Document:

exv4w2

Exhibit 4.2

COMSTOCK RESOURCES, INC.,

GUARANTORS

NAMED HEREIN

and

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

Trustee

 

SIXTH SUPPLEMENTAL INDENTURE

dated as of March 14, 2011

to

INDENTURE

dated as of February 25, 2004

 

67/8% Senior Notes due 2012

 

 

 

     This SIXTH SUPPLEMENTAL INDENTURE, dated as of March 14, 2011, is among COMSTOCK RESOURCES,
INC., a Nevada corporation (the “Company”), the GUARANTORS (as defined in the Indenture) and THE
BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as successor in interest to THE BANK OF NEW YORK TRUST
COMPANY, N.A., as Trustee (hereinafter called the “Trustee”). Capitalized terms used herein but
not otherwise defined shall have the meanings ascribed to them in the Indenture (as defined below
and as supplemented hereby).

     WHEREAS, the Company, certain Subsidiaries of the Company and the predecessor in interest to
the Trustee entered into an Indenture, dated as of February 25, 2004 (the “Original Indenture”), as
the same was amended and supplemented by that certain First Supplemental Indenture dated as of
February 25, 2004 (the “First Supplemental Indenture”), and by that certain Second Supplemental
Indenture dated as of March 11, 2004 (the “Second Supplemental Indenture”), and by that certain
Third Supplemental Indenture dated July 16, 2004 (the “Third Supplemental Indenture”), and by that
certain Fourth Supplemental Indenture dated May 20, 2005 (the “Fourth Supplemental Indenture”), and
by that certain Fifth Supplemental Indenture dated as of April 30, 2010 (the “Fifth Supplemental
Indenture” and together with the Original Indenture, the First Supplemental Indenture, the Second
Supplemental Indenture and the Third Supplemental Indenture, the “Indenture”), providing for the
issuance by the Company of the Company’s 67/8% Senior Notes due 2012;

     WHEREAS, the parties hereto desire to modify and amend the Indenture to remove certain
covenants therefrom; and

     WHEREAS, the Holders of at least a majority in aggregate principal amount of Outstanding
Securities have consented to the amendments contained herein as required by Section 5.2 of the
Indenture;

     NOW, THEREFORE, for the purposes stated herein and for and in consideration of the premises
and covenants contained in the Indenture and in this Sixth Supplemental Indenture and for other
good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, it is
mutually covenanted and agreed as follows:

ARTICLE I

     Section 1.1 Deletion of Covenants. Effective as of the date hereof, each of the
following sections of the First Supplemental Indenture (each, a “Deleted Covenant”), together with
all references to any such section set forth in the Indenture, are hereby deleted in their
entirety:

	 	 	 

	Section 6.4

	 	Payment of Taxes; Maintenance of Properties; Insurance
	 
	 	 
	Section 6.5

	 	Statement by Officers as to Default
	 
	 	 
	Section 6.6

	 	Provision of Financial Information
	 
	 	 
	Section 6.7

	 	Limitation on Restricted Payments
	 
	 	 
	Section 6.8

	 	Limitation on Guarantees by Restricted Subsidiaries

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	Section 6.9

	 	Limitation on Indebtedness and Disqualified Capital Stock
	 
	 	 
	Section 6.10

	 	Additional Guarantors
	 
	 	 
	Section 6.11

	 	Limitation on Issuances and Sales of Preferred Stock of Restricted
Subsidiaries
	 
	 	 
	Section 6.12

	 	Limitation on Liens
	 
	 	 
	Section 6.15

	 	Limitation on Transactions with Affiliates
	 
	 	 
	Section 6.16

	 	Limitation on Dividends and Other Payment Restrictions Affecting Restricted
Subsidiaries
	 
	 	 
	Section 6.17

	 	Limitation on Sale and Leaseback Transactions.

     Section 1.2 Covenant Concerning Certain Events of Default. Effective as of the date
hereof, subsections (e) and (g) of Section 3.1 of the First Supplemental Indenture are hereby
deleted in their entireties.

     Section 1.3 Provision Concerning Company May Consolidate, Etc. Effective as of the
date hereof, subsection (c) of Section 4.1 of the First Supplemental Indenture is hereby deleted in
its entirety.

     Section 1.4 Deletion of Definitions. Effective as of the date hereof, all definitions
set forth in Section 1.1 of the First Supplemental Indenture which are referenced in or relate
solely to the Deleted Covenants or of the First Supplemental Indenture are herby deleted in their
entireties.

     Section 1.5 Provision Concerning Notice to Trustee. Effective as of the date hereof,
Section 7.1 of the First Supplemental Indenture is hereby deleted in its entirety and replaced with
the following:

     “Section 7.1 Notice to Trustee.

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

     The Company shall give each notice to the Trustee provided for in this Section at least
4 Business Days before the Redemption Date unless the Trustee consents to a shorter period.
Such notice shall be accompanied by an Officers’ Certificate and an Opinion of Counsel from
the Company to the effect that such redemption will comply with the conditions herein. Any
election to redeem Securities shall be revocable until the Company gives a notice of
redemption pursuant to Section 7.2 to the Holders of Securities to be redeemed.”

2

 

     Section 1.6 Provision Concerning Notice of Redemption. Effective as of the date
hereof, Section 7.3 of the First Supplemental Indenture is hereby deleted in its entirety and
replaced with the following:

     “Section 7.3 Notice of Redemption.

     Notice of redemption shall be given in the manner provided for in Section 10.3 hereof
not less than 3 Business Days nor more than 60 days prior to the Redemption Date, to each
Holder of Securities to be redeemed.

     All notices of redemption shall state:

     (a) the Redemption Date;

     (b) the Redemption Price;

     (c) if less than all Outstanding Securities are to be redeemed, the identification
(and, in the case of a partial redemption, the principal amounts) of the particular
Securities to be redeemed;

     (d) that on the Redemption Date the Redemption Price (together with accrued interest,
if any, to the Redemption Date payable as provided in Section 7.5 hereof) will become due
and payable upon each such Security, or the portion thereof, to be redeemed, and that,
unless the Company shall default in the payment of the Redemption Price and any applicable
accrued interest, interest thereon will cease to accrue on and after said date; and

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

     Notice of redemption of Securities to be redeemed at the election of the Company shall
be given by the Company or, at the Company’s request, by the Trustee in the name and at the
expense of the Company. Failure to give such notice by mailing to any Holder of Securities
or any defect therein shall not affect the validity of any proceedings for the redemption of
other Securities.”

     Section 1.7 Paragraph 7 of the Securities. Effective as of the date hereof, Paragraph
7 of the Securities is hereby deleted in its entirety and replaced with the following:

     “7. Notice of Redemption.

     Notice of redemption will be sent at least 3 Business Days but not more than 60 days
before the redemption date to each Holder of Securities to be redeemed at his or her
registered address. Securities in denominations larger than $1,000 may be redeemed in part
but only in whole multiples of $1,000. If money sufficient to pay the redemption price of
and accrued interest on all Securities (or portions thereof) to be redeemed on the

3

 

redemption date is deposited with the Paying Agent on or before the redemption date and
certain other conditions are satisfied, on and after such date interest ceases to accrue on
such Securities (or such portions thereof) called for redemption.”

ARTICLE II

     Section 2.1 Ratification of Indenture.

     As supplemented by this Sixth Supplemental Indenture, the Indenture is in all respects
ratified and confirmed, and the Indenture as supplemented by this Sixth Supplemental Indenture
shall be read, taken and construed as one and the same instrument.

     Section 2.2 Conflict with Trust Indenture Act.

     If any provision hereof limits, qualifies or conflicts with another provision hereof which is
required to be included in this Second Supplemental Indenture by any provision of the Trust
Indenture Act, such required provisions shall control.

     Section 2.3 Counterparts.

     This Sixth Supplemental Indenture may be executed in any number of counterparts, each of which
shall be an original; but such counterparts shall together constitute but one and the same
instrument.

     Section 2.4 Governing Law.

     This Sixth Supplemental Indenture shall be governed by, and construed and enforced in
accordance with, the laws of the State of New York but without giving effect to applicable
principles of conflicts of law to the extent that the application of the laws of another
jurisdiction would be required thereby.

     Section 2.5 Trustee Not Responsible for Recitals.

     The recitals contained herein are made by the Company and not by the Trustee, and the Trustee
assumes no responsibility for the correctness thereof. The Trustee makes no representation as to
the validity or sufficiency of this Sixth Supplemental Indenture.

[Remainder of Page Intentionally Left Blank]

4

 

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

	 	 	 	 	 
	 	COMPANY:

COMSTOCK RESOURCES, INC.

 	 
	 	By:  	/s/ ROLAND O. BURNS
 	 
	 	 	Roland O. Burns

Senior Vice President, Chief Financial Officer,

Secretary and Treasurer 	 
	 
	 	GUARANTORS:

COMSTOCK OIL & GAS, LP

 	 
	 	By:  	/s/ ROLAND O. BURNS
 	 
	 	 	Roland O. Burns 	 
	 	 	Senior Vice President, Chief Financial Officer,
Secretary and Treasurer of Comstock
Resources, Inc., a Nevada corporation, acting
in its capacity as the sole member of Comstock
Oil & Gas GP, LLC, a Nevada limited liability
company, and as the sole member of such entity,
acting on behalf of such entity in such entity's
capacity as the sole general partner of
Comstock Oil & Gas, LP, a Nevada limited
partnership 	 
	 
	 	COMSTOCK OIL & GAS HOLDINGS, INC.

 	 
	 	By:  	/s/ ROLAND O. BURNS
 	 
	 	 	Roland O. Burns 	 
	 	 	Senior Vice President, Chief Financial Officer,

Secretary and Treasurer 	 

[Signature Pages Continue]

Signature Page to Sixth Supplemental Indenture

 

	 	 	 	 	 
	 	COMSTOCK OIL & GAS-LOUISIANA, LLC

 	 
	 	By:  	/s/ ROLAND O. BURNS
 	 
	 	 	Roland O. Burns 	 
	 	 	Manager, Senior Vice President, Chief Financial
Officer, Secretary and Treasurer 	 
	 
	 	COMSTOCK OIL & GAS GP, LLC

 	 
	 	By:  	/s/ ROLAND O. BURNS
 	 
	 	 	Roland O. Burns 	 
	 	 	Senior Vice President, Chief Financial
Officer, Secretary and Treasurer of Comstock
Resources, Inc., a Nevada corporation, acting on
behalf of such entity in its capacity as the sole
member of Comstock Oil & Gas GP, LLC 	 
	 
	 	COMSTOCK OIL & GAS INVESTMENTS, LLC

 	 
	 	By:  	 /s/ ROLAND O. BURNS
 	 
	 	 	Roland O. Burns 	 
	 	 	Manager
    	 

[Signature Pages Continue]

Signature Page to Sixth Supplemental Indenture

 

	 	 	 	 	 
	 	TRUSTEE:

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

 	 
	 	By:  	
/s/ JULIE HOFFMAN-RAMOS
 	 
	 	Name:  Julie Hoffman-Ramos 	 
	 	Title:  Senior Associate 	 
	 

Signature Page to Sixth Supplemental IndentureExhibit 10.1

Exhibit 10.1

AUTOZONE, INC. 2011 EQUITY INCENTIVE AWARD PLAN

RESTRICTED STOCK AWARD GRANT NOTICE AND

RESTRICTED STOCK AWARD AGREEMENT

AutoZone, Inc., a Nevada corporation, (the “Company”), pursuant to its 2011 Equity Incentive
Award Plan (the “Plan”), hereby grants to the individual listed below (the “Participant”), in
consideration of the mutual agreements set forth herein and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the number of shares
of the Company’s Common Stock set forth below (the “Shares”). This Restricted Stock award is
subject to all of the terms and conditions as set forth herein and in the Restricted Stock Award
Agreement attached hereto as Exhibit A (the “Restricted Stock Agreement”) (including
without limitation the Restrictions on the Shares set forth in the Restricted Stock Agreement) and
the Plan, each of which are incorporated herein by reference. Unless otherwise defined herein, the
terms defined in the Plan shall have the same defined meanings in this Restricted Stock Award Grant
Notice (the “Grant Notice”) and the Restricted Stock Agreement.

	 	 	 
	Participant:

	 	Robert D. Olsen
	 
	 	 
	Grant Date:

	 	January 25, 2011

	 
	 	 
	Total Number of Shares of Restricted
Stock:

	 	4,800 Shares

	 
	 	 
	Vesting Commencement Date:

	 	December 15, 2012

	 
	 	 
	Vesting Schedule:

	 	The Shares shall vest, and the
Restrictions thereon shall lapse,
with respect to one-half (50%) of
the Shares on each of the Vesting
Commencement Date and the first
anniversary of the Vesting
Commencement Date, subject to the
Participant’s continued service
through the applicable vesting date. 

Notwithstanding anything contained
herein to the contrary, if the
Participant experiences a
Termination of Service (i) by the
Company without Cause (as defined
below) or (ii) by reason of the
Participant’s death or Disability
(as defined below), then all of the
Shares subject to this Award shall
vest, and the Restrictions thereon
shall lapse, on the date of such
Termination of Service.

By his or her signature and the Company’s signature below, the Participant agrees to be bound
by the terms and conditions of the Plan, the Restricted Stock Agreement and this Grant Notice. The
Participant has reviewed the Restricted Stock Agreement, the Plan and this Grant Notice in their
entirety, has had an opportunity to obtain the advice of counsel prior to executing this Grant
Notice and fully understands all provisions of this Grant Notice, the Restricted Stock Agreement
and the Plan. The Participant hereby agrees to accept as binding, conclusive and final all
decisions or interpretations of the Administrator of the Plan upon any questions arising under the
Plan, this Grant Notice and/or the Restricted Stock Agreement.

	 	 	 	 	 	 	 	 	 	 	 
	AUTOZONE, INC.: 	 	PARTICIPANT:
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Tim Briggs
	 	 	 	By:
	 	/s/ Robert D. Olsen	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Print Name:

	 	Tim Briggs
	 	 	 	Print Name:
	 	Robert Olsen	 	 
	Title:

	 	 Sr. VP, HR
	 	 	 	Address:
	 	 P.O. Box 384 

Pickwick Dam, TN 38365
	 	 
	By:

	 	/s/ Harry L. Goldsmith	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	Print Name:

	 	 Harry L. Goldsmith	 	 	 	 	 	 	 	 
	Title:

	 	 Executive Vice
President, 
General
Counsel and Secretary

	 	 	 	 	 	 	 	 

 

 

EXHIBIT A

TO RESTRICTED STOCK AWARD GRANT NOTICE

AUTOZONE, INC. RESTRICTED STOCK AWARD AGREEMENT

Pursuant to the Restricted Stock Award Grant Notice (the “Grant Notice”) to which this
Restricted Stock Award Agreement (the “Agreement”) is attached, AutoZone, Inc., a Nevada
corporation (the “Company”) has granted to the Participant the number of shares of Restricted Stock
(the “Shares”) under the AutoZone, Inc. 2011 Equity Incentive Award Plan, as amended from time to
time (the “Plan”), as set forth in the Grant Notice.

ARTICLE I.

GENERAL

1.1 Incorporation of Terms of Plan. The Award is subject to the terms and conditions
of the Plan, which are incorporated herein by reference. In the event of any inconsistency between
the Plan and this Agreement, the terms of the Plan shall control.

1.2 Definitions.

(a) “Cause” shall mean the willful engagement by Participant in conduct which is
demonstrably or materially injurious to the Company, monetarily or otherwise. For this purpose, no
act or failure to act by the Participant shall be considered “willful” unless done, or omitted to
be done, by the Participant not in good faith and without reasonable belief that his action or
omission was in the best interest of the Company.

(b) “Disability” shall mean a determination by the Company that the Participant is
“totally disabled,” within its meaning in the Company’s long term disability plan as in effect from
time to time.

ARTICLE II.

AWARD OF RESTRICTED STOCK

2.1 Award of Restricted Stock.

(a) Award. In consideration of the Participant’s past and/or continued employment
with or service to the Company or its Affiliates, and for other good and valuable consideration
which the Administrator has determined exceeds the aggregate par value of the Common Stock subject
to the Award (as defined below), as of the Grant Date, the Company issues to the Participant the
Award described in this Agreement (the “Award”). The number of Shares subject to the Award is set
forth in the Grant Notice. The Participant is an Employee or Director of the Company or one of its
Affiliates.

(b) Book Entry Form; Certificates. At the sole discretion of the Administrator, the
Shares will be issued in either (i) uncertificated form, with the Shares recorded in the name of
the Participant in the books and records of the Company’s transfer agent with appropriate notations
regarding the restrictions on transfer imposed pursuant to this Agreement, and upon vesting and the
satisfaction of all conditions set forth in Sections 2.2(a) and 2.2(e) hereof, the Company shall
remove such notations on
any such vested Shares in accordance with Section 2.2(f) below; or (ii) certificated form
pursuant to the terms of Sections 2.1(c), (d) and (e) below.

 

A-1

 

(c) Legend. Certificates representing Shares issued pursuant to this Agreement shall,
until all Restrictions (as defined below) imposed pursuant to this Agreement lapse or shall have
been removed and the Shares shall thereby have become vested or the Shares represented thereby have
been forfeited hereunder, bear the following legend (or such other legend as shall be determined by
the Administrator):

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN VESTING
REQUIREMENTS AND MAY BE SUBJECT TO FORFEITURE UNDER THE TERMS OF A RESTRICTED STOCK
AWARD AGREEMENT, BY AND BETWEEN AUTOZONE, INC. AND THE REGISTERED OWNER OF SUCH
SHARES, AND SUCH SHARES MAY NOT BE, DIRECTLY OR INDIRECTLY, OFFERED, TRANSFERRED,
SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNDER ANY
CIRCUMSTANCES, EXCEPT PURSUANT TO THE PROVISIONS OF SUCH AGREEMENT.”

(d) Escrow. The Secretary of the Company, or such other escrow holder as the
Administrator may appoint, may retain physical custody of any certificates representing the Shares
until all of the Restrictions on transfer imposed pursuant to this Agreement lapse or shall have
been removed; in such event, the Participant shall not retain physical custody of any certificates
representing unvested Shares issued to him or her. The Participant, by acceptance of the Award,
shall be deemed to appoint, and does so appoint, the Company and each of its authorized
representatives as the Participant’s attorney(s)-in-fact to effect any transfer of unvested
forfeited Shares (or Shares otherwise reacquired by the Company hereunder) to the Company as may be
required pursuant to the Plan or this Agreement and to execute such documents as the Company or
such representatives deem necessary or advisable in connection with any such transfer.

(e) Removal of Notations; Delivery of Certificates Upon Vesting. As soon as
administratively practicable after the vesting of any Shares subject to the Award pursuant to
Section 2.2(b) or Section 2.2(c) hereof, as applicable, the Company shall, as applicable, either
remove the notations on any Shares subject to the Award issued in book entry form which have vested
or deliver to the Participant a certificate or certificates evidencing the number of Shares subject
to the Award which have vested (or, in either case, such lesser number of Shares as may be
permitted pursuant to Section 11.2 of the Plan). The Participant (or the beneficiary or personal
representative of the Participant in the event of the Participant’s death or incapacity, as the
case may be) shall deliver to the Company any representations or other documents or assurances
required by the Company. The Shares so delivered shall no longer be subject to the Restrictions
hereunder.

2.2 Restrictions.

(a) Forfeiture. Any Award which is not vested as of the date of the Participant’s
Termination of Service (after taking into consideration any accelerated vesting and lapsing of
Restrictions which may occur in connection with such Termination of Service as set forth in the
Grant Notice (if any)) shall thereupon be forfeited immediately and without any further action by
the Company. For purposes of this Agreement, in the event that the Participant is both an Employee
and a Director, the Participant shall not be deemed to have incurred a Termination of Service
unless and until his or her status as both an Employee and Director has terminated. For purposes
of this Agreement, “Restrictions” shall mean the
restrictions on sale or other transfer set forth in Section 3.2 hereof and the exposure to
forfeiture set forth in this Section 2.2(a).

 

A-2

 

(b) Vesting and Lapse of Restrictions. Subject to Section 2.2(a), the Award shall
vest and Restrictions shall lapse in accordance with the vesting schedule set forth in the Grant
Notice (rounding down to the nearest whole Share).

(c) Acceleration of Vesting. Notwithstanding Sections 2.2(a) and 2.2(b) hereof, the
vesting of the Award and lapsing of Restrictions may be accelerated pursuant to Sections 13.2 of
the Plan, as provided therein. In addition, the Company and Participant acknowledge that the
vesting of the Award and lapsing of the Restrictions may be subject to acceleration in the event of
a Termination of Service under certain circumstances as set forth in the Grant Notice.

(d) Tax Withholding. The Company or its Affiliates shall be entitled to require a
cash payment (or to elect, or permit the Participant to elect, such other form of payment
determined in accordance with Section 11.2 of the Plan) by or on behalf of the Participant and/or
to deduct from other compensation payable to the Participant any sums required by federal, state or
local tax law to be withheld with respect to the grant or vesting of the Award or the lapse of the
Restrictions hereunder. In satisfaction of the foregoing requirement with respect to the grant or
vesting of the Award or the lapse of the Restrictions hereunder, unless otherwise determined by the
Company, the Company or its Affiliates shall withhold Shares otherwise issuable under the Award
having a fair market value equal to the sums required to be withheld by federal, state and/or local
tax law. The number of Shares which shall be so withheld in order to satisfy such federal, state
and/or local withholding tax liabilities shall be limited to the number of shares which have a fair
market value on the date of withholding equal to the aggregate amount of such liabilities based on
the minimum statutory withholding rates for federal, state and/or local tax purposes that are
applicable to such supplemental taxable income. Notwithstanding any other provision of this
Agreement (including without limitation Section 2.1(b) hereof), the Company shall not be obligated
to deliver any new certificate representing Shares to the Participant or the Participant’s legal
representative or to enter any such Shares in book entry form unless and until the Participant or
the Participant’s legal representative shall have paid or otherwise satisfied in full the amount of
all federal, state and local taxes applicable to the taxable income of the Participant resulting
from the grant or vesting of the Award or the issuance of Shares hereunder. 

(e) Conditions to Delivery of Shares. Subject to Section 2.1 above, the Shares
deliverable under this Award may be either previously authorized but unissued Shares, treasury
Shares or Shares purchased on the open market. Such Shares shall be fully paid and nonassessable.
The Company shall not be required to issue or deliver any Shares under this Award prior to
fulfillment of all of the following conditions:

(i) The admission of such Shares to listing on all stock exchanges on which the Common Stock
is then listed;

(ii) The completion of any registration or other qualification of such Shares under any state
or federal law or under rulings or regulations of the Securities and Exchange Commission or of any
other governmental regulatory body, which the Administrator shall, in its absolute discretion, deem
necessary or advisable;

(iii) The obtaining of any approval or other clearance from any state or federal governmental
agency which the Administrator shall, in its absolute discretion, determine to be necessary or
advisable;

(iv) The receipt by the Company or its Affiliates of full payment of any applicable
withholding tax;

 

A-3

 

(v) The lapse of such reasonable period of time following the grant of this Award as the
Administrator may from time to time establish for reasons of administrative convenience; and

(vi) The lapse of all Restrictions with respect to the Shares.

Notwithstanding the foregoing, the issuance of such Shares shall not be delayed if and to the
extent that such delay would result in a violation of Section 409A of the Code. In the event that
the Company delays the issuance of such Shares because it reasonably determines that the issuance
of such Shares will violate federal securities laws or other applicable law, such issuance shall be
made at the earliest date at which the Company reasonably determines that issuing such Shares will
not cause such violation, as required by Treasury Regulation Section 1.409A-2(b)(7)(ii).

(f) To ensure compliance with the Restrictions, the provisions of the charter documents of the
Company, and/or state and federal securities and other laws and for other proper purposes, the
Company may issue appropriate “stop transfer” and other instructions to its transfer agent with
respect to the Restricted Stock. The Company shall notify the transfer agent as the Restrictions
lapse.

2.3 Consideration to the Company. In consideration of the grant of the Award by the
Company, the Participant agrees to render faithful and efficient services to the Company or its
Affiliates.

ARTICLE III.

OTHER PROVISIONS

3.1 Section 83(b) Election. If the Participant makes an election under Section 83(b)
of the Code to be taxed with respect to the Restricted Stock as of the date of transfer of the
Restricted Stock rather than as of the date or dates upon which the Participant would otherwise be
taxable under Section 83(a) of the Code, the Participant hereby agrees to deliver a copy of such
election to the Company promptly after filing such election with the Internal Revenue Service.

3.2 Restricted Stock Not Transferable. Until the Restrictions hereunder lapse or
expire pursuant to this Agreement and the Shares vest, the Restricted Stock (including any Shares
received by holders thereof with respect to Restricted Stock as a result of stock dividends, stock
splits or any other form of recapitalization) shall be subject to the restrictions on
transferability set forth in Section 11.3 of the Plan.

3.3 Rights as Stockholder. Except as otherwise provided herein, upon the Grant Date,
the Participant shall have all the rights of a stockholder with respect to the Shares, subject to
the Restrictions herein, including the right to vote the Shares and the right to receive any cash
or stock dividends paid to or made with respect to the Shares. 

3.4 Not a Contract of Service. Nothing in this Agreement or in the Plan shall confer
upon the Participant any right to continue to serve as an employee or other service provider of the
Company or any of its Affiliates or shall interfere with or restrict in any way the rights of the
Company and its Affiliates, which rights are hereby expressly reserved, to discharge or terminate
the services of the Participant at any
time for any reason whatsoever, with or without Cause, except to the extent expressly provided
otherwise in a written agreement between the Company or an Affiliate and the Participant.

 

A-4

 

3.5 Governing Law. The laws of the State of Nevada shall govern the interpretation,
validity, administration, enforcement and performance of the terms of this Agreement regardless of
the law that might be applied under principles of conflicts of laws.

3.6 Conformity to Securities Laws. The Participant acknowledges that the Plan and
this Agreement are intended to conform to the extent necessary with all provisions of the
Securities Act and the Exchange Act, and any and all regulations and rules promulgated thereunder
by the Securities and Exchange Commission. Notwithstanding anything herein to the contrary, the
Plan shall be administered, and the Award is granted, only in such a manner as to conform to such
laws, rules and regulations. To the extent permitted by applicable law, the Plan and this
Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and
regulations.

3.7 Amendment, Suspension and Termination. To the extent permitted by the Plan, this
Agreement may be wholly or partially amended or otherwise modified, suspended or terminated at any
time or from time to time by the Committee or the Board, provided, however, that, except as may
otherwise be provided by the Plan, no amendment, modification, suspension or termination of this
Agreement shall adversely affect the Award in any material way without the prior written consent of
the Participant.

3.8 Notices. Any notice to be given by the Participant under the terms of this
Agreement shall be addressed to the Secretary of the Company (or, in the event that the Participant
is the Secretary of the Company, then to the Company’s non-executive Chairman of the Board or Lead
Director). Any notice to be given to the Participant shall be addressed to him at his home address
on record with the Company. By a notice given pursuant to this Section 3.8, either party may
hereafter designate a different address for notices to be given to him. Any notice which is
required to be given to the Participant shall, if Participant is then deceased, be given to the
Participant’s personal representative if such representative has previously informed the Company of
his or her status and address by written notice under this Section 3.8. Any notice required or
permitted hereunder shall be given in writing and shall be deemed effectively given upon personal
delivery or upon deposit in the United States mail by certified mail, with postage and fees
prepaid, addressed as set forth above or upon confirmation of delivery by a nationally recognized
overnight delivery service.

3.9 Successors and Assigns. The Company or any Affiliate may assign any of its rights
under this Agreement to single or multiple assignees, and this Agreement shall inure to the benefit
of the successors and assigns of the Company and its Affiliates. Subject to the restrictions on
transfer herein set forth, this Agreement shall be binding upon the Participant and his or her
heirs, executors, administrators, successors and assigns.

3.10 Limitations Applicable to Section 16 Persons. Notwithstanding any other
provision of the Plan or this Agreement, if the Participant is subject to Section 16 of the
Exchange Act, the Plan, the Award and this Agreement shall be subject to any additional limitations
set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any
amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such
exemptive rule. To the extent permitted by applicable law, this Agreement shall be deemed amended
to the extent necessary to conform to such applicable exemptive rule.

 

A-5

 

3.11 Entire Agreement. The Plan, the Grant Notice and this Agreement constitute the
entire agreement of the parties and supersede in their entirety all prior undertakings and
agreements of the Company and its Affiliates and the Participant with respect to the subject matter
hereof.

3.12 Limitation on the Participant’s Rights. Participation in the Plan confers no
rights or interests other than as herein provided. This Agreement creates only a contractual
obligation on the part of the Company as to amounts payable and shall not be construed as creating
a trust. The Plan, in and of itself, has no assets. The Participant shall have only the rights of
a general unsecured creditor of the Company and its Affiliates with respect to amounts credited and
benefits payable, if any, with respect to the Shares issuable hereunder.

 

A-6

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