transfer of immediately available funds to a bank account in the United States designated by the Holder in such coin or currency of the United States of America as at the time of payment
is legal tender for payment of public and private debts.] 
 [If a Definitive Security, insert—Payment of the
principal of (and premium, if any) and any such interest on this Security will be made at the office or agency of the Company maintained for that purpose in the United States of America, in such coin or currency of the United States of America as at
the time of payment is legal tender for payment of public and private debts or subject to any laws or regulations applicable thereto and to the right of the Company (as provided in the Indenture) to rescind the designation of any such Paying Agent,
at the offices of
                                         in
                                        , or at
such other offices or agencies as the Company may designate, by United States Dollar check drawn on, or transfer to a United States Dollar account maintained by the payee with, a bank in The City of New York (so long as the applicable Paying Agency
has received proper transfer instructions in writing at least 10 days prior to the payment date); provided, however, that payment of interest may be made at the option of the Company by United States Dollar check mailed to the
addresses of the Persons entitled thereto as such addresses shall appear in the Security Register or by transfer to a United States Dollar account maintained by the payee with a bank in The City of New York (so long as the applicable Paying Agent
has received proper transfer instructions in writing by the record date prior to the applicable Interest Payment Date).] 
 Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this
Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 
 IN WITNESS
WHEREOF, the Company has caused this instrument to be duly executed. 
 Dated:
                    ,          
  

			
	PLAINS EXPLORATION & PRODUCTION COMPANY
		
	By:	 	  

	Name:	 	  

	Title:	 	  

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
 This is one of the Securities
of the series designated 7.625% Senior Notes due 2020 referred to in the within-mentioned Indenture. 
  

			
	 WELLS FARGO BANK, N. A.,
 as Trustee

		
	By:	 	  

		 	          Authorized Signatory

  

 A-2 

 [FORM OF REVERSE OF NOTE] 
 PLAINS EXPLORATION & PRODUCTION COMPANY 
 7.625% Senior Notes due 2020 
 This Security is one of a duly authorized issue of senior securities of the
Company (herein called the “Securities”), issued and to be issued in one or more series under an Indenture, dated as of March 13, 2007 (the “Original Indenture”), between the Company and Wells Fargo Bank, N.A., as Trustee
(herein called the “Trustee”, which term includes any successor trustee under the Indenture), as amended and supplemented by the Eleventh Supplemental Indenture thereto dated as of March 29, 2010 (the “Supplemental
Indenture”), by and among the Company, the Trustee and the Guarantors named therein (such Original Indenture, as so amended and supplemented being herein called the “Indenture”), to which Indenture and all indentures supplemental
thereto reference is hereby made for a statement, of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Guarantors, the Trustee and the Holders of the Securities and of the terms upon which the
Securities are, and are to be, authenticated and delivered. As provided in the Indenture, the Securities may be issued in one or more series, which different series may be issued in various aggregate principal amounts, may mature at different times,
may bear interest, if any, at different rates, may be subject to different redemption provisions, if any, may be subject to different sinking, purchase or analogous funds, if any, may be subject to different covenants and Events of Default and may
otherwise vary as in the Indenture provided or permitted. This Security is one of the series designated on the face hereof. 
 This security is the general, unsecured, senior obligation of the Company and is guaranteed pursuant to a guarantee (the “Subsidiary Guarantee”) by each of the persons named as Guarantors in the Supplemental Indenture (the
“Guarantors”). The Subsidiary Guarantee is the general, unsecured, senior obligation of each Guarantor. 
 Except as
described below, and except as provided in Section 10.15(g) of the Indenture, the Securities of this series are not redeemable until April 1, 2015. On and after April 1, 2015, the Company may redeem all or a part of the Securities of
this series, from time to time upon not less than 30 nor more than 60 days’ notice, at the following Redemption Prices (expressed as a percentage of principal amount) plus accrued and unpaid interest on the Securities of this series to
be redeemed to the applicable 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), if redeemed during the twelve-month period beginning on April 1
of the years indicated below: 
  

				
	 Year
	  	Redemption Price	 
		
	 2015
	  	103.813	% 
	 2016
	  	102.542	% 
	 2017
	  	101.271	% 
	 2018 and thereafter
	  	100.000	% 

 The Securities
of this series will also be redeemable, in whole or in part, at the Company’s option at any time or from time to time, prior to April 1, 2015, at the applicable Make-Whole Price (as defined below), in accordance with the provisions of the
Indenture. 
 “Make-Whole Price” with respect to any Securities of this series to be redeemed, means an amount
equal to the greater of: 
 (1) 100% of the principal amount of such Securities; and 
 (2) the sum of the present values of (a) the Redemption Price of such Securities at April 1, 2015 (as set forth
above) and (b) the remaining scheduled payments of interest from the Redemption Date to April 1, 2015 (not including any portion of such payments of interest accrued as of the Redemption Date) discounted back to the Redemption Date on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below) plus 50 basis points; 
 plus, in the case of both (1) and (2), accrued and unpaid interest on such Securities to the Redemption Date. Unless the Company defaults in payment of the Make-Whole Price, on and after the applicable Redemption Date, interest
will cease to accrue on the Securities of this series to be redeemed. 
  

 A-3 

 “Comparable Treasury Issue” means, with respect to Securities of this
series to be redeemed, the U.S. Treasury security selected by an Independent Investment Banker as having a maturity most nearly equal to the period from the Redemption Date to April 1, 2015, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate debt securities; provided if such period is less than one year, then the U.S. Treasury security having a maturity of one year shall be used. 
 “Comparable Treasury Price” means, with respect to any Redemption Date, (1) the average of four Reference Treasury
Dealer Quotations for such Redemption Date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (2) if the Trustee obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such
Reference Treasury Dealer Quotations. 
 “Independent Investment Banker” means J.P. Morgan Securities Inc.,
Barclays Capital Inc., BMO Capital Markets Corp., Banc of America Securities LLC, Citigroup Global Markets Inc. or Wells Fargo Securities, LLC and their respective successors, at the Company’s option, or, if such firms or the successors, if
any, to such firms, as the case may be, are unwilling or unable to select the Comparable Treasury Issue, an independent investment banking institution of national standing appointed by the Company. 
 “Reference Treasury Dealer” means J.P. Morgan Securities Inc., Barclays Capital Inc., BMO Capital Markets Corp., Banc of
America Securities LLC or Citigroup Global Markets Inc., at the Company’s option, and three additional primary U.S. government securities dealers in New York City (each a “Primary Treasury Dealer”) selected by the Company, and
their respective successors (provided, however, that if any such firm or any such successor, as the case may be, shall cease to be a primary U.S. government securities dealer in New York City, the Company shall substitute therefor
another Primary Treasury Dealer). 
 “Reference Treasury Dealer Quotations” means, with respect to each
Reference Treasury Dealer and any Redemption Date, the average, as determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the
Trustee by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such Redemption Date. 
 “Treasury Rate” means, with respect to any Redemption Date, (1) the yield, under the heading which represents the average for the immediately preceding week, appearing in the most recently published statistical release
designated “H.15(159)” or any successor publication that is published weekly by the Board of Governors of the Federal Reserve System and that establishes yields on actively traded U.S. Treasury securities adjusted to constant maturity
under the caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or after the stated maturity, yields for the two published maturities most
closely corresponding to the Comparable Treasury Issue shall be determined, and the Treasury Rate shall be interpolated or extrapolated from such yields on a straight-line basis, rounding to the nearest month) or (2) if such release (or any
successor release) is not published during the week preceding the calculation date or does not contain such yields, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price
for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date. The Treasury Rate shall be calculated on the third Business Day preceding the Redemption Date.

 The notice of redemption with respect to the foregoing redemption need not set forth the Make-Whole Price but only the manner
of calculation thereof. The Company will notify the Trustee of the Make-Whole Price with respect to any redemption promptly after the calculation, and the Trustee shall not be responsible for such calculation. 
 Prior to April 1, 2013, the Company may on any one or more occasions redeem up to 35% of the principal amount of the Securities of this
series, which may include Additional Notes (as defined in the Supplemental Indenture), with all or a portion of the net cash proceeds of one or more Equity Offerings at a Redemption Price equal to 107.625% of the principal amount thereof,
plus accrued and unpaid interest on the Securities of this series to be redeemed 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);
provided that: 
 (1) at least 65% of the aggregate principal amount of the Securities of this series
issued and Outstanding on the Issue Date, remains Outstanding after each such redemption; and 
  

 A-4 

 (2) the redemption occurs within 180 days after the closing of such Equity
Offering. 
 Notice of any redemption upon an Equity Offering may be given prior to the completion of the related Equity
Offering, and any such redemption or notice may at the Company’s discretion, be subject to one or more conditions precedent, including, but not limited to completion of the related Equity Offering. 
 In the event of redemption of this Security in part only, a new Security or Securities of this series and of like tenor for the unredeemed
portion hereof will be issued in the name of the Holder hereof upon the cancellation hereof. 
 If an Event of Default with
respect to Securities of this series shall occur and be continuing, the principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture. 
 The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations
of the Company and the Guarantors and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Guarantors and the Trustee with the consent of the Holders of a majority in
principal amount of the Securities at the time Outstanding of each series to be affected (with each series voting as a separate class). The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the
Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company and the Guarantors with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer
hereof or in exchange herefor or in lieu hereof, regardless of whether notation of such consent or waiver is made upon this Security. 
 No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of (and premium, if any) and interest
on this Security at the times, place(s) and rate, and in the coin or currency, herein prescribed. 
 [If a Global
Security, insert—This Global Security or portion hereof may not be exchanged for Definitive Securities of this series except in the limited circumstances provided in the Indenture. The holders of beneficial interests in this Global
Security will not be entitled to receive physical delivery of Definitive Securities except as described in the Indenture and will not be considered the Holders thereof for any purpose under the Indenture.] 
 [If a Definitive Security, insert—As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registerable in the Security Register, upon surrender of this Security for registration of transfer at the office or agency of the Company, or, subject to any laws or regulations applicable thereto and to the right of
the Company (limited as provided in the Indenture) to rescind the designation of any such transfer agent, at the offices of
                                         in
                                        , or at
such other offices or agencies as the Company may designate, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Securities of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees.] 
 The Securities of this series are issuable only in registered form without coupons in denominations of U.S. $2,000 and any integral multiple
of $1,000 in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of this series and of like tenor of a
different authorized denomination, as requested by the Holder surrendering the same. 
 No service charge shall be made for any
such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
  

 A-5 

 Prior to due presentment of this Security for registration of transfer, the Company, any
Guarantor, the Trustee and any agent of the Company, a Guarantor or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, regardless of whether this Security be overdue, and none of the
Company, the Guarantors, the Trustee nor any such agent shall be affected by notice to the contrary. 
 No recourse under or
upon any obligation, covenant or agreement of or contained in the Indenture or of or contained in any Security, or the Subsidiary Guarantee endorsed thereon, or for any claim based thereon or otherwise in respect thereof, or in any Security or in
the Subsidiary Guarantee, or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, shareholder, member, officer, manager or director, as such, past, present or future, of the Company or any Guarantor
or of any successor Person, either directly or through the Company or any Guarantor or any successor Person, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment, penalty or otherwise; it being
expressly understood that all such liability is hereby expressly waived and released by the acceptance hereof and as a condition of, and as part of the consideration for, the execution of the Indenture and the issuance of the Securities. 

The Indenture provides that the Company and the Guarantors (a) will be discharged from any and all obligations in respect of the
Securities (except for certain obligations described in the Indenture), or (b) need not comply with certain restrictive covenants of the Indenture, in each case if the Company or a Guarantor deposits, in trust, with the Trustee money or U.S.
Government Obligations (or a combination thereof) which through the payment of interest thereon and principal thereof in accordance with their terms will provide money, in an amount sufficient to pay all the principal of and interest on the
Securities, but such money need not be segregated from other funds except to the extent required by law. 
 Except as otherwise
defined herein, all terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture. 
 This Security shall be governed by and construed in accordance with the laws of the State of New York. 
  

 A-6 

 [If a Definitive Security, insert as a separate page— 

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
                                         
                    (Please Print or Typewrite Name and Address of Assignee) the within instrument of PLAINS EXPLORATION & PRODUCTION COMPANY and
does hereby irrevocably constitute and appoint
                                         Attorney
to transfer said instrument on the books of the within-named Company, with full power of substitution in the premises. 
 Please
Insert Social Security or Other Identifying Number of Assignee: 
  

					
	  
	  		  	  

  

									
	Dated:	  	  
	  		  	  
	  	
		  		  		  	(Signature)	  	

  

					
	Signature Guarantee:	 	  
	 	
		 	(Participant in a Recognized Signature Guaranty Medallion Program)	 	

 NOTICE: The signature to this assignment must correspond with the name as written upon the face of
the within instrument in every particular, without alteration or enlargement or any change whatever.] 
  

 A-7 

 OPTION OF HOLDER TO ELECT REPURCHASE 
 If you want to elect to have this Security purchased by the Company pursuant to Section 10.12 or 10.15 of the Indenture, check the
appropriate box below: 
  ̈  Section
10.12                     ̈  Section 10.15 
 If you want to elect to have only part of the Security purchased by the Company pursuant to Section 10.12 or Section 10.15 of the
Indenture, state the amount you elect to have purchased: 
 $
             
  

							
	Date:                     	  		  	
		  		  	Your Signature:	  	  

		  		  		  	(Sign exactly as your name appears on the face of this Security)
				
		  		  	Tax Identification No.:	  	  

  

							
	Signature Guarantee*:	  	  
	  		  	

  

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

  

 A-8 

 [If a Global Security, insert as a separate page— 
 SCHEDULE OF INCREASES OR DECREASES 
 IN GLOBAL SECURITY 
 The following increases or decreases in this Global
Security have been made: 
  

									
	 Date of Exchange
	 	 Amount of
 Decrease in
 Principal
 Amount of this
 Global Security
	 	 Amount of
 Increase in
 Principal Amount
 of this
 Global Security
	  	Principal Amount
of
this Global
Security Following
Such Decrease
(or Increase)	  	Signature of
Authorized Officer
of Trustee or
Depositary]

  

 A-9 

 SUBSIDIARY GUARANTEE NOTATION 
 Each of the Guarantors (which term includes any successor Person in such capacity under the Indenture), has fully, unconditionally and
absolutely guaranteed, to the extent set forth in the Indenture and subject to the provisions in the Indenture, the due and punctual payment of the principal of, and premium, if any, and interest on the Securities of this series and all other
amounts due and payable under the Indenture and the Securities of this series by the Company. 
 The obligations of the
Guarantors to the Holders of Securities of this series and to the Trustee pursuant to the Subsidiary Guarantee and the Indenture are expressly set forth in Article Fourteen of the Indenture and reference is hereby made to the Indenture for the
precise terms of the Subsidiary Guarantee. 
  

															
		 		  	Guarantors:
			
		 		  	 ARGUELLO INC.
 LATIGO PETROLEUM, INC., successor by merger to Latigo Gas Group, LLC, Latigo Gas Holdings, LLC, Latigo Holdings (Texas), LLC, Latigo Investments, LLC, Latigo Gas Services, LP and Latigo Petroleum Texas,
LP
 PLAINS ACQUISITION CORPORATION
 PLAINS RESOURCES INC.
 POGO PARTNERS, INC.

				
		 		  	By:	  	  

		 		  	Name:	  	  

		 		  	Title:	  	  

			
		 		  	POGO PRODUCING COMPANY LLC
		 		  		  	By:	  	PXP Gulf Coast LLC, its sole member
		 		  		  		  	By:	  	Plains Exploration & Production Company, its sole member
		 		  	PXP AIRCRAFT LLC
		 		  		  	By:	  	Plains Exploration & Production Company, its sole member
		 		  	PXP GULF COAST LLC
		 		  		  	By:	  	Plains Exploration & Production Company, its sole member
		 		  	PXP LOUISIANA L.L.C.
		 		  		  	By:	  	Pogo Producing Company LLC, its sole member
		 		  		  		  	By:	  	PXP Gulf Coast LLC, its sole member
		 		  		  		  		  	By:	  	Plains Exploration & Production Company, its sole member
		 		  	PXP LOUISIANA OPERATIONS LLC
		 		  		  	By:	  	PXP Louisiana L.L.C., its sole member
		 		  		  		  	By:	  	Pogo Producing Company LLC, its sole member
		 		  		  		  		  	By:	  	PXP Gulf Coast LLC, its sole member
		 		  		  		  		  		  	By:	  	Plains Exploration & Production Company, its sole member
				
		 		  	By:	  	  

		 		  	Name:	  	  

		 		  	Title:	  	  

  

 A-10

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