Document:

Exhibit 4.62

 

 

Confidential material has been redacted and filed
separately with the Securities and Exchange Commission.

 

 

XIJIANG OIL FIELD SOUTH CHINA SEA

FPSO LEASE CONTRACT

 

 

BY AND BETWEEN

LUFENG DEVELOPMENT COMPANY ANS

 

CONTRACTOR

 

AND

 

CONOCOPHILLIPS CHINA INC.

 

COMPANY

 

 

EFFECTIVE DATE: October 20, 2003

 

1

 

TABLE OF CONTENTS

TERMS AND CONDITIONS

 

	
  ARTICLE 1

  	
  - CONTRACT DOCUMENTS

  	
   

  
	
  ARTICLE 2

  	
  - DEFINITIONS

  	
   

  
	
  ARTICLE 3

  	
  - DURATION OF CONTRACT

  	
   

  
	
  ARTICLE 4

  	
  - COMPANY REPRESENTATIVE

  	
   

  
	
  ARTICLE 5

  	
  - CONTRACTOR REPRESENTATIVE

  	
   

  
	
  ARTICLE 6

  	
  - PERFORMANCE OF THE WORK

  	
   

  
	
  ARTICLE 7

  	
  -
  RESPONSIBILITY FOR MATERIALS AND EQUIPMENT PROVIDED BY COMPANY

  	
   

  
	
  ARTICLE 8

  	
  - CONTRACTOR’S OBLIGATIONS

  	
   

  
	
  ARTICLE 9

  	
  - COMPANY’S OBLIGATIONS

  	
   

  
	
  ARTICLE 10

  	
  - RESPONSIBILITY OF
  CONTRACTOR TO INFORM ITSELF

  	
   

  
	
  ARTICLE 11

  	
  -
  RESPONSIBILITY OF CONTRACTOR TO INFORM COMPANY

  	
   

  
	
  ARTICLE 12

  	
  - SUBCONTRACTS AND
  ASSIGNMENT

  	
   

  
	
  ARTICLE 13

  	
  -
  PERSONNEL OF CONTRACTOR AND SUBCONTRACTORS

  	
   

  
	
  ARTICLE 14

  	
  - ACCESS TO WORK
  SITE

  	
   

  
	
  ARTICLE 15

  	
  - INSTALLATION

  	
   

  
	
  ARTICLE 16

  	
  - PERFORMANCE TEST, UTILIZATION, AND
  DEMOBILIZATION

  	
   

  
	
  ARTICLE 17

  	
  - INSPECTION AND TESTING

  	
   

  
	
  ARTICLE 18

  	
  - DEFAULT OF CONTRACTOR

  	
   

  
	
  ARTICLE 19

  	
  - SUSPENSION OF WORK

  	
   

  
	
  ARTICLE 20

  	
  - TERMINATION OF WORK

  	
   

  
	
  ARTICLE 21

  	
  - FORCE MAJEURE

  	
   

  
	
  ARTICLE 22

  	
  - TAXES AND DUTIES

  	
   

  
	
  ARTICLE 23

  	
  - AUDIT

  	
   

  
	
  ARTICLE 24

  	
  - COMPENSATION

  	
   

  
	
  ARTICLE 25

  	
  - INVOICING AND
  PAYMENT

  	
   

  
	
  ARTICLE 26

  	
  -
  LIQUIDATED DAMAGES FOR DELAY

  	
   

  
	
  ARTICLE 27

  	
  - PARENT COMPANY GUARANTEE

  	
   

  
	
  ARTICLE 28

  	
  - LIENS AND CLAIMS

  	
   

  
	
  ARTICLE 29

  	
  - RESPONSIBILITIES AND
  INDEMNITIES

  	
   

  
	
  ARTICLE 30

  	
  - INSURANCES

  	
   

  
	
  ARTICLE 31

  	
  - PATENT INDEMNITY

  	
   

  
	
  ARTICLE 32

  	
  - ACTIONS ON BEHALF OF
  COMPANY

  	
   

  
	
  ARTICLE 33

  	
  - TITLE

  	
   

  
	
  ARTICLE 34

  	
  - CONFIDENTIALITY

  	
   

  
	
  ARTICLE 35

  	
  - CONFLICT OF INTEREST

  	
   

  
	
  ARTICLE 36

  	
  - PERMITS, LAWS AND REGULATIONS

  	
   

  
	
  ARTICLE 37

  	
  -
  CUSTOMS AND IMPORT/EXPORT

  	
   

  
	
  ARTICLE 38

  	
  -
  INDUSTRIAL RELATIONS

  	
   

  
	
  ARTICLE 39

  	
  - HEALTH AND
  SAFETY

  	
   

  
	
  ARTICLE 40

  	
  - ENVIRONMENTAL
  CONSIDERATIONS

  	
   

  
	
  ARTICLE 41

  	
  - WAIVERS

  	
   

  
	
  ARTICLE 42

  	
  - COMPLIANCE WITH LAW

  	
   

  
	
  ARTICLE 43

  	
  - ARBITRATION AND GOVERNING
  LAW

  	
   

  
	
  ARTICLE 44

  	
  - INDEPENDENT
  CONTRACTOR

  	
   

  
	
  ARTICLE 45

  	
  - LANGUAGE

  	
   

  
	
  ARTICLE 46

  	
  - ENTIRE AGREEMENT

  	
   

  
	
  ARTICLE 47

  	
  - MISCELLANEOUS

  	
   

  
	
  ARTICLE 48

  	
  - NON-EXCLUSIVE AGREEMENT

  	
   

  

 

2

 

TABLE OF CONTENTS

EXHIBITS

 

	
  EXHIBIT I

  	
  PROJECT SCHEDULE

  
	
  EXHIBIT II

  	
  COMPENSATION SCHEDULE

  
	
  EXHIBIT III

  	
  ADMINISTRATION
  PROCEDURES

  
	
  EXHIBIT IV

  	
  CONTRACTOR ORGANIZATION
  AND PROJECT TEAM KEY PERSONNEL

  
	
  EXHIBIT V

  	
  CONTRACTOR PARENT
  COMPANY GUARANTEE

  
	
  EXHIBIT VI

  	
  LIST OF SUBCONTRACTORS
  AND WORK TO BE SUBCONTRACTED

  
	
  EXHIBIT VII

  	
  COMPANY AND CONTRACTOR
  SUPPLIED SERVICES

  
	
  EXHIBIT VIII

  	
  QUALITY ASSURANCE,
  QUALITY CONTROLTEST AND INSPECTION REQUIREMENTS

  
	
  EXHIBIT IX

  	
  SCOPE OF WORK

  

 

3

 

CONTRACT NO.            

 

This FPSO Lease Contract
(hereinafter referred to as “CONTRACT”) is made and entered into effective as
of the  20th day of October,  2003, between

 

LUFENG DEVELOPMENT COMPANY ANS, incorporated in Norway, whose registered
office is at Dronning Maudsgate 11, c/o Adv Fa Schjødt AS v/Einar Irgens, 0250
OSLO, NORWAY (hereinafter referred to as “CONTRACTOR”)

 

- and -

 

CONOCOPHILLIPS
CHINA INC. incorporated under the laws of Liberia (hereinafter referred to as
“COMPANY”) having an office at 13-F Finance Center, Tai Zi Road, Shekou,
Shenzhen, People’s Republic of China, as Operator of the Xijiang 24-3 and 30-2
Oil Fields (hereinafter “Xijiang”), South China Sea, the People’s Republic of
China.

 

	
  WHEREAS :

  	
   

  	
  COMPANY is engaged in drilling
  and production operations in Xijiang 24-3 and 30-2 Oil Fields of 15/11, 15/22
  block, Offshore the South China Sea, People’s Republic of China, and requires
  for the services of a CONTRACTOR to supply a Floating Production, Storage and
  Offloading unit and associated loading and dynamic positioning systems
  (hereinafter collectively referred to as “FPSO SYSTEM”) and install the FPSO
  SYSTEM at the OFFSHORE SITE; to supply, design, engineer, refurbish and/or
  fabricate and install the FPSO SYSTEM at the OFFSHORE SITE; and to operate
  and DEMOBILIZE the FPSO SYSTEM as set forth in detail herein; and

  
	
   

  	
   

  	
   

  
	
  WHEREAS :

  	
   

  	
  CONTRACTOR represents
  that it is able and willing to provide the WORK as defined in this CONTRACT,
  and that it has adequate financial resources, technical competence,
  operational experience and capability to do so expeditiously and in
  accordance with the terms and conditions herein contained.

  

 

Now it is agreed between
the PARTIES as follows:

 

ARTICLE 1    - CONTRACT DOCUMENTS

 

1.1                                 CONTRACTOR
shall perform the WORK in accordance with the terms set forth in this CONTRACT.
The following documents together constitute this CONTRACT:

 

	
  CONTRACT Terms and Conditions

  	
   

  	
  Articles
  1- 48 inclusive

  
	
  EXHIBIT I

  	
   

  	
  PROJECT SCHEDULE

  
	
  EXHIBIT II

  	
   

  	
  COMPENSATION

  
	
  EXHIBIT III

  	
   

  	
  ADMINISTRATION
  PROCEDURES

  
	
  EXHIBIT IV

  	
   

  	
  CONTRACTOR ORGANIZATION
  AND PROJECT TEAM KEY PERSONNEL

  

 

4

 

	
  EXHIBIT V

  	
   

  	
  CONTRACTOR PARENT
  COMPANY GUARANTEE

  
	
  EXHIBIT VI

  	
   

  	
  LIST OF SUBCONTRACTORS
  AND WORK TO BE SUBCONTRACTED

  
	
  EXHIBIT VII

  	
   

  	
  COMPANY AND CONTRACTOR
  SUPPLIED MATERIALS AND EQUIPMENT

  
	
  EXHIBIT VIII

  	
   

  	
  QUALITY ASSURANCE,
  QUALITY CONTROL, TEST AND INSPECTION REQUIREMENTS

  
	
  EXHIBIT IX

  	
   

  	
  SCOPE OF WORK

  

 

1.2                                 Any
reference or detail provided in any one of the above documents, but not in
others, shall be taken as read in all documents in this CONTRACT.

 

1.3                                 The
CONTRACT documents listed above shall be read as one document and all
provisions shall rank equally important and shall govern and be interpreted in
conjunction with each other.

 

1.4                                 All
standards, codes, specifications, drawings, instructions and other documents
which are referred to in the CONTRACT documents mentioned in Article 1.1
above, shall be deemed incorporated herein by reference and made a part hereof.
If any discrepancy and/or divergence exists between any of the documents or
parts of any one of them, CONTRACTOR shall immediately notify COMPANY of such
instances and COMPANY shall issue instructions in regard thereto. Should
CONTRACTOR fail to give notice to COMPANY as above mentioned regarding
discrepancies and/or divergences in such documents as should reasonably have
been discovered by CONTRACTOR, all extra direct costs resulting from such
failure shall be borne by the CONTRACTOR.

 

1.5                                 None
of the CONTRACT documents referenced in Article 1.1 above shall be used by
CONTRACTOR for any purpose other than for this CONTRACT.

 

1.6                                 Index
headings and subheadings in this CONTRACT are used for convenience and ease of
reference only and shall not be deemed to be part thereof or taken into
consideration in the interpretation or construction of this CONTRACT.

 

ARTICLE 2    - DEFINITIONS

 

The following definitions
shall apply to this CONTRACT except where the context otherwise requires.
Definitions in “CAPITALS” shall refer to contractually specific terms.
Definitions in “Capitalized Lower Case” are given to provide general
clarification of such terms:

 

5

 

2.1                                 “AFFILIATE”
or “AFFILIATED COMPANY” shall mean any company or other entity that directly or
indirectly through one or more intermediary controls, or is controlled by, or
is under common control with a PARTY to this CONTRACT. “Control” means
ownership of more than fifty percent (50%) of the voting stock of the controlled
company, or the direct or indirect right to determine its actions by contract
or otherwise.

 

2.2                                 “Accepted”
and “Acceptance” wherever used, shall mean accepted/acceptance in writing by
COMPANY.

 

2.3                                 “Approved”
and “Approval” wherever used, shall mean approved/approval by CONTRACTOR,
SUBCONTRACTORS, Classification Society and/or any other third parties in
accordance with their own procedures.

 

2.4                                 “Certification”
shall mean specific third party inspection, testing and issuing of appropriate
compliance certificates for all items so described in this CONTRACT.

 

2.5                                 “Certifying
Authority” shall mean the designated third party organizations and national
certifying authorities assigned to certify particular parts of the WORK.

 

2.6                                 “Certifying
Authority Surveyor” shall mean the representative assigned by the designated
Certifying Authority to the appropriate parts of the WORK.

 

2.7                                 “Classification”
shall mean the classing of the FPSO VESSEL and its newly added and existing
EQUIPMENT, and the FPSO MOORING, under the rules and regulations of the
Classification Society.

 

2.8                                 “Classification
Society” shall mean Det Norske Veritas also
referred to herein as “DNV” or any other recognised and mutually agreed Class
Society.

 

2.9                                 “Classification
Society Surveyor” shall mean the representative assigned by the Classification
Society to the WORK.

 

2.10                           “COMMENCEMENT
DATE” shall mean the date of commencement of the WORK, as NOTIFIED by COMPANY
to the CONTRACTOR.

 

2.11                           “COMMISSIONING”
shall mean operational testing and calibration of all systems using the power
generated from the FPSO and the introduction of WELL FLUIDS, hydraulic fluids,
seawater or any other fluids used for the normal operation of each system.  COMMISSIONING shall include the PERFORMANCE
TEST.

 

2.12                           “COMPANY
OFFSHORE REPRESENTATIVE” shall mean the senior COMPANY person assigned on board
the FPSO VESSEL.

 

6

 

2.13                           “COMPANY
REPRESENTATIVE” shall mean the person appointed from COMPANY and notified to
CONTRACTOR as being the person responsible for administering this CONTRACT on
COMPANY’S behalf and for issuing any instructions hereunder.

 

2.14                           “CONTRACT”
shall mean the Terms and Conditions and the Exhibits, references and documents
attached hereto or incorporated by reference and as may be amended from time to
time.

 

2.15                           “CONTRACT
DATES” shall collectively refer to any or all of the following: Scheduled
Installation Date, Scheduled Acceptance Date, and Scheduled Demobilization
Date.

 

2.16                           “CONTRACT
PRICE” shall mean the mutually agreed unit rates or prices within the
Compensation Schedule (Exhibit II) to be paid to CONTRACTOR.

 

2.17                           “CONTRACTOR’s
OIM” shall mean the senior CONTRACTOR’s person assigned on board the FPSO
VESSEL.

 

2.18                           “CONTRACTOR’S
REPRESENTATIVE” shall mean the person appointed by CONTRACTOR and NOTIFIED to
COMPANY as being the person responsible for administering this CONTRACT on
CONTRACTOR’s behalf and for issuing any instruction hereunder.

 

2.19                           “CO-VENTURER”
refers to CNOOC CHINA LIMITED SHENZHEN, SHELL CHINA EXPLORATION AND PRODUCTION COMPANY LIMITED, SHELL OFFSHORE
CHINA PARTNERSHIP, PECTEN ORIENT COMPANY LLC,  CONOCOPHILLIPS CHINA INC., and any other companies who may during
the TERM participate as owners in the XJ30-2 and XJ24-3 oilfields.

 

2.20                           “CREW”
shall mean all personnel assigned to permanently work on board the FPSO SYSTEM,
inclusive of all back-to-back relief crews.

 

2.21                           “DAY
RATE” shall mean the rate payable by COMPANY to CONTRACTOR in respect of any
period of twenty four (24) hours commencing at midnight, or pro-rata to the
nearest fifteen (15) minutes in respect of any period less than twenty four
(24) hours.  The DAY RATE shall be as
described in EXHIBIT II - “Compensation Schedule”;

 

2.22                           “DEMOBILIZATION”
shall mean the safe shut-down and removal of the FPSO SYSTEM from the OFFSHORE
SITE at the end of the UTILIZATION PERIOD, all as described in EXHIBIT IX -
“Scope of WORK;

 

2.23                           “DEMOBILIZATION
CERTIFICATE shall mean the certificate issued by COMPANY in accordance with
EXHIBIT III - “Administration Instructions”;

 

2.24                           “DEMOBILIZATION
DATE” has the meaning set forth in Article 16.4.

 

2.25                           “DOWNTIME”
shall have   the meaning  set 
forth in EXHIBIT II - “Compensation Schedule”.

 

7

 

2.26                           “EFFECTIVE
DATE” shall mean the date upon which this CONTRACT becomes effective as set
forth above.

 

2.27                           “EQUIPMENT”
shall mean any and all kinds of supplies, spares, equipment, tools, materials,
bulk items and units, supplied by CONTRACTOR, intended for the performance of
the WORK and/or to become part of the FPSO SYSTEM.

 

2.28                           “FIELD
FACILITIES” shall mean the Platforms located at XJ   24-3 and 30-2 Oil Fields and associated infrastructure in the
Oil Fields, excluding the FPSO SYSTEM

 

2.29                           “FPSO
MOORING” shall mean all components of the Dynamic Positioning System and
external Loading System supplied by CONTRACTOR including, but not limited to,
the Catenary Riser System, Buoyancy Tank, and Outrigger Arm.      FPSO MOORING does   not include   the  COMPANY supplied
Buoy Turret Mooring.

 

2.30                           “FPSO
VESSEL” shall mean the FPSO MUNIN (Class Identification No.19174) including but
not  limited to the vessel, its
machinery, process plant,  accommodation
facilities, and oil offloading system. The battery limit between the FPSO
VESSEL and export tankers shall be the connector at the end of the offloading
hose on the FPSO VESSEL and the ends of the mooring hawsers.

 

2.31                           “FPSO
SYSTEM” shall collectively mean the FPSO MOORING and FPSO VESSEL.

 

2.32                           “INSTALLATION”
shall mean the activities forming that part of the WORK that comprises bringing
the FPSO SYSTEM to, and securing it at, the OFFSHORE SITE, as described in
Exhibit IX, “Scope of WORK”.

 

2.33                           “KEY
PERSONNEL” shall mean all senior CONTRACTOR’s personnel assigned to the project,
as defined in EXHIBIT IV - “CONTRACTOR Organization and Project Team KEY
PERSONNEL”.

 

2.34                           “MARINE
WARRANTY SURVEYOR” shall mean the third party designated by CONTRACTOR’s
insurance company to approve the marine operations for the FPSO MOORING and
FPSO VESSEL.

 

2.35                           “NOTICE”
or “NOTIFICATION” shall mean a communication, instruction, decision or
information in writing from one PARTY to this CONTRACT to the other PARTY.

 

2.36                           “OFFSHORE
SITE” shall mean the area designated by COMPANY for installation of the FPSO
SYSTEM.

 

8

 

2.37                           “Overseeing”
shall mean the activities performed by COMPANY to review, inspect, check,
oversee and administer the services and activities carried out by CONTRACTOR in
the performance of the WORK.

 

2.38                           “PARTY”
or “PARTIES” shall mean one, or other, or both signatories to this CONTRACT.

 

2.39                           “PERFORMANCE
CERTIFICATE” shall mean the certificate issued by COMPANY following successful
completion of the PERFORMANCE TEST in accordance with EXHIBIT III -
“Administration Instructions”;

 

2.40                           “PERFORMANCE
TEST” shall mean the trial described in Exhibit VIII.

 

2.41                           “PRODUCED
OIL” shall mean the stabilized oil produced from the FPSO VESSEL process plant
meeting the specifications set forth in Exhibit IX, Scope of WORK.

 

2.42                           “PROJECT
SCHEDULE” shall mean the detailed methodology developed by CONTRACTOR
demonstrating how it will perform the WORK defined in this CONTRACT, and
provided in a time frame and in a level of detail as reasonably requested by
COMPANY.

 

2.43                           “SUBCONTRACT”
shall mean any contract between CONTRACTOR and any other third party or for the
performance of the WORK or any part thereof

 

2.44                           “SUBCONTRACTOR”
shall mean any third party having a contract with CONTRACTOR as Accepted in
writing by COMPANY for the performance of the WORK or part thereof. COMPANY
acknowledges that any party included on Exhibit VI shall be deemed Accepted.

 

2.45                           “TECHNICAL
INFORMATION” shall mean all design data, survey results, design standards,
drawings, specifications, instructions and other information referred to,
provided by, or caused to be provided by COMPANY.

 

2.46                           “TERM”
shall mean the period from the EFFECTIVE 
DATE  until finalization of the
DEMOBILIZATION.

 

2.47                           “UTILIZATION”
shall mean the provision of the FPSO SYSTEM, CREW and the operation and
maintenance of the FPSO SYSTEM at the OFFSHORE SITE in accordance with this
CONTRACT.

 

2.48                           “UTILIZATION
PERIOD” shall mean the period of time 
commencing at 00:01 on October 1, 2004 (or such other date
determined in accordance with Article 19.5) and continuing until the
DEMOBILIZATION DATE.

 

2.49                           “WELL
FLUIDS” shall mean oil, gas, water, and other wellstream fluids that flow from
the FIELD FACILITIES to the FPSO SYSTEM.

 

9

 

2.50                           “WORK”
shall mean all activities or services to be performed and rendered by
CONTRACTOR or its SUBCONTRACTORS as expressly set forth in the CONTRACT
documents referred to in Article 1.1 of the Terms and Conditions of this
CONTRACT, and all of CONTRACTOR’s activities that are reasonably inferable from
the description of the WORK.  This shall
include work or services performed pursuant to any authorization for WORK,
services or changes that will be issued to CONTRACTOR from time to time and
shall become part of the Scope of WORK.

 

2.51                           “WORK
PLAN” shall mean the detailed PROJECT SCHEDULE that the COMPANY
acknowledges from time to time as being the current detailed plan and
schedule that the CONTRACTOR shall utilize in the performance of the WORK.

 

2.52                           “WORK
SITE” shall mean the lands, waters and other places on, under, in, or through
which the WORK will be performed. To include, but not be limited to, marine
construction EQUIPMENT, marine vessels, fabrication facilities, buildings, stores,
design offices and  workshops.

 

Words imparting the
singular include the plural and vice-versa where the context requires. Words of
one gender include all genders.

 

References to time in
this CONTRACT shall be calculated according to the Gregorian calendar.
Reference to years, months and days shall mean calendar years, calendar months
and calendar days.

 

ARTICLE 3    - DURATION OF CONTRACT

 

3.1                                 This
CONTRACT shall commence from the EFFECTIVE DATE as stipulated in the
introduction hereof and shall be valid until the finalization of
DEMOBILIZATION, or until terminated under Article 20 -”Termination of
WORK”.

 

3.2                                 CONTRACTOR
agrees that time is of the essence for this CONTRACT and, unless excused
pursuant to the terms of this CONTRACT, or prevented by the acts or omissions
of COMPANY Group or its contractors, shall complete the INSTALLATION within the
stipulated time periods as prescribed in EXHIBIT I – “Project Schedule.”

 

3.3                                 If
COMPANY notifies CONTRACTOR that the progress of WORK has been too slow to achieve
the target completion dates of WORK within the prescribed
schedule referred to in EXHIBIT I – “Project Schedule,” CONTRACTOR shall
take all steps necessary to expedite the progress of the WORK such as, but not
necessarily limited to, having additional shifts, working overtime and
supplying additional manpower and EQUIPMENT, all at no extra cost to COMPANY.

 

3.4                                 The
initial UTILIZATION PERIOD shall be for a  
term of 160 days.  COMPANY at its
option may extend the UTILIZATION PERIOD on one or more occasions for an
additional period not to exceed 30 days in the aggregate.

 

10

 

ARTICLE 4    - COMPANY REPRESENTATIVE

 

4.1                                 The
COMPANY REPRESENTATIVE shall forward all NOTIFICATIONS from COMPANY to
CONTRACTOR. Such NOTIFICATIONS shall commit COMPANY.

 

4.2                                 The
COMPANY REPRESENTATIVE may delegate specific responsibilities to a nominated
deputy or deputies. The scope of such delegation shall be the subject of prior
NOTIFICATION to CONTRACTOR. NOTIFICATIONS, from a nominated deputy, within the
scope of the delegation, shall be as if from the COMPANY REPRESENTATIVE.

 

4.3                                 During
such time as the FPSO SYSTEM is sited at the OFFSHORE SITE, the COMPANY
OFFSHORE REPRESENTATIVE is hereby nominated as a deputy under Article 4.2
above. The CONTRACTOR OIM shall have overall responsibility for the FPSO
SYSTEM. The CONTRACTOR OIM shall carry out any reasonable instructions given by
the COMPANY OFFSHORE REPRESENTATIVE except in the event that conditions arise
or occur which do or are likely to endanger the safety of the FPSO SYSTEM. In
such event, the CONTRACTOR OIM shall so inform the COMPANY OFFSHORE
REPRESENTATIVE, and shall proceed to take such action as the CONTRACTOR OIM
deems necessary for the safety of the FPSO SYSTEM.

 

4.4                                 Only
the COMPANY REPRESENTATIVE is authorized to receive NOTIFICATIONS of
CONTRACTOR, on behalf of COMPANY, and NOTIFICATION to the COMPANY
REPRESENTATIVE shall be deemed to be NOTIFICATION to COMPANY.

 

4.5                                 The
COMPANY REPRESENTATIVE shall have the right to make final decisions on all
questions involving the interpretation of specifications, drawings and
documents furnished by COMPANY to CONTRACTOR.

 

4.6                                 The
COMPANY REPRESENTATIVE shall have the right to reject, or disapprove of, any
part of the WORK that does not conform to this CONTRACT, and to decide all
questions that may arise relative to the performance of the WORK.

 

4.7                                 Notwithstanding
the above, the presence of and the inspection, supervision and Acceptance by
the COMPANY REPRESENTATIVE, shall not relieve CONTRACTOR from CONTRACTOR’s
obligations and duties and shall not prejudice COMPANY’s rights under this
CONTRACT.

 

4.8                                 The
COMPANY REPRESENTATIVE shall have the right, but not the obligation, to
prohibit the commencement of WORK, or to stop any WORK in progress if the
EQUIPMENT, personnel or work conditions are considered to be unsafe, or not in
compliance with applicable COMPANY’s rules and regulations.

 

11

 

4.9                                 COMPANY
shall have the right to change the COMPANY REPRESENTATIVE at any time and shall
notify CONTRACTOR accordingly.

 

ARTICLE 5    - CONTRACTOR REPRESENTATIVE

 

5.1                                 The
CONTRACTOR REPRESENTATIVE shall supervise, coordinate and ensure the quality of
all aspects of CONTRACTOR’s obligations under this CONTRACT.

 

5.2                                 The
CONTRACTOR REPRESENTATIVE shall have the authority to commit CONTRACTOR to any
course of action within the rights and obligations of CONTRACTOR under the
provisions of this CONTRACT and shall send COMPANY all NOTIFICATIONS of CONTRACTOR
under the provisions of this CONTRACT. All NOTIFICATIONS from the CONTRACTOR
REPRESENTATIVE shall be as if from CONTRACTOR.

 

5.3                                 The
CONTRACTOR REPRESENTATIVE may delegate specific responsibilities to a nominated
deputy or deputies. The scope of such delegation shall be the subject of prior
agreement of COMPANY. Notifications from a nominated deputy, within the scope
of the delegation, shall be as if from the CONTRACTOR REPRESENTATIVE.

 

5.4                                 For
the purpose of taking instruction from the COMPANY OFFSHORE REPRESENTATIVE as
provided in Article 4.3 of this CONTRACT, the CONTRACTOR OIM is hereby
nominated as a deputy to the CONTRACTOR REPRESENTATIVE.

 

5.5                                 Only
the CONTRACTOR REPRESENTATIVE is authorized to receive on behalf of CONTRACTOR,
NOTIFICATIONS of COMPANY made under the provisions of this CONTRACT, and
NOTIFICATION to the CONTRACTOR REPRESENTATIVE shall be deemed to be
NOTIFICATION to the CONTRACTOR.

 

5.6                                 While
the WORK is being performed, the CONTRACTOR REPRESENTATIVE shall be readily
available to discharge his responsibilities in accordance with this CONTRACT.

 

5.7                                 The
CONTRACTOR REPRESENTATIVE shall not be replaced without the prior agreement of
COMPANY to the choice of a successor.

 

ARTICLE 6    - PERFORMANCE OF THE WORK

 

6.1                                 CONTRACTOR
shall perform the WORK strictly in accordance with this CONTRACT and shall
comply with and adhere strictly to COMPANY’s instructions and directions on any
matter concerning the WORK.  The
foregoing shall not however be construed to exclude CONTRACTOR’s duty to exercise
care and diligence.

 

12

 

6.2                                 CONTRACTOR
shall employ on the WORK only competent and skilled personnel, qualified and
experienced as laid down in the International and P.R. C.  Rules, Codes and Standards, as  applicable.

 

6.3                                 CONTRACTOR
grants COMPANY a full license for the use of the FPSO SYSTEM and all EQUIPMENT
and supplies provided by the CONTRACTOR for the performance of this CONTRACT.

 

6.4                                 Save
where conditions arise that may endanger the safety of the FPSO SYSTEM at the
OFFSHORE SITE, any designated safety zones, and/or the FIELD FACILITIES,
CONTRACTOR shall comply with and adhere to COMPANY’s reasonable instructions
and directions on all matters whether mentioned in this CONTRACT or not,
concerning the WORK.

 

6.5                                 CONTRACTOR
shall provide, maintain and operate the FPSO SYSTEM fully equipped, manned and
provisioned, and shall ensure that the FPSO SYSTEM and its EQUIPMENT, and any
facilities and services used for the WORK shall be fit for their intended
purpose as set forth in this Contract. CONTRACTOR shall with all due care and
diligence, execute the WORK and perform all of its obligations under this
CONTRACT.

 

6.6                                 CONTRACTOR
shall ensure that the WORK and design, facilities, services, and EQUIPMENT (including
those items for which there is no detailed specification in this CONTRACT) used
for or incorporated into the WORK shall be fit for their intended purpose and
of good quality and workmanship.

 

6.7                                 In
the performance of the WORK, CONTRACTOR shall not materially deviate from the
methods, plans, procedures, standards and the like set out in the Project
Execution Plan approved by COMPANY, without the prior Acceptance  of the COMPANY.

 

6.8                                 Prior
to UTILIZATION, CONTRACTOR shall carry out all and any maintenance, repair,
refurbishment, modification or improvement necessary to ensure that the FPSO
SYSTEM achieves the performances required under this CONTRACT. If any such
maintenance, repair, modification or improvement is not consistent with the
requirements of this CONTRACT, COMPANY will not issue the PERFORMANCE
CERTIFICATE.

 

6.9                                 During
UTILIZATION, CONTRACTOR shall carry out all and any maintenance, repair,
refurbishment, modification or improvement necessary to ensure that the FPSO
SYSTEM maintains the performance required under this CONTRACT. If such work
requires that production is temporarily reduced or shut down then such work
shall be subject to the consent of COMPANY, unless such failure to immediately
perform such work would put persons or property at unreasonable risk of injury
or damage, as the case may be. If CONTRACTOR fails to commence and thereafter
carry out such maintenance, repair, modification or improvement in a prompt and
diligent manner then COMPANY shall have the right to

 

13

 

effect such
maintenance, repair, modification or improvement and the costs thereof shall be
recoverable from CONTRACTOR.

 

6.10                           CONTRACTOR shall provide, store, and
maintain a readily available stock of maintenance and repair parts and
operating supplies sufficient to ensure the continued operation of the FPSO
VESSEL.

 

6.11                           CONTRACTOR shall conduct inspections of
such nature and frequency as to ensure that the FPSO VESSEL is in good
condition and shall specifically inspect each system in accordance with the
routine maintenance requirement.

 

6.12                           CONTRACTOR will make its best effort to
minimize the FPSO VESSEL’s downtime maintenance.  COMPANY shall allow, without deduction from the DAY RATE, a total
of 3% downtime, calculated monthly during the UTILIZATION PERIOD (“Downtime
Time”).

 

6.13                           During any period other than Downtime
Time when the FPSO SYSTEM is unable to receive, process and offload WELL FLUIDS
at a rate of at least the rated capacity for each process train or of the
offloading system, the DAYRATE as set forth herein will be reduced as set forth
in Exhibit II, Schedule of Compensation.

 

6.14                           The
FPSO SYSTEM shall remain at the OFFSHORE SITE for the full duration of the
UTILIZATION PERIOD without disconnection unless such disconnection is otherwise
permitted by the terms of this CONTRACT.

 

6.15                           CONTRACTOR
shall be responsible for the timely provision of all matters referred to in
this Article including the timely ordering and delivery of all materials
and EQUIPMENT to be provided by CONTRACTOR and where provided for elsewhere in
this CONTRACT for the timely call off of COMPANY supplied materials, EQUIPMENT
and services in order to ensure that performance and completion of the WORK is
not delayed or impeded.

 

6.16                           CONTRACTOR
shall be responsible at all times for scheduling, progress reporting,
forecasting and independently controlling the progress of its WORK to achieve
performance and completion in accordance with the PROJECT SCHEDULE. CONTRACTOR
shall respond promptly and shall accurately furnish to COMPANY, information
about the WORK as requested.

 

ARTICLE    7
- RESPONSIBILITY FOR MATERIALS AND EQUIPMENT PROVIDED BY COMPANY

 

7.1                                 CONTRACTOR
shall be responsible for receiving, unloading, handling, storing and transporting
such items of material and equipment as are delivered by COMPANY to the
CONTRACTOR at the WORK SITE.

 

14

 

7.2                                 CONTRACTOR
shall be given due NOTIFICATION of the expected arrival of COMPANY supplied
materials and equipment referred to in Article 7.1 above.

 

7.3                                 CONTRACTOR
shall be responsible for providing suitable storage on the FPSO VESSEL for
materials and equipment provided by COMPANY.

 

7.4                                 COMPANY
warrants that the Buoy Turret Mooring as supplied by COMPANY shall in all
material respects be substantially similar to the  one described in as built drawings and that the buoy structural
connector shall be substantially similar to the spare structural connector that
has been made available to CONTRACTOR at COMPANY’s warehouse at the Chiwan
supply base in the  People’s Republic of
China.

 

ARTICLE 8    -
CONTRACTOR’S OBLIGATIONS

 

8.1                                 Before
commencing any hazardous work operations, CONTRACTOR shall inspect the WORK
SITE and EQUIPMENT involved to ensure that the WORK will be performed under
safe conditions acceptable to COMPANY. 
Furthermore, CONTRACTOR shall obtain “Work Permits” or “Certificates”
prior to initiating any hazardous work.

 

8.2                                 CONTRACTOR
and CONTRACTOR’s agents, employees, representatives and SUB-CONTRACTORS who are
engaged in the performance of the WORK shall comply with, abide by and enforce
at its sole expense, any rules, regulations and standards on safety, fire
protection and security regulations as set forth by the relevant health and safety
documentation defined in Article 39 - “Health and Safety”.

 

8.3                                 CONTRACTOR
shall, at its own cost, make provision for watching, lighting and guarding the
WORK and all associated materials and EQUIPMENT and provide all such marks,
signals and other appliances as may be required by the nature of any part of
the WORK, as required by the COMPANY REPRESENTATIVE, or by any duly constituted
authority for the protection of the WORK, or for the safety and convenience of
the public and others, or for the proper identification of floating WORK or for
the mooring or disposition of floating craft.

 

8.4                                 As
the WORK progresses, CONTRACTOR shall continually review, revise and control
the WORK PLAN to meet the Start-Up and First Oil date of October 1, 2004,
and shall advise COMPANY of the status of the WORK from time to time as
specified in detail in EXHIBIT III – “Administration Procedures.”

 

8.5                                 Prior
to the beginning of the UTILIZATION PERIOD, CONTRACTOR shall ensure at its own
costs and efforts that all the WORK, materials and tools at the WORK SITE
(regardless of who owns or supplies them) are protected against all weather
elements that may be detrimental to the eventual performance of the FPSO SYSTEM
if no such protection is provided. 
During the UTILIZATION PERIOD, CONTRACTOR shall ensure

 

15

 

at its own costs
and efforts that all the  materials and
tools at the WORK SITE (regardless of who owns or supplies them) are protected
against all weather elements that may be detrimental to the eventual
performance of the FPSO SYSTEM.

 

8.6                                 CONTRACTOR
shall, as to its employees, agents, invitees and those of any of its
SUBCONTRACTORS, and as to CONTRACTOR’s work area at the WORK SITE, maintain in
a neat, clean and safe state, the WORK SITE and all CONTRACTOR’s machinery,
EQUIPMENT, facilities, supplies, construction and operations thereon, and all
other things in any way associated with or utilized in CONTRACTOR’s WORK. At
the commencement of the WORK and as often thereafter as may be necessary
CONTRACTOR shall inspect its dangerous conditions and operations.  CONTRACTOR shall then warn its employees,
agents and invitees and those of any of its SUBCONTRACTORS and COMPANY
REPRESENTATIVE of the existence of such operations, dangers, defects or
conditions and exercise reasonable diligence to correct the same.

 

8.7                                 CONTRACTOR
shall develop suitable rules, regulations, practices and requirements for the
execution of the WORK. After Acceptance by the COMPANY, CONTRACTOR shall ensure
that all its employees, agents and SUBCONTRACTORS comply with the agreed rules,
regulations, practices and requirements in the of the WORK.  COMPANY to provide copies of COMPANY’s key
available rules, regulations, practices and requirements relevant to the CONTRACT
for information only.

 

8.8                                 In
the performance of the WORK, no persons other than the authorized employees or
agents of the CONTRACTOR AND SUBCONTRACTORS and the employees or agents of
CO-VENTURERS or the COMPANY shall be allowed in the WORK SITE without the
written consent of both PARTIES.

 

8.9                                 CONTRACTOR
shall be fully responsible for obtaining the necessary certificates, document
approvals, and other relevant approvals from the Classification Society, Flag
State and/or Chinese national or governmental authorities, all as required to
permit the FPSO SYSTEM to remain insured, in Class and Flagged for the full
duration of UTILIZATION, and to be in full compliance with all statutory and
national laws and regulations relevant for an offshore terminal transiting and
operating in People’s Republic of China waters.

 

ARTICLE 9    -
COMPANY’S OBLIGATIONS

 

9.1                                 COMPANY
shall provide all necessary assistance to CONTRACTOR in securing necessary
permits or data from People’s Republic of China governmental authorities and/or
agencies when required by this CONTRACT. Failure by COMPANY to provide such
assistance shall not relieve the CONTRACTOR from its own responsibilities.

 

16

 

9.2                                 COMPANY
shall provide such information of the FIELD FACILITIES, the geological and
reservoir data and the Buoy Turret Mooring as is necessary for CONTRACTOR to
perform the WORK under this CONTRACT. 
It is recognized that it is not reasonably possible for CONTRACTOR to
satisfy itself as to the accuracy of much of the information described above,
and as to such information not reasonably capable of independent verification,
CONTRACTOR shall be entitled to rely upon the accuracy of the information
provided.

 

9.3                                 Any
documents that require the Acceptance of COMPANY pursuant to this CONTRACT,
shall be Accepted or commented upon by COMPANY within two (2) weeks of receipt
thereof, failing which the documents shall be deemed Accepted. This
Article shall not apply to Change Orders, requests for additional compensation
or extensions, or CONTRACT amendments..

 

9.4                                 COMPANY
shall provide equipment and materials (all as detailed in Exhibit VII – Company
and Contractor Supplied Material and Equipment) timely and promptly according
to this CONTRACT.

 

ARTICLE 10    -
RESPONSIBILITY OF CONTRACTOR TO INFORM ITSELF

 

10.1                           CONTRACTOR
agrees that CONTRACTOR has satisfied itself as to the nature of the WORK,
including but not limited to:

 

(a)                                  the
supervision and all other necessary services, labor and materials, plant, facilities,
tools, EQUIPMENT,
consumables and supplies required for the performance of WORK;

 

(b)                                 the
completeness and sufficiency of the compensation stated in EXHIBIT II-
“Compensation Schedule”;

 

(c)                                  general
and local conditions especially climatic, 
weather conditions, sub-sea terrain and bearing values when applicable;

 

(d)                                 all
other matters which could affect progress or performance of the WORK.

 

10.2                           Any
failure by CONTRACTOR to take account of such matters which affect the WORK
shall not relieve CONTRACTOR from its obligations under this CONTRACT.

 

10.3                           Notwithstanding
the provisions of Article 11 - “Responsibility of CONTRACTOR to Inform
COMPANY”, COMPANY shall only be liable for any inaccuracy or insufficiency in
information used by CONTRACTOR which affects the performance of the WORK:

 

(a)                                  to
the extent that performance of the WORK is adversely affected by information
used by CONTRACTOR which was supplied by COMPANY under this CONTRACT; and

 

(b)                                 for
items described in Article 9.2 
that could not reasonably  be
checked by CONTRACTOR

 

17

 

10.4                           CONTRACTOR
assumes total responsibility for all WORK performed by CONTRACTOR, including
WORK that is based upon data and information not contained in this CONTRACT, or
any conclusions, interpretations or work by CONTRACTOR in applying such data
and information to the requirements contained in this CONTRACT.

 

ARTICLE 11    -
RESPONSIBILITY OF CONTRACTOR TO INFORM COMPANY

 

11.1                           CONTRACTOR
shall promptly review the TECHNICAL INFORMATION provided by COMPANY and shall
immediately bring to the attention of COMPANY all things which, in CONTRACTOR’s
opinion, appear to be deficiencies, omissions, contradictions or ambiguities in
such TECHNICAL INFORMATION, or conflicts with applicable law. COMPANY shall
review these items and issue the necessary instructions before the CONTRACTOR
proceeds with any part of the WORK so affected.

 

11.2                           CONTRACTOR
shall NOTIFY COMPANY immediately of any impending or actual stoppages of work,
industrial disputes or other matters affecting or likely to affect the
performance of this CONTRACT.

 

11.3                           Before
the commencement of the WORK, CONTRACTOR shall provide the COMPANY with details
of its emergency medical coverage and service arrangements.

 

ARTICLE 12    -
SUBCONTRACTS AND ASSIGNMENT

 

12.1                           Except
as provided herein, CONTRACTOR shall not subcontract the WORK, or any part
thereof, without prior Acceptance of COMPANY. If such subcontract is for a
price less than US$50,000, approval by COMPANY is not required.  Selection of SUBCONTRACTORS related to the
WORK or any part thereof shall require the Approval of COMPANY prior to award
of each SUBCONTRACT unless the prospective SUBCONTRACTOR is listed on the
Approved Subcontractors List.

 

12.2                           CONTRACTOR
shall ensure that the rights of COMPANY and the requirements in this CONTRACT
regarding SUBCONTRACTORS are effectively provided for in any SUBCONTRACT
document.

 

12.3                           Where a
SUBCONTRACT is provided for in this CONTRACT or where CONTRACTOR wishes to
enter into a SUBCONTRACT, then before CONTRACTOR enters into any such
SUBCONTRACT, COMPANY shall be given an adequate opportunity to review the
choice of SUBCONTRACTOR, the part of the WORK which shall be covered under the
SUBCONTRACT, any other details the COMPANY shall request or specify and,
insofar as COMPANY is required to reimburse to CONTRACTOR the amounts paid to
the SUBCONTRACTOR for the cost of the SUBCONTRACT, CONTRACTOR shall not enter
into the proposed SUBCONTRACT until the requirements of this Article have
been met.

 

18

 

12.4                           No
SUBCONTRACT shall bind or purport to bind COMPANY, and each SUBCONTRACT shall
provide for its immediate termination in the event of termination of all or a
relevant part of the WORK or suspension in the event of suspension of all or a
relevant part of the WORK. Each SUBCONTRACT shall provide for CONTRACTOR’s
right of assignment of the SUBCONTRACT to COMPANY in the event that COMPANY
terminates the WORK.

 

12.5                           COMPANY
shall have the right to disapprove, for reasonable cause, any SUBCONTRACTOR,
supplier, vendor, or source of supply selected by CONTRACTOR.

 

12.6                           CONTRACTOR
shall be fully responsible for any acts, defaults and omissions of any
SUBCONTRACTOR, and persons either directly or indirectly employed by
SUBCONTRACTORS, to the same extent as it is for the acts and omissions of
persons directly or indirectly employed by CONTRACTOR.

 

12.7                           CONTRACTOR
shall not be entitled to any remuneration, commission, discounts or any other
form of allowance on any SUBCONTRACT unless provided for specifically under the
provisions of this CONTRACT except insofar as such allowance has already been
identified within the CONTRACT PRICE.

 

12.8                           CONTRACTOR
shall not assign this CONTRACT, or any part thereof, without prior Approval of
COMPANY.  Any attempt by CONTRACTOR to
assign this CONTRACT without COMPANY’s prior Approval is void. However,
CONTRACTOR shall be entitled to assign this CONTRACT to any of its financiers.
Approval to such assignment shall not be unreasonably withheld.

 

12.9                           Either
Party may assign this CONTRACT to its AFFILIATES , including all rights and
obligations hereunder, at any time, without approval by the other PARTY, but
after giving prior NOTIFICATION, provided that the assignment will not result
in an impairment of creditworthiness beyond that level which existed prior to
the assignment, after taking into account parent company guarantees and other
forms of financial assurance. 
Additionally, as a condition precedent to the assignment, letters of
quiet enjoyment must be provided by assignor in a form reasonably satisfactory
to the non-assigning PARTY from any creditors of the assignee that might assert
a claim to the FPSO SYSTEM after the assignment.

 

12.10                     Approvals
granted pursuant to this Article shall not release or relieve CONTRACTOR
of any of its obligations under this CONTRACT, or create any contractual
relationship between any SUBCONTRACTOR and COMPANY.

 

19

 

ARTICLE 13    -
PERSONNEL OF CONTRACTOR AND SUBCONTRACTORS

 

13.1                           CONTRACTOR
warrants that, over the duration of the WORK, it shall continuously provide
properly qualified and experienced personnel to perform the WORK and further
warrants that the offshore personnel nominated in EXHIBIT IV - “CONTRACTOR
Organization and Project Team Key Personnel” are sufficient in number and type
for the safe operation of the FPSO SYSTEM.

 

13.2                           KEY
PERSONNEL, as defined in EXHIBIT IV - “CONTRACTOR Organization and Project Team
Key Personnel”; shall not be replaced without the prior agreement of COMPANY of
a suitable successor. In order to ensure that continuity of the WORK is
maintained, any successor shall work alongside the person who is to be replaced
for a reasonable handover period, at no cost to COMPANY.

 

13.3                           CONTRACTOR
shall ensure that KEY PERSONNEL and supervisory personnel of CONTRACTOR and
SUBCONTRACTORS shall read, write and speak fluent English.

 

13.4                           CONTRACTOR
shall make its own arrangements for the engagement of personnel, local or
otherwise, and save in so far as this CONTRACT otherwise provides, for their
transport, accommodation, maintenance, payment, board and lodging.

 

13.5                           CONTRACTOR
shall be as responsible for any WORK performed by any agency staff as if the
WORK was performed by the salaried employees of CONTRACTOR. For the purposes of
this CONTRACT, agency staff of CONTRACTOR shall be deemed to be employees of
CONTRACTOR and the responsibilities, indemnities and insurance obligations of
CONTRACTOR shall apply on this basis.

 

13.6                           COMPANY
may review the arrangements for the engagement of agency staff to ensure that
these provisions are being complied with.

 

13.7                           COMPANY
shall be entitled, without prejudice to any other rights or remedies available
to COMPANY under this CONTRACT or otherwise in law, to require CONTRACTOR to
remove from the WORK, any person who, in the opinion of COMPANY, is
incompetent, misconducts himself, is negligent in the performance of his
duties, or is otherwise considered to be detrimental to the project, and in
such event shall not be again employed upon the WORK without the written
permission of COMPANY. CONTRACTOR shall forthwith replace, at CONTRACTOR’s sole
expense, any such discharged person with a suitably qualified and experienced
person satisfactory to COMPANY.

 

13.8                           CONTRACTOR
shall ensure that all employees of CONTRACTOR and any SUBCONTRACTOR engaged in
the performance of the WORK comply with applicable immigration laws and where
required are in possession of a valid work permit for the duration of their
contribution to the WORK. Details of such work permits shall be made available
for COMPANY review for the duration of the WORK

 

20

 

13.9                           Any
other work by CONTRACTOR shall not affect its performance under the CONTRACT

 

ARTICLE 14 -
ACCESS TO WORK SITE

 

14.1                           Each
PARTY shall permit free access to the WORK SITE to the other Party and to any
persons authorized by them including the employees and representatives of other
contractors employed by COMPANY. CONTRACTOR shall cooperate fully with and
afford all reasonable facilities and make available any specifications,
drawings, design data, vendor data, operations and maintenance data and other
technical information to such persons as may from time to time be reasonably
requested by COMPANY.

 

14.2                           Not
later than 00:00 hours on September 25, 2004 and continuing thereafter as
needed, COMPANY shall permit CONTRACTOR free and unrestricted access to the
offshore WORK SITE to allow CONTRACTOR to start and complete INSTALLATION.

 

ARTICLE 15  INSTALLATION

 

15.1                           CONTRACTOR
shall complete INSTALLATION by September 30, 2004 in accordance with
Exhibit I, “Project Schedule”.

 

15.2                           The
CONTRACTOR REPRESENTATIVE shall be responsible for coordinating with the
COMPANY REPRESENTATIVE in the event that INSTALLATION of the FPSO SYSTEM is
carried out concurrently with COMPANY’s activities on the FIELD FACILITIES, and
for connecting the FPSO SYSTEM to the FIELD FACILITIES.

 

15.3                           If
COMPANY identifies deficiencies, omissions or any other deviation from the
requirements of this CONTRACT, CONTRACTOR shall immediately remedy same, as
directed by COMPANY, all at CONTRACTOR’s expense. .

 

ARTICLE 16 -
PERFORMANCE TEST, UTILIZATION,  AND
DEMOBILIZATION

 

16.1                           PERFORMANCE
TEST

 

(a)                                  The
CONTRACTOR OIM shall communicate with the COMPANY REPRESENTATIVE and the
COMPANY OFFSHORE REPRESENTATIVE to coordinate flowing of WELL FLUIDS from the
FIELD FACILITIES in order to allow CONTRACTOR to start up the FPSO SYSTEM.

 

(b)                                 When
CONTRACTOR considers that the INSTALLATION has been satisfactorily performed,
CONTRACTOR shall notify COMPANY whereupon 
the PERFORMANCE TEST will commence. For the duration of the PERFORMANCE
TEST, COMPANY will flow WELL

 

21

 

FLUIDS
from the FIELD FACILITIES to the FPSO SYSTEM in accordance with the test
procedure defined in EXHIBIT VIII - “Quality Assurance, Quality Control, Test
and Inspection Requirements”.   The
PERFORMANCE TEST will be complete when all aspects of the test described in
Exhibit VIII and the first offloading of crude oil to an export tanker have
been completed.  Upon mutual agreement
of the PARTIES, selected portions of the PERFORMANCE TEST may be conducted
prior to INSTALLATION.

 

(c)                                  Any
failure of the FPSO SYSTEM as described in the test procedure shall invalidate
the PERFORMANCE TEST and the test shall be repeated in its entirety until
satisfactorily completed.

 

(d)                                 When
COMPANY considers that the PERFORMANCE TEST has been satisfactorily completed
in accordance with this CONTRACT, COMPANY shall issue the PERFORMANCE
CERTIFICATE on the basis of the criteria defined in EXHIBIT III -
“Administration Procedures”.

 

(e)                                  The
issue of the PERFORMANCE CERTIFICATE by COMPANY shall not relieve CONTRACTOR
from any obligations of this CONTRACT or at law.

 

16.2                           DEMOBILIZATION

 

(a)                                  No
later than 100 days after the commencement of the UTILIZATION PERIOD, COMPANY
will provide CONTRACTOR with a thirty (30) day window within which the
DEMOBILIZATION DATE will occur.  No
later than 130 days after the commencement of the UTILIZATION PERIOD, COMPANY
will provide CONTRACTOR with a fourteen (14) day window within which the
DEMOBILIZATION DATE will occur.  Not
later than 150 days after the commencement of the UTILIZATION PERIOD, COMPANY
will provide CONTRACTOR with a three (3) day window within which the
DEMOBILIZATION DATE will occur.  Not
later than 160 days after the commencement of the UTILIZATION PERIOD, COMPANY
will nominate the DEMOBILIZATION DATE.

 

(b)                                The
DEMOBILIZATION DATE shall in no event be later than 190 days after the
commencement of the UTILIZATION  PERIOD.

 

(c)                                 COMPANY
SHALL unload all crude oil and processed fluids from the FPSO SYSTEM prior to
the DEMOBILIZATION DATE, leaving only heels of crude oil and processed fluids
that are not unloaded during normal operations.  As part of DEMOBILIZATION, CONTRACTOR  will properly dispose of all such heels and residue in a lawful
and safe manner.

 

(d)                                 The
UTILIZATION PERIOD shall terminate at 2359 hours on the day before the  DEMOBILIZATION DATE.

 

22

 

(e)                                  Within
five (5) days from the beginning of the DEMOBILIZATION DATE, CONTRACTOR will
leave the FIELD FACILITIES  in the same
condition as they existed prior to INSTALLATION.

 

ARTICLE 17 -
INSPECTION AND TESTING

 

17.1                           CONTRACTOR
shall be responsible for carrying out all inspection and testing of the FPSO
SYSTEM as required by law. In addition, CONTRACTOR shall perform all inspection
and testing as specified in EXHIBIT VIII - “Quality Assurance, Quality Control,
Test and Inspection Requirements”, or to a greater extent if it deems
necessary, independent of that provided by COMPANY, pursuant to the following
Articles, to discover any deviations from this CONTRACT or any defective
workmanship, materials and/or EQUIPMENT, in time to avoid delay in the progress
of the WORK.

 

17.2                           CONTRACTOR
shall be responsible for ensuring that all necessary inspections and surveys of
the FPSO SYSTEM by the Classification Society and Certifying Authority are carried
out and duly recorded.

 

17.3                           CONTRACTOR
shall keep COMPANY and/or its authorized representatives informed of receipt of
important SUBCONTRACTED items, work schedule and tests (including tests on
SUBCONTRACTED items) to be performed so as to enable COMPANY and/or its
authorized representatives to attend these tests or inspections.

 

17.4                           COMPANY
and/or its authorized representatives shall have the right, but not the
obligation, to inspect all workmanship, and EQUIPMENT, while same are in
process of fabrication, erection, construction, installation, and test.  COMPANY can reject any or all of the
workmanship, and EQUIPMENT if found not to be in accordance with this CONTRACT.
Any inspection by COMPANY and/or its authorized representatives shall in no way
alter or diminish CONTRACTOR’S responsibilities, obligations and liabilities
under this CONTRACT.

 

17.5                           If
COMPANY determines that any or all of the workmanship and EQUIPMENT of the FPSO
SYSTEM are not in accordance with this CONTRACT, CONTRACTOR shall immediately
repair or replace the same, all at CONTRACTOR’s expense as directed by COMPANY
and/or its authorized representatives, and shall carry out such further
inspections or tests on other similar parts of the WORK as COMPANY may require
to ensure that there are no similar parts of the WORK that fail to conform with
this CONTRACT. The aforesaid shall also apply in respect of the WORK carried
out, and/or EQUIPMENT supplied by SUBCONTRACTORS.

 

17.6                           In no
case may CONTRACTOR use the existence of such inspection or non-exercise of
COMPANY’s rights of inspection, as granted in this Article,

 

23

 

to alter or
diminish the responsibilities, obligations and liabilities of CONTRACTOR to
deliver the FPSO SYSTEM in conformity with this CONTRACT.

 

17.7                           If this
CONTRACT or COMPANY’s instructions require any inspection or testing of the
WORK to be witnessed by COMPANY and/or its authorized representatives,
CONTRACTOR shall give COMPANY adequate notice of its readiness for such
inspection or testing, and COMPANY and/or its authorized representatives will
then perform such inspection or witness such test.  If any part of the WORK is closed or covered before the required
inspection or witnessing has been performed by COMPANY, or otherwise without
agreement by COMPANY, the WORK shall be reopened or uncovered for inspection or
witnessing and re-closed or re-covered, all at CONTRACTOR’s expense as directed
by COMPANY and/or its authorized representatives.

 

17.8                           COMPANY
and/or its authorized representatives shall have the right, but not the
obligation, to inspect all EQUIPMENT at any time during the progress of the
WORK.  If any EQUIPMENT is, in the
opinion of COMPANY and/or its authorized representatives, unsafe or not
suitable for doing the WORK, CONTRACTOR shall repair or replace it with safe
and suitable EQUIPMENT at CONTRACTOR’S expense.  The foregoing shall not relieve CONTRACTOR of its responsibility
for safety in relation to EQUIPMENT. 
COMPANY will be responsible for the decision of its personnel and
authorized representatives.

 

17.9                           CONTRACTOR
shall provide COMPANY at no cost, all reasonable facilities, including space,
supporting services, utilities, test specimens, certified documents or other
means for ascertaining that the workmanship, materials and EQUIPMENT used are
in accordance with this CONTRACT.

 

17.10                     In the event
that COMPANY requires testing and inspection in addition to requirements
accepted by COMPANY in accordance with the CONTRACT, COMPANY shall reimburse
CONTRACTOR for the cost of these additional tests and/or inspections, and it is
agreed that schedule impacts caused by such testing and inspections shall
be for the account of COMPANY.

 

ARTICLE 18 -
DEFAULT OF CONTRACTOR

 

18.1                           The
occurrence of any of the following events shall be deemed a default under this
CONTRACT:

 

a)                                      Any
attempted transfer or assignment by CONTRACTOR of its rights or duties under
this CONTRACT without the prior Approval of COMPANY; or

 

b)                                     The
making by CONTRACTOR of any assignment for the benefits of creditors, the
filing by or against CONTRACTOR of a petition in bankruptcy or for corporate
reorganization, or the appointment of a receiver or trustee for CONTRACTOR or
the properties of CONTRACTOR; or

 

24

 

c)                                      The
failure of CONTRACTOR to satisfy within thirty (30) days of its entry any final
judgment upon which execution is possible, or the attachment of any general
lien against all the real or personal property of CONTRACTOR and the continued
existence thereof for more than thirty (30) days; or

 

d)                                     If
the CONTRACTOR has, in the reasonable opinion of COMPANY, failed to in all
material respects (pertaining to the root of the CONTRACT) to conduct the WORK,
or part thereof in a diligent, skillful and professional manner and in
accordance with good and modern engineering and shipbuilding practice as
required herein, or failed to adhere to any of its duties and obligations under
this CONTRACT.

 

18.2                           If
CONTRACTOR is in default, COMPANY shall NOTIFY CONTRACTOR of such default and
shall require CONTRACTOR to take appropriate corrective action without
prejudicing any of COMPANY’s rights hereunder, or in law or equity. If
CONTRACTOR, on receipt of such notification, does not immediately commence and
thereafter continuously proceed with action satisfactory to COMPANY to remedy
such default, COMPANY may suspend all or part of the WORK, or terminate all or
part of the WORK.

 

18.3                           Notwithstanding
the foregoing, in the event of default by CONTRACTOR, COMPANY shall have the
option, in addition to its rights under Article 20.2, to enforce the
Parent Company Guarantee, if applicable.

 

ARTICLE 19 -
SUSPENSION OF WORK

 

19.1                           COMPANY
may, at any time, suspend all or any part of, the remaining WORK for any reason
whatsoever, by NOTIFYING CONTRACTOR, specifying the part of the WORK to be
suspended and the effective date of suspension.  CONTRACTOR shall cease performance of said suspended part of the
WORK on the effective date of suspension. CONTRACTOR shall continue to perform
the unsuspended part of the WORK, and shall take all action necessary to
maintain and safeguard the suspended WORK.

 

19.2                           CONTRACTOR
shall comply with COMPANY’s instructions with respect to all activities in
connection with any suspension of the WORK, or part thereof.  Such compliance will be a factor in
determining reasonableness of costs incurred. 
Compensation for suspension shall be limited to the amounts set forth in
EXHIBIT II – COMPENSATION SCHEDULE as a fixed Suspension Rate, making a
distinction in the periods before and 
during the UTILIZATION PERIOD. CONTRACTOR will not be compensated for
expenses that resulted from suspension, or cancellation of WORK solely by
default of CONTRACTOR, such as safety reasons for which CONTRACTOR is held
responsible.

 

25

 

19.3                           Neither
COMPANY nor CONTRACTOR shall be liable to the other for loss of anticipated
profits sustained on account of any suspension of the WORK or part thereof.

 

19.4                           COMPANY
may, at any time, authorize resumption of all or any part of the suspended
WORK, by giving notice to CONTRACTOR specifying the WORK to be resumed and the
effective date of withdrawal of suspension. 
The WORK shall be resumed by CONTRACTOR within ten (10) days after
receipt of such notice, where applicable, and an equitable adjustment shall be
made to the CONTRACT  PRICE or other
obligations.

 

19.5                           In the
event that suspension takes place prior to UTILIZATION, COMPANY may extend the
beginning date of the UTILIZATION PERIOD and the Start Up Date by up to 30
days; provided, however, that no such extension shall extend the end of the
UTILIZATION PERIOD beyond 00:00 April 9, 2005.  Compensation for such suspension will be as provided in Exhibit
II, Compensation Schedule.

 

19.6                           In the
event that suspension takes place during UTILIZATION, reimbursement shall be on
the basis of the DAY RATE AS DEFINED IN Exhibit II – Compensation Schedule.

 

19.7                           In the
event that suspension arises due to sole default of CONTRACTOR or
SUBCONTRACTOR, no compensation shall be due to CONTRACTOR and no DAY RATE will
be payable for the duration of the suspension.

 

19.8                           The
invoice(s) issued subsequent to the suspension period shall be calculated
accordingly, allowing for each hour or part hour of suspension.

 

ARTICLE 20 -
TERMINATION OF WORK

 

20.1                           Termination
Without Cause:

 

a)                                      Notwithstanding
any other provisions to the contrary herein, and in addition to COMPANY’s right
either to suspend CONTRACTOR from all or any part of the WORK pursuant to
Article 19 - “Suspension of WORK”, COMPANY may, at any time, terminate
without cause for its own convenience, the WORK in whole, or in part, by giving
at least 90 days NOTIFICATION during UTLIZATION period to CONTRACTOR that
COMPANY intends to terminate the WORK, specifying the WORK to be terminated,
and the effective date of termination.

 

b)                                     Should
COMPANY terminate this CONTRACT or any portion of the WORK without cause,
CONTRACTOR shall stop performance of the WORK, or the terminated portion of
WORK, as the case may be, on the effective date of termination, but shall
continue to perform all un-terminated parts of the WORK.

 

26

 

(c)                                  COMPANY
shall compensate CONTRACTOR as  set
forth in Schedule II – Compensation Schedule in the event of
termination without cause of this CONTRACT.

 

20.2                           Termination
For Cause

 

(a)                                  COMPANY
shall have the right to terminate for cause, all or part of the WORK, for any,
some or all of the following reasons:

 

(i)                                     in
the event of wreckage, total loss or constructive total loss of the FPSO VESSEL
and/or FPSO MOORING;

 

(ii)                                  CONTRACTOR
becoming bankrupt or a winding-up order being made or (except for the purposes
of amalgamation or reconstruction) a resolution for voluntary winding-up passed
or a Provisional Liquidator, Liquidator, Receiver, Administrator or Manager of
its business or undertaking appointed or possession being taken by or on behalf
of the holders of any debenture secured by a floating charge of any property
comprised in or subject to the floating charge, or any equivalent act or thing
should be done or suffered under any applicable law;

 

(iii)                               in
the event that satisfactory completion of the PERFORMANCE TEST is not achieved
within thirty (30) days after the beginning of the UTILIZATION PERIOD  unless delayed in accordance with COMPANY
instructions or delayed for any cause outside the reasonable control  of 
CONTRACTOR, (including but not limited to: no unrestricted access to the
Field, unsafe installation weather, incorrect COMPANY data.

 

(iv)                              If
CONTRACTOR fails, or refuses, to remedy the defaults complained of in COMPANY’s
written notice given pursuant to Article 18.2, or If CONTRACTOR has
committed a substantial breach of this CONTRACT and fails to, upon notice given
by COMPANY, promptly commence remedying the breach and /or complete the remedy
with all diligence and dispatch.

 

(b)                                 Should
COMPANY terminate this CONTRACT or any portion of the WORK for cause,
CONTRACTOR shall stop performance of the WORK, or the terminated portion of
WORK, as the case may be, on the effective date of termination, but shall
continue to perform all un-terminated parts of the WORK.

 

(c)                                  In
the event that COMPANY terminates this CONTRACT for cause prior to the
UTILIZATION PERIOD, COMPANY shall have no further liability to CONTRACTOR
hereunder.

 

27

 

20.3                           CONTRACTOR
may terminate the WORK and/or the CONTRACT for cause if COMPANY fails, upon
written notice from CONTRACTOR to remedy a breach of its payment obligations
under the CONTRACT within seven (7) working days from such notice,  whereupon CONTRACTOR shall be entitled to
compensation  in accordance with  EXHIBIT II – SCHEDULE OF COMPENSATION.

 

20.4                           If
either CONTRACTOR or COMPANY terminates any part of the WORK in accordance with
the provisions herein, CONTRACTOR shall:

 

(a)                                  execute
and deliver to COMPANY all documents required by COMPANY with respect to said
part of the WORK.

 

(b)                                 cease
performance of the WORK or such part thereof as may be specified in the notice;

 

(c)                                  allow
COMPANY, or its nominee, full right of access to the FPSO SYSTEM and any other
parts of the WORK SITE in order to take over and/or remove all the COMPANY
personnel, materials, plant, EQUIPMENT and/or supplies (to the extent paid for
by COMPANY). CONTRACTOR shall provide all necessary assistance in offloading
such personnel, materials, plant, EQUIPMENT and/or supplies;

 

(d)                                 assign
to COMPANY, or its nominee, to the extent desired by COMPANY all the relevant
part of the rights, titles, liabilities and SUBCONTRACTS relating to the WORK
which the CONTRACTOR may have acquired or entered into;

 

(e)                                  remove
all the EQUIPMENT, materials and plant, other than that required under
sub-clause (c) above, of the CONTRACTOR from the immediate area in which the
WORK is being performed unless otherwise instructed by the COMPANY.

 

(f)                                    If
termination of the whole of the WORK occurs during UTILIZATION, DEMOBILIZE the
FPSO SYSTEM from the OFFSHORE SITE.

 

20.5                           For the
part of the WORK terminated, the applicable provisions of this CONTRACT shall
continue in full force and effect as to all the WORK performed prior to the
effective date of termination.  For the
remainder of the WORK this CONTRACT shall remain in full force and effect.

 

20.6                           If this
CONTRACT, or any portion of the WORK is suspended or terminated and if COMPANY
so requests, CONTRACTOR shall immediately make every reasonable effort to
procure cancellation of existing SUBCONTRACTS, purchase orders or other
obligations entered into by CONTRACTOR with SUBCONTRACTORS, suppliers, vendors
or others upon terms satisfactory to COMPANY.

 

20.7                           COMPANY
may direct CONTRACTOR to execute and deliver to COMPANY all documents related
to this CONTRACT and required by

 

28

 

COMPANY and to
take all steps necessary to fully vest in COMPANY the rights and benefits of
CONTRACTOR under existing SUBCONTRACTS or other obligations with
SUBCONTRACTORS, vendors, suppliers and others. In addition, CONTRACTOR shall do
whatever is necessary to preserve and protect the WORK already in progress, to
protect materials, drawings, documents, 
EQUIPMENT and supplies in transit or at the WORK SITES and to minimize
all costs to COMPANY and CONTRACTOR resulting from such termination.

 

20.8                           Neither
COMPANY nor CONTRACTOR shall be liable to the other for loss of anticipated
profits sustained on account of such termination.

 

20.9                           If, in
the performance of this CONTRACT, CONTRACTOR causes this CONTRACT to be
terminated, COMPANY shall have the right to enforce the Parent Company
Guarantee for recovery of any costs incurred by COMPANY as a result of
termination of this CONTRACT, and/or for completion of the WORK.

 

20.10                     The foregoing
provisions of this Article are without prejudice to any other rights and
remedies of either Party under this CONTRACT or at law.

 

20.11                     In the event
of termination under this Article, CONTRACTOR shall not be relieved of any
continuing obligations or liabilities under this CONTRACT or at law.

 

ARTICLE 21 -
FORCE MAJEURE

 

21.1                           For the
purposes of this CONTRACT, the events falling within the term “Force Majeure”
shall be limited to the following:

 

(a)                                  Riot,
war, invasion, act of foreign enemies, hostilities (whether war be declared or
not) acts of terrorism, civil war, rebellion, revolution, insurrection of
military or usurped power; or

 

(b)                                 Ionizing
radiation or contamination by radio-activity from any nuclear fuel or from any
nuclear waste from the combustion of nuclear fuel, radio-active toxic explosive
or other hazardous properties of any explosive nuclear assembly or nuclear
component thereof; or

 

(c)                                  Pressure
waves caused by aircraft or other aerial devices traveling at sonic or
supersonic speeds; or

 

(d)                                 Landslide,
lightning, flood, fire or other natural physical disaster or,

 

(e)                                  Strikes,
lock-outs, or other industrial disputes at national level, but excluding
strikes, lockouts or other industrial disputes or action solely amongst
employees of CONTRACTOR, SUBCONTRACTORS, vendors and suppliers; or

 

(f)                                    Maritime
disasters, shipwreck and perils to navigation; or

 

29

 

(g)                                 Changes
to any general or local statute ordinance decree or other law or any regulation
or by-law of any local or other duly constituted authority or the introduction
of any such statute ordinance decree law regulation or by-law; or

 

(h)                                 Quarantine,
public disorder, sabotage or similar events beyond the control of the PARTIES.

 

(i)                                     Weather,
sea and other environmental conditions that exceed the environmental design
criteria, including typhoons and named storms.

 

21.2                           However,
Force Majeure shall not include occurrences as follows:

 

a)                                      Late
delivery of materials caused by congestion at supplier’s plant or elsewhere, an
oversold condition of the market, inefficiencies, or similar occurrences; or

 

b)                                     Late
performance by CONTRACTOR and/or a SUBCONTRACTOR caused by unavailability of
EQUIPMENT, supervisors or labor, inefficiencies or similar occurrences; or

 

c)                                      Mechanical
breakdown of any item of CONTRACTOR’S or SUBCONTRACTOR’s EQUIPMENT, plant or
machinery; or

 

d)                                     Delays
due to weather, sea and other environmental conditions within the environmental
design criteria, unless during INSTALLATION and/or DEMOBILIZATION, such
conditions would cause an unsafe performance by CONTRACTOR; or

 

e)                                      Non-conformance
by SUBCONTRACTORS;

 

Unless the delay
arises out of a Force Majeure occurrence and is beyond both CONTRACTOR’s and
the SUBCONTRACTOR’s or supplier’s control and an alternate acceptable source of
services, EQUIPMENT, or material is unavailable.  Additionally, Force Majeure shall not include financial distress
of COMPANY, CONTRACTOR and/or any SUBCONTRACTOR.

 

21.3                           Where
any Force Majeure event renders impossible or unsafe or hinders or delays the
performance of any obligation, or the exercise of any right under this
CONTRACT, then the failure or omission of COMPANY or CONTRACTOR to perform such
obligation shall not be treated as failure or omission to comply with this
CONTRACT.

 

21.4                           Upon
the occurrence of any Force Majeure event the PARTY so affected in the
discharge of its obligation shall promptly give NOTICE of such event to the
other PARTY and, in any event, within seven (7) days.  The affected PARTY shall make every reasonable effort to remove
or remedy the cause of such Force Majeure or mitigate its effects as quickly as
may be possible. If such occurrence results in the delay or suspension of all
or part of the

 

30

 

WORK, the PARTIES
shall meet and determine the appropriate measures to be taken.

 

21.5                           Upon
cessation of any Force Majeure occurrence, CONTRACTOR shall prepare a revised
WORK PLAN to include for rescheduling the WORK so as to minimize the effects of
the delay and having made due allowance for any instruction to accelerate the
WORK, COMPANY shall authorize to adjust the Project Schedule in order to
take into account any remaining effects of such delay.

 

21.6                           No
adjustment to the CONTRACT PRICE shall be made in respect of a Force Majeure
occurrence.

 

21.7                           Any
delay or failure in performance by either PARTY hereto shall not give rise to
any claims for damages or loss of anticipated profits if, and to the extent,
such delay or failure is caused by Force Majeure other than CONTRACTOR being
entitled to a Force Majeure Rate in accordance with EXHIBIT II – COMPENSATION
SCHEDULE for the period that the Force Majeure event lasts.

 

ARTICLE 22 -
TAXES AND DUTIES

 

22.1                           CONTRACTOR
shall be responsible for and shall pay at its own expense, when due and
payable, all taxes, duties, fees or other governmental charges relating to the
WORK including, but not necessarily limited to:

 

(a)                                  All
sales, excise, storage, consumption, end-user taxes, licenses, permit and
registration fees, income, profit, excess profit, franchise, and personal
property taxes;

 

(b)                                 All
employment taxes and contributions imposed by law, or trade union contracts, or
regulations, with respect to, or measured by, the compensation (wages,
salaries, or other) paid to employees of CONTRACTOR including, without
limitation, taxes and contributions for unemployment compensation insurance,
old age benefits, welfare funds, pensions and annuities, and disability
insurance;

 

(c)                                  All
import licenses, duties, surtax, sales tax, and all other statutory imposts
(hereinafter referred to as “Customs duties”) on materials and EQUIPMENT
required for the FPSO SYSTEM, and construction tools, EQUIPMENT and vessels
used in accomplishing the WORK except for any Customs duties payable by COMPANY
pursuant to Article 22.3.

 

22.2                           CONTRACTOR
shall indemnify and hold COMPANY harmless from and against any and all claims
or liability for taxes, duties and surcharges of whatsoever nature for which
CONTRACTOR is responsible under this CONTRACT.

 

31

 

22.3                           COMPANY
shall reimburse CONTRACTOR for any payment of Customs duties that may be levied
on COMPANY furnished materials and EQUIPMENT by the relevant authorities at the
WORK SITE or other location outside the Peoples Republic of China provided that
CONTRACTOR has used its best efforts to minimize any cost due to the
application of such imposts by applying for and obtaining any exemption
applicable or has used reasonable diligence in resisting the application of
such imposts on CONTRACTOR’s performance of the WORK under this CONTRACT.

 

22.4                           CONTRACTOR
shall protect and indemnify COMPANY and hold COMPANY safe and harmless from any
and all claims or liability for income, excess profits, royalty and other taxes
assessed or levied by the Government of the Peoples Republic of China or by any
relevant authorities thereof or by the government of any other country against
CONTRACTOR or its SUBCONTRACTORS or against COMPANY for or on account of any
payment made to or earned by CONTRACTOR or its SUBCONTRACTORS hereunder.
Further, CONTRACTOR shall protect and hold COMPANY harmless from all taxes
assessed or levied against or on account of wages, salaries or other benefits
paid to or enjoyed by employees of CONTRACTOR or its SUBCONTRACTORS, and all
taxes assessed or levied against or on account of any property or EQUIPMENT of
CONTRACTOR or its SUBCONTRACTORS.

 

22.5                           COMPANY shall have
the right to withhold income, excess profit, royalty and other taxes from
payment due to CONTRACTOR under this CONTRACT, to the extent that such
withholdings may be required by the tax laws, rules or regulations of the
Peoples Republic of China, the Government of China or any relevant authorities
thereof, or by the government of any other country, and payment by COMPANY to
the respective governmental office of the amount of money so withheld will
relieve COMPANY from any further obligation to CONTRACTOR with respect to the
amount so withheld.  The Company shall
withhold any tax without gross-up and may furnish the Contractor with receipts
or other acceptable supporting documentation substantiating remittance of
withholding taxes to the appropriate tax authorities on behalf of the
Contractor.

 

22.6                           CONTRACTOR
shall indemnify and hold COMPANY safe and harmless from and against all claims,
demands and causes of action based on any actual or alleged failure by
CONTRACTOR or its SUBCONTRACTORS to make timely payment of any taxes or duties
for which they are liable or any actual or alleged failure by CONTRACTOR or its
SUBCONTRACTORS to comply with applicable reporting, return, or other procedural
requirements with respect to their payment. This indemnity shall include
without limitation all penalties, awards, and judgments; court and arbitration
costs; attorney’s fees; and other reasonable expenses associated with such claims,
demands, and causes of action.

 

22.7                           CONTRACTOR
shall give prompt notice to COMPANY of all matters pertaining to non-payment,
claim of immunity, or exemption from any taxes or duties.

 

32

 

ARTICLE 23 - AUDIT

 

23.1                           CONTRACTOR
shall maintain true and correct records pertaining to this CONTRACT and its
performance.  CONTRACTOR shall retain
such records for at least two years after completion of this CONTRACT.  COMPANY may audit such records at any
reasonable time during the CONTRACT and during the two years after its
completion. Agreed rate levels and lump sums shall not be subject to audit
right.

 

23.2                           Only if
CONTRACTOR has invoiced for items and/or services as directly reimbursable
costs, COMPANY or its authorized representative shall have reasonable access to
CONTRACTOR’s rate information that is in dispute to satisfy themselves that no
items and/or services that are supposed to be included in the DAY RATES of
CONTRACTOR are invoiced as directly reimbursable costs and that all items
and/or services that are supposed to be provided for in the DAY RATES of
CONTRACTOR are so provided. If any costs are in dispute and the CONTRACTOR
refuses to provide access, such costs shall be deemed to be included in the fixed
DAY RATES of CONTRACTOR and shall not be allowable as reimbursable costs.

 

23.3                           COMPANY’s
claims for omissions, corrections or errors in charges and credits for
COMPANY’s account and over-payments of amounts billed by CONTRACTOR and others
noted above may be presented at any time during the course of the WORK and
before expiration of twelve (12) months after the actual DEMOBILIZATION DATE,
or the date of termination of the WORK if earlier.  A written response to COMPANY’s claim for omissions, corrections or
errors in charges and credits for COMPANY’s account shall be made by CONTRACTOR
as soon as practicable, and in no event later than thirty (30) days from the
date of such claims.

 

23.4                           CONTRACTOR
shall ensure that the provisions of this Article are included in all
SUBCONTRACTS it may enter into with its SUBCONTRACTORS who will supply any of
the labour, EQUIPMENT, materials or services to be provided under this
CONTRACT.

 

ARTICLE 24 -
COMPENSATION

 

24.1                          For
the satisfactory performance of the WORK in accordance with this CONTRACT,
COMPANY shall pay CONTRACTOR the amounts detailed in EXHIBIT II – “Compensation
Schedule.”  Such compensation shall be
the full and complete compensation to CONTRACTOR for the WORK, including the
provision of all facilities and services referred to in EXHIBIT III –
“Administrative Procedures” unless otherwise stated in this CONTRACT, and
including the provision of all other overheads, taxes, duties, fees,
facilities, services and utility services required to support the performance
of the WORK, whether explicitly stated in the CONTRACT or implied in the Scope
of WORK.

 

33

 

24.2                           Except
where it is expressly provided that the COMPANY shall carry out an obligation
under this CONTRACT at its own cost, all things required to be supplied or
performed by the CONTRACTOR under this CONTRACT shall be deemed to be included
in the rates and prices set forth in EXHIBIT II - “Compensation Schedule”.

 

24.3                           Except
as expressly provided in this CONTRACT, the compensation as set forth in
Exhibit II “Compensation Schedule” shall be firm throughout the duration of
this CONTRACT and shall not be revised for any reason whatsoever, including,
but not be limited to, cost escalations or currency fluctuations.

 

24.4                           CONTRACTOR
shall invoice COMPANY in accordance with the procedures defined in
“Administrative Procedures” agreed by mutual parties.

 

ARTICLE 25          - INVOICING AND PAYMENT

 

25.1                           CONTRACTOR
shall, within fifteen (15) days of the EFFECTIVE DATE of this CONTRACT, provide
COMPANY with CONTRACTOR’s   foreign  bank account number, and the name and
address of the bank to which payments to the CONTRACTOR shall be made.

 

25.2                           CONTRACTOR shall
submit invoices to COMPANY at the time, formatted and provided with necessary
supporting documentation all as specified in EXHIBIT III - “Administration
Procedures”; All invoices shall be verified and signed by the CONTRACTOR
REPRESENTATIVE prior to submission. CONTRACTOR
shall provide an official invoice/receipt relating to such invoice, as required
and provided for under the applicable laws, regulations, implementing rules,
circulars, or other official pronouncements of the government of the People’s
Republic of China, as amended from time to time.  COMPANY reserves the right to refuse to remit payment for any
WORK where the invoice from CONTRACTOR is not issued on the proper official
documentary receipt (e.g., fa piao) until such time as the required form of
documentary receipt is rendered.

 

25.3                           Invoices
shall be prepared and submitted separately for lump sum work, DAY RATE WORK and
reimbursable items performed under the terms of this CONTRACT.

 

25.4                           Payments
of undisputed invoiced items shall be made by the last working day of the month
following the month in which services were rendered. If the last working day of
the month falls on a weekend, Bank Holiday or a Chinese public holiday, the
next working day shall be deemed to be the due date for payment. Payments made
by COMPANY shall not preclude the right of COMPANY to thereafter dispute any of
the items already invoiced.

 

34

 

25.5                           All
payments to CONTRACTOR by COMPANY under the terms of this CONTRACT shall be in
United States Dollars (US$).

 

25.6                           In the
event that COMPANY disputes any items on a particular invoice, COMPANY shall
withhold payment of the entire invoice until settlement of the dispute as set
forth in Exhibit III – “Administration Procedures.” If COMPANY disputes any
items on an invoice, COMPANY shall inform CONTRACTOR of the disputed items
within thirty (30) days of the receipt by COMPANY of that particular invoice.
COMPANY shall be entitled to withhold payment if any invoice does not include
the supporting documentation required by COMPANY, defined in EXHIBIT III –
“Administration Procedures”.

 

25.7                           If and
when the causes for withholding any such payment have been remedied by
CONTRACTOR and satisfactory evidence of such remedy has been presented to
COMPANY, the payment withheld shall be made forthwith by COMPANY. If CONTRACTOR
fails to take appropriate remedial action within thirty (30) days after
NOTIFICATION by COMPANY to CONTRACTOR, COMPANY may remedy the same, and may
deduct the cost thereof, including the expenses incurred by COMPANY, from any
amounts due or owing or which may become due or owing to CONTRACTOR hereunder.

 

25.8                           Upon
NOTIFICATION of any erroneous billings made by, or payments made to CONTRACTOR
by COMPANY, CONTRACTOR shall make appropriate adjustments therein and shall
promptly reimburse COMPANY any and all amounts of overpayment still outstanding
as reflected by said adjustments, notwithstanding the fact that a temporary
withholding or a correction of discrepancy may have been effected previously.

 

25.9                           Notwithstanding
the foregoing, COMPANY shall be entitled to deduct such amount from payments
due to CONTRACTOR. COMPANY may correct or recover any sum previously paid in
any or all of the following circumstances:

(a)                                  any
such sum was incorrect or was made by mistake of law or fact;

(b)                                 any
such sum was not properly payable to CONTRACTOR;

(c)                                  any
work in respect of which payment has been made that does not comply with the
terms of this CONTRACT.

 

25.10                     COMPANY will
pay CONTRACTOR any amounts of underpayment subject to verification thereof.

 

25.11                     If COMPANY at
any time incurs costs which, under the provisions of this CONTRACT, COMPANY is
entitled to recover from CONTRACTOR, COMPANY may invoice for such costs   which shall be a debt due from
CONTRACTOR to COMPANY and shall forthwith be settled by deduction, provided
always that the COMPANY may deduct the amount of such costs from any amounts
due, or that may become due to CONTRACTOR under this CONTRACT. CONTRACTOR shall
immediately pay to COMPANY any sums outstanding after such deduction.

 

35

 

25.12                     Wherever a
PARTY indemnifies another PARTY in respect of, or is entitled to claim from
another PARTY any costs incurred then the amount of such costs shall only be
the amount of all claims, loss, damages, charges, disbursements, costs
(including amounts paid to third parties), overheads and expenses directly
resulting from the matter in question.

 

25.13                     If CONTRACTOR
considers that there are outstanding payments due to CONTRACTOR that have been
the subject of previous NOTIFICATION from CONTRACTOR to COMPANY, CONTRACTOR
shall submit a list of all such claimed outstanding payments that at the date
of issue of the said invoice payment in part or in full has not been received
to COMPANY as follows:

 

(a)                                  Within
thirty (30) days after issue of the PERFORMANCE CERTIFICATE for all claims
relating to INSTALLATION;

 

(b)                                 Within
thirty (30) days after the completion date of the UTILIZATION PERIOD, for all
claims relating to operation of the FPSO SYSTEM during that period, but not
paid or not paid in full.

 

25.14                     In each case,
the list shall include estimates of cost against each item fully supported by
appropriate documentation. These outstanding costs shall be reviewed and either
agreed or rejected by COMPANY within thirty (30) days after receipt of each
list. Where outstanding costs are rejected by COMPANY, these shall be
administered as “Disputed Variations.”

 

25.15                     Payments made
under this CONTRACT shall not constitute an admission by COMPANY as to the
performance by CONTRACTOR of its obligations hereunder and in no event shall
any such payments affect the obligations of CONTRACTOR.   Any payment withheld shall be without
prejudice to any other rights or remedies available to COMPANY.

 

25.16                     For charges
from CONTRACTOR, or as between SUBCONTRACTOR and CONTRACTOR, where such charges
are required to be on official invoices, COMPANY reserves the right to refuse
to pay for such charges until the proper form for submitting the charge is
presented; and, that if CONTRACTOR pays a SUBCONTRACTOR for any such improperly
invoiced goods, then he does so at his risk of not being reimbursed by COMPANY.

 

25.17                     Any
undisputed items invoiced but invoices not paid within the period as stipulated
in Clause 25.3 above, shall bear an interest of Libor + 2% from the due date
until paid.

 

ARTICLE 26 - LIQUIDATED DAMAGES FOR DELAY 

 

26.1                           Time is of the essence of this CONTRACT. 
Accordingly, CONTRACTOR agrees that the liquidated damage of US10,000
shall apply for each and every day CONTRACTOR fails to satisfactorily complete
the PERFORMANCE TEST by October 10, 2004. (unless excused pursuant
to the terms of this CONTRACT, or prevented by the acts or omissions of

 

36

 

COMPANY Group or its
contractors)  Except as provided in Article 29.14, CONTRACTOR’s overall
aggregate liability under this Article shall be capped at US$ 500,000.
Except as provided under Article 29.14, the application of liquidated
damages shall constitute COMPANY’s sole financial remedy for delay.

 

26.2                           All amounts of Liquidated Damages for which CONTRACTOR may become liable
under this Article are agreed between the PARTIES as a genuine
pre-estimate of the loss which may be sustained by COMPANY in the event that
CONTRACTOR fails to satisfactorily complete the PERFORMANCE TEST by the date
set forth in Article 26.1, and are not a penalty and as such shall be
construed as Liquidated Damages. Subject to Article 26.1 above, imposition
of liquidated damages does not affect any other rights or remedies of COMPANY
under this CONTRACT or at law.

 

26.3                           In the
event that CONTRACTOR becomes liable to COMPANY for Liquidated Damages pursuant
to the terms of this Article, COMPANY may deduct such from any monies which may
then be or thereafter will become payable to CONTRACTOR or from any security
provided by CONTRACTOR.

 

ARTICLE 27 -
PARENT COMPANY GUARANTEE

 

27.1                           Within
ten (10) days of the EXECUTION DATE of this CONTRACT, CONTRACTOR shall, by way
of guarantee for the due performance by CONTRACTOR of its obligations under
this CONTRACT, furnish to COMPANY a Parent Company Guarantee in the form as
detailed in EXHIBIT V – CONTRACTOR PARENT COMPANY GUARANTEE. The costs and
expenses of preparing, completing and stamping such instrument shall be borne
by CONTRACTOR.

 

27.2                           If the
PARENT COMPANY Guarantee to be furnished pursuant to Article 27.1, is not
duly furnished by CONTRACTOR to COMPANY within ten (10) days of the Execution
Date of this CONTRACT, COMPANY may, at its option and without prejudice to any
rights or claims it may have against the CONTRACTOR, terminate this CONTRACT by
giving notice in writing to the CONTRACTOR. 
COMPANY shall thereupon not be liable for any claim or demand whatsoever
from the CONTRACTOR in respect of anything that has already been done or
furnished, or in respect of any matter or thing whatsoever in connection with
or relating to this CONTRACT.

 

ARTICLE 28 -
LIENS AND CLAIMS

 

28.1                           CONTRACTOR
shall indemnify and hold COMPANY harmless from all liens, claims, assessments,
fines and levies created, caused or committed by CONTRACTOR or its
SUBCONTRACTORS and all costs, damages and expenses incidental thereto,
including without limitation all court and arbitration costs, legal fees, and
other reasonable expenses. CONTRACTOR shall notify COMPANY of such liens and
claims.

 

37

 

28.2                           COMPANY
shall have the right to retain out of any payment to be made under this
CONTRACT, an amount sufficient to offset such liens or claims that CONTRACTOR
fails to discharge promptly until such lien or claim is proven to be invalid,
or is satisfied, discharged, or settled.

 

28.3                           Should
there be any lien or claim after all payments hereunder have been made,
CONTRACTOR agrees to refund to COMPANY upon demand all monies that COMPANY may
be compelled to pay to discharge any such lien in consequence of CONTRACTOR’s
default including all costs and legal and professional fees.

 

28.4                           CONTRACTOR
agrees that it will not claim any lien or charge on the WORK or any property of
COMPANY in the possession of the CONTRACTOR or at the WORK SITE.

 

28.5                           It is
recognized that the FPSO VESSEL is subject to a mortgage in favour of a
syndicate of banks.

 

ARTICLE 29 -
RESPONSIBILITIES AND INDEMNITIES

 

29.1                           ‘COMPANY Group’ means COMPANY, its AFFILIATES, its
Co-Venturers and its and their respective directors, employees, officers,
agents, and invitees.

 

‘CONTRACTOR
Group’ means CONTRACTOR, its ultimate parent, the Affiliates of any
of them, its contractors (including their sub-contractors) and its and their
respective directors, employees, officers, agents, and invitees.

 

29.2                           COMPANY agrees to defend, indemnify and hold
CONTRACTOR Group harmless from and against any and all liability, damage, claim
or costs (including legal costs and expenses) in respect of sickness of and/or
injury to and/or death of the COMPANY Group regardless of the cause or reason
therefor and regardless of the sole or concurrent negligence or breach of duty
of CONTRACTOR Group.

 

29.3                           COMPANY
agrees to defend, indemnify and hold the CONTRACTOR Group harmless from and
against any and all liability, damage, claim or costs (including legal costs
and expenses) in respect of loss of, damage to or loss of use of COMPANY
Group’s equipment or property regardless of the cause or reason therefor and
regardless of the sole or concurrent negligence or breach of duty of the
CONTRACTOR Group. For the purpose of this Clause, COMPANY Group’s equipment or
property shall be deemed to include all equipment owned, hired or being
provided by COMPANY Group and shall specifically include the FIELD FACILITIES.

 

29.4                           CONTRACTOR agrees to defend, indemnify and hold
the COMPANY Group harmless from and against any and all liability, damage,
claim or costs (including legal costs and expenses) in respect of sickness of
and/or injury to and/or death of the CONTRACTOR Group regardless of the cause

 

38

 

or reason therefor and regardless of the sole or
concurrent negligence or breach of duty of COMPANY Group.

 

29.5                           CONTRACTOR agrees to defend, indemnify and hold
the COMPANY Group harmless from and against any and all liability, damage,
claim or costs (including legal costs and expenses) in respect of loss of,
damage to or loss of use of CONTRACTOR Group’s equipment or property regardless
of the cause or reason therefor and regardless of the sole or concurrent
negligence or breach of duty of the COMPANY Group. For the purpose of this
Clause, CONTRACTOR Group’s equipment or property shall be deemed to include all
equipment owned, hired or being provided by CONTRACTOR Group in relation to the
Work and shall specifically include the FPSO SYSTEM and the EQUIPMENT.

 

29.6                           Each PARTY shall be responsible and liable for
and shall indemnify and hold the other PARTY harmless from and against all
claims resulting from personal injury, including fatal injury, disease, death
of, and/or damage to the property or equipment of Third Parties to the extent
the indemnifying PARTY is liable in accordance with the applicable law.

 

29.7                           COMPANY will facilitate that its contractors on
behalf of their respective Groups, will enter into a Mutual Hold Harmless
Agreement with CONTRACTOR on behalf of the CONTRACTOR Group. The Group
definition of CONTRACTOR Group also applies to the respective Groups of the
contractors.

 

29.8                           Except as specifically provided otherwise
herein, neither PARTY shall be liable to the other PARTY and/or other PARTY’s
Group for any indirect or consequential damages which may be suffered by such
PARTY or such PARTY’s Affiliates, joint venturers, parent or subsidiary
companies, or any member of such PARTY’s Group, including, but not limited to,
loss of revenue, loss of use, penalties, costs and other payments to COMPANY’s
other contractors’ and their subcontractors, loss of production, loss of profit
or anticipated profits, whether or not due in whole or in part to the
negligence or breach of duty of the other PARTY, and each PARTY shall
indemnify, defend and hold the other harmless in this regard.

 

29.9                           Except as stipulated differently elsewhere for
particular circumstances, CONTRACTOR agrees to indemnify COMPANY Group on
account of pollution and contamination, including the costs of contamination
clean-up and disposal, wheresoever occurring to the extent that such emanates
from the FPSO SYSTEM, irrespective whether such loss or damage is caused by
negligence of COMPANY Group. In the event that such costs are not covered by an
insurance payment, or only partially covered by an insurance payment,
CONTRACTOR’s liability shall be limited to the amount of US$ 1,000,000, except
that in the event that in the insurance payment exceeds US$ 1,000,000,
CONTRACTOR’s liability shall be limited to the value of the respective
insurance payment.

 

a)                                      CONTRACTOR shall indemnify and hold COMPANY Group
harmless from all costs and claims arising from Reservoir Related

 

 

39

 

Pollution emanating from the FPSO SYSTEM to the amount
equal to the pay out for such pollution under CONTRACTOR’s Protection and Indemnity
Insurance. The P&I cover during operations shall be US$ 500,000,000.

 

b)                                     COMPANY
shall indemnify and hold CONTRACTOR Group harmless from all costs and claims
arising from Reservoir Related Pollution emanating from the FPSO SYSTEM for the
remaining amount above the amount for which CONTRACTOR indemnifies and hold
COMPANY Group harmless as stipulated in “a” above.

 

c)                                      Reservoir Related Pollution means pollution of
the environment and/or properties by substances originating from the wells
operated on by the FPSO SYSTEM under the CONTRACT.

 

29.10                     Notwithstanding any other provision to the contrary, COMPANY agrees to
indemnify CONTRACTOR Group on account of damage to any reservoir, production
formation, well or borehole or in-hole equipment, or impairment of any property
right to water, oil, gas or other mineral substances, loss or damage to the
hole and well, irrespective whether such loss or damage is caused by negligence
of CONTRACTOR Group.

 

29.11 Notwithstanding any other provision to the contrary, COMPANY
agrees to indemnify CONTRACTOR Group on account of pollution and contamination,
including the costs of contamination clean-up and disposal, wheresoever
occurring to the extent that such emanates from Wells, Xmas trees and Subsea
Equipment owned by COMPANY Group.

 

29.12                     Notwithstanding
any other provisions, neither PARTY has to defend, indemnify and hold the other
PARTY and the other PARTY’s Group members harmless from and against liability,
damage, claim or costs (including legal costs and expenses) as stipulated in
this Article 29 to the extent such a loss, injury, etc. is caused by the
indemnified PARTY’s willful misconduct.

 

29.13                     Notwithstanding
any provisions other than those covering CONTRACTOR’s indemnity obligations
under Article 29-Responsibilities and Indemnities, CONTRACTOR’s overall
liability to COMPANY Group, whether in contract, by Statute, in tort or
otherwise at law, shall be limited to USD 10
million (ten million) United States Dollars).

 

29.14                     If
CONTRACTOR, solely due to reasons within its reasonable control, fails to
provide the FPSO SYSTEM, or does not undertake reasonable efforts to prevent
possible delays in INSTALLATION and passing the PERFORMANCE TEST, COMPANY shall
be entitled to hold CONTRACTOR liable for COMPANY’s proven direct damages,
costs and/or losses subject to the amount set forth in Article 29.13.

 

 

40

 

ARTICLE 30 -
INSURANCES

 

30.1                           Without
limitation or waiver of its obligations and responsibilities under this
CONTRACT, CONTRACTOR shall maintain for the duration of this CONTRACT the
following insurances.

 

(a)                                  Workmen’s
Compensation and/or Employer’s Liability Insurance or similar statutory
social insurance as required by law at the locations where the WORK will be
performed and which may be applicable covering personal injury to or death of
CONTRACTOR’s employees engaged in the performance of the WORK. CONTRACTOR shall
ensure its SUBCONTRACTORS maintain such insurance in respect of their
employees; Such coverage shall meet or exceed the standards required under the
Labor Laws of the People’s Republic of China, and applicable local labor
restrictions.

 

(b)                                 Comprehensive
Automobile Liability Insurance covering owned, non-owned, and hired
automobiles by CONTRACTOR complying with the laws of the People’s Republic of
China. CONTRACTOR shall ensure its SUBCONTRACTORS maintain such insurance in
respect of motor vehicles used by them;

 

(c)                                  Comprehensive
General Third Party Liability Insurance covering all operations hereunder
against bodily injury, death, loss or property damage with minimum limits five
million United States Dollars (US $5,000,000) for any one occurrence and
unlimited as to the number of claims in the period of insurance. Such insurance
shall include the Contractual Liabilities assumed herein by CONTRACTOR to third
parties;

 

(d)                                 Protection
and Indemnity Insurance including
pollution liability coverage, obtained from a member of the International Group
of P&I Clubs insuring the operations of the FPSO SYSTEM with a minimum
limit of $500,000,000, including wreck and debris removal and to the
maximum limit available oil pollution liability in respect of all vessels,
(including the FPSO VESSEL), craft or floating EQUIPMENT owned or hired by
CONTRACTOR;

 

(e)                                  Hull
and Machinery Insurance with limits equal to the agreed replacement cost of
the FPSO SYSTEM   AND  EQUIPMENT, covering the FPSO SYSTEM and
EQUIPMENT, including but not limited to hull and machinery owned, leased,
chartered, or hired by CONTRACTOR and/or SUBCONTRACTORS in the amount of the
full value thereof as and when declared by CONTRACTOR and providing indemnity
against losses or damages by such perils and risks equivalent to those set
forth in the June 2nd, 1977 American Institute Hull clauses (or any other
COMPANY accepted Hull Clauses) and the December 1977 American Institute
Hull War Risks and Strikes Clauses (or any other COMPANY accepted War Risk or
Strikes Clauses).

 

41

 

(f)                                    CONTRACTOR
acknowledges that the Xijiang project, including the construction and operation
of the FPSO SYSTEM—, may be subject to project financing and agrees that it
will obtain any enhancements to the insurances as are required by COMPANY
subject to such being available at commercially reasonable terms and pricing,
which shall be catered for in a variation order.

 

30.2                           Prior
to commencement of WORK, CONTRACTOR shall furnish to COMPANY policies and/or
extension certificates certifying that all insurances required of CONTRACTOR in
this Article 30 are in full force and effect and stating :

 

(i)                                     the
effective start and expiration dates of all policies,

 

(ii)                                  the
values of the insurances,

 

(iii)                               that
the insurance will not be cancelled or materially altered while the WORK under
this CONTRACT is in progress unless COMPANY approves same.  CONTRACTOR shall give thirty (30) days prior
written notice of cancellation or alteration to COMPANY,and

 

(iv)                              deductibles
under  all  policies.

 

30.3                           CONTRACTOR shall ensure that its
SUBCONTRACTORS maintain all legally required insurance and such other insurance
as CONTRACTOR deems appropriate. 
CONTRACTOR agrees that all SUBCONTRACTORS shall provide COMPANY and its
CO-VENTERERS with the same indemnity, defense, and hold harmless benefits as
CONTRACTOR is obligated to undertake with COMPANY.

 

30.4                           CONTRACTOR
and its SUBCONTRACTORS shall not commence the shipment of EQUIPMENT or
materials or commence WORK at the WORK SITE until all of the insurances that
CONTRACTOR and SUBCONTRACTORS are required to provide are in force and the
necessary certificates have been received by the COMPANY. Prior to commencing
the aforesaid activities, CONTRACTOR shall comply with COMPANY and insurers’
requirements including, but not limited to, allowable classes of vessels,
maximum value concentrations, reports and claim handling procedures.

 

30.5                           The
policies of all insurances required by CONTRACTOR shall be effected with
financially secure and reputable insurers. Within fourteen (14) days of the
Execution of this Contract, CONTRACTOR shall furnish COMPANY with details such
as insurer name, domicile, and AM Best Rating of all insurers to be used for
the WORK for Acceptance. Such Acceptance shall not be unreasonably withheld.
Acceptance by COMPANY of any insurer or terms of insurance proposed by
CONTRACTOR shall not relieve CONTRACTOR of any obligation or liability under or
arising from this CONTRACT or generally at law.

 

42

 

30.6                           Should
CONTRACTOR at any time neglect or refuse to provide or renew any insurance
required herein, or should any insurance be canceled, COMPANY shall have the
right to procure such insurance and, in such event, any costs and expenses
incurred by COMPANY in respect thereof shall immediately become due and payable
to COMPANY by CONTRACTOR, or COMPANY shall be entitled to deduct such sums from
any monies due or which may become due to CONTRACTOR in addition to any other
remedies COMPANY may have under this CONTRACT.

 

30.7                           CONTRACTOR
shall cause COMPANY, its CO-VENTURERS, and its AFFILIATES, consultants, and
their respective agents, officers and employees to be included as an additional
assured and covered by all insurances as stipulated in Article 30.1 (other
than insurance under 30.1 (a) with respect to the operations conducted under
this CONTRACT and shall cause the insurers thereof to waive all expressed or
implied rights of subrogation against such PARTIES and their respective
employees, servants and agents.

 

30.8                           CONTRACTOR
shall further cause the General Third Party Liability Insurance policy to
contain a “severability-of-interests-cross-liability” clause providing that in
the event of one PARTY incurring liability to any of the other PARTIES, the
insurance shall apply for the benefit of the PARTY against whom claim is or may
be made in the same manner as if separate policies had been issued to each
PARTY.

 

30.9                           All
deductibles, exceptions, and exclusions applicable to all of the foregoing
insurances, whether procured by COMPANY or by CONTRACTOR shall be for the
account of and be paid by CONTRACTOR. 
Any breach of conditions and/or warranties contained in such policies of
insurances shall also be for the account of CONTRACTOR.

 

30.10                     CONTRACTOR
shall NOTIFY COMPANY immediately upon receipt of any notice of claims,
incidents or demands of any situation which may give rise to such claims or
demands being made under the said policies. 
Written notice shall be given not later than two (2) days after the
occurrence of any accident.  However,
for serious accidents, (including but not limited to death or serious
injuries), NOTICE shall be given immediately and confirmed in writing.

 

30.11                     CONTRACTOR
shall fully indemnify and hold COMPANY safe and harmless from and against loss
or damage arising out of any failure by CONTRACTOR to effect or maintain such
insurance specified by this CONTRACT, or out of any act or omission which
invalidates the said insurance. CONTRACTOR shall ensure that its SUBCONTRACTORS
maintain similar insurance coverage as specified herein and that its SUBCONTRACTORS
similarly indemnify and hold COMPANY safe and harmless from and against all
cost, claims and demands.  Any
deficiencies in the coverage or policy limits of SUBCONTRACTORS insurance shall
be for the sole responsibility of CONTRACTOR.

 

43

 

30.12                     The amounts
of CONTRACTOR furnished insurance required herein shall be the minimum and not
the maximum limits of liability.

 

ARTICLE 31 -
PATENT INDEMNITY

 

31.1                           CONTRACTOR
agrees to indemnify and hold COMPANY and its AFFILIATES harmless against all
claims, judgments, losses, expenses and costs (including but not limited to
court costs and attorneys’ fees) that may arise by reason of any alleged or
actual infringement of any patent, design, copyright and/or trademark or
violation of process or other protected rights of any person or entity in the
performance of the WORK hereunder, or by reason of the manner in which the same
is performed, or through the use by CONTRACTOR of any patented article or
device.

 

31.2                           COMPANY
agrees to indemnify and hold CONTRACTOR and/or its SUBCONTRACTORS harmless
against all claims, judgments, losses, expenses and costs (including but not
limited to court costs and attorneys’ fees) that may arise by reason of any
alleged or actual infringement of any patent, design, copyright and/or
trademark or violation of process or other protected rights of any person or
entity in the performance of CONTRACTOR’s obligations under this CONTRACT
documentation supplied by COMPANY. However, CONTRACTOR shall use its best
endeavors to identify any such infringement in this CONTRACT of any patent or
proprietary or protected right, and should the CONTRACTOR become aware of any
such infringement or possible infringement then CONTRACTOR shall NOTIFY COMPANY
immediately.

 

31.3                           The
indemnities set forth in Articles 31.1 and 31.2 above shall include, without
limitation, all penalties, awards, and judgments; all court and arbitration
costs; attorney’s fees; and other reasonable expenses associated with such
claims, demands, and causes of action. A PARTY covered by such indemnities and
accused of patent infringement by a third party shall promptly NOTIFY the
indemnifying PARTY and shall have the right at its own expense to participate
in its own defense with attorneys of its own selection.

 

31.4                           CONTRACTOR
shall disclose promptly to COMPANY all inventions, discoveries, and
improvements (whether patentable or not) conceived or made by CONTRACTOR’s
personnel, either alone or jointly with others, in the course of the WORK.COMPANY
shall be granted a perpetual, royalty-free, non-exclusive, worldwide licence
for any such patentable invention.

 

31.5                           CONTRACTOR
shall ensure that any SUBCONTRACTS between CONTRACTOR and its SUBCONTRACTORS or
suppliers contain a provision similar to this Article.

 

ARTICLE 32 -
ACTIONS ON BEHALF OF COMPANY

 

32.1                           CONTRACTOR
shall take no action on behalf of COMPANY in the performance of the WORK under
this contract which would subject either

 

44

 

PARTY to liability
or penalty under any laws, rules, regulations, or decrees of any relevant
authority. All invoices, financial settlements, reports, and billings by
CONTRACTOR to COMPANY shall reflect properly the facts relating to all
activities and transactions handled for COMPANY’s account. CONTRACTOR shall
NOTIFY COMPANY promptly upon discovery of any instance where CONTRACTOR has not
complied with the requirements of this Article.

 

32.2                           CONTRACTOR
shall have no authority to make any statements, press releases, representations
or commitments of any kind, or to take any action which shall be binding upon
COMPANY, except as provided for herein, or otherwise authorized in writing by
COMPANY.

 

ARTICLE 33- TITLE

 

33.1                           Legal
title to the FPSO SYSTEM, all EQUIPMENT and materials furnished by CONTRACTOR
for inclusion into the FPSO SYSTEM, shall remain at all times with CONTRACTOR ,
except as noted in Articles 33.2 and 33.3 below.

 

33.2                           Legal
title to the 8”catenary risers, reels, BTM outrigger and buoyancy tank  shall remain with CONTRACTOR until
DEMOBILIZATION, when it shall transfer to COMPANY upon delivery of the same by
CONTRACTOR to COMPANY’s Chiwan Supply Base. 
All equipment mentioned in this Article 33.2 shall be transferred
to COMPANY                         “as-is”,
and WITH DISCLAIMER ALL WARRANTIES WITH REGARD TO SAME, EXPRESS OR IMPLIED,
INCLUDING THE WARRANTY OF MERCHANTABLITY OR FITNESS FOR A PARTICULAR PURPOSE,
EVEN IF THAT PURPOSE IS KNOWN TO CONTRACTOR.

 

33.3                           PRODUCED
OIL stored from time to time in the tanks, lines process vessels, pumps and
associated EQUIPMENT of the FPSO SYSTEM, including any pumpable stock at
completion of WORK, shall be the property of COMPANY throughout the term of the
CONTRACT.

 

ARTICLE 34 -
CONFIDENTIALITY

 

34.1                           CONTRACTOR
shall treat as confidential and shall not, without COMPANY’s prior Approval,
divulge to any third party or, except to the extent necessary for performance
of WORK, make use of any information disclosed by COMPANY or received or
discovered by CONTRACTOR during the course of WORK for the term of this
CONTRACT plus 5 years afterward. CONTRACTOR may provide information to its
technical, legal and financial advisors provided that adequate confidentiality
agreements are signed.

 

34.2                           Without
limiting the generality of the foregoing, CONTRACTOR shall not use any of such
information (“Information”) for buying, selling or dealing in

 

45

 

the shares of
securities of CONOCOPHILLIPS or COMPANY’s co-venturers or their affiliates..

 

34.3                           If any
of CONTRACTOR’s employees or SUBCONTRACTORS who receive any of the information
have not previously entered into a separate confidentiality agreement with
COMPANY regarding such information, CONTRACTOR shall require them to agree in
writing to be bound by the provisions of this Article.

 

34.4                           Information
shall not be subject to this Article if it:

 

a)                                      was
in CONTRACTOR’s possession prior to its disclosure by COMPANY; or

b)                                     is
or becomes part of the public knowledge from a source other than CONTRACTOR; or

c)                                      becomes
available to CONTRACTOR from a third party without restriction.

 

All
documents such as drawings, maps, photographs, specifications, standards and
all copies thereof, furnished by COMPANY to CONTRACTOR are COMPANY’s property
and CONTRACTOR shall return them to COMPANY upon completion of the WORK.  All documents prepared by CONTRACTOR in the
course of the WORK pertaining to CONTRACTOR’S own facilities are acknowledged
as CONTRACTOR’S property, but such documents shall be made available for
COMPANY use during INSTALLATION and UTILIZATION

 

ARTICLE 35 -
CONFLICT OF INTEREST

 

CONTRACTOR
shall not pay any commissions, fees or rebates to any COMPANY employees.  CONTRACTOR shall not favor COMPANY employees
with gifts or entertainment of significant value, nor enter into any business
arrangement with COMPANY employees other than as a representative of COMPANY,
without COMPANY’s Approval.  The audit
provisions of this CONTRACT shall apply for the purpose of confirming
compliance with this Article.

 

ARTICLE 36 -
PERMITS, LAWS AND REGULATIONS

 

36.1                           CONTRACTOR
shall obtain all licenses, permits, temporary permits and authorizations
required by any applicable laws, rules and regulations for the performance of
the WORK except the necessary approvals  from the Government of the People’s
Republic of China to allow production under this CONTRACT, which approvals
shall be obtained by COMPANY.

 

36.2                           All
operations necessary for the performance of this CONTRACT shall be carried on
so far as compliance with the requirements of this CONTRACT permits so as not
to interfere unnecessarily or improperly with the convenience of the public or
the access to, use and occupation of navigable and other waters, waterways,
channels, harbors or harbor works,

 

46

 

fisheries, natural
harbors and anchorages and other places of shelter, by sea or land, public or
private roads and footpaths to or of properties whether in the possession of
COMPANY, CONTRACTOR, SUBCONTRACTORS or any other person. CONTRACTOR hereby
indemnifies COMPANY and its AFFILIATES, their officers and employees against
all liabilities, claims, judgments, losses, expenses and costs (including but
not limited to court costs and attorneys’ fees) arising in relation to any of
the aforesaid matters in so far as the CONTRACTOR is responsible for such
interference.

 

36.3                           Without
limitation to the generality of the foregoing:

 

(a)                                  CONTRACTOR
shall observe all applicable Chinese laws and regulations governing pollution
and its control. CONTRACTOR shall provide adequate means for the collection and
disposal of any refuse and shall take all necessary measures to prevent
pollution of the land, air and water. CONTRACTOR shall ensure that its
employees and its SUBCONTRACTORS employees are fully aware of the above
requirements and CONTRACTOR shall enforce such laws and regulations and make
such provision.

 

(b)                                 CONTRACTOR
shall make available for inspection at storage locations all supply test
certificates in respect of all lifting apparatus, ropes, chains, pressure
vessels and electrical equipment to be used or anticipated to be used in the
performance of the WORK.

 

(c)                                  CONTRACTOR
shall not under any circumstances dump, throw or dispose of any refuse into the
sea. CONTRACTOR shall provide containers into which all refuse shall be placed
and the containers shall be returned to the shore. CONTRACTOR shall dispose of
such refuse onshore in accordance with applicable laws and regulations.

 

(d)                                 CONTRACTOR
shall in the course of the performance of the WORK take all due measures to
ensure that no materials, EQUIPMENT, objects or debris are dropped into the
sea, placed or in any event left by CONTRACTOR on the seabed. If CONTRACTOR
fails so to ensure he shall promptly remove all such items from the sea or the
seabed.

 

(e)                                  CONTRACTOR
shall provide adequate facilities to collect and store sanitary waste.
CONTRACTOR shall nor dump or dispose of any untreated sanitary waste into the
sea.  CONTRACTOR shall in accordance
with MARPOL Annex IV and applicable Chinese environmental standards either
treat sanitary waste in the onboard sewage treatment plant prior to discharge
or collect and transport sanitary waste to an offshore facility for treatment
and disposal at no additional cost to COMPANY

 

36.4                           CONTRACTOR
shall comply with all UNITED KINGDOM relevant diving regulations which shall
include but not be limited to:

 

47

 

(i)                                     Diving
operators at WORK Regulations; SI 1997/2776; and

 

(ii)                                  Merchant
Shipping (Diving Operations) Regulations; SI 2002/1587

 

and CONTRACTOR
shall observe these rules and regulations’ latest modifications, additions or
replacements while undertaking all diving operations in connection with or
arising out of the WORK. Where any regulations are in conflict, the most
stringent conditions shall apply. All diving personnel proposed by CONTRACTOR
to participate in the WORK shall be in possession of certificates of medical
fitness issued by an approved medical facility authorized to issue said
certificates in connection with the appropriate diving regulations. Such
certificates shall be held available for COMPANY review at all times.

 

36.5                           CONTRACTOR
shall comply with all Flag State regulations with respect to the qualifications
and experience of all CREW holding responsible positions on board the FPSO
SYSTEM. All CREW proposed by CONTRACTOR shall be in possession of appropriate
certificates of competency as applicable for their position within the FPSO
SYSTEM organization. Such certificates shall be held available for COMPANY
review at all times.

 

ARTICLE 37 -
CUSTOMS AND IMPORT/EXPORT

 

37.1                           COMPANY
shall be responsible for all port and customs clearances required in the
countries in which the WORK SITES are located for the import of all COMPANY
supplied items listed in EXHIBIT VII - “COMPANY and CONTRACTOR Supplied
Services”, that require delivery to the WORK SITES. COMPANY shall pay all
import/export licenses and import/export taxes and duties on such COMPANY
supplied items.

 

37.2                           CONTRACTOR
shall be responsible for all port and customs clearances required in the
countries in which the WORK SITES are located for the import and any subsequent
export of all CONTRACTOR supplied EQUIPMENT. CONTRACTOR shall pay, and make
payment at such times when due and payable, all import/export                    licenses and import/export taxes
and duties on all such items.

 

37.3                           CONTRACTOR
shall be responsible for all import and port clearances required in the
countries in which the WORK SITES are located for initial entry of the FPSO
MOORING components and for all import, port clearances and Port Chemist
inspections required for the FPSO VESSEL. CONTRACTOR shall subsequently be
responsible for the export of the complete FPSO SYSTEM or parts thereof, from
the WORK SITES. CONTRACTOR shall pay all fees, charges, import/export licenses
and import/export taxes and duties as applicable.

 

ARTICLE 38 -
INDUSTRIAL RELATIONS

 

38.1                           CONTRACTOR
shall be responsible for the management of its own, and its SUBCONTRACTORS,
industrial relations, and will do all such things that

 

48

 

are reasonable and
prudent in the execution of that
responsibility, to maintain harmony in its workforce, to avoid
industrial unrest and to resolve industrial grievances or disputes.

 

38.2                           CONTRACTOR
shall immediately bring to the attention of COMPANY any workforce or union
claims, requests or actions or any other facts that may arise, which has the
potential to cause industrial unrest. In so doing, CONTRACTOR shall also advise
COMPANY of any proposals it has for the management or resolution of those
matters. Such notification may be initially oral, but shall be expeditiously
confirmed in writing.

 

38.3                           CONTRACTOR
shall nominate a senior representative to be responsible for the management of
its industrial relations, and such person will be responsible for keeping the
COMPANY advised on industrial matters, attending meetings as required, and the
preparation of written reports as required.

 

ARTICLE 39 -
HEALTH AND SAFETY

 

39.1                           Notwithstanding
any specific requirements herein, CONTRACTOR shall carry out the WORK with due
diligence and in a safe and workmanlike manner in accordance with good
practice, using fabrication and construction personnel and CREW who shall all
be competent and qualified to undertake their required duties in a safe and
efficient manner.

 

39.2                           CONTRACTOR
shall take all necessary safety precautions related to or arising out of this
CONTRACT in order to protect the FPSO SYSTEM, FIELD FACILITIES, CONTRACTOR’s
personnel and CREW, COMPANY personnel, all other persons, COMPANY property and
the property of third PARTIES.

 

39.3                           CONTRACTOR
will provide various bridging documents for approval by COMPANY to link its
existing Safety Management System to COMPANY’s Safety Management System and
Emergency Response Plan.  These
documents shall be submitted for COMPANY Acceptance prior to WORK commencing.
Subject to satisfactory Acceptance by COMPANY, compliance with the requirements
of these documents shall be considered obligatory under this CONTRACT.

 

39.4                           Without
prejudice to CONTRACTOR’s general and legal responsibility for the safety of
its operations and of the personnel and property involved, CONTRACTOR shall
comply with COMPANY’s health, safety regulations and requirements that are
applicable to the parts of the WORK being performed by CONTRACTOR at the
OFFSHORE SITE, and ensure that SUBCONTRACTORS comply therewith. COMPANY shall
furnish CONTRACTOR with copies of the following COMPANY safety regulations and
standards prior to commencement of the offshore WORK:

 

(a)                                  ConocoPhillips
China Inc., Safety Management System

(b)                                 ConocoPhillips
China Inc., Emergency Response Plan

 

49

 

39.5                           These
COMPANY publications are designed to acquaint contractors with the requirements
for working on offshore installations owned and/or operated by COMPANY and on
adjacent facilities but does not constitute a complete list of safety
precautions applicable to every event. Compliance therewith shall not relieve
CONTRACTOR from any liability or responsibility for the safe performance of the
WORK.

 

39.6                           CONTRACTOR
shall develop its own OFFSHORE SITE Health and Safety policies and procedures
in compliance with the above defined documents. These policies and procedures
shall be submitted to COMPANY for Acceptance no later than four (4) months
prior to the SCHEDULED INSTALLATION DATE. Offshore WORK shall not commence
until these documents are Accepted by COMPANY. Subject to Acceptance by
COMPANY, compliance with the requirements of such documents is obligatory.

 

39.7                           All
costs associated with training courses, refresher courses, examinations,
inspections and any other activities that involve payment of fees or costs,
arising from compliance with Article 39.6 above shall be to the account of
CONTRACTOR.

 

39.8                           CONTRACTOR
shall allow COMPANY access to plant, EQUIPMENT, personnel and records, at all
reasonable times when requested, to enable the COMPANY REPRESENTATIVE to:-

 

(a)                                  ensure
that CONTRACTOR is carrying out its responsibilities under the safety policies
and procedures referenced in Articles 39.3 and 39.6 above;

 

(b)                                 identify
deviations and/or omissions from such safety policies and procedures and to
bring such deviations and or omissions to CONTRACTOR’s attention;

 

(c)                                  conduct,
if required, independent investigations into any incident relating to this
CONTRACT.

 

39.9                           Where
COMPANY identifies deviations and/or omissions from the contractually
documented and Accepted safety policies and procedures, COMPANY shall consider
CONTRACTOR to be in default as defined in Article 18 - “Default of
CONTRACTOR and may invoke Article 19 - “Suspension” or Article 20 -
“Termination” at its discretion.

 

39.10                     CONTRACTOR’s
incident reporting system shall be compatible with COMPANY’s and every
incident, irrespective of severity and inclusive of near miss incidents, shall
be reported to COMPANY immediately if injury to CONTRACTOR personnel or CREW,
or damage to plant, materials or EQUIPMENT resulted or could have resulted.

 

39.11                     Every six (6)
months and/or at completion of WORK if of a lesser period CONTRACTOR shall
prepare and issue to COMPANY REPRESENTATIVE

 

50

 

a summary report
of its safety performance. Incident/accident statistics related to employee hours
worked shall be issued monthly.

 

39.12                     CONTRACTOR is
responsible for ensuring that CONTRACTOR personnel, CREW and/or visitors do not
at any time during the performance of the WORK possess, use or be under the
influence of any alcoholic, liquor, drug or other intoxicating substance, other
than for bona fide medical reasons for which CONTRACTOR shall obtain the
agreement of COMPANY prior to any such individual being engaged or performing
any part of the WORK. COMPANY reserves the right to require CONTRACTOR to
refuse passage to the FIELD FACILITIES or to the FPSO SYSTEM or to return from
offshore any CONTRACTOR personnel, CREW, and/or visitors who, in the opinion of
the COMPANY REPRESENTATIVE, is or appears to be in possession of or under the
influence of alcohol, drugs or other intoxicating substance. CONTRACTOR shall
be liable for any costs arising directly or indirectly out of such
circumstances.

 

ARTICLE 40 -
ENVIRONMENTAL CONSIDERATIONS

 

CONTRACTOR
shall ensure that due regard is paid to the environment by acting to preserve
air, water, animal and plant life by minimizing any adverse effects of
CONTRACTOR’s activities in performance of the WORK and/or minimize any nuisance
which may arise from such operations.

 

 ARTICLE 41 - WAIVERS

 

41.1                           The
failure of COMPANY or CONTRACTOR  to
exercise any option, right or privilege under this CONTRACT, or failure to
demand compliance as to any obligation or convenant shall not constitute a
waiver of any such right, privilege or option or of the strict performance thereof
unless an expressed waiver is properly executed and evidenced in writing.

 

41.2                           Waivers
by COMPANY or CONTRACTOR of any breach or non-observance by CONTRACTOR of any
of the terms and conditions of this CONTRACT shall not constitute or be
construed as a waiver of any succeeding breach or non-observance of the same or
any other term or condition.

 

ARTICLE 42 -
COMPLIANCE WITH LAW

 

42.1                           If
CONTRACTOR or its SUBCONTRACTORS perform any part of the WORK contrary to law,
then CONTRACTOR shall bear any additional costs of the WORK resulting from said
violation and correction thereof.  For
the purpose of this Article, “law” includes any laws (national, state,
municipal, local or other) and any requirement, ordinance, rule or regulation
of any relevant authority or agency (national, state, municipal, local or
other).

 

51

 

42.2                           CONTRACTOR
shall not negotiate with any relevant authority or agency for exemption,
composition, variation or revision to law in connection with this CONTRACT
without COMPANY’s prior Approval.

 

42.3                           CONTRACTOR
shall obtain all necessary licenses for CONTRACTOR to do business anywhere WORK
is performed, shall obtain all permits and authorizations required by law for
the WORK, and shall give all required notices.

 

42.4                           Any
unanticipated change in law, rules or regulations applicable to the WORK in the
People’s Republic of China after the Execution Date of this Contract having a
material  adverse effect on CONTRACTOR’s
performance, shall be subject to a variation order covering  a time or cost adjustment acceptable to both
PARTIES.  “Material Adverse Effect”
means any change to CONTRACTOR’S performance affecting its critical path
schedule by more than twenty four (24) hours or directly and clearly  increasing its costs by more than USD
100,000.

 

42.5                           CONTRACTOR
shall, and shall ensure that
its subcontractors shall, comply with all laws, rules and regulations
applicable to the performance of its obligations hereunder and, in that
connection, CONTRACTOR shall not and shall ensure that its subcontractors shall
not              offer, pay or agree to pay or
similarly receive or agree to receive any payment gift or other consideration
of any nature to or from any officials, employees or agents of any government,
any department, agency or instrumentality of any government any political
party, or any candidate for political office or other person or entity,
including  a legislative, administrative
or judicial office (including any person exercising a public function for a
public agency, a public enterprise or a public international organisation)
where such payment, gift or other consideration would violate applicable laws
and regulations or the United States Foreign Corrupt Practices Act.

 

ARTICLE 43 -
ARBITRATION AND GOVERNING LAW

 

43.1                           Applicable
law

 

The
interpretation and performance of this CONTRACT shall be governed by and
construed and the relations between the Parties determined in accordance with
the laws of England except for any rule of English law which would make the law
of any other jurisdiction applicable

 

43.2                           Arbitration

 

a)                                      Any
dispute arising from, out of or in connection with this Contract shall be
settled through friendly consultations between the PARTIES. Such consultations
shall begin immediately after one PARTY has delivered to the other Party a
written request for such consultation. If within 30 days following the date on
which such notice is given, the dispute cannot be settled through
consultations, the dispute may be submitted to arbitration in Singapore under
the auspices of the Singapore International Arbitration

 

52

 

Centre (“SIAC”),
upon the request of either PARTY with notice to the other PARTY.

 

b)                                     There
shall be three (3) arbitrators. Each PARTY shall select one arbitrator within
thirty (30) days after giving or receiving the request for arbitration. Such
arbitrators shall be freely selected, and the PARTIES shall not be limited in
their selection to any prescribed list. SIAC shall select the third arbitrator.
If a PARTY does not appoint an arbitrator who has consented to participate
within thirty (30) days after the selection of the first arbitrator, the
relevant appointment shall be made by the SIAC.

 

c)                                      The
arbitration tribunal shall conduct the proceedings in English. The arbitration
tribunal shall conduct the arbitration under the rules of arbitration of the
United Nations Commission on International Trade Law in effect on the date of
the signing of the Contract. However, if such rules are in conflict with the
provisions of this Article 43.2, including the provisions concerning the
appointments of arbitrators, the provisions of this Article 43.2 shall
prevail. The arbitration tribunal shall be empowered to order specific
performance.

 

d)                                     Each
PARTY shall cooperate with the other PARTY in making full disclosure of and
providing complete access to all information and documents requested by the
other PARTY in connection with such proceedings, subject only to any
confidentiality obligations binding on such PARTY.

 

e)                                      The
arbitration award shall be final and binding upon both Parties. The costs of
the arbitration shall be as fixed by the arbitration tribunal. Judgment upon
the arbitration award may be entered in any court having jurisdiction, or application
may be made to such court for a judicial acceptance of the award and an order
of enforcement.

 

43.3                           Continued
Implementation of Contract

 

During the period
when a dispute is being resolved by arbitration, this Contract shall continue
to be performed in all respects except for the relevant provision affected by
the question, dispute or difference submitted to arbitration.

 

ARTICLE 44-
INDEPENDENT CONTRACTOR

 

44.1                           CONTRACTOR
shall perform this CONTRACT as an independent contractor and not the agent, servant
or employee of COMPANY.

 

44.2                           COMPANY
shall not have any authority to supervise the employees, representatives or
SUBCONTRACTORS of CONTRACTOR as to how they perform the WORK. CONTRACTOR shall
control the manner and method of carrying out the WORK.

 

53

 

ARTICLE 45 -
LANGUAGE

 

45.1                           All
documents produced by CONTRACTOR in the performance of this CONTRACT as well as
all written communications between COMPANY and CONTRACTOR shall be in the
English language which is hereby designated the governing language of this
CONTRACT. CONTRACTOR and SUBCONTRACTORS may use any language within their own
organizations, except that all SUBCONTRACTORS, purchase orders and all written
orders communications pertaining to these shall be in English.

 

45.2                           All
meetings between CONTRACTOR and COMPANY during the course of the WORK shall be
conducted in English, and the minutes of meeting shall be written in English.

 

ARTICLE 46 -
ENTIRE AGREEMENT

 

46.1                           This
CONTRACT constitutes the entire agreement between the PARTIES hereto and
supersedes any and all prior and contemporaneous, oral or written negotiations,
representations, communications, understandings and/or agreements between the
PARTIES with respect to the subject matter of this CONTRACT.  No changes, alterations or modifications to
this CONTRACT shall be effective unless in writing, and executed by the
authorized signatories of COMPANY and CONTRACTOR.

 

46.2                           The
PARTIES recognize that this CONTRACT is subject to the execution of the
CONTRACTOR PARENT COMPANY Guarantee in the format acceptable by Company.

 

ARTICLE 47 -
MISCELLANEOUS

 

47.1                           Survival.  Any provision of this CONTRACT pertaining to
any promise by one PARTY to indemnify the other, to confidentiality or to
limitations of liability shall survive any termination, repudiation, or other
cancellations of this CONTRACT.

 

47.2                           Binding.  This CONTRACT shall be to the benefit of and
be binding upon the successors and permitted assignees of the PARTIES hereto.

 

47.3                           Severance.  If any term or provision or part of this
CONTRACT shall be held to be illegal or unenforceable, in whole or in part,
such term or provision shall to that extent be deemed not to form part of this
CONTRACT but the validity and enforceability of the remainder of this CONTRACT
shall not be affected.

 

ARTICLE 48 -
NON-EXCLUSIVE AGREEMENT

 

48.1                           This
CONTRACT is non-exclusive and COMPANY reserves the right to engage other
contractors to perform  work. CONTRACTOR
shall reasonably

 

54

 

afford such other
contractors adequate opportunity to carry out their contracts and shall
accomplish the WORK in cooperation with those contractors and with COMPANY.

 

The PARTIES execute this
CONTRACT in duplicate originals as of the date of the year first above written.

 

	
  CONOCOPHILLIPS CHINA
  INC. as

  Operator of the Xijiang 24-3 and 30-2

  Oil Fields

  	
  LUFENG DEVELOPMENT

  COMPANY ANS

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature

  	
  /s/ DAN BAILIE

  	
   

  	
  Signature

  	
  /s/ HUGO J. HEEREMA

  	
   

  
	
   

  	
   

  
	
  Name  Dan Bailie

  	
  Name  Hugo J. Heerema

  
	
  Title  Vice President, Operations

  	
  Title  Attorney-in-Fact

  
	
  Date  February 10, 2004

  	
  Date  February 10, 2004

  
						

 

55

 

 

EXHIBIT
I – PROJECT SCHEDULE

 

 

Exhibit
I

 

The
image accompanying this schedule is a graphic depiction of the information
contained in the table with regard to the time periods in the “Days”, “Late
Start” and “Late Finish” columns.

 

	
  Activity

  ID

  	
   

  	
  Activity

  Description

  	
   

  	
  Days

  	
   

  	
  Late

  Start

  	
   

  	
  Late

  Finish

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Milestones/Summary

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1010

  	
   

  	
  Project Award/Approval

  	
   

  	
  0

  	
   

  	
  17DEC03

  	
   

  	
   

  
	
  1015

  	
   

  	
  First PO Commitment

  	
   

  	
  0

  	
   

  	
  19DEC03

  	
   

  	
   

  
	
  1020

  	
   

  	
  Final BoD

  	
   

  	
  0

  	
   

  	
  19DEC03

  	
   

  	
   

  
	
  1023

  	
   

  	
  Start Fabrication Module

  	
   

  	
  0

  	
   

  	
  05APR04

  	
   

  	
   

  
	
  1030

  	
   

  	
  Start Detailed Engineering

  	
   

  	
  0

  	
   

  	
  18DEC03

  	
   

  	
   

  
	
  2411

  	
   

  	
  Munin - ShutDown Lufeng
  Field >StatOil<

  	
   

  	
  0

  	
   

  	
  16AUG04

  	
   

  	
   

  
	
  2413

  	
   

  	
  Munin - Degas/Flush systems
  >StatOil<

  	
   

  	
  10

  	
   

  	
  16AUG04

  	
   

  	
  25AUG04

  
	
  2415

  	
   

  	
  Munin - Disconnect Lufeng
  >StatOil<

  	
   

  	
  4

  	
   

  	
  26AUG04

  	
   

  	
  29AUG04

  
	
  2417

  	
   

  	
  Munin - Release by StatOil

  	
   

  	
  0

  	
   

  	
  30AUG04

  	
   

  	
   

  
	
  2419

  	
   

  	
  Munin - in Dry Dock

  	
   

  	
  23

  	
   

  	
  02SEP04

  	
   

  	
  24SEP04

  
	
  5030

  	
   

  	
  Munin - Vessel Mod’s/Module

  	
   

  	
  21

  	
   

  	
  03SEP04

  	
   

  	
  23SEP04

  
	
  5040

  	
   

  	
  Munin - Hook-up to Xijiang
  field

  	
   

  	
  2

  	
   

  	
  29SEP04

  	
   

  	
  30SEP04

  
	
  7020

  	
   

  	
  BTM release NHKT (Current
  FPSO OffStat.)

  	
   

  	
  0

  	
   

  	
  25SEP04

  	
   

  	
   

  
	
  7021

  	
   

  	
  Mob./WorkPrep @ Chiwan

  	
   

  	
  3

  	
   

  	
  22SEP04

  	
   

  	
  24SEP04

  
	
  7025

  	
   

  	
  Install BW SubMerge
  Rig./Risers

  	
   

  	
  4

  	
   

  	
  25SEP04

  	
   

  	
  28SEP04

  
	
  9043

  	
   

  	
  Testing & Commissioning

  	
   

  	
  2

  	
   

  	
  29SEP04

  	
   

  	
  30SEP04

  
	
  9048

  	
   

  	
  StartUp

  	
   

  	
  1

  	
   

  	
  01OCT04

  	
   

  	
  01OCT04

  
	
  9050

  	
   

  	
  First Oil

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
  01OCT04*

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  General

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1075

  	
   

  	
  General - Design review
  CS/CA

  	
   

  	
  40

  	
   

  	
  02FEB04

  	
   

  	
  26MAR04*

  
	
  1250

  	
   

  	
  Gate Review Concept

  	
   

  	
  2

  	
   

  	
  18DEC03

  	
   

  	
  19DEC03

  
	
  1115

  	
   

  	
  Vessel Survey Kongsberg/FMC

  	
   

  	
  10

  	
   

  	
  12JAN04

  	
   

  	
  23JAN04

  
	
  2120

  	
   

  	
  Define SoW/BoD

  	
   

  	
  14

  	
   

  	
  01DEC03

  	
   

  	
  18DEC03

  
	
  2130

  	
   

  	
  Prepare SoW DNV Clas
  Cont.Plan

  	
   

  	
  20

  	
   

  	
  05JAN04

  	
   

  	
  30JAN04

  
	
  2220

  	
   

  	
  Tie-in Dimensional Survey

  	
   

  	
  10

  	
   

  	
  12JAN04

  	
   

  	
  23JAN04

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Contracting

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  S/C S1
  DryDock/Yard Flab.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1813

  	
   

  	
  Yard Fab. Module - Prepare
  ITT

  	
   

  	
  10

  	
   

  	
  15DEC03

  	
   

  	
  26DEC03

  
	
  1815

  	
   

  	
  Yard Fab. Module - Award

  	
   

  	
  20

  	
   

  	
  12JAN04

  	
   

  	
  06FEB04

  
	
  S/C S2
  Offshore Installation

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1823

  	
   

  	
  Offshore Installation
  ITT-Prepare

  	
   

  	
  10

  	
   

  	
  15DEC03

  	
   

  	
  26DEC03

  
	
  1827

  	
   

  	
  Offshore Installation ITT -
  Award

  	
   

  	
  10

  	
   

  	
  13JAN04

  	
   

  	
  26JAN04

  
	
  S/C S3
  Cert./Classification

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1833

  	
   

  	
  Design Cert. ITT - Prepare

  	
   

  	
  5

  	
   

  	
  05JAN04

  	
   

  	
  09JAN04

  
	
  1837

  	
   

  	
  Design Cert. ITT - Award

  	
   

  	
  10

  	
   

  	
  26JAN04

  	
   

  	
  06FEB04

  
	
  S/C S4
  Warranty Surveyor

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1843

  	
   

  	
  Warranty Surveyor - Prepare
  ITT

  	
   

  	
  5

  	
   

  	
  16FEB04

  	
   

  	
  20FEB04

  
	
  1847

  	
   

  	
  Warranty Surveyor - Award

  	
   

  	
  10

  	
   

  	
  01MAR04

  	
   

  	
  12MAR04

  
	
  S/C S5
  VIEC for 1stSeparator

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1853

  	
   

  	
  1 Sep internal VIEC -
  Prepare ITT

  	
   

  	
  5

  	
   

  	
  08DEC03

  	
   

  	
  12DEC03

  
	
  1857

  	
   

  	
  1 Sep internal VIEC - Award
  ABB

  	
   

  	
  10

  	
   

  	
  15DEC03

  	
   

  	
  26DEC03

  
	
  1858

  	
   

  	
  1 Sep internal VIEC -
  Fab/deliver

  	
   

  	
  100

  	
   

  	
  16JAN04

  	
   

  	
  03JUN04

  
	
  1859

  	
   

  	
  1 Sep internal VIEC -
  Shipment

  	
   

  	
  15

  	
   

  	
  19JUL04

  	
   

  	
  06AUG04

  
	
  S/C S6

  	
   

  	
  S/C S6 Munin Thrusters
  Overhaul

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3118

  	
   

  	
  Thrusters Overhaul -
  Prepare ITT

  	
   

  	
  5

  	
   

  	
  05JAN04

  	
   

  	
  09JAN04

  
	
  3119

  	
   

  	
  Thrusters Overhaul - Award
  Contract

  	
   

  	
  10

  	
   

  	
  19JAN04

  	
   

  	
  30JAN04

  
	
  S/C S7 IAS
  system

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31115

  	
   

  	
  Kongsberg IAS scope -
  Prepare ITT

  	
   

  	
  5

  	
   

  	
  22DEC03

  	
   

  	
  26DEC03

  
	
  31117

  	
   

  	
  Kongsberg IAS scope - Award
  Contract

  	
   

  	
  10

  	
   

  	
  19JAN04

  	
   

  	
  30JAN04

  
	
  S/C S8
  Offloading Metering

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3173

  	
   

  	
  OffloadMetering FMC scope -
  Prepare ITT

  	
   

  	
  5

  	
   

  	
  22DEC03

  	
   

  	
  26DEC03

  
	
  3177

  	
   

  	
  OffloadMetering FMC scope -
  Award Contract

  	
   

  	
  10

  	
   

  	
  19JAN04

  	
   

  	
  30JAN04

  
	
  Procurement

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  P01-Swivel
  10’300#

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4013

  	
   

  	
  Product Swivel - Purchase

  	
   

  	
  25

  	
   

  	
  05JAN04

  	
   

  	
  06FEB04

  
	
  4015

  	
   

  	
  Product Swivel -
  Fab./deliver

  	
   

  	
  80

  	
   

  	
  09FEB04

  	
   

  	
  28MAY04

  
	
  4017

  	
   

  	
  Product Swivel - Shipment

  	
   

  	
  15

  	
   

  	
  31MAY04

  	
   

  	
  18JUN04

  
	
  P05 - Main
  Bearing

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4053

  	
   

  	
  Main Bearing - Purchase

  	
   

  	
  20

  	
   

  	
  15DEC03

  	
   

  	
  16JAN04

  
	
  4055

  	
   

  	
  Main Bearing - Fab./Deliver

  	
   

  	
  95

  	
   

  	
  19JAN04

  	
   

  	
  28MAY04

  
	
  4057

  	
   

  	
  Main Bearing - Shipment

  	
   

  	
  14

  	
   

  	
  31MAY04

  	
   

  	
  17JUN04

  

 

bluewater

© Primavera Systems, Inc.

 

 

	
  ID

  Flex Risers

  	
   

  	
  Description

  	
   

  	
  Days

  	
   

  	
  Late

  Star t

  	
   

  	
  Late

  Finish

  
	
  4141

  	
   

  	
  Flex.Risers - Confirming
  for Reuse

  	
   

  	
  25

  	
   

  	
  15DEC03

  	
   

  	
  23JAN04

  
	
  4143

  	
   

  	
  Flex.Risers - Purchase

  	
   

  	
  15

  	
   

  	
  09FEB04

  	
   

  	
  27FEB04

  
	
  4145

  	
   

  	
  Flex.Risers - Repairs

  	
   

  	
  10

  	
   

  	
  16FEB04

  	
   

  	
  27FEB04

  
	
  4146

  	
   

  	
  Flex.Risers -
  FAT/Acceptance

  	
   

  	
  5

  	
   

  	
  01MAR04

  	
   

  	
  05MAR04

  
	
  4148

  	
   

  	
  Flex.Risers - Prepare for
  Shipment

  	
   

  	
  30

  	
   

  	
  03MAY04

  	
   

  	
  11JUN04

  
	
  4149

  	
   

  	
  Flex.Risers - Shipment

  	
   

  	
  50

  	
   

  	
  14JUN04

  	
   

  	
  20AUG04

  
	
  P16 - Cool Plates - CoolMed.
  Cooler

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3233

  	
   

  	
  CoolMed Cooler Plates -
  Purchase

  	
   

  	
  20

  	
   

  	
  26JAN04

  	
   

  	
  20FEB04

  
	
  3235

  	
   

  	
  CoolMed Cooler Plates -
  Fab/deliver

  	
   

  	
  100

  	
   

  	
  23FEB04

  	
   

  	
  09JUL04

  
	
  3237

  	
   

  	
  CoolMed Cooler Plates -
  Shipment

  	
   

  	
  15

  	
   

  	
  12JUL04

  	
   

  	
  30JUL04

  
	
  P17 -
  Centrifugal Pumps

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4173

  	
   

  	
  Well Booster Pumps 2x -
  Purchase

  	
   

  	
  20

  	
   

  	
  25NOV03

  	
   

  	
  22DEC03

  
	
  4175

  	
   

  	
  Well Booster Pumps 2x -
  Fab./Deliver

  	
   

  	
  150

  	
   

  	
  23DEC03

  	
   

  	
  26JUL04

  
	
  4177

  	
   

  	
  Well Booster Pumps 2x -
  Shipment

  	
   

  	
  5

  	
   

  	
  27JUL04

  	
   

  	
  02AUG04

  
	
  P18 - CrudeOil Transf Pump +
  Motor

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3133

  	
   

  	
  CrudeOil Transf Pump -
  Purchase

  	
   

  	
  20

  	
   

  	
  15DEC03

  	
   

  	
  16JAN04

  
	
  3135

  	
   

  	
  CrudeOil Transf Pump -
  Fab/deliver

  	
   

  	
  140

  	
   

  	
  19JAN04

  	
   

  	
  30JUL04

  
	
  3137

  	
   

  	
  CrudeOil Transf Pump -
  Shipment

  	
   

  	
  15

  	
   

  	
  02AUG04

  	
   

  	
  20AUG04

  
	
  P19 - Cool
  Plates - CrudeOil Cooler

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3143

  	
   

  	
  CrudeOil Cooler Plates -
  Purchase

  	
   

  	
  20

  	
   

  	
  26JAN04

  	
   

  	
  20FEB04

  
	
  3145

  	
   

  	
  CrudeOil Cooler Plates -
  Fab/deliver

  	
   

  	
  100

  	
   

  	
  23FEB04

  	
   

  	
  09JUL04

  
	
  3147

  	
   

  	
  CrudeOil Cooler Plates -
  Shipment

  	
   

  	
  15

  	
   

  	
  12JUL04

  	
   

  	
  30JUL04

  
	
  P20 - Biocide Injection Airdriven
  pump

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3113

  	
   

  	
  Chemical Inj.Pump -
  Purchase

  	
   

  	
  20

  	
   

  	
  13JAN04

  	
   

  	
  09FEB04

  
	
  3115

  	
   

  	
  Chemical Inj.Pump -
  Fab/deliver

  	
   

  	
  72

  	
   

  	
  19FEB04

  	
   

  	
  28MAY04

  
	
  3117

  	
   

  	
  Chemical Inj.Pump - Shipment

  	
   

  	
  15

  	
   

  	
  12JUL04

  	
   

  	
  30JUL04

  
	
  P21 -
  Preas.Relief Valves

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4213

  	
   

  	
  Skid Ctrl.Valves - Purchase

  	
   

  	
  30

  	
   

  	
  23DEC03

  	
   

  	
  09FEB04

  
	
  4215

  	
   

  	
  Skid Ctrl.Valves -
  Fab./Deliver

  	
   

  	
  100

  	
   

  	
  10FEB04

  	
   

  	
  28JUN04

  
	
  4217

  	
   

  	
  Skid Ctrl.Valves - Shipment

  	
   

  	
  15

  	
   

  	
  29JUN04

  	
   

  	
  19JUL04

  
	
  Structural Bulk

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4233

  	
   

  	
  Struc. Mat - Purchase
  >by Yard<

  	
   

  	
  15

  	
   

  	
  09FEB04

  	
   

  	
  27FEB04

  
	
  4235

  	
   

  	
  Struc. Mat - Fab./Deliver
  By Yard

  	
   

  	
  40

  	
   

  	
  01MAR04

  	
   

  	
  23APR04

  
	
  Piping
  Bulk

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4243

  	
   

  	
  Pipe Mat - Purchase >by
  Yard<

  	
   

  	
  15

  	
   

  	
  01MAR04

  	
   

  	
  19MAR04

  
	
  4245

  	
   

  	
  Pipe Mat - Deliver first
  bulk By Yard

  	
   

  	
  40

  	
   

  	
  22MAR04

  	
   

  	
  14MAY04

  
	
  P25 -
  E&l Bulks

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4253

  	
   

  	
  E&l Eq./Mat - Purchase

  	
   

  	
  28

  	
   

  	
  01APR04

  	
   

  	
  10MAY04

  
	
  4255

  	
   

  	
  E&l Eq./Mat -
  Fab./Deliver

  	
   

  	
  60

  	
   

  	
  11MAY04

  	
   

  	
  02AUG04

  
	
  P27 -
  50-60 ton Winch

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4273

  	
   

  	
  Winch - Purchase

  	
   

  	
  20

  	
   

  	
  02FEB04

  	
   

  	
  27FEB04

  
	
  4275

  	
   

  	
  Winch - Fab.Deliver

  	
   

  	
  70

  	
   

  	
  01MAR04

  	
   

  	
  04JUN04

  
	
  4277

  	
   

  	
  Winch - Shipment

  	
   

  	
  20

  	
   

  	
  14JUN04

  	
   

  	
  09JUL04

  
	
  Repair
  & LTE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2470

  	
   

  	
  Repair & LTE
  Mat./Equipm. - Purchase

  	
   

  	
  40

  	
   

  	
  26JAN04

  	
   

  	
  19MAR04

  
	
  2473

  	
   

  	
  Repair & LTE
  Mat./Equipm. - Fab./Deliver

  	
   

  	
  100

  	
   

  	
  23FEB04

  	
   

  	
  09JUL04

  
	
  2475

  	
   

  	
  Repair & LTE
  Mat./Equipm. - Shipment

  	
   

  	
  15

  	
   

  	
  12JUL04

  	
   

  	
  30JUL04

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2111

  	
   

  	
  ICT Eq. - Purchase

  	
   

  	
  18

  	
   

  	
  05JAN04

  	
   

  	
  28JAN04

  
	
  2113

  	
   

  	
  ICT Eq. - Fab/deliver

  	
   

  	
  30

  	
   

  	
  23FEB04

  	
   

  	
  02APR04

  
	
  Engineering
  & Design

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Engineering
  Definition

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1070

  	
   

  	
  General - Basis Of Design

  	
   

  	
  10

  	
   

  	
  28NOV03

  	
   

  	
  11DEC03

  
	
  1080

  	
   

  	
  Module New P&ID

  	
   

  	
  8

  	
   

  	
  09DEC03

  	
   

  	
  18DEC03

  
	
  1090

  	
   

  	
  Hydraulic Calculations Tank

  	
   

  	
  5

  	
   

  	
  19DEC03

  	
   

  	
  25DEC03

  
	
  1100

  	
   

  	
  System Block Diagram

  	
   

  	
  6

  	
   

  	
  19DEC03

  	
   

  	
  26DEC03

  
	
  1110

  	
   

  	
  Hazardous area
  Classification

  	
   

  	
  10

  	
   

  	
  15DEC03

  	
   

  	
  26DEC03

  
	
  1120

  	
   

  	
  Setup Engineering databases

  	
   

  	
  10

  	
   

  	
  12DEC03

  	
   

  	
  25DEC03

  
	
  Layouts

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1140

  	
   

  	
  OutRig Struc.Layout AFD

  	
   

  	
  15

  	
   

  	
  01DEC03

  	
   

  	
  19DEC03

  
	
  1150

  	
   

  	
  Buoyancy Body AFD

  	
   

  	
  10

  	
   

  	
  08DEC03

  	
   

  	
  19DEC03

  
	
  1160

  	
   

  	
  Buoyancy lifting
  arrangement AFD

  	
   

  	
  26

  	
   

  	
  12DEC03

  	
   

  	
  23JAN04

  
	
  1170

  	
   

  	
  OutRig Struc./Ropeguard
  layout AFD

  	
   

  	
  26

  	
   

  	
  12DEC03

  	
   

  	
  23JAN04

  
	
  1190

  	
   

  	
  General Arrangement AFD

  	
   

  	
  10

  	
   

  	
  08DEC03

  	
   

  	
  19DEC03

  
	
  1200

  	
   

  	
  Main Piping Routing AFD

  	
   

  	
  10

  	
   

  	
  22DEC03

  	
   

  	
  09JAN04

  

 

 

	
  ID

  	
   

  	
  Description

  	
   

  	
  Days

  	
   

  	
  Start

  	
   

  	
  Finish

  
	
  1210

  	
   

  	
  PreliminaryPipestress
  calculations

  	
   

  	
  5

  	
   

  	
  22DEC03

  	
   

  	
  26DEC03

  
	
  1220

  	
   

  	
  Buoyancy Connection AFD

  	
   

  	
  12

  	
   

  	
  12DEC03

  	
   

  	
  05JAN04

  
	
  1240

  	
   

  	
  Preliminary weight &
  consumption Estimate

  	
   

  	
  5

  	
   

  	
  22DEC03

  	
   

  	
  26DEC03

  
	
  Specifications
  & Studies

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1260

  	
   

  	
  Operation & Fatigue
  conditions / loads

  	
   

  	
  15

  	
   

  	
  12DEC03

  	
   

  	
  08JAN04

  
	
  1270

  	
   

  	
  Define Loadout
  /Transp/lnstallation phil.

  	
   

  	
  15

  	
   

  	
  08DEC03

  	
   

  	
  26DEC03

  
	
  1280

  	
   

  	
  Mechanical handling/Bearing

  	
   

  	
  5

  	
   

  	
  25DEC03

  	
   

  	
  07JAN04

  
	
  1290

  	
   

  	
  Mechanical
  Datasheets/Spec’s

  	
   

  	
  10

  	
   

  	
  12DEC03

  	
   

  	
  25DEC03

  
	
  1300

  	
   

  	
  Instrument data sheets

  	
   

  	
  15

  	
   

  	
  12JAN04

  	
   

  	
  30JAN04

  
	
  1310

  	
   

  	
  Material Specifications

  	
   

  	
  5

  	
   

  	
  19DEC03

  	
   

  	
  25DEC03

  
	
  Tie-Ins

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2230

  	
   

  	
  Piping -Tie-in Schedule

  	
   

  	
  15

  	
   

  	
  01DEC03

  	
   

  	
  19DEC03

  
	
  3101

  	
   

  	
  Topside Mod’s -
  Eng&Design.

  	
   

  	
  30

  	
   

  	
  19DEC03

  	
   

  	
  05FEB04

  
	
  3848

  	
   

  	
  Piping - Tie-ins Packs

  	
   

  	
  30

  	
   

  	
  05JAN04

  	
   

  	
  13FEB04

  
	
  3851

  	
   

  	
  Piping - Rack Iso’s

  	
   

  	
  25

  	
   

  	
  20JAN04

  	
   

  	
  23FEB04

  
	
  3871

  	
   

  	
  ICT - Telecommspec.

  	
   

  	
  15

  	
   

  	
  30JAN04

  	
   

  	
  19FEB04

  
	
  Material
  Requisitions

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1340

  	
   

  	
  Product Swivel

  	
   

  	
  15

  	
   

  	
  15DEC03

  	
   

  	
  09JAN04

  
	
  1360

  	
   

  	
  Winch

  	
   

  	
  10

  	
   

  	
  12JAN04

  	
   

  	
  23JAN04

  
	
  1370

  	
   

  	
  Main & Swivel Bearing
  (incl. bolting)

  	
   

  	
  10

  	
   

  	
  22DEC03

  	
   

  	
  09JAN04

  
	
  1430

  	
   

  	
  Valves

  	
   

  	
  20

  	
   

  	
  08DEC03

  	
   

  	
  09JAN04

  
	
  Layout&Design

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1450

  	
   

  	
  General Arrangement AFC

  	
   

  	
  30

  	
   

  	
  29JAN04

  	
   

  	
  10MAR04

  
	
  1460

  	
   

  	
  Buoyancy Body AFC

  	
   

  	
  33

  	
   

  	
  12JAN04

  	
   

  	
  25FEB04

  
	
  1470

  	
   

  	
  OutRig Struc.AFC

  	
   

  	
  30

  	
   

  	
  22JAN04

  	
   

  	
  03MAR04

  
	
  1490

  	
   

  	
  Secondary
  Steel AFC

  	
   

  	
  20

  	
   

  	
  19FEB04

  	
   

  	
  17MAR04

  
	
  1540

  	
   

  	
  Cathodic
  Protection AFC

  	
   

  	
  10

  	
   

  	
  11MAR04

  	
   

  	
  24MAR04

  
	
  1545

  	
   

  	
  Lifting
  /Towing /Trans /Install. Doc’s AFC

  	
   

  	
  30

  	
   

  	
  05FEC04

  	
   

  	
  17MAR04

  
	
  1550

  	
   

  	
  COG
  and Stability Calculations AFC

  	
   

  	
  5

  	
   

  	
  18MAR04

  	
   

  	
  24MAR04

  
	
  1560

  	
   

  	
  Piping
  General Arrangement AFC

  	
   

  	
  30

  	
   

  	
  29JAN04

  	
   

  	
  10MAR04

  
	
  1570

  	
   

  	
  Piping Stress Analysis

  	
   

  	
  20

  	
   

  	
  03FEB04

  	
   

  	
  10MAR04

  
	
  1580

  	
   

  	
  Equipment
  Arrangement AFC

  	
   

  	
  20

  	
   

  	
  05FEB04

  	
   

  	
  03MAR04

  
	
  1610

  	
   

  	
  Tension
  System AFC

  	
   

  	
  5

  	
   

  	
  26FEB04

  	
   

  	
  03MAR04

  
	
  1780

  	
   

  	
  Update
  Engineering databases to AFC

  	
   

  	
  10

  	
   

  	
  26FEB04

  	
   

  	
  10MAR04

  
	
  1790

  	
   

  	
  Underwater
  Clamp AFC

  	
   

  	
  15

  	
   

  	
  12FEB04

  	
   

  	
  03MAR04

  
	
  1860

  	
   

  	
  Earthing
  Details AFC

  	
   

  	
  10

  	
   

  	
  04MAR04

  	
   

  	
  17MAR04

  
	
  Munin
  Interface

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2430

  	
   

  	
  Safety - Concept Safety
  Review

  	
   

  	
  10

  	
   

  	
  22DEC03

  	
   

  	
  09JAN04

  
	
  2440

  	
   

  	
  Safety - Hazop/Risk
  assessment

  	
   

  	
  5

  	
   

  	
  16JAN04

  	
   

  	
  22JAN04

  
	
  2450

  	
   

  	
  Safety - Safety Study’s

  	
   

  	
  15

  	
   

  	
  22DEC03

  	
   

  	
  16JAN04

  
	
  2457

  	
   

  	
  Safety - QRA & Safety
  Assessment report

  	
   

  	
  30

  	
   

  	
  20JAN04

  	
   

  	
  01MAR04

  
	
  3807

  	
   

  	
  Process - Simulations

  	
   

  	
  10

  	
   

  	
  20NOV03

  	
   

  	
  03DEC03

  
	
  3808

  	
   

  	
  Process - P&ID Draft

  	
   

  	
  10

  	
   

  	
  25NOV03

  	
   

  	
  08DEC03

  
	
  3809

  	
   

  	
  Process - P&ID For
  HA2OP - IDC

  	
   

  	
  10

  	
   

  	
  08DEC03

  	
   

  	
  19DEC03

  
	
  3810

  	
   

  	
  Process - P&ID For
  HAZOP - CAD

  	
   

  	
  10

  	
   

  	
  22DEC03

  	
   

  	
  09JAN04

  
	
  3811

  	
   

  	
  Process - P&ID AFD

  	
   

  	
  10

  	
   

  	
  19JAN04

  	
   

  	
  30JAN04

  
	
  3812

  	
   

  	
  Process - P&ID AFC

  	
   

  	
  10

  	
   

  	
  15MAR04

  	
   

  	
  26MAR04

  
	
  3813

  	
   

  	
  Process - Eq. MR’s LL

  	
   

  	
  10

  	
   

  	
  02DEC03

  	
   

  	
  15DEC03

  
	
  3815

  	
   

  	
  Process - Eq. MR’s Others

  	
   

  	
  20

  	
   

  	
  05JAN04

  	
   

  	
  30JAN04

  
	
  3816

  	
   

  	
  Process - Valves datasht’s
  LLI

  	
   

  	
  15

  	
   

  	
  01DEC03

  	
   

  	
  19DEC03

  
	
  3817

  	
   

  	
  Process - Valves/Instrument
  datasht’s

  	
   

  	
  15

  	
   

  	
  22DEC03

  	
   

  	
  16JAN04

  
	
  3832

  	
   

  	
  Piping - Iso production
  >OffSkid lines 25x<

  	
   

  	
  45

  	
   

  	
  30JAN04

  	
   

  	
  01APR04

  
	
  3835

  	
   

  	
  Piping - Stress/Supp.

  	
   

  	
  30

  	
   

  	
  30JAN04

  	
   

  	
  11MAR04

  
	
  3842

  	
   

  	
  E&I -GA’s Layouts for
  ITT

  	
   

  	
  15

  	
   

  	
  28NOV03

  	
   

  	
  18DEC03

  
	
  3845

  	
   

  	
  E&I - Schematics/Term
  drw. AFC

  	
   

  	
  40

  	
   

  	
  16FEB04

  	
   

  	
  09APR04

  
	
  3846

  	
   

  	
  E&I - Eq.Req’s/MTO Bulk

  	
   

  	
  15

  	
   

  	
  28NOV03

  	
   

  	
  18DEC03

  
	
  3847

  	
   

  	
  E&I - Design pck for
  ITT

  	
   

  	
  13

  	
   

  	
  02DEC03

  	
   

  	
  18DEC03

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2462

  	
   

  	
  Repair & LTE -
  Eng.&Design

  	
   

  	
  50

  	
   

  	
  05JAN04

  	
   

  	
  12MAR04

  
	
  2464

  	
   

  	
  Repair & LTE - Vessel
  inspection

  	
   

  	
  10

  	
   

  	
  12JAN04

  	
   

  	
  23JAN04

  
	
  2468

  	
   

  	
  Repair & LTE -
  WorkPrep.

  	
   

  	
  20

  	
   

  	
  02AUG04

  	
   

  	
  27AUG04

  
	
  Fabrication

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1620

  	
   

  	
  Buoyancy tank - Workprep

  	
   

  	
  20

  	
   

  	
  06APR04

  	
   

  	
  03MAY04

  
	
  1630

  	
   

  	
  Buoyancy tank - Cut/Roll
  plates

  	
   

  	
  21

  	
   

  	
  04MAY04

  	
   

  	
  01JUN04

  

 

 

	
  ID

  	
   

  	
  Description

  	
   

  	
   

  	
   

  	
  Start

  	
   

  	
  Finish

  
	
  1640

  	
   

  	
  Buoyancy tank - Assemble/Weld

  	
   

  	
  40

  	
   

  	
  23MAY04

  	
   

  	
  01JUL04

  
	
  1645

  	
   

  	
  Buoyancy tank - Outfitting

  	
   

  	
  25

  	
   

  	
  22JUN04

  	
   

  	
  16JUL04

  
	
  1647

  	
   

  	
  Buoyancy tank - Test/Commiss.

  	
   

  	
  21

  	
   

  	
  17JUL04

  	
   

  	
  06AUG04

  
	
  2311

  	
   

  	
  BTM Structure - Fabricate outrig.struc.

  	
   

  	
  20

  	
   

  	
  02AUG04

  	
   

  	
  27AUG04

  
	
  2321

  	
   

  	
  Structure - WorkPrep.

  	
   

  	
  20

  	
   

  	
  10MAR04

  	
   

  	
  06APR04

  
	
  2335

  	
   

  	
  Structure - PreFab Skid Piping

  	
   

  	
  25

  	
   

  	
  01JUN04

  	
   

  	
  05JUL04

  
	
  2337

  	
   

  	
  Structure - PreFab Off-Skid Piping

  	
   

  	
  25

  	
   

  	
  06JUL04

  	
   

  	
  09AUG04

  
	
  2341

  	
   

  	
  Structure - Fabricate Skid DeckSupp. beams

  	
   

  	
  15

  	
   

  	
  30JUL04

  	
   

  	
  19AUG04

  
	
  2343

  	
   

  	
  Structure - Fabricate Skid beams

  	
   

  	
  25

  	
   

  	
  07APR04

  	
   

  	
  11MAY04

  
	
  2345

  	
   

  	
  Structure - Assem./weld skid frame

  	
   

  	
  22

  	
   

  	
  12MAY04

  	
   

  	
  10JUN04

  
	
  2347

  	
   

  	
  Structure - Assem./weld Sec.steel

  	
   

  	
  27

  	
   

  	
  04JUN04

  	
   

  	
  12JUL04

  
	
  2349

  	
   

  	
  Structure - Install Equipm.

  	
   

  	
  10

  	
   

  	
  13JUL04

  	
   

  	
  26JUL04

  
	
  2351

  	
   

  	
  Structure - Install Pipework

  	
   

  	
  20

  	
   

  	
  06JUL04

  	
   

  	
  02AUG04

  
	
  2361

  	
   

  	
  Structure - Install E&l

  	
   

  	
  10

  	
   

  	
  20JUL04

  	
   

  	
  02AUG04

  
	
  2373

  	
   

  	
  Module- Yard Test&Comm..

  	
   

  	
  10

  	
   

  	
  03AUG04

  	
   

  	
  16AUG04

  
	
  + Munin installation

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  339

  	
   

  	
  30AUG04

  	
   

  	
  26SEP04

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  General

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2420

  	
   

  	
  PreOps - Licenses & Permits

  	
   

  	
  150

  	
   

  	
  30JAN04

  	
   

  	
  26AUG04

  
	
  2423

  	
   

  	
  PreOps - Operations plan

  	
   

  	
  40

  	
   

  	
  17DEC03

  	
   

  	
  17FEB04

  
	
  2425

  	
   

  	
  PreOps - DNV/SINA Class Cont. PLan

  	
   

  	
  40

  	
   

  	
  06JAN04

  	
   

  	
  01MAR04

  
	
  2431

  	
   

  	
  HR - Organisation set-up

  	
   

  	
  53

  	
   

  	
  28NOV03

  	
   

  	
  17FEB04

  
	
  2433

  	
   

  	
  HR - StatOil replacements

  	
   

  	
  111

  	
   

  	
  27FEB04

  	
   

  	
  30JUL04

  
	
  2435

  	
   

  	
  HR - Recruit Prod.Supervisors

  	
   

  	
  60

  	
   

  	
  05JAN04

  	
   

  	
  26MAR04

  
	
  2437

  	
   

  	
  HR - Training/Skills gap analysis

  	
   

  	
  80

  	
   

  	
  26DEC03

  	
   

  	
  22APR04

  
	
  2441

  	
   

  	
  BaseSetUp - Office location

  	
   

  	
  61

  	
   

  	
  26DEC03

  	
   

  	
  26MAR04

  
	
  2442

  	
   

  	
  BaseSetUp - Office Outfitting

  	
   

  	
  44

  	
   

  	
  30JUN04

  	
   

  	
  30AUG04

  
	
  2443

  	
   

  	
  BaseSetUp - Comms. & IT (office & offshore)

  	
   

  	
  43

  	
   

  	
  29JUN04

  	
   

  	
  26AUG04

  
	
  2444

  	
   

  	
  BaseSetUp - Recruit locals

  	
   

  	
  43

  	
   

  	
  31MAY04

  	
   

  	
  28JUL04

  
	
  2445

  	
   

  	
  BaseSetUp - Procurement Contracts

  	
   

  	
  66

  	
   

  	
  27FEB04

  	
   

  	
  28MAY04

  
	
  2446

  	
   

  	
  BaseSetUp - Logistics setup

  	
   

  	
  66

  	
   

  	
  27FEB04

  	
   

  	
  28MAY04

  
	
  2447

  	
   

  	
  BaseSetUp - Key performance indicators (SPE)

  	
   

  	
  22

  	
   

  	
  30JUN04

  	
   

  	
  29JUL04

  
	
  2448

  	
   

  	
  BaseSetUp - Emergency response exercise

  	
   

  	
  21

  	
   

  	
  31AUG04

  	
   

  	
  28SEP04

  
	
  2451

  	
   

  	
  Manuals - Review & amend ex. 16 OFF

  	
   

  	
  152

  	
   

  	
  30JAN04

  	
   

  	
  30AUG04

  
	
  2453

  	
   

  	
  Manuals - Prepare Oper Manuals

  	
   

  	
  68

  	
   

  	
  31MAR04

  	
   

  	
  02JUL04

  
	
  2455

  	
   

  	
  Manuals - Bridging Documents

  	
   

  	
  112

  	
   

  	
  31MAR04

  	
   

  	
  02SEP04

  
	
  2461

  	
   

  	
  Offshore - Flawless S.U. Proc.

  	
   

  	
  61

  	
   

  	
  26DEC03

  	
   

  	
  26MAR04

  
	
  2463

  	
   

  	
  Offshore - Readiness Ex.system (Chklist)

  	
   

  	
  42

  	
   

  	
  30JUL04

  	
   

  	
  27SEP04

  
	
  2465

  	
   

  	
  Offshore - Handover project Mod’s

  	
   

  	
  20

  	
   

  	
  31AUG04

  	
   

  	
  27SEP04

  
	
  2467

  	
   

  	
  Offshore - Familiar Prod.Superv.A

  	
   

  	
  85

  	
   

  	
  01JUN04

  	
   

  	
  27SEP04

  
	
  2469

  	
   

  	
  Offshore - Familiar Prod.Superv.B

  	
   

  	
  43

  	
   

  	
  30JUL04

  	
   

  	
  28SEP04

  

 

 

	
  Milestones/Summary

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2411

  	
   

  	
  Munin - ShutDown Lufeng Field >StatOil<

  	
   

  	
  0

  	
   

  	
  16AUG04

  	
   

  	
   

  
	
  2413

  	
   

  	
  Munin - Degas/Rush systems >StatOil<

  	
   

  	
  10

  	
   

  	
  16AUG04

  	
   

  	
  25AUG04

  
	
  2415

  	
   

  	
  Munin - Disconnect Lufeng >StatOil<

  	
   

  	
  4

  	
   

  	
  26AUG04

  	
   

  	
  29AUG04

  
	
  2417

  	
   

  	
  Munin - Release by StatOil

  	
   

  	
  0

  	
   

  	
  30AUG04

  	
   

  	
   

  
	
  2419

  	
   

  	
  Munin - in Dry Dock

  	
   

  	
  23

  	
   

  	
  02SEP04

  	
   

  	
  24SEP04

  
	
  5030

  	
   

  	
  Munin - Vessel Mod’s/Module

  	
   

  	
  21

  	
   

  	
  03SEP04

  	
   

  	
  23SEP04

  
	
  5040

  	
   

  	
  Munin - Hook-up to Xijiang field

  	
   

  	
  2

  	
   

  	
  29SEP04

  	
   

  	
  30SEP04

  
	
  7020

  	
   

  	
  BTM release NHKT (Current FPSO OffStat.)

  	
   

  	
  0

  	
   

  	
  25SEP04

  	
   

  	
   

  
	
  7021

  	
   

  	
  Mob./WorkPrep @ Chiwan

  	
   

  	
  3

  	
   

  	
  22SEP04

  	
   

  	
  24SEP04

  
	
  7025

  	
   

  	
  Install BW SubMerge Rig./Risers

  	
   

  	
  4

  	
   

  	
  25SEP04

  	
   

  	
  28SEP04

  
	
  9043

  	
   

  	
  Testing & Commissioning

  	
   

  	
  2

  	
   

  	
  29SEP04

  	
   

  	
  30SEP04

  
	
  9048

  	
   

  	
  Startup

  	
   

  	
  1

  	
   

  	
  01OCT04

  	
   

  	
  01OCT04

  
	
  9050

  	
   

  	
  First Oil

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
  01OCT04*

  
	
  Munin
  installation

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Transit

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6113

  	
   

  	
  Munin - Sail to DryDock

  	
   

  	
  2

  	
   

  	
  30AUG04

  	
   

  	
  31AUG04

  
	
  6115

  	
   

  	
  Munin - Prepare DryDock

  	
   

  	
  2

  	
   

  	
  31AUG04

  	
   

  	
  01SEP04

  
	
  6117

  	
   

  	
  Munin - Tow In DryDock

  	
   

  	
  1

  	
   

  	
  02SEP04

  	
   

  	
  02SEP04

  
	
  6935

  	
   

  	
  Munin - Tow Out Dry Dock

  	
   

  	
  1

  	
   

  	
  24SEP04

  	
   

  	
  24SEP04

  
	
  6937

  	
   

  	
  Munin - Leave Yard

  	
   

  	
  1

  	
   

  	
  25SEP04

  	
   

  	
  25SEP04

  
	
  6939

  	
   

  	
  Munin - Arrival Xijiang

  	
   

  	
  1

  	
   

  	
  26SEP04

  	
   

  	
  26SEP04

  
	
  Module Installation on Munin

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6031

  	
   

  	
  Module - Supp.Frame Assem. on Deck

  	
   

  	
  2

  	
   

  	
  03SEP04

  	
   

  	
  04SEP04

  
	
  6033

  	
   

  	
  Module - Supp.Frame Final Alignment

  	
   

  	
  1

  	
   

  	
  05SEP04

  	
   

  	
  05SEP04

  
	
  6035

  	
   

  	
  Module - Supp.Frame Weld

  	
   

  	
  2

  	
   

  	
  06SEP04

  	
   

  	
  07SEP04

  
	
  6050

  	
   

  	
  Module - Prepare for lifting

  	
   

  	
  2

  	
   

  	
  05SEP04

  	
   

  	
  06SEP04

  
	
  6051

  	
   

  	
  Module - Lift on supp.frame

  	
   

  	
  1

  	
   

  	
  08SEP04

  	
   

  	
  08SEP04

  
	
  6053

  	
   

  	
  Module - Final Alignment

  	
   

  	
  2

  	
   

  	
  09SEP04

  	
   

  	
  10SEP04

  
	
  6057

  	
   

  	
  Module - Weld to Frame

  	
   

  	
  3

  	
   

  	
  10SEP04

  	
   

  	
  12SEP04

  
	
  6071

  	
   

  	
  Module - Module Testing

  	
   

  	
  5

  	
   

  	
  19SEP04

  	
   

  	
  23SEP04

  
	
  Tie-Ins

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2250

  	
   

  	
  Tie-ins Work Prep.

  	
   

  	
  7

  	
   

  	
  30AUG04

  	
   

  	
  05SEP04

  
	
  2255

  	
   

  	
  Tie-ins Crude Oil

  	
   

  	
  1

  	
   

  	
  11SEP04

  	
   

  	
  11SEP04

  
	
  2257

  	
   

  	
  Tie-ins Produced Water 4x

  	
   

  	
  2

  	
   

  	
  03SEP04

  	
   

  	
  04SEP04

  
	
  2259

  	
   

  	
  Tie-in 12” to Slops tank

  	
   

  	
  1

  	
   

  	
  03SEP04

  	
   

  	
  03SEP04

  
	
  2261

  	
   

  	
  Tie-ins Drains

  	
   

  	
  1

  	
   

  	
  11SEP04

  	
   

  	
  11SEP04

  
	
  2263

  	
   

  	
  Tie-ins Chem.injection 4x

  	
   

  	
  2

  	
   

  	
  03SEP04

  	
   

  	
  04SEP04

  
	
  2281

  	
   

  	
  Tie-insE&lIAS

  	
   

  	
  5

  	
   

  	
  03SEP04

  	
   

  	
  07SEP04

  
	
  2283

  	
   

  	
  Tie-ins E&l Power Supply

  	
   

  	
  5

  	
   

  	
  11SEP04

  	
   

  	
  15SEP04

  
	
  2285

  	
   

  	
  Tie-ins E&l Hydraulic’s

  	
   

  	
  3

  	
   

  	
  11SEP04

  	
   

  	
  13SEP04

  
	
  2287

  	
   

  	
  Tie-ins E&l Instrum.Air

  	
   

  	
  3

  	
   

  	
  11SEP04

  	
   

  	
  13SEP04

  
	
  2300

  	
   

  	
  Tie-ins Test/Complete

  	
   

  	
  5

  	
   

  	
  13SEP04

  	
   

  	
  17SEP04

  
	
  Thruster Overhaul

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6121

  	
   

  	
  Munin Thrusters - Disconect Azimuth

  	
   

  	
  2

  	
   

  	
  03SEP04

  	
   

  	
  04SEP04

  
	
  6123

  	
   

  	
  Munin Thrusters - Remove Azimuth Thrus.

  	
   

  	
  2

  	
   

  	
  04SEP04

  	
   

  	
  05SEP04

  
	
  6125

  	
   

  	
  Munin Thrusters - Overhaul Azimuth Thrus.

  	
   

  	
  10

  	
   

  	
  06SEP04

  	
   

  	
  15SEP04

  
	
  6127

  	
   

  	
  Munin Thrusters - HookUp Azimuth Thrus.

  	
   

  	
  2

  	
   

  	
  16SEP04

  	
   

  	
  17SEP04

  
	
  6131

  	
   

  	
  Munin Thrusters - Disconect Bow Thrus.

  	
   

  	
  2

  	
   

  	
  05SEP04

  	
   

  	
  06SEP04

  
	
  6133

  	
   

  	
  Munin Thrusters - Remove Bow Thrus.

  	
   

  	
  2

  	
   

  	
  06SEP04

  	
   

  	
  07SEP04

  
	
  6135

  	
   

  	
  Munin Thrusters - Overhaul Bow Thrus.

  	
   

  	
  9

  	
   

  	
  08SEP04

  	
   

  	
  16SEP04

  
	
  6137

  	
   

  	
  Munin Thrusters - MookUp Bow Thrus.

  	
   

  	
  2

  	
   

  	
  17SEP04

  	
   

  	
  18SEP04

  
	
  6143

  	
   

  	
  Munin Propeller - Propeller Blades Disconnect

  	
   

  	
  1

  	
   

  	
  03SEP04

  	
   

  	
  03SEP04

  
	
  6145

  	
   

  	
  Munin Propeller - Propeller Blades Repair

  	
   

  	
  9

  	
   

  	
  04SEP04

  	
   

  	
  12SEP04

  
	
  6147

  	
   

  	
  Munin Propeller - Propeller Blades Reinstall

  	
   

  	
  2

  	
   

  	
  13SEP04

  	
   

  	
  14SEP04

  
	
  1st Separator VIEC Internals

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6531

  	
   

  	
  1st Separator - repl. internals (VIEC)

  	
   

  	
  7

  	
   

  	
  03SEP04

  	
   

  	
  09SEP04

  
	
  6539

  	
   

  	
  1st Separator - VIEC Panel installation

  	
   

  	
  3

  	
   

  	
  09SEP04

  	
   

  	
  11SEP04

  
	
  Chemical Injection Skid

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6541

  	
   

  	
  Chemical Injection - Disconect/remove ex.pump

  	
   

  	
  1

  	
   

  	
  03SEP04

  	
   

  	
  03SEP04

  
	
  6545

  	
   

  	
  Chemical Injection - l Biocide inj. pump

  	
   

  	
  2

  	
   

  	
  04SEP04

  	
   

  	
  05SEP04

  
	
  CrudeOil MlSystem

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6551

  	
   

  	
  CrudeOil Pump - repl. Pump + Pipework

  	
   

  	
  2

  	
   

  	
  03SEP04

  	
   

  	
  04SEP04

  
	
  6561

  	
   

  	
  CrudeOil Exchanger - Add. plates

  	
   

  	
  1

  	
   

  	
  03SEP04

  	
   

  	
  03SEP04

  

 

 

	
  ID

  	
   

  	
  Description

  	
   

  	
   

  	
   

  	
  Start

  	
   

  	
  Finish

  
	
  6571

  	
   

  	
  CrudeOil Med.Cooler - Add. Plates

  	
   

  	
  1

  	
   

  	
  03SEP04

  	
   

  	
  03SEP04

  
	
  Valves/ Piping Mod’s

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3150

  	
   

  	
  CtrlValve 20LV0131 - Disconnect

  	
   

  	
  1

  	
   

  	
  03SEP04

  	
   

  	
  03SEP04

  
	
  3153

  	
   

  	
  CtrlValve 20LV0131 -Upgrade

  	
   

  	
  1

  	
   

  	
  04SEP04

  	
   

  	
  04SEP04

  
	
  3161

  	
   

  	
  CtrlValve 20XV0134 - Remove

  	
   

  	
  1

  	
   

  	
  03SEP04

  	
   

  	
  03SEP04

  
	
  3163

  	
   

  	
  CtrlValve 20XV0134 - PipeMod/fit valve

  	
   

  	
  2

  	
   

  	
  04SEP04

  	
   

  	
  05SEP04

  
	
  3165

  	
   

  	
  CtrlValve 20XV0134 - HookUp/test

  	
   

  	
  1

  	
   

  	
  06SEP04

  	
   

  	
  06SEP04

  
	
  6155

  	
   

  	
  CtrlValve 20LV0131 - Connect/Test

  	
   

  	
  1

  	
   

  	
  05SEP04

  	
   

  	
  05SEP04

  
	
  6173

  	
   

  	
  Cargo Vent System - Piping Mod’s

  	
   

  	
  1

  	
   

  	
  06SEP04

  	
   

  	
  06SEP04

  
	
  6175

  	
   

  	
  Cargo Vent System - P/V valve replacement

  	
   

  	
  1

  	
   

  	
  06SEP04

  	
   

  	
  06SEP04

  
	
  6177

  	
   

  	
  Cargo Vent System - Flame arrestor repl.

  	
   

  	
  1

  	
   

  	
  06SEP04

  	
   

  	
  06SEP04

  
	
  E&l scope

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3531

  	
   

  	
  Kongsberg IAS - Cable Pulling

  	
   

  	
  4

  	
   

  	
  07SEP04

  	
   

  	
  10SEP04

  
	
  3533

  	
   

  	
  Kongsberg I AS - ref.system mod’s Ctrl Room

  	
   

  	
  5

  	
   

  	
  03SEP04

  	
   

  	
  07SEP04

  
	
  3535

  	
   

  	
  Kongsberg IAS - IAS system mod’s

  	
   

  	
  5

  	
   

  	
  03SEP04

  	
   

  	
  07SEP04

  
	
  3539

  	
   

  	
  Kongsberg IAS - Testing

  	
   

  	
  10

  	
   

  	
  09SEP04

  	
   

  	
  18SEP04

  
	
  3543

  	
   

  	
  Offload Metering - FMC Approver revamp

  	
   

  	
  5

  	
   

  	
  03SEP04

  	
   

  	
  07SEP04

  
	
  6575

  	
   

  	
  TeleComm. Provider Switch-Over

  	
   

  	
  2

  	
   

  	
  30AUG04

  	
   

  	
  31AUG04

  
	
  6581

  	
   

  	
  Power Supply - New Starter Module

  	
   

  	
  2

  	
   

  	
  03SEP04

  	
   

  	
  04SEP04

  
	
  6582

  	
   

  	
  Power Supply - ABB VSD mod’s/testing

  	
   

  	
  5

  	
   

  	
  15SEP04

  	
   

  	
  19SEP04

  
	
  6583

  	
   

  	
  Power Supply - Cable pulling

  	
   

  	
  5

  	
   

  	
  04SEP04

  	
   

  	
  08SEP04

  
	
  6585

  	
   

  	
  Power Supply - Cable Term./test

  	
   

  	
  7

  	
   

  	
  11SEP04

  	
   

  	
  17SEP04

  
	
  Repair & LTE Scope

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3310

  	
   

  	
  PumpRoom - Overhaul Isol. Valves cargo system

  	
   

  	
  10

  	
   

  	
  03SEP04

  	
   

  	
  12SEP04

  
	
  3320

  	
   

  	
  InertGas Room- Mod’s IG Ducting/vent.

  	
   

  	
  5

  	
   

  	
  03SEP04

  	
   

  	
  07SEP04

  
	
  3330

  	
   

  	
  MainDeck - Blank midship Manifold

  	
   

  	
  5

  	
   

  	
  03SEP04

  	
   

  	
  07SEP04

  
	
  3340

  	
   

  	
  Aft/PoopDeck- New NonRetum Valve

  	
   

  	
  3

  	
   

  	
  03SEP04

  	
   

  	
  05SEP04

  
	
  3350

  	
   

  	
  Emerg.FW pump Cooler - Clean internals

  	
   

  	
  5

  	
   

  	
  03SEP04

  	
   

  	
  07SEP04

  
	
  3355

  	
   

  	
  SwGr.Room Cooling - Repl. 2Condensors

  	
   

  	
  5

  	
   

  	
  03SEP04

  	
   

  	
  07SEP04

  
	
  3360

  	
   

  	
  Topside Repairs pending Inspection

  	
   

  	
  15

  	
   

  	
  03SEP04

  	
   

  	
  17SEP04

  
	
  3390

  	
   

  	
  Repair & LTE - Commission

  	
   

  	
  5

  	
   

  	
  19SEP04

  	
   

  	
  23SEP04

  
	
  3410

  	
   

  	
  Slop Tank Repair

  	
   

  	
  21

  	
   

  	
  30AUG04

  	
   

  	
  19SEP04

  
	
  3420

  	
   

  	
  Annual DNV survey

  	
   

  	
  14

  	
   

  	
  12SEP04

  	
   

  	
  25SEP04

  

 

 

	
  ID

  	
   

  	
  Description

  	
   

  	
   

  	
   

  	
  Start

  	
   

  	
  Finish

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Offshore Installation

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3101

  	
   

  	
  Mat/Eq. - Available @ Chiwan

  	
   

  	
  0

  	
   

  	
  23SEP04 00:00

  	
   

  	
   

  
	
  3103

  	
   

  	
  Mat/Eq. - Prepare for Shipment

  	
   

  	
  24

  	
   

  	
  23SEP04 00:00

  	
   

  	
  23SEP04 23:59

  
	
  3105

  	
   

  	
  Mat./Eq. - Transit to site

  	
   

  	
  24

  	
   

  	
  24SEP04 00:00*

  	
   

  	
  24SEP04 23:59

  
	
  3111

  	
   

  	
  Arrival DSV (DiversSupp.) @ Chiwan

  	
   

  	
  72

  	
   

  	
  19SEP04 00:00

  	
   

  	
  21SEP04 23:59

  
	
  3113

  	
   

  	
  Mobilise/install DSV @ Chiwan

  	
   

  	
  48

  	
   

  	
  22SEP04 00:00

  	
   

  	
  23SEP04 23:59

  
	
  3115

  	
   

  	
  DSV @ Chiwan

  	
   

  	
  12

  	
   

  	
  24SEP04 00:00

  	
   

  	
  24SEP04 11:59

  
	
  3131

  	
   

  	
  Arrival AHT/Supply vessel @ Chiwan

  	
   

  	
  24

  	
   

  	
  22SEP04 00:00

  	
   

  	
  22SEP04 23:59

  
	
  3133

  	
   

  	
  Mobilise AHT/SupplyVessel @ Chiwan

  	
   

  	
  24

  	
   

  	
  23SEP04 00:00

  	
   

  	
  23SEP04 23:59

  
	
  3135

  	
   

  	
  AHT/SupplyVessel to Site

  	
   

  	
  12

  	
   

  	
  24SEP04 00:00

  	
   

  	
  24SEP04 11:59

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5310

  	
   

  	
  Current FPSO Off-station

  	
   

  	
  0

  	
   

  	
  25SEP04 00:00*

  	
   

  	
   

  
	
  5320

  	
   

  	
  DSV - DP trials

  	
   

  	
  4

  	
   

  	
  24SEP04 12:00

  	
   

  	
  24SEP04 12:00

  
	
  5330

  	
   

  	
  DSV setup BTM location

  	
   

  	
  1

  	
   

  	
  25SEP04 00:00

  	
   

  	
  24SEP04 12:00

  
	
  5340

  	
   

  	
  ROV Site Survey

  	
   

  	
  2

  	
   

  	
  25SEP04 01:00

  	
   

  	
  24SEP04 12:00

  
	
  5350

  	
   

  	
  BTM clean marine growth

  	
   

  	
  2

  	
   

  	
  25SEP04 03:00

  	
   

  	
  24SEP04 12:00

  
	
  5355

  	
   

  	
  BTM remove existing lift rigging

  	
   

  	
  1

  	
   

  	
  25SEP04 05:00

  	
   

  	
  24SEP04 12:00

  
	
  5360

  	
   

  	
  Lower/fit BTM Adaptor Piece

  	
   

  	
  2

  	
   

  	
  25SEP04 06:00

  	
   

  	
  24SEP04 12:00

  
	
  5370

  	
   

  	
  lFlange-Clamps&TorqueBolts4x

  	
   

  	
  4

  	
   

  	
  25SEP04 08:00

  	
   

  	
  24SEP04 12:00

  
	
  5380

  	
   

  	
  Lower/fit Riser Gantry Assembly

  	
   

  	
  4

  	
   

  	
  25SEP04 12:00

  	
   

  	
  24SEP04 12:00

  
	
  5390

  	
   

  	
  Install Clamp-Flange/torgue bolts 4x

  	
   

  	
  4

  	
   

  	
  25SEP04 16:00

  	
   

  	
  24SEP04 12:00

  
	
  5440

  	
   

  	
  Pull-in/Hang-off BTM Riser #1 Remove Mandril

  	
   

  	
  2

  	
   

  	
  25SEP04 20:00

  	
   

  	
  25SEP04 21:59

  
	
  5450

  	
   

  	
  Pull-in/Hang-off BTM Riser #2 Remove Mandril

  	
   

  	
  3

  	
   

  	
  25SEP04 22:00

  	
   

  	
  26SEP04 00:59

  
	
  5460

  	
   

  	
  l Spoolpiece #1 MakeUp/Torque Flanges 2x

  	
   

  	
  6

  	
   

  	
  26SEP04 01:00

  	
   

  	
  26SEP04 06:59

  
	
  5465

  	
   

  	
  Install Spoolpiece #2 MakeUp/Torque Flanges 2x

  	
   

  	
  6

  	
   

  	
  26SEP04 07:00

  	
   

  	
  26SEP04 12:59

  
	
  5467

  	
   

  	
  Deploy/install New Riser Seabed Clumpweighl

  	
   

  	
  4

  	
   

  	
  26SEP04 13:00

  	
   

  	
  26SEP04 16:59

  
	
  5468

  	
   

  	
  l New Riser Buoy.termination

  	
   

  	
  4

  	
   

  	
  26SEP04 17:00

  	
   

  	
  26SEP04 20:59

  
	
  5470

  	
   

  	
  l flex Riser #1 (incl. flange)

  	
   

  	
  24

  	
   

  	
  26SEP04 21:00

  	
   

  	
  27SEP04 20:59

  
	
  5490

  	
   

  	
  Deploy/install flex Riser #2 (incl. flange)

  	
   

  	
  24

  	
   

  	
  26SEP04 21:00

  	
   

  	
  27SEP0420:59

  
	
  5500

  	
   

  	
  l NewRiser Buoy. Termination & Flood Riser

  	
   

  	
  6

  	
   

  	
  27SEP04 21:00

  	
   

  	
  28SEP04 02:59

  
	
  5501

  	
   

  	
  MakeUp/Torque pipe flanges 2x

  	
   

  	
  6

  	
   

  	
  28SEP04 03:00

  	
   

  	
  28SEP04 08:59

  
	
  5503

  	
   

  	
  Open Riser BTM Ballvalves 2x

  	
   

  	
  1

  	
   

  	
  28SEP04 09:00

  	
   

  	
  28SEP0409:59

  
	
  5505

  	
   

  	
  Press.TestFlex Riser #1&2

  	
   

  	
  12

  	
   

  	
  28SEP04 10:00

  	
   

  	
  28SEP04 21:59

  
	
  5510

  	
   

  	
  l DP Seabed Transponders 5x

  	
   

  	
  5

  	
   

  	
  28SEP04 22:00

  	
   

  	
  29SEP04 02:59

  
	
  5550

  	
   

  	
  DSV depart./Release site for Munin

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
  29SEP04 02:59

  
	
  5560

  	
   

  	
  Vessels Transit to Chiwan

  	
   

  	
  12

  	
   

  	
  29SEP04 03:00

  	
   

  	
  29SEP04 14:59

  
	
  5570

  	
   

  	
  Unload/DemobDSV

  	
   

  	
  24

  	
   

  	
  29SEP04 15:00

  	
   

  	
  30SEP04 14:59

  
	
  5600

  	
   

  	
  Demob Complete

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
  30SEP04 14:59

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2503

  	
   

  	
  Munin - Pre hook-up test/DP Trails

  	
   

  	
  36

  	
   

  	
  25SEP04 00:00*

  	
   

  	
  26SEP04 11:59

  
	
  2505

  	
   

  	
  Munin on position/HPR DP Trails

  	
   

  	
  71

  	
   

  	
  26SEP04 00:00

  	
   

  	
  28SEP04 22:59

  
	
  2507

  	
   

  	
  Munin on position/HPR DP Trails

  	
   

  	
  6

  	
   

  	
  29SEP04 03:00

  	
   

  	
  29SEP04 08:59

  
	
  2510

  	
   

  	
  Hook-up Munin/Lock Buoyanyce tank to Munnin

  	
   

  	
  3

  	
   

  	
  29SEP04 09:00

  	
   

  	
  29SEP04 11:59

  
	
  2520

  	
   

  	
  System pressure tests

  	
   

  	
  36

  	
   

  	
  29SEP04 12:00

  	
   

  	
  30SEP04 23:59

  
	
  2522

  	
   

  	
  FPSO checks

  	
   

  	
  36

  	
   

  	
  29SEP04 12:00

  	
   

  	
  30SEP04 23:59

  
	
  2525

  	
   

  	
  Start Up

  	
   

  	
  30

  	
   

  	
  30SEP04 18:00

  	
   

  	
  01OCT04 23:59

  

 

 

EXHIBIT
II – COMPENSATION SCHEDULE

 

TABLE OF CONTENTS

 

	
  ARTICLE 1

  	
  - GENERAL

  	
   

  
	
  ARTICLE 2

  	
  - CONTRACT COMPENSATION

  	
   

  
	
  ARTICLE 3

  	
  - LUMP SUM PAYMENTS

  	
   

  
	
  ARTICLE 4

  	
  - DAY RATE PAYMENTS

  	
   

  
	
  ARTICLE 5

  	
  - SUSPENSION RATES

  	
   

  
	
  ARTICLE 6

  	
  - TERMINATION RATES

  	
   

  
	
   

  	
   

  	
   

  
	
  COST SCHEDULES

  	
   

  
	
   

  	
   

  	
   

  
	
  II - A:

  	
  CONTRACT PRICE

  	
   

  
	
  II - B:

  	
  TERMINATION
  RATES

  	
   

  

 

 

 

1

 

ARTICLE 1  - GENERAL

 

1.1                                 This
EXHIBIT of the CONTRACT defines the basis for compensating CONTRACTOR for
performing the WORK and for discharging its other obligations under this
CONTRACT.

 

1.2                                 The
CONTRACT PRICE shall comprise the following:

 

(a)          Lump Sum
reimbursement for design, engineering, procurement, fabrication, and
construction of Dynamic Positioning Reference System and Catenary Riser System
(including BTM Outrigger Arm) including delivery to the OFFSHORE SITE;

 

(b)         Lump Sum
reimbursement for INSTALLATION of FPSO SYSTEM;

 

(c)          Lump Sum
reimbursement of management and engineering costs;

 

(d)         Lump Sum
reimbursement for design, design, engineering, procurement, fabrication,
conversion and construction of topside modifications and mobilization of the
FPSO VESSEL;

 

(e)          Vessel
Hire Rate for use, and Operating and Maintenance Rate for maintenance and
operation, in each case of the FPSO SYSTEM during the   UTILIZATION PERIOD.

 

(f)            Lump sum
reimbursement for DEMOBILIZATION of the FPSO SYSTEM, including disconnection
and removal from the OFFSHORE SITE of the FPSO MOORING, Dynamic Positioning Reference
System, Catenary Riser System, and the FPSO VESSEL, removal of the BTM
Outrigger Arm and restoration of the existing mooring system to the original
configuration, and delivery of the 8”catenary risers, reels, BTM outrigger and
buoyancy tank to COMPANY’s Chiwan Supply Base.

 

1.3                                 The
following adjustments shall be made, without affecting the CONTRACT PRICE:

 

(a)                                  Day
Rate Reduction for excessive DOWNTIME.

(b)                                 Reduced
Utilization Period Vessel Hire Rate when minimum oil production is less than
50,000 barrels of oil per day as defined in Table II – A.2.

(c)                                  Liquidated
Damages

(d)                                 Reductions
in the Operating and Maintenance rate as set forth herein.

 

1.4                                 Details
of each of these are set forth below.

 

2

 

ARTICLE 2  - CONTRACT COMPENSATION

 

2.1                                 For
all WORK, COMPANY shall pay CONTRACTOR the compensation in accordance with
Schedule II - A of this EXHIBIT II.

 

2.2                                 The
compensation set forth in Schedule II – A 
shall be the full and complete compensation to CONTRACTOR for the WORK,
including the provision of all facilities and services referred to in EXHIBIT
III - “Administration Procedures” unless otherwise stated in this CONTRACT, and
including the provision of all other overheads, taxes, duties, fees, facilities,
services and utility services required to support the performance of the WORK,
whether explicitly stated in the CONTRACT or implied in the Scope of WORK.

 

2.3                                 Compensation  is broken down into lump sum payments and
day rate payments as shown in Schedule II - A of this EXHIBIT II, and will
be paid at the completion of activities or at the times specified therein.
CONTRACTOR shall invoice COMPANY in accordance with the procedures defined in
EXHIBIT III - “Administration Procedures”, Article 7.

 

3

 

ARTICLE 3  - LUMP SUM PAYMENTS

 

3.1                                 Lump
Sum prices detailed in Schedule II - A herein shall be deemed to include
all costs associated with the engineering, design, procurement, fabrication,
construction, repair, refurbishment, modifications and marine operations
applicable to the specified activity for that Lump Sum reimbursement, and shall
be deemed to be inclusive of all necessary Classification and Certification
fees and charges related thereto.

 

3.2                                 CONTRACTOR
shall be responsible for and shall pay at such times when due and payable, all
custom charges, duties, port and harbour fees imposed on CONTRACTOR’s
consumables and spare parts of CONTRACTOR’s equipment required for the WORK.
All such costs shall be deemed to be part of the CONTRACT PRICE, and shall be
deemed to be included in the appropriate Lump Sum price.

 

3.3                                 CONTRACTOR
shall be responsible for and shall pay at its own costs and expense, when due
and payable, all other taxes, duties, fees or other governmental charges,
contributions or surcharges for which CONTRACTOR is liable pursuant to the
performance of the WORK. All such costs shall be deemed to be part of the
CONTRACT PRICE, and shall be deemed to be included in the appropriate Lump Sum
price.

 

3.4                                 The
Lump Sum prices in Schedule II - A related to the INSTALLATION and
DEMOBILIZATION of the FPSO SYSTEM  shall
also be deemed to be fully inclusive of all costs incidental to the ownership
such including time costs arising during fabrication and INSTALLATION, and
inclusive of CONTRACTOR’s and CONTRACTOR’s SUBCONTRACTOR’s costs associated
with project management, quality assurance and quality control, direct and
indirect overheads, contributions to profit, and all other such indirect costs
arising out of or in connection with the performance of the WORK.

 

3.5                                 Lump
Sum costs shall be payable upon issuance of the appropriate PERFORMANCE
CERTIFICATE covering  specified activity
defined in Schedule II - A. CONTRACTOR shall present its invoice for this
activity only upon issue by COMPANY of the appropriate certificate and a copy
of this certificate shall be attached to the invoice as part of the supporting
documentation.  Notwithstanding the
foregoing, in the event that the specified activity cannot be performed within
a reasonable time period after CONTRACTOR notifies COMPANY that it is ready and
able to initiate activity based on COMPANY’S inability to   perform, then COMPANY will, for the period
of time during which such activity cannot be performed, pay interest on the
lump sum amount attributable to such activity at an annualized rate equal to
LIBOR plus 2 percent, payable monthly.

 

4

 

ARTICLE 4  - DAY RATE PAYMENTS

 

General

 

4.1                                 PAYMENTS
DURING THE UTILIZATION PERIOD PRIOR TO ISSUANCE OF PERFORMANCE CERTIFICATE

 

A.             In the
event  the FPSO SYSTEM is located at the
OFFSHORE SITE and is capable of and ready to receive and process WELL FLUIDS
and offload PRODUCED OIL at the rates specified herein but COMPANY prevents CONTRACTOR
from completing INSTALLATION and/or commencing the PERFORMANCE TEST, an amount
equal to the Vessel Hire Rate plus verifiable, actual operating expenses will
be payable until such time as COMPANY is ready for CONTRACTOR to commence the
PERFORMANCE TEST .  Once COMPANY
notifies CONTRACTOR that it may proceed with the PERFORMANCE TEST, compensation
will be at the rate applicable based on TABLE 
II-A – Compensation Prior to Satisfactory Completion of the PERFORMANCE
TEST herein.

 

B.               In
the event the FPSO SYSTEM is not located at the OFFSHORE SITE, capable of and
ready to receive and process WELL FLUIDS and offload PRODUCED OIL at the rates
specified herein by October 1, 2004, no Vessel Hire Rate or Operating and
Maintenance Fee will be payable.  At such
time as the FPSO SYSTEM is INSTALLED and is capable of and ready to receive and
process WELL FLUIDS and offload PRODUCED OIL at the rates specified herein,
CONTRACTOR will notify COMPANY that it is ready to proceed with the PERFORMANCE
TEST, and compensation will commence at the rate applicable in TABLE II –
Compensation Prior to Satisfactory Completion of the PERFORMANCE TEST.

 

C.               In
the event the FPSO SYSTEM is not located at the OFFSHORE SITE, capable of and
ready to receive and process WELL FLUIDS and offload PRODUCED OIL by
October 1, 2004 due to a Force Majeure Event as defined in Article 21
of the CONTRACT, the Force Majeure Rates set forth in Table II – A.5 shall be
payable for the duration of the Force Majeure Event.

 

4.2                             PAYMENTS
DURING THE UTILIZATION PERIOD AFTER ISSUANCE OF THE PERFORMANCE CERTIFICATE

 

Once the
PERFORMANCE CERTIFICATE has been issued, compensation will be at the RATES
APPLICABLE AFTER ISSUANCE OF PERFORMANCE

 

5

 

CERTIFICATE set forth
in TABLE II – A.2.  A reduced rate will
be applicable during any days when PRODUCED OIL production and, if applicable,
offloading, falls below 50,000 barrels, and such shortfall is not caused by
lack of production of WELL FLUIDS from the Wellhead Platform.

 

4.3                                 ELEMENTS
OF VESSEL HIRE RATE AND OPERATION AND MAINTENANCE FEES

 

Day Rate Costs
defined in Schedule II - A shall be deemed to include for all CONTRACTOR’s
direct and indirect costs for: labour, materials, consumables, equipment,
management, support, insurance, fees and all other items of whatever kind
required for the provision, operation and maintenance of the FPSO SYSTEM  during the UTILIZATION PERIOD with the
exception of items listed in EXHIBIT VII - “Company and Contractor Supplied
Materials and Equipment” specified as being supplied by COMPANY.

 

4.4                                 STOPPAGE
OF VESSEL HIRE RATE AND OPERATION AND MAINTENANCE FEE PAYMENTS

 

A.              In the following
events:

 

(i)                                     FPSO
SYSTEM is undergoing DOWNTIME beyond the 3% DOWNTIME allowance.  During the UTILIZATION PERIOD, CONTRACTOR
shall be allowed 3%  DOWNTIME.  DOWNTIME shall be defined as any time during
the Utilization Period when the FPSO SYSTEM is unable to receive or process oil
and produce and offload PRODUCED OIL and the cause is not a Force Majeure event
as defined in Article 21 of the Contract; and/or

(ii)                                  FPSO
VESSEL is disconnected from FPSO MOORING for any reason within the
environmental design criteria; and/or

(iii)                               Wreckage,
total loss and/or sinkage of any part of FPSO SYSTEM.

 

no Vessel Hire Rate
will be payable for the full duration of the event(s).  In case of event (iii), no Vessel Hire Rate
or Operating Maintenance Fee will be payable for the full duration of the
event.  Such duration shall be defined
as the period of time that the operation of any system on the Wellhead Platform
has been compromised from its intended/required performance, through no fault
of that system.

 

B.                                     In
the event that export tankers are unable to commence, continue with, or
complete offloading operations when environmental conditions are within the
offloading design criteria as stated in EXHIBIT IX and in the reasonable
opinion of the Mooring Master the FPSO SYSTEM fails to properly operate to an
extent that it:

 

(i)                                     Prevents
the export tanker from approaching to and/or mooring to the FPSO VESSEL; and/or

(ii)                                  Prevents
offloading hoses from being connected prior to commencement of offloading;
and/or

 

6

 

(iii)                               Requires
offloading hoses to be disconnected prior to completion of offloading; and/or

(iv)                              Requires
tanker to un-moor from the FPSO VESSEL and stand-off; and/or

(v)                                 Requires
the export tanker to depart the OFFSHORE SITE without completion of loading the
planned offloading parcel.

 

no Vessel
Hire  Rate will be payable for the full
duration of the event(s). Such duration shall be defined as the cumulative
period(s) during which the offloading operation is on stand-by, starting from
the scheduled time for commencement of mooring the export tanker (as stated in
the preceding day’s daily report) and up the actual time of completion of
de-mooring the export tanker.  If such
an event occurs but full production of WELL FLUIDS from the Wellhead Platform
is uninterrupted, then the Vessel Hire Rate will be unaffected but CONTRACTOR
shall pay all demurrage and other verifiable direct costs caused by such
failure.  If such an event occurs and as
a result a cutback on WELL FLUIDS production levels   is caused or required, the Vessel Hire Rate will be adjusted in
an amount equal to the percentage of production reduction below full
production, and CONTRACTOR shall pay all demurrage and other verifiable direct
costs caused by such failure. 
CONTRACTOR’s maximum liability during any day under this
Article 4.4 shall be limited to an amount equal to the Vessel Hire Rate
applicable to such day.

 

C.                                     In
the event that the COMPANY OFFSHORE REPRESENTATIVE requires the FPSO SYSTEM to
stop receiving WELL FLUIDS and/or stop processing PRODUCED OIL due to, in his
reasonable opinion, unsafe working conditions of any EQUIPMENT or of the FPSO
SYSTEM, no day rate will be payable for the duration of the stoppage. Such
duration shall be defined as the period between the time that the COMPANY
OFFSHORE REPRESENTATIVE NOTIFIES the CONTRACTOR OIM to stop operation and the
time that the COMPANY OFFSHORE REPRESENTATIVE NOTIFIES the CONTRACTOR OIM that
he has released his stoppage instruction. Release of the COMPANY OFFSHORE
REPRESENTATIVE’s stoppage instruction will be given immediately once the unsafe
working condition is rectified to his reasonable satisfaction.

 

If
CONTRACTOR does not agree with the COMPANY OFFSHORE REPRESENTATIVE instruction
to stop processing PRODUCED OIL, CONTRACTOR must comply with COMPANY OFFSHORE
REPRESENTATIVE instruction.

 

The
invoice issued subsequent to the stoppage periods defined above shall be
calculated accordingly, allowing for each hour or part hour of stoppage arising
in the month addressed by that invoice.

 

7

 

ARTICLE 5  - SUSPENSION RATES

 

5.1                                 Pursuant
to Article 19 of the Contract - “Suspension of Work”, COMPANY may elect to
suspend all or part of the WORK.

 

5.2                                 In
the event that suspension takes place before the UTILIZATION PERIOD,
reimbursement shall be in accordance with Schedule II, Table II - A.3.

 

5.3                                 In
the event that suspension takes place during the UTILIZATION PERIOD,
reimbursement shall be in accordance with Schedule II, Table II – A.4.

 

5.4                                 In
the event that suspension arises due to sole default of CONTRACTOR or SUBCONTRACTOR’s,
no compensation shall be due to CONTRACTOR and no day rate will be payable for
the duration of the suspension.  The
suspension days are counted toward the minimum UTILIZATION PERIOD.

 

5.5                                 The
invoice(s) issued subsequent to the suspension period shall be calculated
accordingly, allowing for each hour or part hour of suspension.

 

8

 

ARTICLE 6  - TERMINATION RATES

 

6.1                                 Pursuant
to Article 20 of the CONTRACT  -
“Termination of Work”, COMPANY may elect to terminate all or part of the WORK.

 

6.2                                 In
the event that COMPANY terminates the CONTRACT without cause prior to the
UTILIZATION PERIOD, compensation properly due to CONTRACTOR shall be in
accordance with Schedule II, Table II - B.1.  No other compensation for any expenses resulting from the
termination shall be due to CONTRACTOR

 

6.3                                 In
the event that COMPANY terminates the contract without cause during the
UTILIZATION PERIOD, CONTRACTOR shall be reimbursed in accordance with
Schedule II, Table II - B.2.  No
other compensation for any expenses resulting from the termination shall be due
to CONTRACTOR.

 

6.4                                 In
the event that COMPANY terminates the contract for cause prior to the
UTILIZATION PERIOD, compensation properly due to CONTRACTOR shall be in accordance
with Schedule II, Table II - B.3. 
No other compensation for any expenses resulting from the termination
shall be due to CONTRACTOR.  No other
compensation for lost UTILIZATION or for DEMOBILIZATION or for any other
expenses resulting from the termination shall be due to CONTRACTOR.

 

6.5                                 In
the event that COMPANY terminates the contract for cause during UTILIZATION
PERIOD, compensation properly due to CONTRACTOR shall be in accordance with
Schedule II, Table II - B.4.  No
other compensation for lost UTILIZATION or for DEMOBILIZATION or for any other
expenses resulting from the termination shall be due to CONTRACTOR.

 

6.6                                 The
invoice(s) issued subsequent to the termination date shall be calculated
accordingly, allowing for each hour or part hour of suspension.

 

9

 

SCHEDULE II - A

 

CONTRACT PRICE

 

	
  TABLE II - A.1:

  	
  CONTRACT PRICE

  
	
   

  	
   

  
	
  TABLE II - A.2:

  	
  UTILIZATION
  DAY RATE ELEMENTS FOR UTILIZATION PERIOD PRIOR TO AND AFTER ISSUANCE OF
  PERFORMANCE CERTIFICATE

  
	
   

  	
   

  
	
  TABLE II - A.3:

  	
  SUSPENSION
  RATE PRIOR TO UTILIZATION PERIOD AS DESCRIBED IN ARTICLE 19

  
	
   

  	
   

  
	
  TABLE II - A.4:

  	
  SUSPENSION
  RATE DURING UTILIZATION PERIOD AS DESCRIBED IN ARTICLE 19

  
	
   

  	
   

  
	
  TABLE II - A.5:

  	
  FORCE MAJEURE RATE
  AS DESCRIBED IN ARTICLE 21

  

 

10

 

EXHIBIT II - Schedule of
Compensation

 

TABLE II - A.1: CONTRACT
PRICE

 

	
  COST ITEM

  	
   

  	
  TYPE OF

  PAYMENT

  	
   

  	
  COST (US$)

  	
   

  	
  PAYMENT
  SCHEDULE

  
	
  DESIGN,
  ENGINEERING, PROCUREMENT, FABRICATION, AND CONSTRUCTION OF DYNAMIC
  POSITIONING SYSTEM AND CATENARY RISER SYSTEM (INCLUDING OUTRIGGER ARM)  AND INCLUDING DELIVERY TO OFFSHORE SITE

  	
   

  	
  Lump Sum

  	
   

  	
  [***]

  	
   

  	
  Issuance
  of PERFORMANCE CERTIFICATE – FPSO SYSTEM

  
	
  INSTALLATION
  COSTS OF FPSO MUNIN,  THE DYNAMIC
  POSITIONING REFERENCE SYSTEM AND CATENARY RISER SYSTEM INCLUDING CONNECTION
  OF THE OUTRIGGER TO THE EXISTING BTM SYSTEM.

  	
   

  	
  Lump Sum

  	
   

  	
  [***]

  	
   

  	
  Issuance
  of PERFORMANCE CERTIFICATE – FPSO SYSTEM

  
	
  PROJECT
  MANAGEMENT AND ENGINEERING COSTS

  	
   

  	
  Lump Sum

  	
   

  	
  [***]

  	
   

  	
  Issuance
  of PERFORMANCE CERTIFICATE – FPSO SYSTEM

  
	
  DESIGN,
  ENGINEERING, PROCUREMENT, FABRICATION, CONVERSION AND CONSTRUCTION OF TOPSIDE
  MODIFICATIONS AND MOBILIZATION OF FPSO VESSEL

  	
   

  	
  Lump Sum

  	
   

  	
  [***]

  	
   

  	
  Issuance
  of PERFORMANCE CERTIFICATE – FPSO SYSTEM

  
	
  DISCONNECTION
  AND REMOVAL FROM OFFSHORE SITE OF FPSO MOORING, DYNAMIC  POSITIONING REFERENCE SYSTEM ,  CATENARY 
  RISER SYSTEM,  FPSO VESSEL,
  REMOVAL OF THE OUTRIGGER ARM AND RESTORATION OF EXISTING MOORING SYSTEM TO
  ORIGINAL CONFIGURATION AND REPAIR., AND DELIVERY OF THE OUTRIGGER ARM,
  BUOYANCY TANK  AND 8” CATERNARY RISERS
  TO COMPANY’S SHORE BASE AT CHIWAN

  	
   

  	
  Lump Sum

  	
   

  	
  [***]

  	
   

  	
  Issuance
  of DEMOBILIZATION CERTIFICATE

  

 

[***]  Certain confidential information
contained in this document, marked by brackets, has been omitted and filed
separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities
exchange Act of 1934.

 

11

 

	
  UTILIZATION
  PERIOD  (FPSO SYSTEM-VESSEL HIRE
  RATE))

  	
   

  	
  Day Rate

  	
   

  	
  PRIOR
  TO ISSUANCE OF PERFORMANCE CERTIFICATE: 
  SEE TABLE II – A.2  

   

  AFTER
  ISSUANCE OF PERFORMANCE CERTIFICATE: 
  SEE TABLE II – A.2  

   

  SUSPENSION
  RATE:  SEE TABLE II – A.3 &
  A.4  

   

  REDUCED
  RATES:  SEE TABLE II – A.2

   

  FORCE
  MAJEURE RATES:  SEE TABLE II – A.5

   

  TERMINATION
  RATES:  SEE TABLE II – B

  	
   

  	
  Monthly

  
	
  UTILIZATION
  PERIOD  FPSO SYSTEM-OPERATING AND
  MAINTENANCE RATE)

  	
   

  	
  Day Rate

  	
   

  	
  PRIOR
  TO ISSUANCE OF PERFORMANCE CERTIFICATE: 
  SEE TABLE II – A.2

   

  AFTER
  ISSUANCE OF PERFORMANCE CERTIFICATE: 
  SEE TABLE II – A.2

   

  SUSPENSION
  RATE:  SEE TABLE II – A.3 &
  A.4  

   

  FORCE
  MAJEURE RATES:  SEE TABLE II – A.5

   

  TERMINATION
  RATES:  SEE TABLE II – B

  	
   

  	
  Monthly

  

 

12

 

TABLE
II - A.2: UTILIZATION
DAY RATE ELEMENTS FOR UTILIZATION PERIOD PRIOR TO AND AFTER ISSUANCE OF
PERFORMANCE CERTIFICATE

 

	
   

  	
   

  	
  DAY RATES
  (US$/day)

  	
   

  
	
   

  	
   

  	
  RATES
  APPLICABLE

  PRIOR TO ISSUANCE

  OF PERFORMANCE

  CERTIFICATE*

  	
   

  	
  RATES
  APPLICABLE

  AFTER ISSUANCE OF

  PERFORMANCE

  CERTIFICATE

  	
   

  	
  REDUCED

  UTILIZATION

  RATES,

  APPLICABLE

  DURING ANY DAYS

  WHEN BARRELS

  OF PRODUCED OIL

  FALL BELOW

  50,000*

  	
   

  	
  ADJUSTMENT
  TO

  RATES BASED ON

  DOWNTIME DURING

  ANY MONTH IN

  EXCESS OF 3% AS

  SET FORTH IN

  ARTICLE 6.12

  	
   

  
	
  FPSO
  SYSTEM-VESSEL HIRE RATE

  	
   

  	
  LESSER
  OF:  BARRELS OF PRODUCED OIL PER DAY
  X[***] 

   

  OR 

   

  [***]/day

  	
   

  	
  [***]/day,
  UNLESS REDUCED UTILIZATION RATES APPLY BASED ON REDUCED PRODUCTION OF
  PRODUCED OIL AND/OR REDUCED BASED ON EXCESS DOWNTIME PER ARTICLE 6.12

  	
   

  	
  BARRELS
  OF PRODUCED OIL PER DAY x [***]

  	
   

  	
  RATABLE
  REDUCTION OF HIRE RATE PAYABLE DURING ANY MONTH TO THE EXTENT DOWNTIME
  EXCEEDS 3%.  AS AN EXAMPLE IF DOWNTIME
  IS 5% DURING A PARTICULAR MONTH, THE HIRE RATE OTHERWISE PAYABLE WOULD BE
  REDUCED BY 2%

  	
   

  

 

[***]  Certain confidential information
contained in this document, marked by brackets, has been omitted and filed
separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities
Exchange Act OF 1934.

 

13

 

	
  FPSO
  SYSTEM-OPERATING AND MAINTENANCE FEE

  	
   

  	
  LESSER
  OF:  (BARRELS OF PRODUCED OIL PER DAY
  X ***

   

  OR

   

  [***]/day

  	
   

  	
  [***]/day

  	
   

  	
  NO
  ADJUSTMENT

  	
   

  	
  NO
  ADJUSTMENT

  	
   

  

 

[***]  Certain confidential information
contained in this document, marked by brackets, has been omitted and filed
separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities
exchange Act OF 1934.

 

NOTE:

The above prices are to
be all inclusive prices. The prices include but not be limited to all charges
related to Personnel, Inspections, Consumables, Spares, Insurance, Taxes,
Customs, Duties, Port & Harbor Fees along with all Transportation, QA/QC,
Overheads and Profit.

 

 *PRODUCED OIL production is measured from
0000 hours of each day to 23:59 of the same day. 

 

14

 

TABLE II - A.3:  SUSPENSION
RATE PRIOR TO UTILIZATION PERIOD

AS DESCRIBED IN ARTICLE 19

 

VERIFIABLE
COSTS INCURRED AS A RESULT OF THE SUSPENSION THAT WOULD NOT HAVE BEEN INCURRED
OTHERWISE.  WITH NO EFFECT ON OBLIGATION
TO PAY VESSEL HIRE RATE FOR A MINIMUM 160 DAY UTILIZATION PERIOD.

 

TABLE II
- A.4: SUSPENSION RATE
DURING UTILIZATION PERIOD

AS DESCRIBED IN ARTICLE 19

 

VESSEL
HIRE RATE CONTINUES TO BE PAYABLE, WITH OPERATING AND MAINTENANCE RATE REDUCED
TO INCLUDE ONLY VERIFIABLE COSTS.

 

TABLE II - A.5
- FORCE MAJEURE RATE

AS DESCRIBED IN ARTICLE 21

 

VESSEL HIRE RATE
CONTINUES TO BE PAYABLE DURING THE UTILIZATION PERIOD IN ACCORDANCE WITH THE
TERMS OF THE CONTRACT  WITH OPERATING
AND MAINTENANCE FEE REDUCED TO INCLUDE ONLY VERIFIABLE COSTS

 

15

 

SCHEDULE II - B

 

TERMINATION
RATES

 

	
  TABLE II - B.1:

  	
  TERMINATION RATE
  PRIOR TO UTILIZATION PERIOD-TERMINATION WITHOUT CAUSE BY COMPANY OR WITH
  CAUSE BY CONTRACTOR

  
	
   

  	
   

  
	
  TABLE II - B.2:

  	
  TERMINATION RATE
  DURING UTILIZATION PERIOD WITHOUT CAUSE BY COMPANY OR WITH CAUSE BY
  CONTRACTOR

  
	
   

  	
   

  
	
  TABLE II - B.3:

  	
  TERMINATION BY
  COMPANY WITH CAUSE RATE PRIOR TO UTILIZATION PERIOD

  
	
   

  	
   

  
	
  TABLE II - B.4:

  	
  TERMINATION BY
  COMPANY WITH CAUSE RATE DURING UTILIZATION PERIOD

  

 

16

 

TABLE II - B.1: TERMINATION RATE PRIOR TO UTILIZATION
PERIOD-TERMINATION WITHOUT CAUSE BY COMPANY OR WITH CAUSE BY CONTRACTOR

 

	
  HIRE
  RATE AND OPERATIONS AND MAINTENANCE FEE

  	
   

  	
  HIRE
  RATE PAYABLE FOR 160 DAY MINIMUM UTILIZATION PERIOD, PLUS.  OPERATIONS AND MAINTENANCE RATE PAYABLE
  FOR SAME PERIOD BASED ONLY ON DOCUMENTED COSTS, WITH REDUCTION TO OPERATIONS
  AND MAINTENANCE RATE EQUAL TO SAVINGS REALIZED FROM NOT HAVING TO PERFORM,
  AND REDUCTION TO TOTAL COMPENSATION ABOVE EQUAL TO  REVENUE RECEIVED FROM THIRD PARTIES DURING THE PERIOD OF TIME
  WHEN THE FPSO VESSEL WOULD HAVE BEEN BEING REFURBISHED FOR USE UNDER THIS
  CONTRACT, AS WELL AS DURING THE UTILIZATION PERIOD AND DEMOBILIZATION PERIOD
  HEREUNDER.

  
	
  Expenses
  associated with termination

  	
   

  	
  Reasonable
  documented direct costs.

  
	
  Lump
  Sum for DEMOBILIZATION

  	
   

  	
  No
  compensation if termination occurs before mobilization of vessel.

  
	
  COSTS
  OF VERIFIABLE WORK PERFORMED PRIOR TO DATE OF TERMINATION

  	
   

  	
  PAYABLE

  

 

TABLE II - B.2: TERMINATION RATE DURING UTILIZATION PERIOD WITHOUT
CAUSE BY COMPANY OR WITH CAUSE BY CONTRACTOR

 

	
  Expenses
  associated with termination

  	
   

  	
  Reasonable
  documented direct costs.

  
	
  Day
  Rate for remainder of UTILIZATION PERIOD not taken up

  	
   

  	
  HIRE
  RATE PAYABLE FOR REMAINDER OF 160 DAY MINIMUM UTILIZATION PERIOD, PLUS.  OPERATIONS AND MAINTENANCE RATE PAYABLE
  FOR SAME PERIOD BASED ONLY ON DOCUMENTED COSTS, WITH REDUCTION TO OPERATIONS
  AND MAINTENANCE RATE EQUAL TO SAVINGS REALIZED FROM NOT HAVING TO PERFORM,
  AND REDUCTION TO TOTAL 

   

   

  

 

17

 

	
   

  	
   

  	
  COMPENSATION
  ABOVE EQUAL TO  REVENUE RECEIVED FROM
  THIRD PARTIES DURING REMAINDER OF UTILIZATION PERIOD PLUS DEMOBILIZATION
  PERIOD HEREUNDER.

  
	
  Lump
  Sum for DEMOBILIZATION

  	
   

  	
  As
  per Contract.

  

 

TABLE II
- B.3 TERMINATION BY
COMPANY WITH CAUSE RATE PRIOR TO UTILIZATION PERIOD

 

	
  Costs
  of verifiable WORK performed prior to date of termination

  	
   

  	
  NO
  COMPENSATION .

  
	
  Expenses
  associated with termination

  	
   

  	
  No
  Compensation

  
	
  Lump
  Sum for DEMOBILIZATION

  	
   

  	
  No
  Compensation

  
	
  HIRE
  RATE AND OPERATIONS AND MAINTENANCE FEE

  	
   

  	
  NO
  COMPENSATION

  

 

TABLE II
- B.4 TERMINATION BY
COMPANY WITH CAUSE RATE DURING UTILIZATION PERIOD

 

	
  Expenses
  associated with termination

  	
   

  	
  No
  Compensation

  
	
  Day
  Rate for remainder of UTILIZATION PERIOD.

  	
   

  	
  No
  Compensation

  
	
  Lump
  Sum for DEMOBILIZATION

  	
   

  	
  No
  Compensation

  
	
  COSTS
  OF VERIFIABLE WORK PERFORMED PRIOR TO DATE OF TERMINATION

  	
   

  	
  IF
  TERMINATION OCCURS BECAUSE OF FAILURE TO 
  PASS PERFORMANCE TEST, NO COMPENSATION.  IF TERMINATION OCCURS AFTER PERFORMANCE TEST IS PASSED, THEN
  LUMP SUMS PAYABLE PER CONTRACT

  

 

18

 

 

EXHIBIT III – ADMINISTRATION
PROCEDURES

 

TABLE OF CONTENTS

 

	
  SECTION 1
  - GENERAL

  	
   

  
	
  SECTION 2
  - ORGANIZATION

  	
   

  
	
  SECTION 3
  - CORRESPONDENCE/COMMUNICATION PROCEDURES

  	
   

  
	
  SECTION 4
  - MEETINGS

  	
   

  
	
  SECTION 5
  - REPORTING

  	
   

  
	
  SECTION 6 - FIELD
  INSTRUCTIONS

  	
   

  
	
  SECTION 7
  - INVOICING

  	
   

  
	
  SECTION 8
  - TRANSPORTATION OF PERSONNEL

  	
   

  
	
  SECTION 9
  - TRANSPORTATION OF EQUIPMENT, MATERIALS AND SUPPLIES

  	
   

  
	
  SECTION 10 -
  INCIDENT REPORTING

  	
   

  
	
  SECTION 11
  - OFFICE FACILITIES AND SERVICES FOR COMPANY AND CONTRACTOR

  	
   

  
	
  SECTION 12
  - DRAWING AND DOCUMENT CONTROL

  	
   

  
	
  SECTION 13
  - CERTIFICATES

  	
   

  

 

APPENDICES

 

	
  III - A

  	
  COMPANY ORGANIZATION CHARTS

  
	
  III - B

  	
  FIELD INSTRUCTION FORM

  
	
  III - C

  	
  COMPANY DOCUMENTATION REQUIREMENTS

  
	
  III - D

  	
  COMPLETION CERTIFICATES

  

 

 

1

 

SECTION 1  - GENERAL

 

1.1                                 This
EXHIBIT of the CONTRACT describes the procedures that shall be used jointly by
COMPANY and CONTRACTOR in administering the CONTRACT. CONTRACTOR shall ensure that
where other joint procedures are required but are not comprehensively set out
in this EXHIBIT, such procedures shall be developed and agreed with COMPANY in
time to carry out the WORK in accordance with the CONTRACT.

 

1.2                                 CONTRACTOR’s
own procedures for the performance and completion of the WORK shall be provided
to COMPANY within thirty (30) days after the execution of the CONTRACT.

 

SECTION 2 
- ORGANIZATION

 

2.1                                 The
COMPANY REPRESENTATIVE pursuant to Section 4 of the CONTRACT is hereby
designated as follows:

 

MR. DENG ZHI YUN

WITH COPY TO  MR. REIDAR G.
BREIVIK

 

2.2                                 The
COMPANY OFFSHORE REPRESENTATIVE pursuant to Section 4 of the CONTRACT will
be designated prior to the beginning of the UTILIZATION PERIOD.

 

2.3                                 COMPANY
will NOTIFY CONTRACTOR of the names of any other nominated deputies, and their
responsibilities and limitations, from time to time during the course of the
WORK.

 

2.4                                 The
COMPANY Project Organization charts specifying the job titles and organization
structure for COMPANY’s project team for this WORK will be provided to
CONTRACTOR on or before October 1, 2004.

 

2.5                                 The
CONTRACTOR REPRESENTATIVE pursuant to Section 5 of the CONTRACT is hereby
designated as follows:

 

MR. PETER WILLIAMS

 

2.6                                 The
CONTRACTOR OIM pursuant to Section 5 of the CONTRACT will be designated
prior to the beginning of the UTILIZATION PERIOD.

 

2.7                                 CONTRACTOR
shall submit details of any other nominated deputies, and their
responsibilities and limitations, to COMPANY for ACCEPTANCE from time to time
during the course of the WORK.

 

2.8                                 The
CONTRACTOR Project Organization chart specifying the job titles and
organization structure for CONTRACTOR’s project team for this WORK is

 

2

 

given in EXHIBIT
IV - “Contractor Organization and Project Team Key Personnel”.

 

2.9                                 The
addresses of CONTRACTOR’s and SUBCONTRACTORS’ engineering design offices and
fabrication facilities are given in EXHIBIT IV - “Contractor Organization and
Project Team Key Personnel”.

 

SECTION 3 
- CORRESPONDENCE/COMMUNICATION PROCEDURES

 

3.1                                 All
official correspondence between COMPANY and CONTRACTOR shall be by letter,
telefax, or E-mail as considered appropriate for the subject matter. Only
properly directed letters and telefaxes shall be considered to have contractual
validity.

 

3.2                                 For
the purposes of NOTIFICATION between the PARTIES, the following addresses shall
be used:

 

COMPANY

 

	
  Mail
  Address:

  	
  CONOCOPHILLIPS CHINA INC.

  13/F, FINANCE CENTER

  TAI ZI  ROAD

  PO BOX  166

  SHEKOU, SHENZHEN, PR China   518067

  
	
   

  	
   

  
	
  Telephone
  No.:

  	
  86-755-2669-1786

  
	
  Telefax
  No.:

  	
  86-755-2667-7820

  

 

CONTRACTOR

 

	
  Mail
  Address:

  	
  LUFENG DEVELOPMENT COMPANY

  C/O BLUEWATER ENERGY SERVICES B.V.

  MARSSTRAAT 33, 2132 HR HOOFDDORP

  PO BOX 3102, 2130KC HOOFDDORP

  THE NETHERLANDS

  
	
   

  	
   

  
	
  Telephone
  No.:

  	
  31-23-568-2800

  
	
  Telefax
  No.:

  	
  31-23-554-2163

  

 

3.3                                 Either
PARTY shall have the right to change their correspondence addresses during the
performance of the WORK by NOTIFYING the other PARTY.

 

3.4                                 Except
where the CONTRACT specifically states to the contrary all correspondence and
communications under the CONTRACT shall be addressed  and directed between the
CONTRACTOR REPRESENTATIVE and the COMPANY REPRESENTATIVE.

 

3

 

3.5                                 In
the event that for reasons of expediency, an oral instruction or notice is
given by one PARTY to another PARTY, such instruction or notice shall be
confirmed in writing by the issuing PARTY within 24 hours. Until such
confirmation is issued, the instructions and/or notifications shall not be
considered binding.

 

3.6                                 CONTRACTOR
shall maintain a chronological register of all incoming and outgoing
correspondence received or sent out in connection with the WORK by CONTRACTOR.
CONTRACTOR shall make this register available to COMPANY on request.

 

SECTION 4  - MEETINGS

 

4.1                                 Meetings
shall be held for discussing technical subjects and resolving such problems as
may arise in the execution of the WORK, as and when requested by COMPANY or
CONTRACTOR.

 

4.2                                 Progress
meetings shall also be held between the CONTRACTOR REPRESENTATIVE and the
COMPANY REPRESENTATIVE. The last of these scheduled meetings each month shall
take the form of a formal monthly progress reporting meeting, attended by
senior representatives of CONTRACTOR and COMPANY.

 

4.3                                 Either
PARTY shall have the right to call additional meetings when considered
necessary by giving the other PARTY reasonable notice of such requirement.

 

4.4                                 For
each meeting, both CONTRACTOR and COMPANY shall make available relevant
personnel for the subject under discussion. Meetings shall be chaired by
COMPANY or CONTRACTOR as is appropriate.

 

4.5                                 All
meetings held throughout the performance of the CONTRACT shall be minuted by
CONTRACTOR, unless otherwise instructed by COMPANY. Minutes shall be signed by
each party attending, including any third party attendees, acknowledging that
the minutes are a true record of the meeting. One signed copy of the minutes of
each meeting shall be retained by each party. Matters requiring urgent
attention and/or resolution and agreement between COMPANY and CONTRACTOR shall
be confirmed by transmittal of the appropriate parts by telefax.

 

4.6                                 When
resolution of issues is not possible within the meeting, or where the matter
requires some action on the part of CONTRACTOR or COMPANY, then this shall be indicated
in the minutes, and CONTRACTOR or COMPANY shall subsequently respond in writing
providing the necessary information and/or confirming the course of action, as
appropriate.

 

4.7                                 At
the end of each month, CONTRACTOR shall submit to COMPANY a list of all
meetings concerning the WORK which were held during the previous month and
which CONTRACTOR intends to hold internally or with third parties during the
following month. This list shall be included in the monthly

 

4

 

progress report as
defined in Sections 5.3 and 5.4 below. COMPANY shall inform CONTRACTOR which
meetings COMPANY requires to attend in whole or in part. Minutes of all
meetings held by CONTRACTOR with third parties shall be available to COMPANY on
request.

 

SECTION 5  - REPORTING

 

5.1                                 This
Section outlines the intent of reporting to be implemented by CONTRACTOR.
The actual format and system of reporting may be modified with COMPANY
agreement should the CONTRACTOR’s administration procedures support an
alternative, but similar, reporting system.

 

Monthly
Progress Report

 

5.2                                 CONTRACTOR
shall prepare and produce at the end of each month a progress report on the
status of the WORK. The report shall contain details of progress and activities
up to and including the end of the month. The report shall be issued to the
COMPANY REPRESENTATIVE within seven days after the end of each month.

 

5.3                                 From
the EFFECTIVE DATE OF the CONTRACT until satisfactory completion of the
PERFORMANCE TEST this monthly progress report shall contain the following
sections:

 

Technical

 

A narrative
section describing the overall status of each phase of the WORK,  and describing the WORK achieved during the
month, and detailing the WORK planned for the following two months.

 

Subcontracts

A status report of
subcontracting activities.

 

Procurement

A status report of
procurement activities, including orders placed, deliveries received, and
problem areas.

 

Cost and Planning

A narrative
section reporting on any actual or foreseen deviations from the PROJECT
PLAN. Monthly updated PROJECT CONTROL PLAN as defined in the contract.

 

Meetings

The monthly
meeting list as defined in Section 4.8.

 

Areas of Concern

Any items relating
to the progress or performance of the WORK and steps being taken to address
these issues.

 

5

 

Safety

Tabulation and
narrative section on safety performance and safety plan implementation.

 

Incident Reporting

•                    Number
of man-days expended by CONTRACTOR and SUBCONTRACTORS during month.

•                    Cumulative
total of lost time incidents, expressed as a percentage of cumulative total of
CONTRACTOR and SUBCONTRACTORS man-days from start of EXECUTION till end of
month.

•                    Incident
register, as defined in Section 10.6.

 

COMPANY Interface

Narrative
addressing any outstanding information, materials or equipment required from
COMPANY under the CONTRACT. 

 

5.4                                 Following
commencement of UTILIZATION, each monthly progress report shall contain the
following sections:

 

FPSO SYSTEM

•                    Operational
status of all marine and process facilities.

•                    Environmental
status report covering quantity and quality of emissions from all systems.

•                    Fuel
and consumables usage report:

•                    Diesel
oil

•                    Fuel
oil

•                    Lube
oil

•                    Potable
water

•                    Chemicals

•                    Others

 

Production

•                    Production
capability (% of forecasted values) for WELL FLUIDS, PRODUCED OIL, gas and
water during the past month.

•                    Actual
production figure for past month, and cumulative total from commencement of
UTILIZATION PERIOD to date.

•                    Exported
oil figure for past month; and cumulative total from commencement of
UTILIZATION PERIOD to date.

•                    Export
tanker movements during the past month.

•                    Forecast
production figure and production capability for next two months.

•                    Provisional
Scheduled Offloading Dates and Parcel Sizes for next  month.

•                    Firm
Scheduled Offloading Dates and Parcel Sizes for next month.

 

Maintenance

•                    Maintenance
activities carried out over past month.

•                    Repair
activities carried out over past month.

•                    Planned
maintenance activities due for past month but not carried out, and reasons for
omission.

 

6

 

•                    Update
of planned maintenance schedule to allow for late or omitted activities.

•                    Forecast
planned maintenance activities for next two months.

 

Classification and
Certification

•                    Class
surveys and tests carried out over past month.

•                    Surveys
and tests due for past month but not carried out, and reasons for omission.

•                    Update
of Continuous Machinery Survey and Hull Inspection schedule to allow for
late or omitted activities.

•                    Forecast
Class surveys and tests for next two months.

•                    Status
of Class and Flag State certificates.

 

Marine Operations

Narrative of all
marine operations relating to FPSO SYSTEM, to include but not be limited to:

•                    Diver
inspections.

•                    Work
carried out by third party contractors.

•                    Helicopter
movements and reasons for each movement.

 

Manning

Compiled list of
personnel on board FPSO SYSTEM for each day of past month:

•                    Number
and categories of CONTRACTOR CREW and other CONTRACTOR personnel.

•                    Number
and categories of COMPANY personnel.

•                    Number
and categories of visitors, and reasons for presence on board.

 

Meetings

The monthly
meeting list as defined in Section 4.8.

 

Area of Concern

Narrative
section addressing any areas of concern relating to the ongoing CONTRACT.

 

Safety

Tabulation and
narrative section on safety performance and safety plan implementation.

 

Incident Reporting

•                    Number
of man-days expended by CONTRACTOR and SUBCONTRACTORS during month.

•                    Cumulative
total of lost time incidents, expressed as a percentage of cumulative total of
CONTRACTOR and SUBCONTRACTORS man-days from start of the UTILIZATIONPERIOD till
end of month.

•                    Incident
register, as defined in Section 10.6.

 

7

 

COMPANY Interface

Narrative
addressing any outstanding information, materials or equipment required from
COMPANY under the CONTRACT.

 

Daily
Reports

 

5.5                                 During
the UTILIZATION PERIOD, a daily report shall be issued to COMPANY giving the
pertinent information defined below, covering the 24 hour period ending at
23:59 hours on the day in question. The report shall be issued to COMPANY’s
operations center  by facsimile no later
than 07:00  hours on the following day.
The location and facsimile details of COMPANY’s operations center are as
follows:  (Information below to be
provided prior to the start of the UTILIZATION PERIOD.)

 

	
  Name of Responsible Person:

  Actual Address:

  	
   

  	
  MR.  HUANG CHUNLIN

  CONOCOPHILLIPS CHINA INC.

  7/F FINANCE CENTER

  TAI ZI ROAD

  SHEKOU, SHENZHEN, PR CHINA 518067

  
	
   

  	
   

  	
   

  
	
  Mail
  Address:

  	
   

  	
  ATTN:  MR. HUANG
  CHUNLIN

  CONOCOPHILLIPS CHINA INC.

  TAI ZI ROAD

  PO BOX 166

  SHEKOU, SHENZHEN, PR CHINA 518067

  
	
   

  	
   

  	
   

  
	
  Telephone
  No.:

  	
   

  	
  86-755-2669-1786 
  EXT. 2702

  
	
  Telefax
  No.:

  	
   

  	
  86-755-2667-2865

  

 

The daily report
shall cover the following:

 

•                    Personnel
on board: CREW, CONTRACTOR’s personnel, COMPANY personnel, visitors.

•                    Recap
of previous days forecast production figures.

•                    Actual
production figures.

•                    Forecast
production figures for next day.

•                    Export
tanker offloading operation and offloading parcel achieved (if any).

•                    Supply
boat movement and activities list (if any).

•                    Helicopter  movement and activities list (if any).

•                    Forecast
export tanker arrival time and offloading parcel for next day (if any).

•                    Forecast
supply boat movement and activities list for next day (if any).

•                    Forecast
helicopter movement and activities list for next day (if any).

•                    FPSO
VESSEL draughts.

•                    FPSO
cargo and slop tank ullages.

•                    FPSO
ballast tank soundings.

•                    Fuel
and lube oil tank ullages.

•                    Potable
water tank soundings.

•                    Fuels,
oils, chemicals, water, stores, loaded and/or discharged.

 

8

 

•                    Description
of wind, wave and current conditions.

•                    Narrative
description of any equipment problems on the FPSO SYSTEM and the FIELD
FACILITIES  and planned remedial action.

 

SECTION 6 
- FIELD INSTRUCTIONS

 

6.1                                 COMPANY
OFFSHROE REPRESENTATIVE will use a COMPANY Field Instruction Form for the
issuance of all instructions to CONTRACTOR.

 

6.3                                 Both
COMPANY and CONTRACTOR shall maintain a Field Instruction register.

 

6.4                                 The
format of the Field Instruction Form is contained herein as Appendix III - B.

 

SECTION 7  - INVOICING

 

7.1                                 CONTRACTOR’s
invoices shall be prepared in accordance with this Section, at the times and
for the amounts as set out in EXHIBIT II - “Schedule of
Compensation”.  CONTRACTOR’s monthly
invoices shall be submitted at least 15 days prior to due date of invoice to
allow COMPANY sufficient time to process invoice for payment by the due date.

 

7.2                                 CONTRACTOR’s
lump sum invoices shall be submitted within thirty (30) days of receipt by
CONTRACTOR of COMPANY’s certification that lump sum work has been
satisfactorily completed.

 

7.3                                 CONTRACTOR
shall invoice separately for monthly and lump sum amounts.

 

7.4                                 CONTRACTOR
shall submit its invoices in accordance with its normal practice. However,
CONTRACTOR shall ensure that the following information is clearly stated at the
head of each invoice:

 

(a)                                  Correct
COMPANY name.

(b)                                 Correct
COMPANY invoicing address, as detailed in Section 7.7 below;

(b)                                 Correct
COMPANY responsible person, as detailed in Section 7.7 below;

(c)                                  Contract
Number;

(d)                                 Contract
Title;

(e)                                  One
of the following as applicable:

•                    For
monthly invoices, the dates of the period being invoiced for; and separate line
items for the following costs:

•                    PAYMENTS
DURING THE UTILIZATION PERIOD PRIOR TO ISSUANCE OF PERFORMANCE CERTIFICATE

•                    PAYMENTS
DURING THE UTILIZATION PERIOD AFTER ISSUANCE OF PERFORMANCE CERTIFICATE

•                    Downtime;

•                    Reduced
Utilization;

•                    Suspension;

 

9

 

•                    Termination;

•                    Force
Majeure

 

•                    For
lump sum work, a description of the work applicable, dates work was carried
out;

 

(f)                                    The
total value of the invoice.

 

7.5                                 Detailed
information supporting the amounts invoiced shall be submitted with each
invoice. This information shall be sufficient to allow COMPANY to verify that
the amount invoiced is true and correct, by using this supporting documentation
only. Invoices for lump sums shall be supported by the appropriate completion
certificate issued and signed by the COMPANY REPRESENTATIVE. Invoices involving
remuneration for hours shall be supported by timesheets countersigned by the
COMPANY REPRESENTATIVE or COMPANY OFFSHORE REPRESENTATIVE as appropriate.

 

7.6                                 The
CONTRACTOR’s representative responsible for the preparation and issuing of
invoices under the CONTRACT is nominated below:

 

	
  Name:

  	
   

  	
  THOMAS THEKKEL

  
	
  Position

  	
   

  	
  COST CONTROLLER

  
	
  Mail
  Address:

  	
   

  	
  LUFENG DEVELOPMENT COMPANY

  C/O BLUEWATER ENERGY SERVICES B.V.

  MARSSTRAAT 33, 2132 HR HOOFDDORP

  PO BOX 3102, 2130 KC HOOFDDORP

  THE NETHERLANDS

  
	
  Telephone
  No.:

  	
   

  	
  +31 23 5682978

  
	
  Telefax
  No.:

  	
   

  	
  +31 23 554 2111

  
	
   

  	
   

  	
  :

  
	
   

  	
   

  	
  :

  
	
   

  	
   

  	
  :

  

 

7.7                                 The
COMPANY representative responsible for the receipt of, and payment against,
invoices under the CONTRACT is nominated below:

 

	
  Name:

  	
   

  	
  COPC SHEKOU ACCOUNTS PAYABLE GROUP

  
	
  Position:

  	
   

  	
  FINANCE DEPARTMENT MANAGER

  
	
  Mail
  Address:

  	
   

  	
  9/F, FINANCE CENTER

  TAI ZI ROAD

  PO BOX 166

  SHEKOU, SHENZHEN, PR CHINA  518067

  
	
  Telephone
  No.:

  	
   

  	
  86-755-2669-1786

  
	
  Telefax
  No.:

  	
   

  	
  86-755-2667-0924 
  (Finance Dept)

  

 

7.8                                 Invoices
shall be submitted in one original to the COMPANY responsible person defined in
Section 7.7 above; with one full copy (invoice plus supporting
documentation) to the COMPANY REPRESENTATIVE.

 

10

 

7.9                                 COMPANY
shall pay the amount invoiced by the last working day of the month following
the month in which services were rendered, or if there are disputed items in an
invoice, COMPANY will withhold payment of the entire invoice. COMPANY will
NOTIFY CONTRACTOR of any disputed amounts as soon as practical.

 

7.10                           Upon
resolution of disputed items, CONTRACTOR shall issue a credit memo for the
original disputed invoices and issue a new invoice for the resolved amount.
COMPANY shall pay the resolved amount invoiced within thirty (30) days of the
date of receipt of the new invoice.

 

7.11                           The
details of CONTRACTOR’s bank account is nominated as follows:

 

	
  Name
  of Bank:

  	
   

  	
  JP
  MORGAN CHASE BANK

  
	
  Branch:

  	
   

  	
  NEW
  YORK

  
	
  Address:

  	
   

  	
  270
  Park Avenue, New York NY 100017, USA

  
	
  SWIFT
  (1st bank):

  	
   

  	
  CHASUS33  (MT202)

  
	
   

  	
   

  	
   

  
	
  In
  the Name of:

  	
   

  	
  ING
  BANK NV AMSTERDAM

  
	
  Address:

  	
   

  	
  Bijlmerplein
  888, 1102 MG Amsterdam, The Netherlands

  
	
  SWIFT
  (2nd bank):

  	
   

  	
  INGBNL2A
  (MT100)

  
	
  A/C
  No:

  	
   

  	
  001-1-643293
  (USD)

  
	
  Special
  Instructions:

  	
   

  	
  FOR
  FURTHER CREDIT TO:

  
	
  A/C
  Name:

  	
   

  	
  A/C
  Name:  LUFENG DEVELOPMENT COMPANY

  
	
   

  	
   

  	
  A/C
  No No:  020282370 (USD)

  

 

7.12                           CONTRACTOR
understands and accepts that failure to comply completely with the requirements
of this Section may delay payment of CONTRACTOR’s invoices.

 

SECTION 8 
- TRANSPORTATION OF PERSONNEL

 

8.1                                 CONTRACTOR
shall provide transportation for all its personnel transported to, and returned
from, the COMPANY’S helicopter base (Xili Heliport).

 

8.2                                 The
crew change operational schedule allowed under this CONTRACT is hereby
nominated as follows:

 

(a)          One (1)
helicopter flight per week, each comprising a maximum capacity of 18 persons.

 

(b)         Crew
rotations of 12 persons per flight.

 

(c)          All
flights shall depart from/arrive at COMPANY’S helicopter base, located in Xili,
Shenzhen, P. R. China.

 

8.3                                 The
above crew change operational schedule shall apply for the full period of
the UTILIZATION PERIOD.

 

11

 

8.4                                 Prior
to commencement of the UTILIZATION PERIOD, CONTRACTOR shall advise COMPANY of
the nominated crew change day(s) to apply throughout the duration of the
UTILIZATION PERIOD. CONTRACTOR shall not alter the nominated crew change day(s)
unless agreed by COMPANY.

 

8.5                                 Prior
to commencement of the UTILIZATION PERIOD, CONTRACTOR shall advise COMPANY of
the nominated check-in times for each crew change. CONTRACTOR shall ensure that
COMPANY is advised of any schedule changes to the nominated check-in
times, a minimum of two (2) weeks prior to the date of change.

 

8.6                                 CONTRACTOR
shall be fully responsible for coordinating crew change operations for each
individual CREW  member and/or
CONTRACTOR’s Visitors nominated to go to or from the FPSO SYSTEM.

 

8.7                                 Prior
to commencement of UTILIZATION, COMPANY will mutually agree with CONTRACTOR the
changeover days for its own Offshore Team permanently assigned to the FPSO
SYSTEM.

 

8.8                                 From
time to time during UTILIZATION, COMPANY will require that a number of
COMPANY’s Visitors be transported to and/or from the FPSO SYSTEM. COMPANY will
mutually agree with CONTRACTOR the number of visitors and a suitable time-scale
on a case-by-case basis, and will NOTIFY CONTRACTOR at least two (2) days in
advance of its transport requirements to and/or from the FPSO SYSTEM, including
details of the persons’ names and companies.

 

8.9                                 For
the purpose of this Section, 
“CONTRACTOR’s Visitor” shall mean any person employed by, or contracted
by, or requested by CONTRACTOR to be present on the FPSO SYSTEM who is not part
of its normal CREW. “Offshore Team” shall mean the three (3)-person team
permanently assigned by COMPANY to the FPSO SYSTEM (inclusive of the relief
team). “COMPANY’s Visitor” shall mean any person employed by, or contracted by,
or requested by COMPANY to be present on the FPSO SYSTEM who is not part of the
Offshore Team.

 

8.10                           CONTRACTOR
shall be fully liable for all transportation arrangements and costs for its
CREW and visitors to and from the helicopter base.

 

8.11                           COMPANY
shall be fully liable for all shore transportation arrangements and costs for
its offshore team and its visitors to and from the helicopter base.

 

SECTION 9 
- TRANSPORTATION OF EQUIPMENT

 

9.1                                 During
the UTILIZATION PERIOD, COMPANY shall provide transportation for all Equipment
to be transported to, and returned from, the FPSO SYSTEM. The method of
transportation (helicopter, supply vessel, bunker barge, etc.) shall be at
COMPANY’S discretion depending upon the nature, size and weight of such
Equipment.

 

12

 

9.2                                 All
helicopter flights shall depart from/arrive at COMPANY’S helicopter base,
located at Xili, Shenzhen, P. R. China.

 

9.3                                 All
marine vessels shall depart from/arrive at COMPANY’S shore supply base, located
at Chiwan, Shekou, P. R. China unless required otherwise to suit a particular
cargo.

 

9.4                                 CONTRACTOR
shall be fully responsible for providing its shipments in a manner suitable for
offshore packaging, containerizing, transporting and handling.

 

9.5                                 From
time to time during the UTILIZATION PERIOD, COMPANY may require that some items
of Equipment be transported to and/or from the FPSO SYSTEM and/or Wellhead
Platform. COMPANY will mutually agree with CONTRACTOR the transportation
requirements on a case-by-case basis. As soon as practical, COMPANY will advise
CONTRACTOR of each required shipment of equipment and/or materials and/or
supplies requiring offshore transportation, giving details of the nature of the
items (weights, dimensions, hazardous/non-hazardous, special shipping
requirements, special handling and lifting requirements, and any other
pertinent information), the actual date that each item is required at the
OFFSHORE SITE, and its specific delivery point (FPSO MOORING, FPSO VESSEL,
and/or other).

 

9.6                                 CONTRACTOR
shall be fully liable for all shore transportation arrangements and costs for
its shipments to and from the helicopter base, and/or to and from the shore
supply base.

 

9.7                                 COMPANY
shall be fully liable for on shore transportation arrangements and costs for its
shipments to and from the helicopter base, and/or to and from the shore supply
base.

 

SECTION 10 
- INCIDENT REPORTING

 

10.1                           CONTRACTOR
shall be responsible for monitoring and reporting all incidents occurring over
the performance of the WORK. Such incidents shall include but not be limited
to:

 

(a)          personal
injury to any employee of COMPANY, CONTRACTOR, SUBCONTRACTOR, visitor or any
third party;

 

(b)         loss of, or
damage to, or theft of, the WORK or materials, supplies, equipment supplied by
either COMPANY or CONTRACTOR for incorporation into the WORK;

 

(c)          loss of,
or damage to, or theft of, any third party equipment or plant;

 

(d)         any
incident that results in a fire, and/or leakage of hazardous or toxic
materials;

 

(e)          any “near
miss” situation which might have resulted in personal injury to any employee of
COMPANY, CONTRACTOR, SUBCONTRACTOR, visitor or any third party.

 

10.2                           In the
event of any such incident, CONTRACTOR shall immediately NOTIFY the COMPANY
REPRESENTATIVE or in the event of an incident at the 

13

 

OFFSHORE SITE the
COMPANY OFFSHORE REPRESENTATIVE, and complete an Incident Report Form.

 

10.3                           The
Incident Report Form shall provide the following information:

 

(a)                                  Date
of incident

(b)                                 Location
of incident

(c)                                  Class
of incident (lost time, non-lost time, injurious, non-injurious, fatal, theft,
loss, other)

(d)                                 Description
of incident

(e)                                  Names
and companies of personnel involved

(f)                                    Details
of equipment or plant involved

(g)                                 Assessment
of cause of incident

(h)                                 Consequences
of incident

(i)                                     Remedial
action taken to prevent similar incidents occurring

 

10.4                           CONTRACTOR
shall also be fully responsible for compliance with all applicable national
regulations and acts at any WORK SITE at which WORK is being performed
regarding incident reporting to local and/or national authorities.

 

10.5                           CONTRACTOR
shall also be fully responsible for notifying all insurers in compliance with
the terms and conditions of the applicable insurance policies.

 

10.6                           CONTRACTOR
shall maintain a register of all incidents, listing the date and class of each
incident, and cross-referencing the applicable Incident Report Form. This
register shall be included in each monthly report, as defined in Sections 5.3.
and 5.4 above.

 

SECTION 11 
- OFFICE FACILITIES AND SERVICES FOR COMPANY AND CONTRACTOR

 

Office Facilities at
COMPANY’s Shore Office

 

11.1                           Company
shall provide a dedicated and lockable office area for Contractor’s Rep.,
within Company’s shore office. Subject to the provisions of Section 11.12
below, the office area shall comprise as a minimum:

 

(a)                                  One
single occupancy office, with desk and computer table return, minimum 3 chairs,
two 4 drawer filing cabinets, bookcase; and

(b)                                 Telephone
lines with international telephone access; and

(c)                                  One
direct facsimile line with international access; and

(d)                                 Availability
of refreshment and toilet facilities; and

(d)                                 Cleaning
of Contractor’s office areas on a daily basis.

 

11.2                           CONTRACTOR
shall be responsible for its own personnel onshore transportation to/from
COMPANY’S onshore office.

 

Office
Facilities and Accommodation on FPSO VESSEL

 

11.3                           CONTRACTOR
shall provide the following on the FPSO VESSEL for use by COMPANY:

 

14

 

(a)                                  Three
single berth cabins with dedicated shower/toilet spaces, all outfitted as per
the normal standards on the FPSO VESSEL; and

 

(b)                                 One
double occupancy office, each with two desks and computer table returns,
minimum 6 chairs, reference table, four 5 drawer filing cabinets, two large
bookcases; and

 

(c)                                  Use
of FPSO VESSEL conference room, as and when required; and

 

(d )                              Direct
facsimile line into single occupancy office with international access; and

 

(e)                                  One
direct telephone line into single occupancy office with international access;

 

(f)                                    Provision
of normal office supplies and consumables such as pencils, pens, paper clips,
erasers, staples etc., as requested by COMPANY from time to time.

 

11.4                           CONTRACTOR
shall furnish the COMPANY spaces on board the FPSO VESSEL with the following
equipment:

 

(a)                                  Extension
telephones on each office desk and in each cabin linked to FPSO VESSEL’s
internal telephone system, with international telephone access; and

(b)                                 Telephone
extension set in single occupancy office linked to direct line; and

(c)                                  Color
television, satellite feed and VHS video machine in each cabin; and

(d)                                 One
plain paper telefax machine; and

(e)                                  One
photocopier.

 

All of the above
shall be totally dedicated for COMPANY’s use only.

 

11.5                           CONTRACTOR
shall provide the following services on board the FPSO VESSEL for three
permanently assigned COMPANY personnel:

 

(a)                                  Meals
as per number and standards provided for CONTRACTOR’s senior staff and
Officers; and

(b)                                 Daily
cleaning and steward service for cabins and offices; and

(c)                                  Provision
of overalls and towels, inclusive of laundering on a daily basis; and

(d)                                 Provision
of personal safety equipment, to include but not be limited to safety boots,
safety glasses, hard hats, safety harnesses, earplugs, gloves; and

(e)                                  Daily  laundry of personal effects; and

(f)                                    Use
of FPSO VESSEL’s recreation facilities.

 

11.6                           Medical
treatment shall be available to COMPANY personnel in the FPSO clinic.

 

15

 

General Considerations
Relating to FPSO SYSTEM Offices and Accommodation

 

11.7                           All of
the services and provisions detailed in Sections 11.3 to 11.6 shall be deemed
to be included in the CONTRACT PRICE.

 

SECTION 12 
- DRAWING AND DOCUMENT CONTROL

 

12.1                           This
Section shall be deemed to be applicable to all documents produced by
CONTRACTOR and by all SUBCONTRACTORS.

 

12.2                           For the
purpose of this Section, “Document” shall mean report, procedure,
specification, or any other written piece of work assigned a contractual status
and reference number. “Document” shall not refer to letters or facsimiles
unless these are attached within the body of a “Document”.

 

12.3                           All
drawings and documents shall be in English.

 

Drawing
Formats

 

12.4                           All
reproducible drawings shall be legible 
and produced from the original.

 

12.5                           Drawings
may be drawn using computer aided design or by hand at CONTRACTOR’s option.

 

12.6                           All
dimensions shall normally be shown in metric units, unless referring to
equipment and fittings normally dimensioned in imperial units. In the latter
case, dimensions are to be shown as imperial, with the metric equivalent
dimensions appended adjacently in brackets.

 

12.7                           All
views on each drawing shall clearly indicate the scale to which that view is
drawn. If the view is not to scale it shall be clearly labeled “N.T.S.”

 

12.8                           Cutting
planes for all sectional views shall be clearly indicated, and shall be given
reference letters that cross refer to the actual sectional view. If the
sectional view is on a separate sheet of the same drawing, the reference letter
shall refer to the sheet number also.

 

12.9                           Where
individual drawings consist of multiple sheets, each sheet shall be clearly
labeled “Sheet ___ of ____”.

 

12.10                     All drawings
shall be assigned revision letters or numbers in accordance with CONTRACTOR’s
normal practice. Drawings with multiple sheets shall be considered as one
drawing. The same revision number/letter shall be assigned to all sheets of a
drawing, of a particular revision. Modification and reissue of individual
sheets of a drawing is prohibited.

 

12.11                     All changes
from one revision to the next shall be indicated by clouding around the
alteration(s) and identifying the alteration by a triangle containing

 

16

 

the revision
number. Prior revision clouds and triangles shall be removed each time the
drawing is updated.

 

12.12                     A revision
status box shall be included on each drawing giving a description of the
changes for each revision. The description shall be self-explanatory.  Non-specific descriptions such as “updated”
are not acceptable, and shall be considered grounds for COMPANY to reject the
drawing.

 

12.13                     Drawings of
vendor supplied equipment that is a standard stock item shall comply with the
normal standards of the manufacturer of that equipment.

 

12.14                     Drawings of
CONTRACTOR supplied equipment engineered especially for the WORK shall comply
with the requirements defined in Sections 12.3 to 12.11 above.

 

Document
Formats

 

12.15                     All documents
shall be referenced with unique document reference numbers. These document
reference numbers shall be used in all transmittals for the documents and in
any references to the document made on other documents.

 

12.16                     All documents
shall be assigned revision letters or numbers in accordance with CONTRACTOR’s
standard ISO 9001 procedures. Revisions shall be clearly defined on a revision
sheet near the front of the document, by giving a brief description of the
revisions made for each revision number and the pages affected. The description
shall be self-explanatory. Non-specific descriptions such as “updated” are not
acceptable, and shall be considered grounds for COMPANY to reject the document.
The actual revisions shall be indicated on the affected pages by vertical bars
in the margin against the paragraphs revised.

 

12.17                     As and when
documents are updated at a later date, the bars shall be removed.

 

Document Control

 

12.18                     As part of
its Approved PROJECT Schedule (Attached to this CONTRACT as EXHIBIT I -
“Project Schedule”), CONTRACTOR shall include a register of all documents
proposed to be prepared during the WORK. This register shall record the
following:

 

(a)                                  Title;

(b)                                 Reference
number;

(c)                                  Type
of document (drawing, specification, report, procedure, procurement document,
other);

(d)                                 Issue
status (issued, accepted by COMPANY, not accepted by COMPANY, other);

(e)                                  Planned
issue date;

(f)                                    Actual
issue date;

(g)                                 COMPANY
response requirement (issued to COMPANY for information, for review, for
acceptance).

 

17

 

12.19                     This register
shall be developed from COMPANY’s documentation requirements list given herein
in Appendix III - C.

 

12.20                     This Document
Register shall be updated at the end of each month to reflect current issue
status and revision number of each document, and also any additions and/or
deletions of proposed documents. The updated register shall be included in each
monthly progress report, as defined in Sections 5.3 and 5.4 above.

 

12.21                     All reports,
drawings, and other documents transmitted between CONTRACTOR and COMPANY shall
be sent under cover of a Transmittal Note. The recipient shall date and sign
the Transmittal Note to confirm receipt and return one copy of the Transmittal
Note to the sender.

 

12.22                     Transmittals
from CONTRACTOR to COMPANY shall be formatted as follows:

 

	
  From:

  	
   

  	
  Contractor

  
	
  To:

  	
   

  	
  COPC
  Xijiang Operations

  
	
  Attn:

  	
   

  	
  COMPANY
  REPRESENTATIVE

  
	
   

  	
   

  	
   

  
	
  Contract
  No:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Contract
  Title:

  	
   

  	
  XIJIANG
  OIL FIELD – FPSO TEMPORARY LEASE

  
	
  Ref.
  No.:

  	
   

  	
                                          

  

 

	
  Type of Doc.

  	
   

  	
  Doc. Ref. No.

  	
   

  	
  Rev.

  No.

  	
   

  	
  No. of

  Copies

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

The reference
number shall be Contract # /chronological number. Chronological numbers shall
be sequential by date order.

 

The type of
document shall be a code letter as follows: “D” for drawing; “S” for specification;
“R” for report; “P” for procedures, and “PR” for procurement documents. Other
code letters shall be assigned by mutual agreement between COMPANY and
CONTRACTOR if required.

 

12.23                     Transmittals
from COMPANY to CONTRACTOR shall be formatted in a similar way, except that the
reference number shall be Contract # /chronological number. Chronological
numbers shall be sequential by date order.

 

Purpose
Indication of Document Issues

 

12.24                     Drawings and
documents, including those furnished by vendors, to be submitted by CONTRACTOR
to COMPANY, shall be clearly marked or stamped with one of the following
indications:

 

18

 

	
  “FOR
  ACCEPTANCE”

  	
   

  	
  These
  are documents which require acceptance by COMPANY.

  
	
   

  	
   

  	
   

  
	
  “FOR
  REVIEW”

  	
   

  	
  These
  are documents which do not require acceptance by COMPANY, but are issued to
  allow COMPANY to comment on the content of the documents. CONTRACTOR shall
  take due note of COMPANY comments, but CONTRACTOR shall not be contractually
  obliged to act upon such comments. However, CONTRACTOR shall assume full
  liability for any adverse consequences arising due to disregarding such
  comments.

  
	
   

  	
   

  	
   

  
	
  “FOR
  INFORMATION”

  	
   

  	
  These
  are documents which are produced by the CONTRACTOR or any SUBCONTRACTOR or
  any vendor in connection with this WORK which are issued basically for
  technical information only.

  

 

Submittal
of Documents “FOR ACCEPTANCE”

 

12.25                     Documents
shall be submitted in the following quantities:

 

	
  Fabrication
  drawings -

  	
   

  	
  Three
  (3) full size paper prints, plus two (2) A4 (or metric equivalent) reductions

  
	
   

  	
   

  	
   

  
	
  Written
  documents -

  	
   

  	
  Two
  (2) A4 size (or metric equivalent) reports, plus drawings folded as necessary
  to fit letter size (or metric equivalent) format.

  
	
   

  	
   

  	
   

  

 

12.26                     COMPANY will
return one copy of each submitted document to CONTRACTOR within  two ( 2) weeks of receipt of the document,
stamped to show the status of the document, in accordance with the following:

 

	
  a)  “ACCEPTED” -

  	
   

  	
  accepted
  without comments

  
	
  b)  “ACCEPTED AS NOTED” -

  	
   

  	
  accepted
  subject to incorporation of marked-up comments

  
	
  c)  “NOT ACCEPTED” -

  	
   

  	
  in
  the case of major errors and/or deficiencies

  

 

12.27                     CONTRACTOR
shall not proceed with related work until such document has been “Accepted” or
“Accepted as Noted”. Documents returned to CONTRACTOR as “Not Accepted” shall
be revised and reissued to COMPANY for acceptance no later than  two ( 2 ) weeks after return.

 

12.28                     In cases
where documents issued for COMPANY acceptance are returned as “Not Accepted”
because significant modifications/revisions are required, or where documents
are previously “Accepted” by COMPANY but are subsequently altered, then these
shall be re-issued to COMPANY for Acceptance.

 

19

 

Submittal
of Documents “FOR REVIEW”

 

12.29                     Documents
shall be submitted in the quantities defined in Section 12.25  above.

 

12.30                     COMPANY will
return one copy of each submitted document to CONTRACTOR within  two ( 2) weeks of receipt of the document,
marked up with any comments that COMPANY deems appropriate.

 

Submittal
of Documents “FOR INFORMATION”

 

12.31                     Documents
shall be submitted in the quantities defined in Section 12.25  above.

 

12.32                     COMPANY will
not return any such submitted document unless COMPANY deems that comments are
required.

 

Documents
to be submitted to Third Parties/Authorities

 

12.33                     CONTRACTOR is
responsible for obtaining all necessary approvals from the Classification
Society and/or other regulatory bodies concerned, as required for the WORK and
as defined in EXHIBIT X - “Scope of Work”.

 

12.34                     In this
respect, CONTRACTOR shall submit to COMPANY “For Review”, copies of all
documents submitted, or resubmitted, to Classification Society and/or other
regulatory bodies, copies of all notices of approval from the Classification
Society and/or other regulatory bodies, and copies of all correspondence to and
from the Classification Society and/or other regulatory bodies relating to
safety, operability and maintainability.

 

Document
History

 

12.35                     Superseded
documents shall be withdrawn from circulation and use. However, copies of all
superseded documents shall be maintained in storage, with associated comment
letters from COMPANY, Classification Society and/or other bodies involved in
reviewing and approving documents. This file storage shall be maintained until
one (1) year after DEMOBILIZATION, and shall be available upon request to
COMPANY.

 

SECTION 13 
- CERTIFICATES

 

13.1                           Satisfactory
completion of all key activities relating to CONTRACT DATES will be confirmed
by the issue of completion certificates by COMPANY. The following certificates
will be issued:

 

(i)                                     PERFORMANCE
CERTIFICATE

(ii)                                  DEMOBILIZATION
CERTIFICATE

 

20

 

13.2                           The
format of each certificate is contained herein as Appendix III - D. Each
certificate defines the criteria upon which satisfactory completion of the work
associated with that certificate will be assessed.

 

13.3                           When
CONTRACTOR considers that the work related to each certificate is complete,
CONTRACTOR shall NOTIFY COMPANY accordingly, and shall issue to COMPANY all
documentation required to be  Reviewed
and/or Accepted as part of the certification. Where final inspections are
required as part of the certification, CONTRACTOR shall schedule such
inspections at a time mutually agreed by COMPANY and CONTRACTOR.

 

13.4                           Upon
review and/or acceptance of the documentation, and upon completion of the final
inspections, COMPANY may at its sole discretion allow completion of certain
activities that have minor deficiencies or omissions. In these cases, the
outstanding obligations will be listed on the certificate, detailing the
outstanding work required and defining the time scale within which this
outstanding work must be completed. If necessary, attachment sheets will be
used to define the outstanding work in sufficient detail. In these cases, the
attachment sheets will be explicitly headed with the title of the certificate
and numbered, and will be considered to be part of the certificate.

 

13.5                           Depending
on the nature of the work applicable to each certificate, COMPANY may Review
and/or Accept documentation, and carry out inspections, progressively. This
shall be at the mutual agreement of COMPANY and CONTRACTOR.

 

13.6                           Where
certificates are related to a  lump sum
payment, COMPANY will sign off the certificate confirming that the payment is
authorized to be made. CONTRACTOR shall attach this signed certificate to the
relevant invoice as part of the required documentation, as defined in
Section 7.5 above.

 

21

 

APPENDIX
III - A

 

COMPANY ORGANIZATION CHARTS

 

TO BE PROVIDED ON
OR BEFORE OCTOBER 1, 2004

 

22

 

APPENDIX
III - B

 

FIELD INSTRUCTION FORM

 

23

 

TO:

 

COPC Xijiang Oil Field –FPSO
Temporary Lease

 

FIELD INSTRUCTION

 

	
  SUBJECT:

  	
   

  	
   

  	
  No. FI/PPCO/

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INITIATED BY:

  	
   

  	
   

  	
  DATE:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AUTHORIZED BY:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REFERENCE:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  DESCRIPTION:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  DISTRIBUTION:

  	
   

  	
   

  	
   

  

 

24

 

APPENDIX
III - C

 

COMPANY DOCUMENTATION REQUIREMENTS

 

25

 

APPENDIX III - C: COMPANY
DOCUMENTATION REQUIREMENTS

 

The following lists are
presented herein to give CONTRACTOR an indication of COMPANY’s requirements
with respect to Review and Acceptance of CONTRACTOR’s and SUBCONTRACTORS’
documentation.

 

These lists shall not be
considered to be final, or limiting. COMPANY reserves the right to require a
greater involvement in document Review and Acceptance, or in some cases a
lesser involvement, once the actual and detailed Document Register is prepared
and issued. COMPANY will NOTIFY CONTRACTOR of its actual Review and Acceptance
requirements, by annotation and return of the Document Register.

 

C.1                             PROJECT
CONTROL DOCUMENTS

 

(a)                                  For
Acceptance by COMPANY

•                    PROJECT
CONTROL PLAN

•                    Resumes
of KEY PERSONNEL

•                    CONTRACTOR’s
Project Quality Manual

•                    SUBCONTRACTORS’
Quality Manuals

•                    Project
Quality Plans (CONTRACTOR’s and SUBCONTRACTORS’)

•                    CONTRACTOR’S
Safety Management Plan

•                    CONTRACTOR’s
Health, Environment and Safety Philosophy Statement

 

(b)                                  For
Review by COMPANY

•                    Unpriced
contract and specifications packages for all engineering SUBCONTRACTORS

•                    Unpriced
contract and specifications packages for all fabrication and construction
SUBCONTRACTORS

•                    Unpriced
contract and specifications packages for all marine SUBCONTRACTORS

•                    Project
Organization Charts (CONTRACTOR’s and SUBCONTRACTORS’)

 

(c)                                  For
Information

•                    Document
Register

•                    Monthly
Progress Report

 

C.2                             ENGINEERING
DESIGN DOCUMENTS

 

(a)                                  For
Acceptance by COMPANY

•                    Safety
Plan

•                    Escape
Route Plan

•                    Hazardous
Area Plan

 

(b)                                  For
Review by COMPANY

 

26

 

•                    Electrical
one-line diagrams

•                    Piping
layout drawings for new EQUIPMENT and for modifications to existing EQUIPMENT

•                    Installation
arrangement drawings for new EQUIPMENT and where existing EQUIPMENT is
relocated

•                    Design
verification calculations for BTM Buoy Outrigger Arm and riser spools

•                    Design
drawings and as-built drawings for Buoy Outrigger Arm and Risers

•                    Structural
drawings and calculations for new Riser Outrigger Arm and Fluid Swivel assembly

 

(c)                                  For
Information

•                    All
other drawings and calculations produced for existing systems and/or structure
which are subject to modification

•                    All
original As-Built drawings and calculations

 

C.3                             PROCUREMENT
DOCUMENTS

 

(a)                                  For
Acceptance by COMPANY

•                    Specifications
for all new EQUIPMENT

•                    Test
and inspection requirements/procedures for all new EQUIPMENT

•                    Proposed
supplier and/or vendor for each item of new EQUIPMENT

 

(b)                                  For
Review by COMPANY

•                    Purchase
Orders for all new EQUIPMENT

•                    Unpriced
bid evaluations of quotes/proposals received for all new EQUIPMENT

 

(c)                                  For
Information

•                    Delivery
schedule and tracking records for all new EQUIPMENT

•                    Results
of Factory Acceptance Tests and other tests/inspections carried out in
suppliers and/or vendors premises

•                    Third
party certificates and release certificates for each item of new EQUIPMENT

•                    Vendor
Data  Dossiers

 

C.4                             FABRICATION/CONSTRUCTION
DOCUMENTS

 

(a)                                  For
Acceptance by COMPANY

•                    Test
and Inspection Procedures

•                    MECHANICAL
COMPLETION and COMMISSIONING Procedures for all systems

•                    Test,
Inspection and NDE Reports

 

27

 

•                    MECHANICAL
COMPLETION  Dossiers

•                    COMMISSIONING  Dossiers

 

(b)                                  For
Review by COMPANY

•                    Conversion/upgrade
procedures to be carried out before delivery of FPSO to site

•                    Structural,
electrical and piping shop drawings

•                    Welding
Procedure Specifications and Procedure Qualification Records (Piping and
Structural)

•                    Welder
Qualifications for FPSO Outrigger Arm steelwork

•                    NDE
Procedures and acceptance/rejection criteria (Visual, RT, UT, PT, MPI, other)

•                    NDE
Operator Qualifications

•                    General
structural specifications in respect of new Outrigger Arm and FPSO equipment
(to include but not be limited to: materials selection and certification,
welding, prefabrication, erection and assembly, correction of fit-up defects,
alignment and tolerances, hydrotesting, load testing, NDE requirements,
traceability, acceptance)

•                    General
piping specifications (to include but not be limited to materials selection and
certification, connections, supports, assembly and fit-up, correction of fit-up
defects, alignment and tolerances, bonding and grounding, flushing,
hydrotesting, NDE requirements, traceability, acceptance)

 

(c)                                  For
Information

•                    Any
other fabrication/construction documentation

 

C.5                             INSTALLATION
DOCUMENTS

 

(a)                                  For
Acceptance by COMPANY

•                    Contingency
plans (to include but not be limited to: adverse weather; line breakage; tug
breakdown)

•                    INSTALLATION
Reports

 

(b)                                  For
Review by COMPANY

•                    Buoy
and Outrigger Arm and Riser installation procedures to include but not be
limited to: surveying for correct location; setting in place)

•                    FPSO
VESSEL connection procedures (to include but not be limited to: hook-up to
risers and test of all quick release/disconnect devices )

•                    Test
procedures (to include but not be limited to: pipeline/riser hydrotest; Fluid
Swivel rotation test; ROV site survey to determine riser catenaries and
clearances)

 

(c)                                  For
Information

 

28

 

•                    Marine
vessel data sheets

•                    Lifting
gear arrangement drawings and lifting gear certificates

•                    Any
other INSTALLATION documentation

 

C.6                             OFFSHORE
COMMISSIONING DOCUMENTS

 

(a)                                  For
Acceptance by COMPANY

•                    Riser
and new Pipeline pressure test procedure

•                    DP
Mooring system rotation test procedure

•                    Procedure
for introduction of hydrocarbons into FPSO SYSTEM

•                    Oil
spill response trial procedure

•                    PERFORMANCE
TEST procedures

•                    COMPANY
interface procedure

•                    PERFORMANCE
TEST reports

 

(b)                                  For
Review by COMPANY

•                    Any
other Offshore COMMISSIONING procedures

 

(c)                                  For
Information

•                    Any
other Offshore COMMISSIONING related documentation

 

C.7                             OPERATIONS
DOCUMENTS

 

(a)                                  For
Acceptance by COMPANY

•                    FPSO
SYSTEM Operations Manual

•                    Offshore
Health and Safety Manual

•                    Terminal
Operations Booklet

•                    Logistics
Manual

•                    Planned
Maintenance and Repair Manual

•                    Contingency
plans (to include but not be limited to: adverse weather; black-out; CREW
illness or accident)

•                    Permit
to Work procedures

•                    Emergency
Response Plan

•                    SOPEP
(Shipboard Oil Pollution Emergency Plan)

•                    DEMOBILIZATION  procedures and schedule

 

(b)                                  For
Review by COMPANY

•                    Helicopter
Operations Manual

•                    Marine
Operations Manual

•                    Materials
handling and storage procedures

 

(c)                                  For
Information

•                    Personnel
management procedures

•                    Any
other operations documentation

 

29

 

APPENDIX
III - D

 

COMPLETION CERTIFICATES

 

PERFORMANCE CERTIFICATE

DEMOBILIZATION CERTIFICATE

 

30

 

COPC XIJIANG OIL FIELD - FPSO
TEMPORARY LEASE

COMPLETION CERTIFICATE

 

PERFORMANCE
CERTIFICATE

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (Reference Exhibit VIII
  - Quality Assurance, Quality Control, Test and Inspection Requirements)

  	
   

  	
  Complete

  	
   

  	
  Outstanding Obligations

  
	
  Process Plant Test
  Report Accepted

  	
   

  	
   

  	
   

  	
   

  
	
  Riser Pressure Test
  Report Accepted

  	
   

  	
   

  	
   

  	
   

  
	
  Quick Disconnect
  Equipment Test Report Accepted

  	
   

  	
   

  	
   

  	
   

  
	
  Offloading Equipment
  Test Report Accepted

  	
   

  	
   

  	
   

  	
   

  
	
  Marine Systems Tests
  Report Accepted

  	
   

  	
   

  	
   

  	
   

  
	
  Utility Systems
  Operations Acceptable

  	
   

  	
   

  	
   

  	
   

  
	
  Minimum Process Target
  achieved

  	
   

  	
   

  	
   

  	
   

  
	
  Offloading Performance
  Target achieved

  	
   

  	
   

  	
   

  	
   

  
	
  Review and Acceptance
  of Third Party and Classification Society Certificates

  	
   

  	
   

  	
   

  	
   

  
	
  Approval from Chinese
  National Authority to Start Operation

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Outstanding
  Obligations:

  	
   

  	
   

  
	
  (i)
                                                

  	
   

  	
   

  
	
  (ii)
                                                

  	
   

  	
  Date for Completion: 

  	
                                    

  
	
  (iii)
                                                

  	
   

  	
  Date for Completion: 

  	
                                    

  
	
  (iv)
                                                

  	
   

  	
  Date for Completion: 

  	
                                    

  
	
  (v)
                                                

  	
   

  	
  Date for Completion: 

  	
                                    

  
	
   

  	
   

  	
   

  
	
  Certified Complete:

  	
   

  	
   

  
	
    Name: 
  

  	
   

  	
   

  	
  Signature: 

  	
   

  	
   

  	
  Date: 

  	
   

  	
   

  
	
  Certified for Payment:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
    Name: 
  

  	
   

  	
   

  	
  Signature: 

  	
   

  	
   

  	
  Date: 

  	
   

  	
   

  
																

 

31

 

COPC XIJIANG OIL FIELD - FPSO
TEMPORARY LEASE

COMPLETION CERTIFICATE

 

DEMOBILIZATION
CERTIFICATE

 

	
   

  	
   

  	
  Complete

  	
   

  	
  Outstanding

  Obligations

  
	
  Review and Acceptance
  of  DEMOBILIZATION Dossiers

  	
   

  	
   

  	
   

  	
   

  
	
  Final Offloading
  Completed and Report Attached

  	
   

  	
   

  	
   

  	
   

  
	
  FPSO VESSEL
  Disconnected and Removed from OFFSHORE SITE

  	
   

  	
   

  	
   

  	
   

  
	
  BTM Redelivered In
  Fully Operational and Undamaged Condition

  	
   

  	
   

  	
   

  	
   

  
	
  ROV Site Clearance
  Survey Satisfactorily Completed and Report Attached

  	
   

  	
   

  	
   

  	
   

  
	
  Marine Spread Released

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Quantity of Remaining
  Liquids on FPSO VESSEL Certified by COMPANY and CONTRACTOR as follows:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PRODUCED
  OIL:

  	
  m(3)

  	
   

  	
   

  	
   

  	
   

  
	
  Lube
  Oil:

  	
  m(3)

  	
   

  	
   

  	
   

  	
   

  
	
  Diesel
  Oil:

  	
  m(3)

  	
   

  	
   

  	
   

  	
   

  
	
  Potable
  Water:

  	
  m(3)

  	
   

  	
   

  	
   

  	
   

  
	
  Chemicals

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  Outstanding
  Obligations:

  	
   

  	
   

  
	
  (i)
                                                

  	
   

  	
   

  
	
  (ii)
                                                

  	
   

  	
  Date for Completion: 

  	
                                    

  
	
  (iii)
                                                

  	
   

  	
  Date for Completion: 

  	
                                    

  
	
  (iv)
                                                

  	
   

  	
  Date for Completion: 

  	
                                    

  
	
  (v)
                                                

  	
   

  	
  Date for Completion: 

  	
                                    

  
	
   

  	
   

  	
   

  
	
  Certified Complete:

  	
   

  	
   

  
	
    Name: 
  

  	
   

  	
   

  	
  Signature: 

  	
   

  	
   

  	
  Date: 

  	
   

  	
   

  
	
  Certified for Payment:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
    Name: 
  

  	
   

  	
   

  	
  Signature: 

  	
   

  	
   

  	
  Date: 

  	
   

  	
   

  
															

 

32

 

EXHIBIT
IV –

CONTRACTOR
ORGANIZATION AND

PROJECT
TEAM KEY PERSONNEL

 

 

Munin Offshore Chart

 

 

 

	
   

  	
  FPSO Munin Conversion for Xijiang
  Field

  Organisation Chart No. 1 - Overall Project Organisation

  November 2003

  

 

 

 

	
   

  	
  FPSO Munin Conversion for Xijiang
  Field

  Organisation Chart No. 2 - SPM Organisation

  November 2003

  

 

 

 

 

	
   

  	
  FPSO Munin Conversion for Xijiang
  Field

  Organisation Chart No. 3 - Vessel Engineering Organisation

  November 2003

  

 

 

 

	
   

  	
  FPSO Munin Conversion for Xijiang
  Field

  Organisation Chart No. 4 - Operations Organisation

  November 2003

  

 

 

 

EXHIBIT V –

CONTRACTOR PARENT COMPANY

GUARANTEE

 

 

PARENT COMPANY/ CORPORATE
INDEMNITY AGREEMENT

 

 

dated as of
                     ,
2004

 

 

by

 

AURELIA
ENERGY N.V.

 

 

*    *    *

 

FOR
THE PERFORMANCE OF

 

CONTRACT
NO.                                            

 

XIJIANG
OIL FIELD SOUTH CHINA SEA FPSO LEASE CONTRACT

 

 

[PARENT COMPANY’s LETTER
HEAD]

 

WHEREAS, in consideration of ConocoPhillips China Inc. as Operator of the
Xijiang 24-3 and 30-2 Oil Fields, Offshore People’s Republic of China
(“Company”) agreeing to enter into Contract No.
               ,
Xijiang Oil Field South China Sea FPSO Lease Contract (“the Contract”) with
Lufeng Development Company ANS (“Contractor”), Aurelia Energy N.V.
(“Indemnitor”), a company formed under the laws of  [name of relevant
territory], has agreed, pursuant to this Parent Company/ Corporate
Indemnity Agreement (this “Agreement”), to guarantee to Company the full
performance and discharge of, and to indemnify Company against Contractor’s
failure to perform and discharge, all Contractor’s duties, responsibilities,
obligations and liabilities under the Contract;

 

NOW,
THEREFORE, for value
received, Indemnitor hereby unconditionally and irrevocably guarantees to
Company the due, complete and punctual performance and discharge by Contractor
of all Contractor’s duties, responsibilities, obligations and liabilities under
the Contract in accordance with its terms, and agrees to indemnify Company
against any failure by Contractor so to perform and discharge such duties,
responsibilities, obligations and liabilities:

 

1.           Indemnitor is liable (on a joint and several basis) for the proper
performance and discharge of all of Contractor’s duties, responsibilities,
obligations and liabilities under the Contract in accordance with its terms. In
the event of any default by Contractor in performance or discharge of any of
its duties, responsibilities and obligations under the Contract, including
without limitation any default in payment or in honouring any liabilities
assumed by Contractor under the Contract, Indemnitor shall be and become bound
promptly to perform and discharge such duties, responsibilities, obligations
and liabilities as a primary obligor.

 

2.            Indemnitor shall defend, indemnify and hold harmless Company from and
against all liabilities, losses, damages and claims suffered by Company, and
for which Contractor is liable under the Contract, resulting from or arising
out of Contractor’s failure to properly perform and discharge all of Contractor’s
duties, responsibilities, obligations and liabilities under the Contract in
accordance with its terms.

 

3.            Company shall not be entitled to enforce this Agreement in respect of
any default of Contractor under the Contract until any relevant period specified
in the Contract for Contractor to remedy such default has expired, and such
default has not been remedied in such period.

 

4.            Upon receipt of a demand from Company, in the form of a written notice
(by letter or electronic facsimile transmission) specifying the particulars of
Contractor’s default under the Contract, Indemnitor shall promptly perform and
discharge its obligations under this Agreement. Company shall not be required,
prior to enforcing this Agreement, to make demand on or file suit against
Contractor or any other entity to attempt to collect payment from or enforce
performance of any obligation by Contractor or any other entity, to foreclose
against any security now or hereafter existing for Contractor’s obligations, or
to exercise or exhaust any other right or remedy to which Company may be
entitled.

 

5.            The address for notice or demand by Company to Indemnitor under this
Agreement shall be as follows:

 

[Address of Indemnitor]

 

 

Attention:  [Title
of person to whom notices/ demands are to be addressed]

 

Fax Number:

 

The address for notice by
Indemnitor to Company under this Agreement shall be as follows:

 

ConocoPhillips China Inc.

Address

 

Attention:

 

Fax Number:

 

Indemnitor may from time to
time change its address for notice or demand hereunder by giving prior written
notice to Company. Company may from time to time change its address for notice
hereunder by giving prior written notice to Indemnitor. Any notice or demand
that

 

	
  (a)

  	
   

  	
  delivered to Indemnitor (or Company, as applicable) by any form of
  courier (including by hand) or recorded or registered postal delivery shall
  be deemed to be given and received at the time of delivery;

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  sent by facsimile transmission shall be deemed to be given and
  received when confirmation of transmission to and receipt by Indemnitor’s (or
  Company’s, as applicable) facsimile machine is received by Company’s (or
  Indemnitor’s, as applicable) facsimile machine.

  

 

 

6.            This Agreement shall continue in full force and effect until all
obligations guaranteed hereunder are duly satisfied. Provided, however, that
this Agreement shall only remain in effect after April 9, 2006 in respect of
matters already known to both Company and Indemnitor that have not been
conclusively resolved by that date.

 

7.            Indemnitor’s obligations under this Agreement shall not be released or
discharged notwithstanding:

 

	
  (a)

  	
   

  	
  any extension of time for payment or performance of any obligation;

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  any transfer, assignment or mortgage by Contractor of any interest in
  the Contract (the term “Contractor” including also any of Contractor’s
  successors or assigns);

  
	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  any amendment, modification, supplement, Change Order Authorization,
  extension of the Contract made or effected in accordance with its terms, or
  other change in or waiver of Contractor’s obligations under or pursuant to
  the Contract, whether with or without Indemnitor’s consentunless Indemnitor
  would have been released from such obligation (or otherwise affected by such
  amendment, modification, supplement, Change Order Authorization or extension
  of the Contract) if it had been a party to the Contract instead of
  Contractor, but without prejudice to the other provisions of this Paragraph 7
  stipulating circumstances in which Indemnitor’s obligations shall not be
  released, discharged or otherwise affected;

  

 

 

 

	
  (d)

  	
   

  	
  an y failure on the part of Contractor duly to carry out any of its
  obligations under the Contract;

  
	
   

  	
   

  	
   

  
	
  (e)

  	
   

  	
  any waiver by Company or the release or discharge of Contractor from
  any duty, responsibility, obligation or liability under the Contract, unless
  Indemnitor would have been released from such duty, responsibility,
  obligation or liability if it had been a party to the Contract instead of
  Contractor, but without prejudice to the other provisions of this Paragraph 7
  stipulating circumstances in which Indemnitor’s obligations shall not be
  released, discharged or otherwise affected;

  
	
   

  	
   

  	
   

  
	
  (f)

  	
   

  	
  the voluntary or involuntary liquidation or dissolution of
  Contractor, or the sale or other disposition of all or substantially all of
  Contractor’s assets and liabilities;

  
	
   

  	
   

  	
   

  
	
  (g)

  	
   

  	
  an y change in the existence, structure, constitution, name, objects,
  powers, business, control or ownership of Contractor or the voluntary or
  involuntary liquidation, dissolution, receivership, insolvency, bankruptcy,
  assignment for the benefit of creditors, reorganization, composition or other
  similar proceeding affecting Contractor, or the disaffirmance of the Contract
  in any such proceeding;

  
	
   

  	
   

  	
   

  
	
  (h)

  	
   

  	
  any merger, amalgamation, arrangement, consolidation or other
  reorganization to which Contractor, Indemnitor or any related entity is a
  party, or any direct or indirect sale or disposition of all or substantially
  all of Contractor’s assets and liabilities or Indemnitor’s assets and
  liabilities;

  
	
   

  	
   

  	
   

  
	
  (i)

  	
   

  	
  any claim by Contractor of invalidity, illegality, unenforceability
  or frustration of the Contract, or any assertion by Contractor that any
  provision of any applicable law prohibits the payment by Contractor of, or
  relieves Contractor of its obligation to make payment of, amounts due under
  the Contract; or

  
	
   

  	
   

  	
   

  
	
  (j)

  	
   

  	
  any obligation of Contractor being rescinded or otherwise affected by
  the effect of any applicable bankruptcy, insolvency, reorganization,
  moratorium or similar laws affecting creditors’ rights generally and by
  general principles of equity.

  

 

 

8.             All amounts payable by Indemnitor under this Agreement shall be paid in
lawful money of the United States of America in immediately available funds
promptly after Indemnitor receives a written demand for payment in accordance
with Paragraph 5. All payments
under this Agreement shall be made free and clear and without deduction for
taxes or withholdings of any kind. If any deductions for taxes or withholdings
are required in respect of any payment under this Agreement, Indemnitor shall
pay such additional amounts as are necessary to ensure that Company receives a
net amount equal to the full amount that it would have received in the absence
of any such deduction. Any amount required to be paid pursuant to the terms of
this Agreement shall bear interest from the date due until the date paid in
full at the [similar wording as Article
25.17 of the Contract] London Inter-Bank Offered Rate (LIBOR) plus
two percentage point (two hundred basis points) for the period.

 

9.           Indemnitor represents and warrants to Company on and as of the date
hereof that:

 

	
  (a)

  	
   

  	
  it is duly organized and validly existing under the laws of the
  jurisdiction in which it was organized and has the power and authority to
  execute and perform this Agreement;

  

 

 

	
  (b)

  	
   

  	
  Indemnitor has done everything necessary for execution and delivery of this Agreement, including obtaining any
  authorization or approval required from any entity and making any
  registration required with any court or governmental authority having
  jurisdiction over Indemnitor;

  
	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  Indemnitor is not aware of any requirement for Company to obtain any
  authorization or approval from any entity that has not been obtained nor to
  make any registration with any court or government authority having
  jurisdiction over Indemnitor for execution and delivery of this Agreement;
  and

  
	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  this Agreement constitutes a valid and legally binding agreement of
  Indemnitor, and is enforceable against Indemnitor in accordance with its
  terms.

  

 

 

10.           This Agreement shall inure for the
benefit of Company’s successors and assigns (as permitted under the Contract)
and shall be binding upon Indemnitor’s successors and assigns. Indemnitor shall
not assign this Agreement or assign or transfer any of its obligations
hereunder except with the prior written consent of Company, which Company shall
not withhold unreasonably. Any purported assignment or transfer made without
such prior approval of Company shall be null and void.

 

11.           Company’s failure to exercise or
enforce any right, remedy or benefit under this Agreement shall not operate as
a waiver hereunder and shall not preclude Company from requiring Indemnitor to
fulfill all of its duties, responsibilities and obligations under this
Agreement. Any purported waiver by Company of any provision of this Agreement
shall only be valid if set out in writing and signed by a duly authorized
representative of Company. Any purported amendment of this Agreement shall only
be valid if set out in writing as a deed signed by a duly authorized
representative of Indemnitor, and counter-signed by a duly authorized
representative of Company as being accepted and agreed on behalf of Company.

 

12.           Indemnitor shall pay reasonable legal
fees and all other costs and expenses that may be incurred by Company in
enforcing this Agreement.

 

13.           This Agreement is subject to and
shall be construed in accordance with the laws of England. Any dispute under
this Agreement that cannot be settled amicably between Company and Indemnitor shall
be finally settled by binding arbitration in the English language in Singapore,
and shall be conducted by three arbitrators in accordance with the Arbitration
Rules of the United Nations Commission on International Trade Law contained in
Resolution 31/ 98 adopted by the United Nations General Assembly on 15 December
1976, as in force at the time such arbitration is commenced, except as the
rules may be modified herein.

 

The award rendered in any
arbitration brought hereunder shall be final and binding upon the parties
thereto, and judgment thereon may be entered in any court having jurisdiction
for its enforcement. Indemnitor hereby expressly:

 

	
  (a)

  	
   

  	
  waives, to the extent they might otherwise be held applicable, any
  provisions of the laws of England or any other territory giving the right to
  appeal the arbitration award;

  

 

 

 

	
  (b)

  	
   

  	
  agrees that it shall not have any right to commence or maintain any
  suit or legal proceeding concerning a dispute under this Agreement until the
  dispute has been determined in accordance with the arbitration procedure
  provided for herein and then only to enforce or facilitate the execution of
  the award rendered in such arbitration.

  

 

 

14.           Without prejudice to the
provisions of Paragraphs 7 and 12, the liabilities and obligations,
individually or collectively, of Indemnitor to Company under this Agreement
shall not be greater than the liabilities and obligations of Contractor to
Company under the Contract, without duplication and Indemnitor shall be
entitled to avail itself of any limitation or exclusion of liability similar to
Contractor.

 

IN WITNESS
WHEREOF this
Agreement has been duly executed by Indemnitor as a deed and unconditionally
delivered as of [date]

 

	
  EXECUTED AND DELIVERED

  	
  )

  
	
  AS A DEED

  	
  )

  
	
   

  	
  )

  
	
  By [name of Indemnitor]

  	
  )

  
	
   

  	
  )

  
	
  Acting by [name of signatory]

  	
  )

  
	
   

  	
  )

  
	
  In the presence of:

  	
  )

  
	
   

  	
   

  
	
  Witness:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
   

  	
   

  
	
  Address:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Occupation:

  	
   

  	
   

  
					

 

 

 

[LETTERHEAD OF AURELIA ENERGY NV]

 

PARENT COMPANY/ CORPORATE
INDEMNITY AGREEMENT

 

dated
as of 20 October,2003

 

by

 

AURELIA ENERGY N.V.

 

* * *

 

FOR THE PERFORMANCE OF

CONTRACT NO. PA-02-2004

 

XIJIANG OIL FIELD SOUTH
CHINA SEA FPSO LEASE CONTRACT

 

1

 

WHEREAS,
in consideration of ConocoPhillips China Inc. as Operator of the Xijiang 24-3
and 30-2 Oil Fields, Offshore People’s Republic of China (“Company”) agreeing
to enter into Contract No. PA-02-2004, xijiangOilReidSouthChina Sea
FPSOLeaseContract (“the Contract”)withLufeng Development Company ANS (“Contractor”),
Aurelia Energy N.V. (“Indemnitor”), a company formed under the laws ofthe
Netherlands Antilles, has agreed, pursuant to this Parent Company/ Corporate
Indemnity Agreement (this “Agreement”), to guarantee to Company the full
performance and discharge of, and to indemnify Company against Contractor’s
failure to perform and discharge, all Contractor’s duties, responsibilities,
obligations and liabilities under the Contract;

 

NOW,
THEREFORE, for value received, Indemnitor hereby
unconditionally and irrevocably guarantees to Company the due, complete and
punctual performance and discharge by Contractor of all Contractor’s duties,
responsibilities, obligations and liabilities under the Contract in accordance
with its terms, and agrees to indemnify Company against any failure by
Contractor so to perform and discharge such duties, responsibilities,
obligations and liabilities:

 

1.                                     Indemnitor
is liable (on a joint and several basis) for the proper performance and
discharge of all of Contractor’s duties, responsibilities, obligations and
liabilities under the Contract in accordance with its terms. In the event of
any default by Contractor in performance or discharge of any of its duties,
responsibilities and obligations under the Contract, including without
limitation any default in payment or in honouring any liabilities assumed by
Contractor under the Contract, Indemnitor shall be and become bound promptly to
perform and dischargesuchduties, responsibilities,obligationsand liabilitiesasa
primaryobligor.

 

2.                                     Indemnitor
shall defend, indemnify and hold harmless Company from and against all
liabilities, losses, damages and claims suffered by Company, and for which
Contractor is liable under the Contract, resulting from or arising out of
Contractor’s failure to properly perform and discharge all of Contractor’s
duties, responsibilities, obligations and liabilities underthe Contract in
accordancewith itsterms.

 

3.                                   Company
shall not be entitled to enforce this Agreement in respect of any default of
Contractor under the Contract until any relevant period specified in the
Contract for Contractor to remedy such default has expired, and such default
has not been remedied in suchperiod.

 

2

 

4.                                 Upon receipt of a demand from Company, in the
form of a written notice (by letter or electronic facsimile transmission)
specifying the particulars of Contractor’s default under the Contract,
Indemnitor shall promptly perform and discharge its obligations under this
Agreement Company shall not be required, prior to enforcing this Agreement, to
make demand on or file suit against Contractor or any other entity to attempt
to collect payment from or enforce performance of any obligation by Contractor
or any other entity, to foreclose against any security now or hereafter
existing for Contractor’s obligations, or to exercise or exhaust any other
right or remedy to which Company may be entitled.

 

5.                                  The address for notice or demand by Company
to Indemnitor under this Agreement shall be as follows:

 

Aurelia Enrtgy NV,

Kaya Richard J.Beaujon z/n,
Curacao,

Netherlands Antilles

 

	
  Attention: The Finance Manager.

  	
   

  	
  Fax Number: +599 - 9 - 7366161

  

 

The address for notice by
Indemnitor to Company under this Agreement shall be as follows:

 

ConocoPhillips China Inc.
P.O.BOX, 166,

Shekoue, Shenzhen, PR China,
518067

	
  Attention: The Finance Manager.

  	
   

  	
  Fax Number: +86-755-2667-0924

  

 

Indemnitor may from time to
time change its address for notice or demand hereunder by giving prior written
notice to Company. Company may from time to time change its address for notice
hereunder by giving prior written notice to Indemnitor. Any notice or demand
that is:

 

(a)                                  delivered to Indemnitor (or Company, as
applicable) by any form of courier (including by hand) or recorded or
registered postal delivery l be deemed to be given and received at the time of
delivery;

 

(b)                                 sent
by facsimile transmission shall be deemed to be given and received when
confirmation of transmission to and receipt by Indemnitor’s (or Company’s, as
applicable) facsimile machine is received by Company’s (or Indemnitor’s, as
applicable) facsimile machine.

 

3

 

6.                                       This Agreement shall continue in full force
and effect until all obligations guaranteed hereunder are duly satisfied.
Provided, however, that this Agreement shall only remain in effect after
April 9, 2006 in respect of matters already known to both Company and
Indemnitor that have not been conclusively resolved by that date.

 

7.                                       Indemnitor’s obligations under this Agreement
shall not be released or discharged 9                 notwithstanding: (a)         any
extension of time for payment or performance of any obligation;

 

(b)                                 any transfer, assignment or mortgage by
Contractor of any interest in the Contract (the term “Contractor” including
also any of Contractor’s successors or assigns);

 

(c)                                  any amendment, modification, supplement,
Change Order Authorisation, extension ofthe Contract made or effected in
accordance with its terms, or other change in or waiver of Contractor’s obligations
under or pursuant to the Contract, whether with or without Indemnitor’s consent
unless Indemnitor would have been released from such obligation (or otherwise
affected by such amendment, modification, supplement, Change Order
Authorisation or extension of the Contract) if it had been a party to the
Contract instead of Contractor, but without prejudice to the other provisions
of this Paragraph 7 stipulating circumstances in which Indemnitor’s obligations
shall not be released, discharged or otherwise affected;

 

(d)                                 an y failure on the part of Contractor duly
to carry out any of its obligations under the Contract;

 

(e)                                  any waiver by Company or the release or
discharge of Contractor from any duty, responsibility, obligation or liability
under the Contract, unless Indemnitor would have been released from such duty,
responsibility, obligation or liability if it had been a party to the Contract
instead of Contractor, but without prejudice to the other provisions of this
Paragraph 7 stipulating circumstances in which Indemnitor’s obligations l not
be released, discharged or otherwise affected;

 

(f)                                    the voluntary or involuntary liquidation or
dissolution of Contractor, or the sale or other disposition of all or
substantially all of Contractor’s assets and liabilities;

 

(g)                                 any change in the existence, structure,
constitution, name, objects, powers, business, control or ownership of
Contractor or the voluntary or involuntary liquidation, dissolution,
receivership, insolvency, bankruptcy, assignment for the benefit of creditors,
reorganisation, composition or other similar proceeding affecting Contractor,
or the disaffirmance ofthe Contract in any such proceeding;

 

4

 

(h)                                any
merger, amalgamation, arrangement, consolidation or other reorganisation to
which Contractor, Indemnitor or any related entity is a party, or any direct or
indirect sale or disposition of all or substantially l of Contractor’s assets
and liabilities or Indemnitor’s assets and liabilities;

 

(i)                                     any
claim by Contractor of invalidity, illegality, unenforceability or frustration
of the Contract, or any assertion by Contractor that any provision of any
applicable law prohibits the payment by Contractor of, or relieves Contractor
of its obligation to makepaymentof,amountsdueundertheContract;or

 

(j)                                any
obligation of Contractor being rescinded or otherwise affected by the effect of
any applicable bankruptcy, insolvency, reorganisation, moratorium or similar
laws affecting creditors’ rights generally and by general principles ofequity.

 

8.                                  All
amounts payable by Indemnitor under this Agreement shall be paid in lawful
money of the United States of America in immediately available funds promptly
after Indemnitor receives a written demand for payment in accordance with
Paragraph 5. All payments under this Agreement shall be made free and dear and
without deduction for taxes or withholdings of any kind. If any deductions for
taxes or withholdings are required in respect of any payment under this
Agreement, Indemnitor shall pay such additional amounts as are necessary to
ensure that Company receives a net amount equal to the full amount that it
would have received in the absence of any such deduction. Any amount required
to be paid pursuant to the terms of this Agreement shall bear interest from the
date due until the date paid in full at the London Inter-Bank Offered Rate
(LIBOR) plus two percentage point (two hundred basis points) for the period.

 

9.                                    Indemnitor
represents and warrants to Company on and as ofthe date hereofthat

 

(a)                                it
is duly organised and validly existing under the laws of the jurisdiction in
which it was organised and has the power and authority to execute and perform
this Agreement;

 

(b)                             Indemnitor
has done everything necessary for execution and delivery of this Agreement,
including obtaining any authorisation or approval required from any entity and
making any registration required with any court or governmental authority
having jurisdiction over Indemnitor,

 

5

 

(c)                                  Indemnitor
is not aware of any requirement for Company to obtain any authorisation or
approval from any entity that has not been obtained nor to make any
registration with any court or government authority having jurisdiction over Indemnitor
fa execution and delivery ofthis Agreement; and

 

(d)                                 this
Agreement constitutes a valid and legally binding agreement of Indemnitor, and
is enforceable against Indemnitor in accordance with its terms.

 

10.                                 This
Agreement shall inure for the benefit of Company’s successors and assigns (as
permitted under the Contract) and shall be binding upon Indemnitor’s successors
and assigns. Indemnitor shall not assign this Agreement or assign or transfer
any of its obligations hereunder except with the prior written consent of
Company, which Company shall not withhold unreasonably. Any purported
assignment or transfer made without such prior approval ofCompany shall be null
and void.

 

11.                             Company’s
failure to exercise or enforce any right, remedy or benefit under this
Agreement shall not operate as a waiver hereunder and shall not preclude
Company from requiring Indemnitor to fulfil all of its duties, responsibilities
and obligations under this Agreement Any purported waiver by Company of any
provision of this Agreement shall only be valid if set out in writing and
signed by a duly authorised representative of Company. Any purported amendment
of this Agreement shall only be valid if set out in writing as a deed signed by
a duly authorised representative of Indemnitor, and counter-signed by a duly
authorised representativeofCompanyas being accepted and agreedon
behalfofCompany.

 

12.                              Indemnitor
l pay reasonable legal fees and all other costs and expenses that may be
incurred by Company in enforcing this Agreement

 

13.                                 This
Agreement is subject to and shall be construed in accordance with the laws of
England.  Any dispute under this
Agreement that cannot be settled amicably between Company and Indemnitor shall
be finally settled by binding arbitration in the English language in Singapore,
and shall be conducted by three arbitrators in accordance with the Arbitration
Rules of the United Nations Commission on International Trade Law contained in
Resolution 31/ 98 adopted by the United Nations General Assembly on 15 December 1976,
as in force atthe time such arbitration is commenced, except as the rules may
be modified herein.

 

The award rendered in any arbitration brought
hereunder shall be final and binding upon the parties thereto, and judgement
thereon may be entered in any court having jurisdiction for its enforcement
Indemnitor hereby expressly:

 

6

 

(a)                                  waives,
to the extentthey might otherwise be held applicable, any provisionsofthe laws
of England or any other territory giving the right to appeal the arbitration
award;

 

(b)                                 agrees
that it shall not have any right to commence or maintain any suit or legal
proceeding concerning a dispute under this Agreement until the dispute has been
determined in accordancewith the arbitration procedure provided for herein and
then only to enforce or facilitate the execution of the award rendered in such
arbitration.

 

14.                                 Without
prejudice to the provisions of Paragraphs 7 and 12, the liabilities and
obligations, individually or collectively, of Indemnitor to Company under this
Agreement l not be greater than the liabilities and obligations of Contractor
to Company under the Contract, without duplication and Indemnitor shall be
entitled to avail itself of any limitation or exclusion of liability similar to
Contractor.

 

IN
WITNESS WHEREOF this Agreement has been duly executed by
Indemnitor as a deed and unconditionallydelivered asof

 

	
  EXECUTED
  AND DELIVERED AS A DEED

  	
  )

  
	
   

  	
  )

  
	
   

  	
  )

  
	
  ByAurelia
  EnergyNV

  	
  )

  
	
   

  	
  )  /s/ JOHN COLLISON

  
	
  Acting by John Collison

  	
  )

  
	
   

  	
  )

  
	
  I n the presence
  of:

  	
  )

  

 

	
  Witness:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature:.

  	
  /s/ J. VAN DER
  WARUN

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name:

  	
   J. van der Warun

  	
   

  	
   

  
	
   

  	
   

  
	
  Address:

  	
  Hareveld

  	
   

  	
   

  
	
   

  	
  27GxG
  Levenhvinew

  	
   

  	
   

  
	
   

  	
  The Netherlands

  	
   

  	
   

  
						

 

7

 

 

EXHIBIT
VI–

LIST OF SUBCONTRACTORS AND

WORK TO BE SUBCONTRACTED

 

 

 

TOPSIDES
MODIFICATIONS & ADDITIONAL MODULE

 

SUPPLIERS
LIST for XIJIANG DP Option

 

	
  No.

  	
   

  	
  Description

  	
   

  	
  Supplier

  	
   

  	
  Country

  
	
  1

  	
   

  	
  PRODUCT SWIVEL

  	
   

  	
  BMZ Zandvoort

  Machinefabriek Kreber

  TUC

  	
   

  	
  The Netherlands

  The Netherlands

  The Netherlands

  
	
  2

  	
   

  	
  INLINE SWIVEL

  	
   

  	
  BMZ Zandvoort

  Machinefabriek Kreber

  TUC

  	
   

  	
  The Netherlands

  The Netherlands

  The Netherlands

  
	
  3

  	
   

  	
  SLIDING BEARING
  (for Product Swivel)

  	
   

  	
  Kuhne Industrie

  Busak & Shamban

  	
   

  	
  The Netherlands

  The Netherlands

  
	
  4.

  	
   

  	
  SWIVEL BOLTS,
  NUTS, WASHERS

  	
   

  	
  Randack GmbH

  Rollstud

  OME

  	
   

  	
  Germany

  United Kingdom

  Italy

  
	
  5

  	
   

  	
  SWIVEL BEARING

  	
   

  	
  Rothe Erde

  	
   

  	
  Germany

  
	
  6

  	
   

  	
  SWIVEL SEALS

  	
   

  	
  Busak &
  Shamban

  GreenTweed

  	
   

  	
  The Netherlands

  United Kingdom

  
	
  7

  	
   

  	
  MAIN BEARING

  	
   

  	
  Rothe Erde

  	
   

  	
  Germany

  
	
  8

  	
   

  	
  MAIN BEARING
  BOLTS, NUTS, WASHERS & BOLT CAPS

  	
   

  	
  Randack GmbH

  Rollstud

  OME

  	
   

  	
  Germany

  United Kingdom

  Italy

  
	
  9

  	
   

  	
  BOLT TENIONING
  EQUIPMENT

  	
   

  	
  Tentec

  Hydratight

  	
   

  	
  United Kingdom

  United Kingdom

  
	
  10

  	
   

  	
  HYDRAULIC WINCH
  5 T & 60 T c/w POWER PACK

  	
   

  	
  Rexroth

  Frames Process Systems

  Soest Hydraulics

  	
   

  	
  The Netherlands

  The Netherlands

  The Netherlands

  
	
  11

  	
   

  	
  GENERAL BOLTS,
  NUTS & WASHERS

  	
   

  	
  Randack GmbH

  Rollstud

  OME

  	
   

  	
  Germany

  United Kingdom

  Italy

  
	
  12

  	
   

  	
  BALL VALVES
  manual high perf.8”or 10” 600#

  	
   

  	
  Econosto

  Capital Valves

  Valve Engineering Supplies

  PCC Newman

  Velan Valves (IVS)

  Control Seal

  	
   

  	
  The Netherlands

  United Kingdom

  United Kingdom

  Italy

  Italy

  The Netherlands

  
	
  13

  	
   

  	
  ESD Valve
  8”or10” 600#

  	
   

  	
  Econosto

  Valve Engineering Supplies

  PCC Newman

  Velan Valves

  	
   

  	
  The Netherlands

  United Kingdom

  Italy

  Italy

  
	
  14

  	
   

  	
  RISERS & associated
  equipment

  	
   

  	
  Flowline
  Specialists Ltd

  	
   

  	
  UK

  
	
  15

  	
   

  	
  28 ADDITIONAL
  PLATES COOLING MEDIUM COOLING

  	
   

  	
  Bronswerk

  Alfa Laval

  Koojiman

  Tranter BV

  	
   

  	
  The Netherlands

  The Netherlands

  The Netherlands

  The Netherlands

  

 

 

	
  16

  	
   

  	
  CENTRIFUGAL
  PUMPS (Booster type)

  	
   

  	
  Sulzer Pumps

  Pompe Gabbioneta

  Weir Pumps

  Flowserve BV

  KSB Nederland

  	
   

  	
  United Kingdom

  Italy

  United Kingdom

  The Netherlands

  The Netherlands

  
	
  17

  	
   

  	
  CRUDE OIL
  TRANSFER PUMP + MOTOR

  	
   

  	
  Sulzer Pumps

  Pompe Gabbioneta

  Weir Pumps

  Flowserve BV

  KSB Nederland

  Nijhuis Pompen

  Geveke Pompen

  	
   

  	
  United Kingdom

  Italy

  United Kingdom

  The Netherlands

  The Netherlands

  The Netherlands

  The Netherlands

  
	
  18

  	
   

  	
  ADDITIONAL
  PLATES CRUDE OIL COOLER

  	
   

  	
  Bronswerk

  Alfa Laval

  Kooijman

  Tranter BV

  	
   

  	
  The Netherlands

  The Netherlands

  The Netherlands

  The Netherlands

  
	
  19

  	
   

  	
  BIOCIDE
  INJECTION AIRDRIVEN PUMP

  	
   

  	
  Girdlestone
  Pumps

  Weir Pumps

  Allweiler Pompen

  ABS Pompen

  Bran & Luebbe

  	
   

  	
  United Kingdom

  United Kingdom

  The Netherlands

  The Netherlands

  The Netherlands

  
	
  20

  	
   

  	
  PRESSURE RELIEF
  VALVES

  	
   

  	
  Hitma

  Tyco Flow Contol

  Hopkinsons Ltd

  	
   

  	
  The Netherlands

  United Kingdom

  United Kingdom

  
	
  21

  	
   

  	
  LEVEL CONTROL
  VALVES

  	
   

  	
  Emerson Process
  Mgt.

  Flowserve

  Dresser Industrial Products

  Grinell Trading Company

  	
   

  	
  The Netherlands

  The Netherlands

  The Netherlands

  The Netherlands

  
	
  22

  	
   

  	
  FIELD
  INSTRUMENTS

  	
   

  	
  ABB

  Emerson Process Mgt.

  	
   

  	
  The Netherlands

  The Netherlands

  
	
  23

  	
   

  	
  INSTRUMENT
  CABLES

  	
   

  	
  NKF (Draka)

  Incore Cables

  	
   

  	
  The Netherlands

  The Netherlands

  
	
  24

  	
   

  	
  STARTER MODULE

  	
   

  	
  Aker Electro

  	
   

  	
  Norway

  
	
  25

  	
   

  	
  JUMPER HOSES

  	
   

  	
  Phoenix Beattie

  	
   

  	
  United Kingdom

  
	
  26

  	
   

  	
  SHEAVE BLOCK

  	
   

  	
  Hycom

  	
   

  	
  The Netherlands

  
	
  27

  	
   

  	
  HEAT TRACING
  DISTR. BOARD

  	
   

  	
  Stahl

  Electromach

  	
   

  	
  The Netherlands

  The Netherlands

  
	
  28

  	
   

  	
  HEAT TRACING
  Design

  	
   

  	
  Thermon Benelux
  BV

  Tyco Thermal Controls

  	
   

  	
  The Netherlands

  The Netherlands

  
	
  29

  	
   

  	
  PV Valve Cargo
  Vent System c/w Flame Arrestors

  	
   

  	
  Protegro

  Press-Vac

  	
   

  	
  The Netherlands

  Norway

  
	
  30

  	
   

  	
  AUTOMATIC FLOW
  RECIRCULATION VALVE

  	
   

  	
  Emerson Process
  Mgt.

  Tyco Flow Control

  	
   

  	
  The Netherlands

  The Netherlands

  
	
  31

  	
   

  	
  DELUGE VALVE
  SKID c/w FOAM TANK

  	
   

  	
  Wormald Oil
  & Gas

  	
   

  	
  United Kigdom

  
	
  32

  	
   

  	
  DELUGE NOZZLES

  	
   

  	
  Wormald Oil
  & Gas

  Grinell Trading Company

  	
   

  	
  United Kingom

  The Netherlands

  
	
  33

  	
   

  	
  DELUGE SYSTEM –
  BUTTERFLY VALVES

  	
   

  	
  BAF Butterfly
  Valves

  Duvalco BV

  Capital Valves

  	
   

  	
  The Netherlands

  The Netherlands

  United Kingdom

  

 

 

 

	
  34

  	
   

  	
  FUEL TRANSFER
  PUMP

  	
   

  	
  Geveke Pompen

  Weir Pumps

  Flowserve

  Sulzer Pompen

  	
   

  	
  The Netherlands

  The Netherlands

  The Netherlands

  The Netherlands

  
	
  35

  	
   

  	
  FUEL DEGASSING
  SYSTEM

  	
   

  	
  BMZ Zandvoort

  TUC

  	
   

  	
  The Netherlands

  The Netherlands

  
	
  36

  	
   

  	
  STARTER
  DEGASSING BOOSTER PUMP

  	
   

  	
  Geveke Pompen

  Weir Pumps

  Flowserve

  Sulzer Pompen

  	
   

  	
  The Netherlands

  The Netherlands

  The Netherlands

  The Netherlands

  
	
  37

  	
   

  	
  Cargo Valve
  Overhaul

  	
   

  	
  Bennex

  	
   

  	
  Norway

  
	
  38

  	
   

  	
  Cargo Stripping
  Valve

  	
   

  	
  Tyco Valves
  & Control

  	
   

  	
  The Netherlands

  
	
  39

  	
   

  	
  Condensers

  	
   

  	
  Teknotherm

  	
   

  	
  Norway

  
	
  40

  	
   

  	
  Ventilator for
  IG room

  	
   

  	
  Bronswerk

  	
   

  	
  The Netherlands

  
	
  41

  	
   

  	
  Winch Wire
  (Dyneema SK75)

  	
   

  	
  Marlow Ropes

  Bridon

  Lankhorst-Touwfabriek

  	
   

  	
  United Kingdom

  United Kingdom

  The Netherlands

  

 

 

 

BLUEWATER ENERGY SERVICES
B.V. XUIANG PROJECT

 

	
  Sub-contractors List

  

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
  S001

  	
   

  	
  DRYDOCKING
  & MODIFICATIONS TO FPSO ‘MUNIN’

  	
   

  	
  Yantai Raffles
  Shipyard

  
	
   

  	
   

  	
   

  	
   

  	
  No 70 Zhifu East
  Road

  
	
   

  	
   

  	
   

  	
   

  	
  Zhifu Island

  
	
   

  	
   

  	
   

  	
   

  	
  Yantai 264000

  
	
   

  	
   

  	
  Previously
  pre-qualified for fabrication work

  	
   

  	
  Shandong, P R
  China

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Nantong Ocean
  Ship Engineering Co.

  
	
   

  	
   

  	
   

  	
   

  	
  (Cosco Repair)

  
	
   

  	
   

  	
   

  	
   

  	
  South of Rengang

  
	
   

  	
   

  	
  Previously
  pre-qualified for vessel repair and lifetime extension work

  	
   

  	
  Nantong 226005

  
	
   

  	
   

  	
   

  	
   

  	
  P R China

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Dalian New
  Shipbuilding & Heavy Industries

  
	
   

  	
   

  	
   

  	
   

  	
  (Cosco Repair)

  
	
   

  	
   

  	
   

  	
   

  	
  Nol Hai Feng
  Street, Dalian

  
	
   

  	
   

  	
  To
  be pre-qualified

  	
   

  	
  Liaoning 116021

  
	
   

  	
   

  	
   

  	
   

  	
  P R China

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Wenchong
  Shipyard

  
	
   

  	
   

  	
   

  	
   

  	
  Huang Pu

  
	
   

  	
   

  	
  To
  be pre-qualified

  	
   

  	
  Guangzhou

  
	
   

  	
   

  	
   

  	
   

  	
  P R China

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  S002

  	
   

  	
  TRANSPORT,
  INSTALLATION & REMOVAL of RISERS, ETC

  	
   

  	
  Subsea 7

  
	
   

  	
   

  	
   

  	
   

  	
  79 Anson Road

  
	
   

  	
   

  	
  Prequalification
  documents issued to Contractor

  	
   

  	
  Unit 19-01

  
	
   

  	
   

  	
   

  	
   

  	
  Singapore 079906

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  SB Submarine
  Systems

  
	
   

  	
   

  	
   

  	
   

  	
  Building 25,

  
	
   

  	
   

  	
   

  	
   

  	
  1591 Hongqiao
  Road,

  
	
   

  	
   

  	
   

  	
   

  	
  Shanghai,

  
	
   

  	
   

  	
  Review
  o fpre-qualification in formation ongoing

  	
   

  	
  PR China 200336

  

 

 

	
   

  	
   

  	
   

  	
   

  	
  Hallin Marine Systems (S) Pte Ltd

  
	
   

  	
   

  	
   

  	
   

  	
  Unit 817 (PO Box 5083)

  
	
   

  	
   

  	
   

  	
   

  	
  SOPS Drive

  
	
   

  	
   

  	
  Review of pre-qualification information ongoing

  	
   

  	
  Loyang Offshore Supply Base

  
	
   

  	
   

  	
   

  	
   

  	
  Singapore 508988

  
	
   

  	
   

  	
   

  	
   

  	
  Global Industries

  
	
   

  	
   

  	
   

  	
   

  	
  SBS Park Plaza

  
	
   

  	
   

  	
   

  	
   

  	
  18 Ratchadapisek Road

  
	
   

  	
   

  	
   

  	
   

  	
  Kwaeng Ladyao

  
	
   

  	
   

  	
   

  	
   

  	
  Khet jatujak

  
	
   

  	
   

  	
  To be pre-qualified

  	
   

  	
  Bangkok

  
	
   

  	
   

  	
   

  	
   

  	
  Huawei Offshore Shipping & Transport

  
	
   

  	
   

  	
   

  	
   

  	
  Rm 407, Section 3,

  
	
   

  	
   

  	
   

  	
   

  	
  Haibin Commercial Centre,

  
	
   

  	
   

  	
   

  	
   

  	
  Shekou, Shenzhen,

  
	
   

  	
   

  	
  Review of pre-qualification information ongoing

  	
   

  	
  Guangdong, PR China

  
	
  S003

  	
   

  	
  CLASSIFICATION, CERTIFICATION & VERIFICATION
  SEWRVICES

  	
   

  	
  Det Norske Veritas AS (DNV)

  
	
   

  	
   

  	
   

  	
   

  	
  Veritasveien 1

  
	
   

  	
   

  	
  (nb also local office for fabrication/installation verification)

  	
   

  	
  1322 Høvik,

  
	
   

  	
   

  	
   

  	
   

  	
  Norway

  
	
   

  	
   

  	
   

  	
   

  	
  American Bureau of Shipping (ABS)

  
	
   

  	
   

  	
   

  	
   

  	
  ABS House

  
	
   

  	
   

  	
   

  	
   

  	
  1, Frying Pan Alley

  
	
   

  	
   

  	
   

  	
   

  	
  London El 7HR, United Kingdom

  
	
   

  	
   

  	
   

  	
   

  	
  Lloyd’s Register (LRS)

  
	
   

  	
   

  	
   

  	
   

  	
  Denburn House

  
	
   

  	
   

  	
   

  	
   

  	
  25 Union Terrace

  
	
   

  	
   

  	
   

  	
   

  	
  Aberdeen AB10 1NN,

  
	
   

  	
   

  	
   

  	
   

  	
  United Kingdom

  
	
  S004

  	
   

  	
  WARRANTY SURVEYOR

  	
   

  	
  Noble Denton Singapore Pte. Ltd.

  
	
   

  	
   

  	
   

  	
   

  	
  51 Goldhill Plaza #19-02

  
	
   

  	
   

  	
   

  	
   

  	
  Singapore 308900

  
	
   

  	
   

  	
   

  	
   

  	
  London Offshore Consultants Pte Ltd

  
	
   

  	
   

  	
   

  	
   

  	
  14 Stanley Street

  
	
   

  	
   

  	
   

  	
   

  	
  Singapore 068733

  

 

 

	
  S005

  	
   

  	
  MODIFICATIONS TO 1st STAGE SEPARATOR

  	
   

  	
  ABB Offshore Systems

  
	
   

  	
   

  	
   

  	
   

  	
  PO Box 8l

  
	
   

  	
   

  	
   

  	
   

  	
  1375 Billingstad

  
	
   

  	
   

  	
  Previously pre-qualified

  	
   

  	
  Norway

  
	
  S006

  	
   

  	
  UPGRADE, REPAIR, OVERHAUL & MAINTENANCE OF
  THRUSTERS

  	
   

  	
  Rolls Royce Marine Benelux b.v

  
	
   

  	
   

  	
   

  	
   

  	
  Werfdijk 2 (Port 2828)

  
	
   

  	
   

  	
   

  	
   

  	
  3195 HV Pernis

  
	
   

  	
   

  	
   

  	
   

  	
  The Netherlands

  
	
  S007

  	
   

  	
  UPGRADE OF IAS SYSTEM

  	
   

  	
  Kongsberg Maritime

  
	
   

  	
   

  	
   

  	
   

  	
  Strandpromenaden 50

  
	
   

  	
   

  	
   

  	
   

  	
  PO Box 111

  
	
   

  	
   

  	
   

  	
   

  	
  3191 Horten

  
	
   

  	
   

  	
  To be pre-qualified

  	
   

  	
  Norway

  
	
  S008

  	
   

  	
  REPAIR & CALIBRATION of the OFFLOADING METERING
  EQUIPMENT

  	
   

  	
  FMC Energy Systems

  
	
   

  	
   

  	
   

  	
   

  	
  PO Box 1012

  
	
   

  	
   

  	
   

  	
   

  	
  N-3061 Kongsberg

  
	
   

  	
   

  	
  To be pre-qualified

  	
   

  	
  Norway

  

 

 

 

EXHIBIT
VII – CONTRACTOR AND COMPANY SUPPLIED SERVICES

 

SECTION A - CONTRACTOR
SUPPLIED SERVICES SHALL INCLUDE:

 

1.                                       Provide manpower, equipment, material
supply, engineering, procurement, project management for the fabrication,
testing, classification, site installation and system commissioning of Dynamic
Positioning System and Catenary Riser System, hoses and hawser to COMPANY’s
existing mooring buoy  for the FPSO
operation at COMPANY’s offshore site in accordance with terms and conditions of
this CONTRACT.

 

2.                                       Manage and operate the FPSO SYSTEM in
accordance with the terms and conditions of this CONTRACT.

 

3.                                       Maintain the FPSO SYSTEM in a safe,
efficient and good operating condition and in Class.

 

4.                                       Provide and pay for all competent personnel
and maintain the full complement of personnel agreed in this CONTRACT.

 

5.                                       Provide and pay for all consumable
provisions, supplies deck and engine stores (except as otherwise provided in
this CONTRACT), galley and cabin stores, and sustenance and accommodation for
CONTRACTOR and COMPANY personnel.

 

6.                                       Maintain on board the FPSO VESSEL an agreed
inventory of spare and replacement parts and equipment.  CONTRACTOR to furnish, at its own cost,
replacements for those items used from inventory for the day-to-day
operations.  (NOTE:  CONTRACTOR will furnish
replacements in a timely fashion so as not to unduly expose the operation to
shut down).

 

7.                                       Accept production of  WELL FLUIDS from the COMPANY’s sub-sea pipeline, process to agreed
quality, store, meter and discharge the PRODUCED OIL to export tankers.  (NOTE:  WELL FLUIDS and PRODUCED OIL shall remain
the lawful property of the COMPANY at all times and the CONTRACTOR shall act as
bailee only).

 

8.                                       Use best endeavors to ensure that its
conduct when offloading PRODUCED OIL from the FPSO VESSEL to export tanker(s)
is proper and safe and in accordance with operating procedures established by
CONTRACTOR and agreed by COMPANY.

 

9.                                       Be responsible for advance notification and
coordination with COMPANY for the movement of CONTRACTOR’S goods and personnel to the OFFSHORE SITE.

 

10.                                 Be responsible, provide and pay for:

 

10.1.                        All CONTRACTOR Group’s personnel transport between shore base and
all other destinations outside of operating country.

 

10.2.                        All CONTRACTOR Group’s visa, entry and
departure costs.

 

 

1

 

10.3.                        All transportation, housing and support necessary
for its personnel to arrive at or depart from the COMPANY’S designated helicopter and/or marine base.

 

10.4.                        Advance notice and coordination with COMPANY
for transportation needs from the shore base to the FPSO VESSEL.

 

11.                                 Obtain and maintain all authorizations,
permits and licenses and give all notices and pay all sums as may be necessary
in connection with the carrying out of its obligations during contract period
other than those referred to in Section B below.

 

12.                                 Give all notices, post all bonds and
cautions, pay all fees, penalties and other charges including all port and
harbor duties, import dues, handling charges, and customs clearances for the
carrying out of its obligations during the TERM  and do all things that are required to be given, posted, paid or
done by virtue of any decree, law ordinance, regulations, rules or order of any
governmental or other authority having relevant jurisdiction.

 

13.                                 Use best endeavors to assist the COMPANY in
obtaining all authorizations, permits and licenses as may be necessary to allow
the performance by the CONTRACTOR of the carrying out of its obligations during
the TERM and which are required to be and can only be obtained in the name of
the COMPANY.

 

14.                                 In accordance with the requirements of the
COMPANY, afford full co-operation in the planning and carrying out of the WORK
by any contractors employed by the COMPANY and of any other duly constituted
authorities who may be employed within the anchor pattern of the FPSO VESSEL,
(other than supply and standby vessels) in activities not included in CONTRACT.

 

15.                                 Carry out the disconnection of the Catenary
Riser System and restoration of the existing mooring buoy system to the
original configuration at the end of the as part of the DEMOBILIZATION. (NOTE: CONTRACTOR is also responsible for
transshipping the BTM Outrigger Arm, 8” Catenary Risers and Reels and Buoyancy
Tank to COMPANY’s shore base during the DEMOBILIZATION).

 

2

 

SECTION B - COMPANY
SUPPLIED SERVICES SHALL INCLUDE:

 

1.                                       Obtain all authorizations, permits and
licenses as may be necessary to allow performance by the CONTRACTOR of its
obligations during the TERM and which are required to be and can only be
obtained in the name of the COMPANY.

 

2.                                       Provide and pay for helicopter
transportation as reasonably required by the CONTRACTOR for the transportation
of crew and supplies between the COMPANY’S shore base and the FPSO VESSEL.

 

3.                                       Provide and pay for handling within and to
and from COMPANY onshore warehouse for the CONTRACTOR only for exceptional
items which cannot reasonably be stored on the FPSO VESSEL and for items in
transit.

 

4.                                       During the TERM, provide and pay for all
reasonable standby, line handling, fire fighting, rescue vessels and mooring
tugs as set out in the CONTRACT.

 

5.                                       Provide and pay for reasonable production
related chemicals, if needed.

 

6.                                       Provide the CONTRACTOR with reasonable
office space in COMPANY’s shore base office for a maximum of two individuals to
act as the CONTRACTOR’S shore
based support personnel, including office furnishings,  utilities and the use of non-confidential
telecommunications equipment (including facsimile services).

 

7.                                       Pay for and deliver diesel and crude oil,
lubricants, grease and fresh water for use by the FPSO SYSTEM during  the UTILIZATION PERIOD.

 

8.                                       Provide COMPANY’s existing onshore base and
facilities to CONTRACTOR for FPSO operation logistic support. Provide and pay
for all reasonable supply vessel transportation of the CONTRACTOR’s spares, materials and consumables from
COMPANY onshore base to site. COMPANY shall establish and advise the CONTRACTOR
of the schedule of supply vessels.

 

9.                                       Provide medic evacuation for CONTRACTOR’s
FPSO VESSEL crew upon the request of CONTRACTOR, at CONTRACTOR’s account and
cost.

 

3

 

EXHIBIT VIII – QUALITY ASSURANCE, QUALITY CONTROL, TEST AND
INSPECTION REQUIREMENTS

 

The following criteria must be met in
connection with the PERFORMANCE TEST conducted pursuant to Article 16 of
the CONTRACT.  The PERFORMANCE TEST will
be conducted in accordance with the PERFORMANCE TEST Procedures submitted by
CONTRACTOR  and Accepted by COMPANY
pursuant to EXHIBIT III, ADMINISTRATION PROCEDURES, Appendix III – C , Company
Documentation Requirements.  Results of
the PERFORMANCE TEST shall be submitted for COMPANY’s Acceptance pursuant to
EXHIBIT III, Appendix III – C, as further described above.

 

Performance Test for Dynamically
Positioned FPSO VESSEL and PRODUCED OIL delivery system from Buoy to FPSO
VESSEL:

 

1.                                       In
no-load condition with FPSO VESSEL not connected:

 

A.           BTM
Buoy to float upright and at design depth.

 

B.             Temporary
Risers and all new pipework and valving to be subject to pressure test of      600psi against  closed valve.  No leaks
acceptable.

 

C.             Temporary
Risers to lie in design catenary and clear of existing BTM Mooring Lines and
Midwater Buoyancy Tanks.

 

D.            Riser
Support Buoy at downstream end to float with sufficient freeboard for easy
recovery by FPSO VESSEL and/or Supply Vessel. Recovery line to be buoyant and
capable of supporting weight of end float and risers during pull-in to FPSO
VESSEL Swivel structure when vessel at light draft.

 

2.                                       FPSO
VESSEL upon departure from shipyard (to be witnessed by COMPANY REPRESENTATIVE)
or on location and under DP control, Risers not connected:

 

A.           FPSO
VESSEL to remain within 40m radius Watch-Circle when receiving position
references from each independent reference source in turn.

 

B.             DP
Operators to demonstrate ability to hold vessel within Watch-Circle using
joystick control only with four (4) generators on load, demonstrate that DP
capability exists with emergency shutdown of two (2) generators.

 

C.             Demonstrate
that the riser buoy rotation mechanism is capable of maintaining the riser buoy
on a fixed heading irrespective of the FPSO heading.

 

3.                                       FPSO
VESSEL on location and under DP control, Risers connected:

 

A.                                   Rotate
FPSO VESSEL around axis of Riser swivel (180 degrees each side of heading).
Demonstrate that turret drive system allows Risers to remain in original plane
and near perpendicular with no torsion or twisting.  In the event that the environmental conditions prevents such a
test from being undertaken, COMPANY will accept the test as performed in Test
2.C above.

 

 

1

 

B.             Test Riser Quick
Release System at 40m excursion from DP set-point. Expect dry or minimum fluid
loss during breakaway.

 

C.             Test Offloading Hose
and Tanker Mooring Hawser Quick Release mechanism. Hose end to remain afloat
and easily recoverable.

 

D.            Demonstrate Offloading
Hose Flushing System and capability to displace contents of hose into export
tanker.

 

4.                                       In operational condition with FPSO VESSEL on location and on full DP
control, Risers connected and production flowing, Lifting Tanker moored to FPSO
VESSEL in normal loading configuration (tail exerting 60 Tonne pull on stern of
Lifting Tanker):

 

A.           FPSO
VESSEL to remain within 30m Watch Circle while FPSO and Lifting Tanker
weathervane to wind and current.

 

B.             FPSO - Tanker Mooring
Hawser system to be proved functional and Mooring Hawser in good condition.

 

C.            FPSO -Tanker Offloading Hose system to be
permanently connected to FPSO VESSEL export manifold while FPSO VESSEL on
location and in production mode.

 

D.            Demonstrate accuracy of Custody Transfer
Meter by use of pipe prover or similar means. 
Provide Meter and Prover Calibration Certificates issued by an Accepted
meter testing organization.

 

5.                                       Process
System of FPSO VESSEL:

 

A.                                   Process
train to be proved capable of receiving and separating max 140,000 bbls of WELL
FLUIDS per day from 2 risers and processing a minimum of 50,000 bbls of
PRODUCED OIL per day.  While it is
recognized that for purposes of the PERFORMANCE TEST only a 50,000 bbls of
PRODUCED OIL per day minimum must be met, CONTRACTOR shall make every effort to
meet the original requirement of 70,000 bbls of PRODUCED OIL per day.

 

B.             Quality
of PRODUCED OIL to be within acceptable limits, that is max BS&W 0.5%, Salt
<=49 PTB, TVP 90.0 kPa at 57 deg C Storage.

 

C.             Produced
Water to have oil content  < 35ppm.

 

D.            Cargo
Tank Heating to be proved operational and capable of maintaining stored
PRODUCED OIL at 65 deg C.

 

E.              Offloading
Rate of minimum 26,000 bbls/hr thru 16” transfer hose to export tanker.

 

F.              Custody
Transfer Meters proved accurate against pipe prover over 12hrs at normal cargo
discharge rate.

 

G.             Provide
a certificate of calibration of both Prover and all the meters.  Such certificate has to be issued by an
approved Chinese authority.

 

2

 

EXHIBIT
IX - SCOPE OF WORK

 

Section 1
- Overview

 

The present FPSO Nanhai Kai Tuo, owned and operated by
COPC, is due for Class Renewal Survey in October 2004 and will be subject
to an extended repair period in this timeframe.  CONTRACTOR has agreed to provide a temporary replacement vessel,
the Dynamically Positioned (DP) FPSO Munin,
that meets all requirements set forth in Schedule IX – A “Required Specifications for DP FPSO Munin” and that shall be
delivered and installed operational before October 1st 2004 along with a
temporary loading system (FPSO MOORING). The period of hire shall be a minimum
of 160 days and may extend up to 190 days at COMPANY’s request.

 

The existing
Buoyant Turret Mooring (BTM) system in operation at the Xijiang OFFSHORE SITE
will be in continual use up to September 25, 2004, after which time it
will be made available to CONTRACTOR to begin WORK.  Any WORK performed by CONTRACTOR shall not impact production and
offloading operations at the Xijiang Terminal in any way prior to
September 25, 2004, or before FPSO Nanhai
Kai Tuo is disconnected from the existing BTM.

 

CONTRACTOR should
be aware of the presence of subsea pipelines from Platforms 24-3 and 30-2.  Mooring lines of any vessels used for
installation or demobilization work may not be laid over existing pipelines.

 

Compensation for WORK shall be in accordance with Exhibit II –
Compensation Schedule.  Refer to EXHIBIT
VII - “Company and Contractor Supplied Services, Materials and Equipment”.

 

Section 2
- Temporary Loading System for DP  FPSO Munin

 

CONTRACTOR will design, engineer, fabricate, construct, deliver and
install a Crude Oil Loading System that will mate with the existing
Buoyant Turret Mooring at Xijiang deliver crude oil to the temporary FPSO by
means of flexible hoses or risers. The Loading System when installed should not
impose any unacceptable stresses to the existing subsea facilities and should
have sufficient structural integrity to withstand environmental conditions that
prevail during the Winter Monsoon in the South China Sea Area.  The temporary outrigger structure is not to
impose any harm or damage to the existing BTM (including moorings and risers),
and have adequate structural integrity to remain safely in place during Winter
Monsoon conditions in the South China Sea. Any loads introduced by the
outrigger structure into the connector of the existing BTM buoy are to be
within the structural design values of the BTM buoy as provided by COMPANY.  The subsea structures and equipment should
be designed in such a way that they

 

 

1

 

 

can be safely
delivered and installed to the OFFSHORE SITE without impacting production and
offloading operations at the Xijiang Terminal in any way prior to
September 25, 2004, or before FPSO Nanhai
Kai Tuo is disconnected from existing BTM.  Similarly, the subsea structures and equipment should be designed
in such a way that they can be safely removed without impacting production and
offloading operations at the Xijiang Terminal in any way after DEMOBILIZATION.

 

WORK related to
the temporary loading system should cover supply and connection of flexible
flow lines or hoses required to transfer WELL FLUIDS from the existing risers
to the FPSO Munin.  Any hoses or flexible flowlines used for the purpose
of tying in to the 24-3 and 30-2 risers should be sized to ensure there is no
restriction to the flow rate of crude oil delivered from each platform.

 

Section 3
- Condition of XJ Field 

 

The XJ BTM will be
delivered to CONTRACTOR in ‘no-load’ condition, floating level with Buoy top
surface at – 30MSW.  The buoyant pick-up
assembly consisting of Dyneema reconnection rope and Fybaline messenger rope
will be floating free on the sea surface. The Reconnection Wire and Guide Pin
will remain within the Buoy and should not be removed.

 

The actual
condition of the BTM structure will be determined by an ROV fly-by inspection
at time of delivery and condition agreed by COMPANY and CONTRACTOR
Representatives.  A similar condition
survey will be carried out upon redelivery of the Buoy at end on contract
period.

 

As mentioned
above, CONTRACTOR should be aware of the presence of subsea pipelines from
Platforms 24-3 and 30-2. Mooring lines of any vessels used for installation or
demobilization work may not be laid over existing pipelines.

 

Section 4
- FPSO Operations

 

The FPSO Munin will be required to receive, process
and store crude oil from the Xijiang Oilfield, which is located within the
boundaries of the China Economic Exclusion Zone.  The Xijiang Offshore Terminal is a Chinese Port and, as such, the
vessel must arrive on site compliant with all relevant Chinese Port, State and
vessel Flag State Regulations.  The Munin will be subject to Inward Port
Clearance by the China Customs and will operate under license issued by China
Offshore Oil Operation Safety Office.

 

The FPSO Munin shall be capable of operating on DP
with minimal production curtailment during the environmental conditions that
prevail at the Xijiang OFFSHORE SITE during the Winter Monsoon period.
Operational capability

 

2

 

extends to crude
oil exports to shuttle tankers as well as the processing and storage of crude
oil from Xijiang Platforms.

 

CONTRACTOR is
required to include details of their Health Safety and Environment (HSE) Policy
which should be compatible and equivalent to the HSE policies presently in
place at Xijiang.

 

With the FPSO Munin in operation, it should be
anticipated that cargo transfers to shuttle tankers will take place every 5
days, weather permitting, with parcel sizes ranging from 420,000 to 600,000
bbls.  Cargo transfer rates should not
be less than 26,000 bbls/hour through 1 x 16” floating hose string.  There is no requirement to recover the hose
after each lifting and the hose may be left floating astern of the FPSO Munin.

 

If the Xijiang
terminal is closed due to threat of typhoon, the loading hose will be
disconnected from the FPSO SYSTEM and towed to shore. The FPSO export manifold
must be suitable for safe disconnection and reconnection of hose string and
have suitable lifting gear in vicinity.

 

The FPSO Munin should be fitted with a fiscal
Custody Transfer Meter system (turbine meter type) with prover and in-line
sampling facilities.

 

Section 5
- FPSO Manning and Crew Qualification

 

The FPSO VESSEL
shall be manned with suitably qualified and licensed personnel meeting the
requirements of Flag-State Regulations applicable to a vessel of its type and
size.

 

At no time shall the
number of marine personnel fall below the level specified in the Flag-State
Minimum Manning Certificate.

 

All marine and
engineer senior staff should be fluent in the English language, both spoken and
written.

 

CONTRACTOR is
encouraged to incorporate a high percentage of Chinese nationals in their
operating crews and limit the number of foreign expatriate employees to a
minimum. Attention is drawn to Clause 35 the Rules for the Administration of
Employment of Foreigners in China issued by the Ministry of Foreign Affairs
1996, which establishes quotas for foreigners working in marine capacities in
China.

 

COMPANY reserves
the right to have its own COMPANY REPRESENTATIVE and senior Process and
Production staff on board the FPSO VESSEL at all times, to oversee the overall
operation of the facility and ensure compliance with COMPANY requirements and
policies.

 

3

 

Should COMPANY
require CONTRACTOR’s crew to attend additional training courses in order to
satisfy COMPANY policies  (at  COMPANY’s cost), such crew shall be released
for training subject to there being no impact on FPSO SYSTEM  operations or minimum manning levels.

 

Section 6
- Limitation of Work Scope

 

This Scope of Work
covers only the operation of the FPSO SYSTEM including INSTALLATION and
DEMOBILIZATION. It does not require the CONTRACTOR to provide any ancillary
services which may form part of offshore oil terminal operations. Coordination
of tanker movements, mooring and general terminal support operations will be
carried out by  COMPANY and/or its
sub-contractors and does not form part of the Scope of Work.

 

4

 

SCHEDULE IX
– A   Required Specifications for DP
FPSO Munin  

 

	
  Type:

  	
   

  	
  Ship shaped
  FPSO, Double Hull / Double Sides

  
	
   

  	
   

  	
   

  
	
  Age:

  	
   

  	
  Less than 12
  years at time of delivery to China (from date of keel laying)

  
	
   

  	
   

  	
   

  
	
  Class:

  	
   

  	
  DNV Class ‘ Oil
  Production and Storage Unit’

  
	
   

  	
   

  	
   

  
	
  Dynamic
  Positioning:

  	
   

  	
  Minimum Class
  2     DNV-AUTR

  
	
   

  	
   

  	
   

  
	
  DWT:

  	
   

  	
  >100,000 DWT

  
	
  Storage
  Capacity:

  	
   

  	
  > 590,000
  bbls processed Crude Oil in heated tanks

  
	
   

  	
   

  	
   

  
	
  Mooring System:

  	
   

  	
  Dynamically
  Positioned with fully redundant systems capability as defined by DP Class 2

  
	
   

  	
   

  	
   

  
	
  Mean Water
  Depth:

  	
   

  	
  100 m.

  
	
   

  	
   

  	
   

  
	
  Location:

  	
   

  	
  Approx 21
  degrees 18’ 19” North     114 degrees 57’ 12” East

  
	
   

  	
   

  	
   

  
	
  Environment:

  	
   

  	
  Open Sea.
  Tropical Monsoonal subject to typhoons.

  
	
   

  	
   

  	
   

  
	
  Environmental
  Design Criteria:

  	
  Hs = 5.5m to
  6.5m

  
	
   

  	
   

  
	
  Offloading
  Design Criteria:

  	
   

  
	
   

  	
  Tanker Mooring
  Operations:

  	
  Hs = 3.0m

  
	
   

  	
  Offloading
  Operations:

  	
  Hs = 3.5m – 4.5m

  
	
   

  	
   

  	
   

  
	
  Survival
  Criteria:

  	
   

  	
  Hs = 8.3m

  
	
   

  	
   

  	
   

  
	
  Propulsion:

  	
   

  	
  Diesel / Diesel
  Electric, capable of burning crude oil as fuel  (2 diesel & 2 diesel and/or crude burning)

  
	
   

  	
   

  	
   

  
	
  Power
  requirement:

  	
   

  	
  Sufficient for
  vessel operations with safety margin at 100% load.

  
	
   

  	
   

  	
   

  
	
  Steam:

  	
   

  	
  Sufficient for
  vessel operations, process area and cargo heating all year

  
	
   

  	
   

  	
   

  
	
  Risers:

  	
   

  	
  Able to receive
  crude oil from two existing 10 inch diameter risers via two 8 inch diameter
  risers.

  
	
   

  	
   

  	
   

  
	
  Fluid Swivels:

  	
   

  	
  2-path Fluid
  Swivel at FPSO riser outrigger

  
	
   

  	
   

  	
   

  
	
  Process Trains:

  	
   

  	
  Single train

  
	
   

  	
   

  	
   

  
	
  Fluid Handling
  Capacity:

  	
   

  	
  Process train is
  required to have a capacity of 140,000 bbls fluid per day at 50% watercut.

  
	
   

  	
   

  	
   

  
	
  Process Target:

  	
   

  	
  BS&W 0.5%,
  Salt  <=49 lbs/1000 bbls at outlet
  of dehydrator.

  
	
   

  	
   

  	
  AVP 90.0 kPa at
  57 deg C storage

  
	
   

  	
   

  	
   

  
	
  Offloading
  System:

  	
   

  	
  Tandem Mooring
  with single 16” floating hose string

  
	
   

  	
   

  	
   

  
	
  Offtake Tankers:

  	
   

  	
  Max 120,000
  DWT;     Min 35,000 DWT

  
					

 

5

 

	
  Cargo Transfer
  Rate:

  	
   

  	
  Min 26,000
  bbls/hr through 1 x 16” hose

  
	
   

  	
   

  	
   

  
	
  Helideck:

  	
   

  	
  Rated for
  AS332L2     D value 19.5m  T value 9.3 tons

  
	
   

  	
   

  	
   

  
	
  Cranes:

  	
   

  	
  2 x Marine
  Pedestal Cranes SWL 10 tonnes at 30m outreach

  
	
   

  	
   

  	
   

  
	
  Accommodation:

  	
   

  	
  Sufficient for
  Operational Crew + 3 spare cabins for Client Reps

  

 

6<Page>

                                                                     Exhibit 4.1

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

                                MERISANT COMPANY

                                     Issuer

                    9 1/2% SENIOR SUBORDINATED NOTES DUE 2013

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

                                    INDENTURE

                            Dated as of July 11, 2003

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

                WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION

                                     Trustee

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

<Page>

                              CROSS-REFERENCE TABLE

                                TABLE OF CONTENTS

<Table>
<Caption>
TIA                                                                                                        Indenture
Section                                                                                                      Section
-------                                                                                                      -------
   <S>                                                                                                    <C>
     310(a)(1)    ......................................................................................  7.10
        (a)(2)    ......................................................................................  7.10
        (a)(3)    ......................................................................................  N.A.
        (a)(4)    ......................................................................................  N.A.
        (a)(5)    ......................................................................................  7.10
           (b)    ......................................................................................  7.08; 7.10
           (c)    ......................................................................................  N.A.
        311(a)    ......................................................................................  7.11
           (b)    ......................................................................................  7.11
           (c)    ......................................................................................  N.A.
        312(a)    ......................................................................................  2.05
           (b)    ......................................................................................  13.03
           (c)    ......................................................................................  13.03
        313(a)    ......................................................................................  7.06
        (b)(1)    ......................................................................................  N.A.
        (b)(2)    ......................................................................................  7.06
           (c)    ......................................................................................  13.02
           (d)    ......................................................................................  7.06
        314(a)    ......................................................................................  4.02; 4.11
           (b)    ......................................................................................  N.A.
        (c)(1)    ......................................................................................  13.04
        (c)(2)    ......................................................................................  13.04
        (c)(3)    ......................................................................................  N.A.
           (d)    ......................................................................................  N.A.
           (e)    ......................................................................................  13.05
           (f)    ......................................................................................  N.A.
        315(a)    ......................................................................................  7.01
           (b)    ......................................................................................  7.05; 13.02
           (c)    ......................................................................................  7.01
           (d)    ......................................................................................  7.01
           (e)    ......................................................................................  6.11
   316(a)(last    .....................................................................................   13.06
     sentence)
       (a)(1)(A)  ......................................................................................  6.05
       (a)(1)(B)  ......................................................................................  6.04
        (a)(2)    ......................................................................................  N.A.
           (b)    ......................................................................................  6.07
     317(a)(1)    ......................................................................................  6.08
        (a)(2)    ......................................................................................  6.09
           (b)    ......................................................................................  2.04
        318(a)    ......................................................................................  13.01
</Table>

N.A. means Not Applicable.

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

<Page>

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                    Page
                                                                                    ----
<S>                                                                                   <C>
                                        ARTICLE 1

                       DEFINITIONS AND INCORPORATION BY REFERENCE

SECTION 1.01.     Certain Definitions................................................  1
SECTION 1.02.     Other Definitions.................................................. 34
SECTION 1.03.     Incorporation by Reference of Trust Indenture Act.................. 34
SECTION 1.04.     Rules of Construction. ............................................ 35

                                        ARTICLE 2

                                        THE NOTES

SECTION 2.01.     Form and Dating.................................................... 36
SECTION 2.02.     Execution and Authentication....................................... 36
SECTION 2.03.     Registrar and Paying Agent......................................... 37
SECTION 2.04.     Paying Agent To Hold Money in Trust................................ 37
SECTION 2.05.     Noteholder Lists................................................... 38
SECTION 2.06.     Transfer and Exchange.............................................. 38
SECTION 2.07.     Replacement Notes.................................................. 38
SECTION 2.08.     Outstanding Notes.................................................. 39
SECTION 2.09.     Temporary Notes. ...................................................39
SECTION 2.10.     Cancellation....................................................... 39
SECTION 2.11.     Defaulted Interest................................................. 40
SECTION 2.12.     CUSIP Numbers...................................................... 40
SECTION 2.13.     Additional Notes................................................... 40

                                        ARTICLE 3

                                       REDEMPTION

SECTION 3.01.     Notices to Trustee................................................. 41
SECTION 3.02.     Selection of Notes To Be Redeemed.................................. 41
SECTION 3.03.     Notice of Redemption. 42
SECTION 3.04.     Effect of Notice of Redemption..................................... 42
SECTION 3.05.     Deposit of Redemption Price........................................ 43
SECTION 3.06.     Notes Redeemed in Part............................................. 43

                                        ARTICLE 4

                                        COVENANTS

SECTION 4.01.     Payment of Notes................................................... 43
SECTION 4.02.     SEC Reports........................................................ 43
SECTION 4.03.     Compliance Certificate............................................. 44
</Table>

<Page>

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                    Page
                                                                                    ----
<S>                                                                                   <C>
SECTION 4.04.     Change of Control.................................................. 45
SECTION 4.05.     Limitation on Restricted Payments.................................. 47
SECTION 4.06.     Limitation on Indebtedness......................................... 50
SECTION 4.07.     Limitation on Liens................................................ 54
SECTION 4.08.     Anti-Layering...................................................... 54
SECTION 4.09.     Limitation on Restrictions on Distributions from Restricted
                  Subsidiaries....................................................... 54
SECTION 4.10.     Limitation on Sales of Assets and Subsidiary Stock..................56
SECTION 4.11.     Limitation on Affiliate Transactions............................... 58
SECTION 4.12.     Guarantors......................................................... 60
SECTION 4.13.     Further Instruments and Acts....................................... 61

                                        ARTICLE 5

                                         MERGER

SECTION 5.01.     Merger and Consolidation........................................... 61

                                        ARTICLE 6

                                  DEFAULTS AND REMEDIES

SECTION 6.01.     Events of Default.................................................. 63
SECTION 6.02.     Acceleration....................................................... 65
SECTION 6.03.     Other Remedies..................................................... 66
SECTION 6.04.     Waiver of Past Defaults............................................ 67
SECTION 6.05.     Control by Majority................................................ 67
SECTION 6.06.     Limitation on Suits................................................ 67
SECTION 6.07.     Rights of Holders to Receive Payment............................... 68
SECTION 6.08.     Collection Suit by Trustee......................................... 68
SECTION 6.09.     Trustee May File Proofs of Claim................................... 68
SECTION 6.10.     Priorities......................................................... 69
SECTION 6.11.     Undertaking for Costs.............................................. 69
SECTION 6.12.     Waiver of Stay or Extension Laws................................... 69

                                        ARTICLE 7

                                         TRUSTEE

SECTION 7.01.     Duties of Trustee.................................................. 70
SECTION 7.02.     Rights of Trustee.................................................. 71
SECTION 7.03.     Individual Rights of Trustee....................................... 72
SECTION 7.04.     Trustee's Disclaimer............................................... 72
SECTION 7.05.     Notice of Defaults................................................. 72
SECTION 7.06.     Reports by Trustee to Holders...................................... 72
SECTION 7.07.     Compensation and Indemnity......................................... 73
</Table>

<Page>

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                    Page
                                                                                    ----
<S>               <C>                                                                 <C>
SECTION 7.08.     Replacement of Trustee............................................. 74
SECTION 7.09.     Successor Trustee by Merger........................................ 75
SECTION 7.10.     Eligibility; Disqualification...................................... 75
SECTION 7.11.     Preferential Collection of Claims Against Company.................. 75

                                        ARTICLE 8

                           DISCHARGE OF INDENTURE; DEFEASANCE

SECTION 8.01.     Discharge of Liability on Notes; Defeasance. .......................76
SECTION 8.02.     Conditions to Defeasance........................................... 77
SECTION 8.03.     Application of Trust Money......................................... 78
SECTION 8.04.     Repayment to Company............................................... 79
SECTION 8.05.     Indemnity for Government Obligations............................... 79
SECTION 8.06.     Reinstatement...................................................... 79

                                        ARTICLE 9

                                       AMENDMENTS

SECTION 9.01.     Without Consent of Holders......................................... 79
SECTION 9.02.     With Consent of Holders............................................ 80
SECTION 9.03.     Compliance with Trust Indenture Act................................ 82
SECTION 9.04.     Revocation and Effect of Consents and Waivers...................... 82
SECTION 9.05.     Notation on or Exchange of Notes................................... 83
SECTION 9.06.     Trustee To Sign Amendments......................................... 83
SECTION 9.07.     Payment for Consent................................................ 83

                                       ARTICLE 10

                                      SUBORDINATION

SECTION 10.01.    Agreement To Subordinate........................................... 83
SECTION 10.02.    Liquidation, Dissolution, Bankruptcy............................... 84
SECTION 10.03.    Default on Senior Indebtedness of the Company...................... 84
SECTION 10.04.    Acceleration of Payment of Notes................................... 85
SECTION 10.05.    When Distribution Must Be Paid Over................................ 86
SECTION 10.06.    Reinstatement of Senior Indebtedness............................... 86
SECTION 10.07.    Subrogation........................................................ 86
SECTION 10.08.    Relative Rights.................................................... 86
SECTION 10.09.    Subordination May Not Be Impaired by Company....................... 87
SECTION 10.10.    Rights of Trustee and Paying Agent................................. 87
</Table>

<Page>

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                    Page
                                                                                    ----
<S>               <C>                                                                <C>
SECTION 10.11.    Rights of Holders of Senior Indebtedness........................... 87
SECTION 10.12.    Distribution or Notice to Representative........................... 88
SECTION 10.13.    Article 10 Not To Prevent Events of Default or Limit Right To
                  Accelerate......................................................... 88
SECTION 10.14.    Trust Moneys Not Subordinated...................................... 88
SECTION 10.15.    Trustee Entitled To Rely........................................... 88
SECTION 10.16.    Trustee To Effectuate Subordination................................ 89
SECTION 10.17.    Trustee Not Fiduciary for Holders  of Senior Indebtedness of the
                  Company............................................................ 89
SECTION 10.18.    Reliance by Holders of Senior Indebtedness of the Company on
                  Subordination Provisions........................................... 89

                                       ARTICLE 11

                                       GUARANTIES

SECTION 11.01.    Guaranties......................................................... 90
SECTION 11.02.    Limitation on Liability............................................ 92
SECTION 11.03.    Successors and Assigns............................................. 93
SECTION 11.04.    No Waiver.......................................................... 93
SECTION 11.05.    Modification....................................................... 93
SECTION 11.06.    Release of Guarantor............................................... 93

                                       ARTICLE 12

                               SUBORDINATION OF GUARANTIES

SECTION 12.01.    Agreement To Subordinate........................................... 94
SECTION 12.02.    Liquidation, Dissolution, Bankruptcy............................... 94
SECTION 12.03.    Default on Senior Indebtedness of Guarantor. ...................... 94
SECTION 12.04.    Demand for Payment................................................. 96
SECTION 12.05.    When Distribution Must Be Paid Over................................ 96
SECTION 12.06.    Reinstatement of Senior Indebtedness............................... 96
SECTION 12.07.    Subrogation........................................................ 96
SECTION 12.08.    Relative Rights.................................................... 97
SECTION 12.09.    Subordination May Not Be Impaired by Guarantor..................... 97
SECTION 12.10.    Rights of Trustee and Paying Agent................................. 97
SECTION 12.11.    Rights of Holders of Senior Indebtedness........................... 98
SECTION 12.12.    Distribution or Notice to Representative........................... 98
SECTION 12.13.    Article 12 Not To Prevent Events of Default or Limit Right To
                  Demand Payment..................................................... 98
SECTION 12.14.    Trust Moneys Not Subordinated...................................... 99
SECTION 12.15.    Trustee Entitled To Rely........................................... 99
SECTION 12.16.    Trustee To Effectuate Subordination............................... 100
</Table>

<Page>

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                    Page
                                                                                    ----
<S>               <C>                                                                <C>
SECTION 12.17.    Trustee Not Fiduciary for Holders of Senior Indebtedness of
                  Guarantor......................................................... 100
SECTION 12.18.    Reliance by Holders of Senior Indebtedness of the Guarantors
                  on Subordination Provisions....................................... 100

                                       ARTICLE 13

                                      MISCELLANEOUS

SECTION 13.01.    Trust Indenture Act Controls...................................... 100
SECTION 13.02.    Notices........................................................... 100
SECTION 13.03.    Communication by Holders with Other Holders. ..................... 102
SECTION 13.04.    Certificate and Opinion as to Conditions Precedent................ 102
SECTION 13.05.    Statements Required in Certificate or Opinion. ................... 102
SECTION 13.06.    When Notes Disregarded............................................ 103
SECTION 13.07.    Rules by Trustee, Paying Agent and Registrar...................... 103
SECTION 13.08.    Legal Holidays.................................................... 103
SECTION 13.09.    Governing Law..................................................... 103
SECTION 13.10.    No Recourse Against Others........................................ 103
SECTION 13.11.    Successors........................................................ 104
SECTION 13.12.    Multiple Originals................................................ 104
SECTION 13.13.    Table of Contents; Headings....................................... 104
</Table>

APPENDIX A - Provisions Relating to Initial Notes, Private Exchange Notes and
Exchange Notes

     EXHIBIT 1 - Form of Initial Note

     EXHIBIT 2 - Form of Exchange Note or Private Exchange Note

<Page>

                                                                               1

          INDENTURE dated as of July 11, 2003, by and among Merisant
Company, a Delaware corporation (the "COMPANY"), the guarantors from time to
time parties hereto (the "GUARANTORS") and Wells Fargo Bank Minnesota, National
Association, as Trustee (the "TRUSTEE").

          Each party agrees as follows for the benefit of the other parties and
for the equal and ratable benefit of the Holders of the Company's Initial Notes,
Exchange Notes and Private Exchange Notes (collectively, the "NOTES"):

                                    ARTICLE 1

                   DEFINITIONS AND INCORPORATION BY REFERENCE

          SECTION 1.01.  CERTAIN DEFINITIONS.

          "ADDITIONAL ASSETS" means:

          (1)  any property, plant or equipment used 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 another Restricted Subsidiary; or

          (3)  Capital Stock constituting a minority interest in any Person that
     at such time is a Restricted Subsidiary;

PROVIDED, HOWEVER, that any such Restricted Subsidiary described in clause (2)
or (3) above is primarily engaged in a Related Business.

          "ADDITIONAL NOTES" means, subject to Section 2.13 and subject to the
Company's compliance with Section 4.06, 9 1/2% Senior Subordinated Notes Due
2013 issued from time to time after the Issue Date under the terms of this
Indenture (other than pursuant to Section 2.06, 2.07, 2.09, 3.06 or 9.05 of this
Indenture and other than Exchange Notes or Private Exchange Notes issued
pursuant to an exchange offer for other Notes outstanding under this Indenture).

          "AFFILIATE" of any specified Person means any other Person, directly
or indirectly, controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition,
"CONTROL" when used with respect to any Person means the power to direct the

<Page>

                                                                               2

management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms
"CONTROLLING" and "CONTROLLED" have meanings correlative to the foregoing. For
purposes of Sections 4.05, 4.10 and 4.11 only, "AFFILIATE" shall also mean any
beneficial owner of Capital Stock representing 5% or more of the total voting
power of the Voting Stock (on a fully diluted basis) of the Company or of rights
or warrants to purchase such Capital Stock (whether or not currently
exercisable)and any Person who would be an Affiliate of any such beneficial
owner pursuant to the first sentence hereof.

          "APPLICABLE PREMIUM" means, with respect to a Note at the Change of
Control Redemption Date, the greater of (i) 1.0% of the principal amount of such
Note, and (ii) the excess of (A) the present value at such time of (1) the
redemption price of such Note at the First Call Date (such redemption price
being described in Section 5 of the Notes) plus (2) all required interest
payments due on such Note through the First Call Date computed using a discount
rate equal to the Treasury Rate plus 0.50% per annum, over (B) the principal
amount of such Note.

          "ASSET DISPOSITION" means any sale, lease, issuance, transfer or other
disposition (or series of related sales, leases, issuances, transfers or
dispositions) by the Company or any Restricted Subsidiary, including any
disposition by means of a merger, consolidation or similar transaction (each
referred to for the purposes of this definition as a "DISPOSITION"), of:

          (1)  any shares of Capital Stock of a Restricted Subsidiary (other
     than directors' qualifying shares or shares required by applicable law to
     be held by a Person other than the Company or a Restricted Subsidiary);

          (2)  all or substantially all the assets of any division or line of
     business of the Company or any Restricted Subsidiary; or

          (3)  any other assets of the Company or any Restricted Subsidiary
     outside of the ordinary course of business of the Company or such
     Restricted Subsidiary.

          Notwithstanding the foregoing, the following shall be deemed not to be
Asset Dispositions:

          (A)  a disposition to the Company or a Restricted Subsidiary;

<Page>

                                                                               3

          (B)  for purposes of Section 4.10 only, (i) a disposition that
               constitutes a Restricted Payment permitted by Section 4.05 or a
               Permitted Investment and (ii) a transaction governed by, and
               consummated in compliance with, Section 5.01;

          (C)  the granting of a Lien;

          (D)  for purposes of Section 4.10 only, any commercially reasonable
               foreclosure on a Lien on assets; PROVIDED, that an amount equal
               to the Net Available Cash, if any, to the Company and its
               Restricted Subsidiaries from such foreclosure are applied in
               accordance with Section 4.10(a)(3);

          (E)  dispositions of Receivables Assets to a Receivables Subsidiary
               for the fair market value of those assets, less amounts required
               to be established as reserves and customary discounts pursuant to
               contractual agreements with entities that are not Affiliates of
               the Company entered into as part of a Qualified Receivables
               Transaction, if at least 75% of the consideration for such
               disposition would constitute cash or cash equivalents for
               purposes of Section 4.10(a)(2);

          (F)  dispositions of Receivables Assets by a Receivables Subsidiary in
               a Qualified Receivables Transaction;

          (G)  issuances of Capital Stock by a Receivables Subsidiary in
               connection with a Qualified Receivables Transaction;

          (H)  dispositions of obsolete, damaged or worn out equipment no longer
               used or useful to the business of the Company and its Restricted
               Subsidiaries; and

          (I)  a disposition of assets with a fair market value of less than
               $1.0 million.

          "ATTRIBUTABLE DEBT" in respect of a Sale/Leaseback Transaction means,
as at the time of determination, the present value (discounted at the interest
rate borne by the Notes, compounded semi-annually) of the total obligations of
the lessee for rental payments during the remaining term of the lease

<Page>

                                                                               4

included in such Sale/Leaseback Transaction (including any period for which such
lease has been extended); PROVIDED, HOWEVER, that if such Sale/Leaseback
Transaction results in a Capital Lease Obligation, the amount of Indebtedness
represented thereby will be determined in accordance with the definition of
"Capital Lease Obligation."

          "AVERAGE LIFE" means, as of the date of determination, with respect to
any Indebtedness, the quotient obtained by dividing:

          (1)  the sum of the products of the numbers of years from the date of
     determination to the dates of each successive scheduled principal payment
     of or redemption or similar payment with respect to such Indebtedness
     multiplied by the amount of such payment, by

          (2)  the sum of all such payments.

          "BANK INDEBTEDNESS" means all Obligations pursuant to the Credit
Agreement.

          "BOARD OF DIRECTORS" with respect to a Person means the board of
directors of such Person or any committee thereof duly authorized to act on
behalf of such board, and unless specified to the contrary or inappropriate in
the context, refers to the Board of Directors of the Company.

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

          "CAPITAL LEASE OBLIGATION" means an obligation that is required to be
classified and accounted for as a capital lease for financial reporting purposes
in accordance with GAAP, and the amount of Indebtedness represented by such
obligation shall be the capitalized amount of such obligation determined in
accordance with GAAP; and the Stated Maturity thereof shall be the date of the
last payment of rent or any other amount due under such lease prior to the first
date upon which such lease may be terminated by the lessee without payment of a
penalty.

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

<Page>

                                                                               5

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

          (1)  prior to the first public offering of common stock of Parent,
     Holdings or the Company, (A) the Permitted Holders cease to be the
     "beneficial owner" (as defined in Rules 13d-3 and 13d-5 under the Exchange
     Act), directly or indirectly, of a majority in the aggregate of the total
     voting power of the Voting Stock of the Company, whether as a result of
     issuance of securities of Holdings or the Company, any merger,
     consolidation, liquidation or dissolution of the Company, or otherwise, or
     (B) Pegasus Partners II, L.P. and its Related Parties cease to have the
     right or ability, by voting power, contract or otherwise, to elect or
     designate for election a majority of the managers or directors of Parent
     (for purposes of this clause (1) and clause (2) below, the Permitted
     Holders shall be deemed to beneficially own any Voting Stock of a Person
     (the "SPECIFIED PERSON") held by any other Person (the "PARENT ENTITY") so
     long as the Permitted Holders beneficially own (as so defined), directly or
     indirectly, in the aggregate a majority of the voting power of the Voting
     Stock of the parent entity);

          (2)  any "person" (as such term is used in Sections 13(d) and 14(d) of
     the Exchange Act), other than one or more Permitted Holders, is or becomes
     the beneficial owner (as defined in clause (1) above, except that for
     purposes of this clause (2) such person shall be deemed to have "beneficial
     ownership" of all shares that any such person has the right to acquire,
     whether such right is exercisable immediately or only after the passage of
     time), directly or indirectly, of more than 35% of the total voting power
     of the Voting Stock of the Company; PROVIDED, HOWEVER, that the Permitted
     Holders beneficially own (as defined in clause (1) above), directly or
     indirectly, in the aggregate a lesser percentage of the total voting power
     of the Voting Stock of the Company than such other person and do not have
     the right or ability by voting power, contract or otherwise to elect or
     designate for election a majority of the Board of Directors of the Company
     (for the purposes of this clause (2), such other person shall be deemed to
     beneficially own any Voting Stock of a specified person held by a parent
     entity, if such other person is the beneficial owner (as defined in this
     clause (2)), directly or indirectly, of more than 35% of the voting power
     of the Voting Stock of such parent entity and the Permitted

<Page>

                                                                               6

     Holders beneficially own (as defined in clause (1) above), directly or
     indirectly, in the aggregate a lesser percentage of the voting power of the
     Voting Stock of such parent entity and do not have the right or ability by
     voting power, contract or otherwise to elect or designate for election a
     majority of the board of directors of such parent entity);

          (3)  individuals who on the Issue Date constituted the Board of
     Directors of the Company or, so long as Holdings owns a majority of the
     total voting power of the Voting Stock of the Company, the Holdings Board
     (together with any new directors whose election by such Board of Directors
     of the Company or the Holdings Board or whose nomination for election by
     the shareholders of the Company or Holdings, as the case may be, was
     approved by a vote of a majority of the directors of the Company or of
     Holdings, as the case may be, then still in office who were either
     directors on the Issue Date or whose election or nomination for election
     was previously so approved or whose election was approved by the Permitted
     Holders) cease for any reason to constitute a majority of the Board of
     Directors of the Company or the Holdings Board then in office;

          (4)  the adoption of a plan relating to the liquidation or dissolution
     of the Company; or

          (5)  the merger or consolidation of Parent, Holdings or the Company
     with or into another Person or the merger of another Person with or into
     Parent, Holdings or the Company, or the sale of all or substantially all
     the assets of Holdings or the Company (determined on a consolidated basis)
     to another Person (other than, in all such cases, a Person that is
     controlled by the Permitted Holders), other than a transaction following
     which (A) in the case of a merger or consolidation transaction, holders of
     securities that represented 100% of the Voting Stock of Parent, Holdings or
     the Company, as appropriate, immediately prior to such transaction (or
     other securities into which such securities are converted as part of such
     merger or consolidation transaction) own directly or indirectly at least a
     majority of the voting power of the Voting Stock of the surviving Person in
     such merger or consolidation transaction immediately after such transaction
     and in substantially the same proportion as before the transaction and (B)
     in the case of a sale of assets transaction, the transferee Person becomes
     the obligor in respect of the Notes and a Subsidiary of the transferor of
     such assets;

<Page>

                                                                               7

     PROVIDED, HOWEVER, that it shall not constitute a Change of Control under
     this clause (5) if, after giving effect to such transaction, the Permitted
     Holders beneficially own (as defined in clause (1) above) a majority or
     more of the total voting power of the Voting Stock of the surviving Person
     in such transaction immediately after such transaction.

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

          "COMMON STOCK" of any Person means Capital Stock of such Person that
does not rank senior in any respect to, and does not have any preference or
priority over, any shares of Capital Stock of any other class of such Person,
including with respect to the payment of dividends or the distribution of assets
upon any voluntary or involuntary liquidation, dissolution or winding up of such
Person.

          "COMPANY" means the party named as such in this Indenture until a
successor replaces it and, thereafter, means the successor and, for purposes of
any provision contained herein and required by the TIA, each other obligor on
the indenture securities.

          "CONSOLIDATED COVERAGE RATIO" as of any date of determination means
the ratio of (x) the aggregate amount of EBITDA for the period of the most
recent four consecutive fiscal quarters ending at least 45 days prior to the
date of such determination to (y) Consolidated Interest Expense for such four
fiscal quarters; PROVIDED, HOWEVER, that:

          (1)  if the Company or any Restricted Subsidiary has Incurred any
     Indebtedness since the beginning of such period that remains outstanding or
     if the transaction giving rise to the need to calculate the Consolidated
     Coverage Ratio is an Incurrence of Indebtedness, or both, then EBITDA and
     Consolidated Interest Expense for such period shall be calculated after
     giving effect on a PRO FORMA basis to such Indebtedness and the use of
     proceeds thereof as if such Indebtedness had been Incurred on the first day
     of such period and such proceeds had been applied as of such date;

          (2)  if the Company or any Restricted Subsidiary has repaid,
     repurchased, defeased or otherwise discharged any Indebtedness since the
     beginning of such period or if any Indebtedness is to be repaid,
     repurchased, defeased or

<Page>

                                                                               8

     otherwise discharged (in each case other than Indebtedness Incurred under
     any revolving credit facility unless such Indebtedness has been permanently
     repaid and has not been replaced) on the date of the transaction giving
     rise to the need to calculate the Consolidated Coverage Ratio, then EBITDA
     and Consolidated Interest Expense for such period shall be calculated on a
     PRO FORMA basis as if such discharge had occurred on the first day of such
     period and as if the Company or such Restricted Subsidiary had not earned
     the interest income actually earned, if any, during such period in respect
     of cash or Temporary Cash Investments used to repay, repurchase, defease or
     otherwise discharge such Indebtedness;

          (3)  if, since the beginning of such period, the Company or any
     Restricted Subsidiary shall have made any Asset Disposition, then EBITDA
     for such period shall be reduced by an amount equal to EBITDA (if positive)
     directly attributable to the assets which were the subject of such Asset
     Disposition for such period, or increased by an amount equal to EBITDA (if
     negative) directly attributable thereto for such period, and Consolidated
     Interest Expense for such period shall be reduced by an amount equal to the
     Consolidated Interest Expense directly attributable to any Indebtedness of
     the Company or any Restricted Subsidiary repaid, repurchased, defeased or
     otherwise discharged with respect to the Company and its continuing
     Restricted Subsidiaries in connection with such Asset Disposition for such
     period (or, if the Capital Stock of any Restricted Subsidiary is sold, the
     Consolidated Interest Expense for such period directly attributable to the
     Indebtedness of such Restricted Subsidiary to the extent the Company and
     its continuing Restricted Subsidiaries are no longer liable for such
     Indebtedness after such sale);

          (4)  if, since the beginning of such period, the Company or any
     Restricted Subsidiary (by merger or otherwise) shall have made an
     Investment in any Restricted Subsidiary (or any Person which becomes a
     Restricted Subsidiary) or an acquisition of material assets, then EBITDA
     and Consolidated Interest Expense for such period shall be calculated after
     giving PRO FORMA effect thereto (including the Incurrence of any
     Indebtedness) as if such Investment or acquisition had occurred on the
     first day of such period; and

          (5)  if, since the beginning of such period, any Person (that
     subsequently became a Restricted Subsidiary or

<Page>

                                                                               9

     was merged with or into the Company or any Restricted Subsidiary since the
     beginning of such period) shall have made any Asset Disposition, any
     Investment or acquisition of assets that would have required an adjustment
     pursuant to clause (3) or (4) above if made by the Company or a Restricted
     Subsidiary during such period, then EBITDA and Consolidated Interest
     Expense for such period shall be calculated after giving PRO FORMA effect
     thereto as if such Asset Disposition, Investment or acquisition had
     occurred on the first day of such period.

For purposes of this definition, whenever PRO FORMA effect is to be given to an
acquisition of assets, the amount of income or earnings relating thereto and the
amount of Consolidated Interest Expense associated with any Indebtedness
Incurred in connection therewith, the PRO FORMA calculations shall be determined
in good faith by a responsible financial or accounting Officer of the Company.

          If any Indebtedness bears a floating rate of interest and is being
given PRO FORMA effect, the interest on such Indebtedness shall be calculated as
if the rate in effect on the date of determination had been the applicable rate
for the entire period (taking into account any Interest Rate Agreement
applicable to such Indebtedness, but if the remaining term of such Interest Rate
Agreement is less than twelve months, then such Interest Rate Agreement shall
only be taken into account for that portion of the period equal to the remaining
term thereof).

          The Consolidated Interest Expense attributable to interest on any
Indebtedness under a revolving credit facility the outstanding principal balance
of which is required to be computed on a PRO FORMA basis in accordance with the
foregoing shall be computed based on the average daily balance of such
Indebtedness during the applicable period, PROVIDED, that such average daily
balance shall take into account the amount of any repayment of Indebtedness
under such revolving credit facility during the applicable period, to the extent
such repayment permanently reduced the commitments or amounts available to be
borrowed under such facility.

          "CONSOLIDATED INTEREST EXPENSE" means, for any period, the total
interest expense of the Company and its consolidated Restricted Subsidiaries,
PLUS, to the extent not included in such total interest expense, and to the
extent incurred by the Company or its Restricted Subsidiaries, without
duplication:

<Page>

                                                                              10

          (1)  interest expense attributable to capital leases and the interest
     expense attributable to leases constituting part of a Sale/Leaseback
     Transaction;

          (2)  amortization of debt discount and debt issuance cost;

          (3)  capitalized interest;

          (4)  non-cash interest expense;

          (5)  commissions, discounts and other fees and charges owed with
     respect to letters of credit and bankers' acceptance financing;

          (6)  net payments pursuant to Hedging Obligations;

          (7)  Preferred Stock dividends in respect of all Preferred Stock held
     by Persons other than the Company or a Wholly Owned Subsidiary (other than
     dividends payable solely in Capital Stock (other than Disqualified Stock)
     of the Company); PROVIDED, HOWEVER, that such dividends will be multiplied
     by a fraction of the numerator of which is one and the denominator of which
     is one minus the effective combined tax rate of the issuer of such
     Preferred Stock (expressed as a decimal) for such period (as estimated by
     the chief financial officer of the Company in good faith);

          (8)  interest incurred in connection with Investments in discontinued
     operations;

          (9)  interest accruing on any Indebtedness of any other Person to the
     extent such Indebtedness is Guaranteed by (or secured by the assets of) the
     Company or any Restricted Subsidiary; and

          (10) the cash contributions to any employee stock ownership plan or
     similar trust to the extent such contributions are used by such plan or
     trust to pay interest or fees to any Person (other than the Company) in
     connection with Indebtedness Incurred by such plan or trust.

          "CONSOLIDATED NET INCOME" means, for any period, the net income of the
Company and its consolidated Subsidiaries; PROVIDED, HOWEVER, that there shall
not be included in such Consolidated Net Income:

<Page>

                                                                              11

          (1)  any net income of any Person (other than the Company) if such
     Person is not a Restricted Subsidiary, except that:

               (A)  subject to the exclusion contained in clause (4) below, the
          Company's equity in the net income of any such Person for such period
          shall be included in such Consolidated Net Income in an amount equal
          to the aggregate amount of cash actually distributed by such Person
          during such period to the Company or a Restricted Subsidiary as a
          dividend or other distribution (subject, in the case of a dividend or
          other distribution paid to a Restricted Subsidiary, to the limitations
          contained in clause (3) below); and

               (B)  the Company's equity in a net loss of any such Person for
          such period shall be included in determining such Consolidated Net
          Income;

          (2)  any net income (or loss) of any Person acquired by the Company or
     a Subsidiary in a pooling of interests transaction for any period prior to
     the date of such acquisition;

          (3)  any net income of any Restricted Subsidiary if such Restricted
     Subsidiary is subject to restrictions, directly or indirectly, on the
     payment of dividends or the making of distributions by such Restricted
     Subsidiary, directly or indirectly, to the Company, except that:

               (A)  subject to the exclusion contained in clause (4) below, the
          net income of any such Restricted Subsidiary for such period shall be
          included in such Consolidated Net Income in an amount equal to the
          aggregate amount of cash actually distributed by such Restricted
          Subsidiary during such period to the Company or another Restricted
          Subsidiary as a dividend or other distribution (subject, in the case
          of a dividend or other distribution paid to another Restricted
          Subsidiary, to the limitation contained in this clause); and

               (B)  the net loss of any such Restricted Subsidiary for such
          period shall be included in determining such Consolidated Net Income;

          (4)  any gain (but not loss) realized upon the sale or other
     disposition of any assets of the Company, its

<Page>

                                                                              12

     consolidated Subsidiaries or any other Person (including pursuant to any
     sale-and-leaseback arrangement) which is not sold or otherwise disposed of
     in the ordinary course of business and any gain (but not loss) realized
     upon the sale or other disposition of any Capital Stock of any Person;

          (5)  extraordinary gains or losses;

          (6)  the cumulative effect of a change in accounting principles; and

          (7)  any unrealized non-cash gain or loss in respect of Currency
     Agreements.

Notwithstanding the foregoing, for the purposes of Section 4.05 only, there
shall be excluded from Consolidated Net Income any repurchases, repayments or
redemptions of Investments, proceeds realized on the sale of Investments or
return of capital to the Company or a Restricted Subsidiary to the extent such
repurchases, repayments, redemptions, proceeds or returns increase the amount of
Restricted Payments permitted under Section 4.05(a)(3)(D).

          "CONSOLIDATED TANGIBLE ASSETS" means, as of any date, the amount
which, in accordance with GAAP, would be set forth under the caption "Total
Assets" (or any like caption) on the most recent quarterly consolidated balance
sheet of the Company and its Restricted Subsidiaries, less all intangible
assets, including, without limitation, goodwill, organization costs, patents,
trademarks, copyrights, franchises, and research and development costs.

          "CREDIT AGREEMENT" means the Credit Agreement to be dated as of July
11, 2003, by and among the Company, the lenders referred to therein, and Credit
Suisse First Boston LLC, as administrative agent, together with the related
documents thereto (including all promissory notes, guarantees and security
documents), as amended, extended, renewed, restated, supplemented or otherwise
modified (in whole or in part, and without limitation as to amount, terms,
conditions, covenants and other provisions) from time to time, and any agreement
(and related document) governing Indebtedness incurred to Refinance, in whole or
in part, the borrowings and commitments then outstanding or permitted to be
outstanding under such Credit Agreement or a successor Credit Agreement, whether
by the same or any other lender or group of lenders.

<Page>

                                                                              13

          "CREDIT FACILITIES" means, with respect to the Company or any
Restricted Subsidiary, one or more debt facilities (including the Credit
Agreement) or commercial paper facilities with banks or other institutional
lenders providing revolving credit loans, term loans, receivables financing
(including through the sale of receivables) or letters of credit, in each case,
as amended, restated, modified, renewed, refunded, replaced or refinanced in
whole or in part from time to time.

          "CURRENCY AGREEMENT" means in respect of a Person any foreign exchange
contract, currency swap agreement or other similar agreement designed to protect
such Person against fluctuations in currency values.

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

          "DESIGNATED SENIOR INDEBTEDNESS" with respect to a Person means:

          (1)  the Bank Indebtedness; and

          (2)  any other Senior Indebtedness of such Person which, at the date
     of determination, has an aggregate principal amount outstanding of, or
     under which, at the date of determination, the holders thereof are
     committed to lend up to, at least $25.0 million and is specifically
     designated by such Person in the instrument evidencing or governing such
     Senior Indebtedness as "Designated Senior Indebtedness" for purposes of
     this Indenture.

          "DISQUALIFIED STOCK" means, with respect to any Person, any Capital
Stock which by its terms (or by the terms of any security into which it is
convertible or for which it is exchangeable at the option of the holder) or upon
the happening of any event:

          (1)  matures or is mandatorily redeemable (other than redeemable only
     for Capital Stock of such Person which is not itself Disqualified Stock)
     pursuant to a sinking fund obligation or otherwise;

          (2)  is convertible or exchangeable at the option of the holder for
     Indebtedness or Disqualified Stock; or

          (3)  is mandatorily redeemable or must be purchased upon the
     occurrence of certain events or otherwise, in whole or in part;

<Page>

                                                                              14

in each case on or prior to the date that is 91 days after the Stated Maturity
of the Notes; PROVIDED, HOWEVER, that any Capital Stock that would not
constitute Disqualified Stock but for provisions thereof giving holders thereof
the right to require such Person to purchase or redeem such Capital Stock upon
the occurrence of an "asset sale" or "change of control" occurring prior to the
first anniversary of the Stated Maturity of the Notes shall not constitute
Disqualified Stock if:

          (1)  the "asset sale" or "change of control" provisions applicable to
     such Capital Stock are not more favorable to the holders of such Capital
     Stock than the terms applicable to the Notes and described in Sections 4.04
     and 4.10; and

          (2)  any such requirement only becomes operative after compliance with
     such terms applicable to the Notes, including the purchase of any Notes
     tendered pursuant thereto.

          The amount of any Disqualified Stock that does not have a fixed
redemption, repayment or repurchase price will be calculated in accordance with
the terms of such Disqualified Stock as if such Disqualified Stock were
redeemed, repaid or repurchased on any date on which the amount of such
Disqualified Stock is to be determined pursuant to this Indenture; PROVIDED,
HOWEVER, that if such Disqualified Stock could not be required to be redeemed,
repaid or repurchased at the time of such determination, the redemption,
repayment or repurchase price will be the book value of such Disqualified Stock
as reflected in the most recent financial statements of such Person.

          "DOMESTIC SUBSIDIARY" means any Restricted Subsidiary that is not a
Foreign Subsidiary.

          "EBITDA" for any period means the sum of Consolidated Net Income, plus
the following to the extent deducted in calculating such Consolidated Net
Income:

          (1)  all income tax expense of the Company and its consolidated
     Restricted Subsidiaries;

          (2)  Consolidated Interest Expense;

          (3)  depreciation and amortization expense of the Company and its
     consolidated Restricted Subsidiaries (excluding amortization expense
     attributable to a prepaid

<Page>

                                                                              15

     operating activity item that was paid in cash in a prior period); and

          (4)  all other non-cash charges of the Company and its consolidated
     Restricted Subsidiaries (excluding any such non-cash charge to the extent
     that it represents an accrual of or reserve for cash expenditures in any
     future period);

     in each case for such period.

          Notwithstanding the foregoing, the provision for taxes based on the
income or profits of, and the depreciation and amortization and non-cash charges
of, a Restricted Subsidiary shall be added to Consolidated Net Income to compute
EBITDA only to the extent (and in the same proportion, including by reason of
minority interests) that the net income of such Restricted Subsidiary was
included in calculating Consolidated Net Income and only if a corresponding
amount would be permitted at the date of determination to be dividended to the
Company by such Restricted Subsidiary without prior approval (that has not been
obtained), pursuant to the terms of its charter and all agreements, instruments,
judgments, decrees, orders, statutes, rules and governmental regulations
applicable to such Restricted Subsidiary or its stockholders.

          "ESOP" means any employee stock ownership plan or a trust established
by Parent or any of its Subsidiaries for the benefit of their employees.

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

          "FIRST CALL DATE" means July 15, 2008.

          "FOREIGN REQUIRED MINORITY SHARES" means Capital Stock of a Foreign
Subsidiary that is required by the applicable laws and regulations of such
foreign jurisdiction to be owned by the government of such foreign jurisdiction
or individual or corporate citizens of such foreign jurisdiction in order for
such Foreign Subsidiary to transact business in such foreign jurisdiction.

          "FOREIGN SUBSIDIARY" means any Restricted Subsidiary that (1) is not
organized under the laws of the United States, any state thereof or the District
of Columbia and (2) conducts substantially all of its business operations
outside of the United States. For purposes of this definition, Puerto Rico shall
be deemed not to be a part of the United States so long as

<Page>

                                                                              16

a Puerto Rican corporation is treated as a foreign corporation under Section
7701 of the Code.

          "GAAP" means generally accepted accounting principles in the United
States of America as in effect as of the Issue Date, including those set forth
in:

          (1)  the opinions and pronouncements of the Accounting Principles
     Board of the American Institute of Certified Public Accountants;

          (2)  statements and pronouncements of the Financial Accounting
     Standards Board;

          (3)  such other statements by such other entity as approved by a
     significant segment of the accounting profession; and

          (4)  the rules and regulations of the SEC governing the inclusion of
     financial statements (including PRO FORMA financial statements) in periodic
     reports required to be filed pursuant to Section 13 of the Exchange Act,
     including opinions and pronouncements in staff accounting bulletins and
     similar written statements from the accounting staff of the SEC.

          "GUARANTEE" means any obligation, contingent or otherwise, of any
Person directly or indirectly guaranteeing any Indebtedness of any Person and
any obligation, direct or indirect, contingent or otherwise, of such Person:

          (1)  to purchase or pay (or advance or supply funds for the purchase
     or payment of) such Indebtedness of such Person (whether arising by virtue
     of partnership arrangements, or by agreements to keep-well, to purchase
     assets, goods, securities or services, to take-or-pay or to maintain
     financial statement conditions or otherwise); or

          (2)  entered into for the purpose 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);

PROVIDED, HOWEVER, that the term "GUARANTEE" shall not include endorsements for
collection or deposit in the ordinary course of business. The term "GUARANTEE"
used as a verb has a corresponding meaning.

<Page>

                                                                              17

          "GUARANTOR" means each Subsidiary of the Company that executes this
Indenture as a guarantor and each other Subsidiary of the Company that
thereafter guarantees the Notes pursuant to the terms of this Indenture, in each
case unless and until such Subsidiary is released from its obligations under its
Guaranty pursuant to the terms of this Indenture.

          "GUARANTY" means a Guarantee by a Guarantor of the Company's
Obligations with respect to the Notes.

          "HEDGING OBLIGATIONS" of any Person means the obligations of such
Person pursuant to any Interest Rate Agreement or Currency Agreement.

          "HOLDER" or "NOTEHOLDER" means the Person in whose name a Note is
registered on the Registrar's books.

          "HOLDINGS" means Tabletop Holdings, Inc. and each other Person, if
any, that is both (1) a Subsidiary of Parent and (2) a Person whose Subsidiaries
include the Company.

          "HOLDINGS BOARD" means the Board of Directors of Holdings.

          "INCUR" means issue, assume, Guarantee, incur or otherwise become
liable for; PROVIDED, HOWEVER, that any Indebtedness or Capital Stock of a
Person existing at the time such Person becomes a Restricted Subsidiary (whether
by merger, consolidation, acquisition or otherwise) shall be deemed to be
Incurred by such Person at the time it becomes a Restricted Subsidiary. The term
"INCURRENCE" when used as a noun shall have a correlative meaning. Solely for
purposes of determining compliance with Section 4.06, (1) amortization of debt
discount or the accretion of principal with respect to a non-interest bearing or
other discount security, (2) the payment of regularly scheduled interest in the
form of additional Indebtedness of the same instrument or the payment of
regularly scheduled dividends on Capital Stock in the form of additional Capital
Stock of the same class and with the same terms, and (3) unrealized losses or
charges in respect of Hedging Obligations (including those resulting from the
application of FAS 133), in each case will be deemed not to be Incurrences of
Indebtedness.

          "INDEBTEDNESS" means, with respect to any Person on any date of
determination (without duplication):

          (1) the principal in respect of (A) indebtedness of such Person for
     money borrowed and (B) indebtedness

<Page>

                                                                              18

     evidenced by notes, debentures, bonds or other similar instruments for the
     payment of which such Person is responsible or liable, including, in each
     case, any premium on such indebtedness to the extent such premium has
     become due and payable;

          (2)  all Capital Lease Obligations of such Person and all Attributable
     Debt in respect of Sale/Leaseback Transactions entered into by such Person;

          (3)  all obligations of such Person issued or assumed as the deferred
     purchase price of property, all conditional sale obligations of such Person
     and all obligations of such Person under any title retention agreement (but
     excluding trade accounts payable arising in the ordinary course of
     business);

          (4)  all obligations of such Person for the reimbursement of any
     obligor on any letter of credit, banker's acceptance or similar credit
     transaction (other than obligations with respect to letters of credit
     issued otherwise than under the Credit Agreement securing obligations
     (other than obligations described in clauses (1) through (3) above) entered
     into in the ordinary course of business of such Person to the extent such
     letters of credit are not drawn upon or, if and to the extent drawn upon,
     such drawing is reimbursed no later than the tenth Business Day following
     payment on the letter of credit);

          (5)  the amount of all obligations of such Person with respect to the
     redemption, repayment or other repurchase of any Disqualified Stock of such
     Person or, with respect to any Preferred Stock of any Subsidiary of such
     Person, the principal amount of such Preferred Stock to be determined in
     accordance with this Indenture (but excluding, in each case, any accrued
     dividends);

          (6)  all obligations of the types referred to in clauses (1) through
     (5) of other Persons and all dividends of other Persons for the payment of
     which, in either case, such Person is responsible or liable, directly or
     indirectly, as obligor, guarantor or otherwise, including by means of any
     Guarantee;

          (7)  all obligations of the types referred to in clauses (1) through
     (6) of other Persons secured by any Lien on any property or asset of such
     Person (whether or not such obligation is assumed by such Person), the
     amount

<Page>

                                                                              19

     of such obligation being deemed to be the lesser of the value of such
     property or assets and the amount of the obligation so secured; and

          (8)  to the extent not otherwise included in this definition, Hedging
     Obligations of such Person.

          The amount of Indebtedness of any Person at any date shall be the
outstanding balance at such date of all unconditional obligations as described
above and the maximum liability, upon the occurrence of the contingency giving
rise to the obligation, of any contingent obligations at such date; PROVIDED,
HOWEVER, that in the case of Indebtedness sold at a discount, the amount of such
Indebtedness at any time will be the accreted value thereof at such time.

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

          "INDEPENDENT QUALIFIED PARTY" means an investment banking firm,
accounting firm or appraisal firm of national standing; PROVIDED, HOWEVER, that
such firm is not an Affiliate of the Company.

          "INTEREST RATE AGREEMENT" means, in respect of a Person, any interest
rate swap agreement, interest rate cap agreement or other financial agreement or
arrangement designed to reduce such Person's interest expense or protect such
Person against fluctuations in interest rates.

          "INVESTMENT" in any Person means any direct or indirect advance, loan
(other than advances to customers in the ordinary course of business that are
recorded as accounts receivable on the balance sheet of the lender) or other
extensions of credit (including by way of Guarantee or similar arrangement) or
capital contribution to (by means of any transfer of cash or other property to
others or any payment for property or services for the account or use of
others), or any purchase or acquisition of Capital Stock, Indebtedness or other
similar instruments issued by such Person. Except as otherwise provided for
herein, the amount of an Investment shall be its fair value at the time the
Investment is made and without giving effect to subsequent changes in value.

For purposes of the definition of "Unrestricted Subsidiary," the definition of
"Restricted Payment" and Section 4.05:

<Page>

                                                                              20

          (1)  "INVESTMENT" shall include the portion (proportionate to the
     Company's equity interest in such Subsidiary) of the fair market value of
     the net assets of any Subsidiary of the Company at the time that such
     Subsidiary is designated an Unrestricted Subsidiary; and

          (2)  any property transferred to or from an Unrestricted Subsidiary
     shall be valued at its fair market value at the time of such transfer, in
     each case as determined in good faith by the Board of Directors.

          "ISSUE DATE" means July 11, 2003.

          "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.

          "MSD" means MSD Capital, L.P., its Related Parties, and any other
Person to the extent MSD Capital, L.P. makes all relevant investment decisions
for such Person.

          "NET AVAILABLE CASH" from an Asset Disposition means cash payments
received therefrom (including any cash payments received by way of deferred
payment of principal pursuant to a note or installment receivable or otherwise
and proceeds from the sale or other disposition of any securities received as
consideration, but only as and when received, but excluding any other
consideration received in the form of assumption by the acquiring Person of
Indebtedness or other obligations relating to such properties or assets or
received in any other non-cash form), in each case net of:

          (1)  all legal, title and recording tax expenses, commissions and
     other fees and expenses incurred, and all Federal, state, provincial,
     foreign and local taxes required to be accrued as a liability under GAAP,
     as a consequence of such Asset Disposition;

          (2)  all payments made on any Indebtedness which is secured by any
     assets subject to such Asset Disposition, in accordance with the terms of
     any Lien upon or other security agreement of any kind with respect to such
     assets, or which must by its terms, or in order to obtain a necessary
     consent to such Asset Disposition, or by

<Page>

                                                                              21

     applicable law, be repaid out of the proceeds from such Asset Disposition;

          (3)  all distributions and other payments required to be made to
     minority interest holders in Restricted Subsidiaries as a result of such
     Asset Disposition; and

          (4)  the deduction of appropriate amounts provided by the seller as a
     reserve, in accordance with GAAP, against any liabilities associated with
     the property or other assets disposed in such Asset Disposition and
     retained by the Company or any Restricted Subsidiary after such Asset
     Disposition.

          "NET CASH PROCEEDS" means, with respect to any issuance or sale of
Capital Stock, the cash proceeds of such issuance or sale net of attorneys'
fees, accountants' fees, underwriters' or placement agents' fees, discounts or
commissions and brokerage, consultant and other fees actually incurred in
connection with such issuance or sale and net of taxes paid or payable as a
result thereof.

          "NOTES" has the meaning set forth in the second paragraph of this
Indenture.

          "OBLIGATIONS" means all obligations for principal, premium, interest
penalties, fees, indemnifications, reimbursements and other amounts payable.

          "OFFERING CIRCULAR" means the Confidential Offering Circular dated
July 7, 2003 issued by the Company in relation to $225,000,000 aggregate
principal amount of 9 1/2% Senior Subordinated Notes Due 2013 to be issued on
the Issue Date.

          "OFFICER" means the Chairman of the Board, the President, any Vice
President, the Treasurer or the Secretary of the Company.

          "OFFICERS' CERTIFICATE" means a certificate signed by two Officers.

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

          "PARENT" means Tabletop Holdings, LLC.

<Page>

                                                                              22

          "PERMITTED CLOSING DATE PAYMENT" means the payment by the Company of
one or more dividends to Holdings on the Issue Date or promptly thereafter in an
aggregate amount of up to $197.0 million in cash.

          "PERMITTED HOLDERS" means (i) Pegasus Partners II, L.P., (ii) MSD,
(iii) Carolwood Tabletop Holdings, LLC, and (iv) any Related Party of any of the
foregoing.

          "PERMITTED INVESTMENT" means an Investment by the Company or any
Restricted Subsidiary in:

     (1)  the Company, a Wholly Controlled Subsidiary or a Person that will,
          upon the making of such Investment, become a Wholly Controlled
          Subsidiary; PROVIDED, HOWEVER, that the primary business of such
          Wholly Controlled Subsidiary is a Related Business;

     (2)  another Person if as a result of such Investment such other Person is
          merged or consolidated with or into, or transfers or conveys all or
          substantially all its assets to, the Company or a Restricted
          Subsidiary; PROVIDED, HOWEVER, that such Person's primary business is
          a Related Business;

     (3)  cash and Temporary Cash Investments;

     (4)  receivables owing to the Company or any Restricted Subsidiary if
          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;

     (5)  payroll, travel and similar advances to cover matters that are
          expected at the time of such advances ultimately to be treated as
          expenses for accounting purposes and that are made in the ordinary
          course of business;

     (6)  loans or advances to employees made in the ordinary course of business
          of the Company or such Restricted Subsidiary;

     (7)  stock, obligations or securities received in settlement of debts
          created in the ordinary course of

<Page>

                                                                              23

          business and owing to the Company or any Restricted Subsidiary or in
          satisfaction of judgments;

     (8)  any Person to the extent such Investment represents the non-cash
          portion of the consideration received for an Asset Disposition as
          permitted pursuant to Section 4.10;

     (9)  any Person where such Investment was acquired by the Company or any of
          its Restricted Subsidiaries (A) in exchange for any other Investment
          or accounts receivable held by the Company or any such Restricted
          Subsidiary in connection with or as a result of a bankruptcy, workout,
          reorganization or recapitalization of the issuer of such other
          Investment or accounts receivable or (B) as a result of a foreclosure
          by the Company or any of its Restricted Subsidiaries with respect to
          any secured Investment or other transfer of title with respect to any
          secured Investment in default;

     (10) any Investment by the Company or a Restricted Subsidiary of the
          Company in a Receivables Subsidiary, or any Investment by a
          Receivables Subsidiary in any other Person, in each case in connection
          with a Qualified Receivables Transaction and in a manner, and for
          consideration, customary for transactions of that type;

     (11) any Person to the extent such Investments consist of prepaid expenses,
          negotiable instruments held for collection, and lease, workers'
          compensation, performance and similar deposits made in the ordinary
          course of business by the Company or any Restricted Subsidiary;

     (12) any Person to the extent such Investments consist of Hedging
          Obligations otherwise not prohibited under Section 4.06;

     (13) any Person if (A) the primary business of such Person is a Related
          Business, (B) such Person conducts substantially all of its business
          operations outside of the United States, and (C) the amount of such
          Investment, when taken together with all other Investments made
          pursuant to this clause (13), does not exceed $4.0 million; and

<Page>

                                                                              24

     (14) any Person, not otherwise permitted to be made pursuant to the
          preceding clauses of this definition, in an aggregate amount which,
          when taken together with all other Investments made pursuant to this
          clause (14), does not exceed the greater of (A) $5.0 million, and (B)
          2.5% of Consolidated Tangible Assets.

          "PERSON" means any individual, corporation, partnership, limited
liability company, joint venture, association, joint-stock company, trust,
unincorporated organization, government or any agency or political subdivision
thereof or any other entity.

          "PREFERRED STOCK", as applied to the Capital Stock of any Person,
means Capital Stock of any class or classes (however designated) which is
preferred as to the payment of dividends or distributions, or as to the
distribution of assets upon any voluntary or involuntary liquidation or
dissolution of such Person, over shares of Capital Stock of any other class of
such Person.

          "PRINCIPAL" of a Note means the principal of the Note plus the
premium, if any, payable on the Note which is due or overdue or is to become due
at the relevant time.

          "QUALIFIED EQUITY OFFERING" means either (i) an underwritten primary
public offering of Capital Stock (other than Disqualified Stock) of the Company
pursuant to an effective registration statement under the Securities Act, or
(ii) a privately negotiated sale of Capital Stock (other than Disqualified
Stock) of the Company to a Person that, immediately prior to the time of such
sale, is not an Affiliate of the Company, and resulting in aggregate gross
proceeds to the Company of at least $25.0 million.

          "QUALIFIED RECEIVABLES TRANSACTION" means any transaction or series of
transactions entered into by the Company or any of its Restricted Subsidiaries
pursuant to which the Company or any of its Restricted Subsidiaries sells,
conveys or otherwise transfers to (i) a Receivables Subsidiary (in the case of a
transfer by the Company or any of its Restricted Subsidiaries) and (ii) any
other Person (in the case of a transfer by a Receivables Subsidiary), or grants
a security interest in, any Receivables Assets, in each case in a manner
customary for asset securitization transactions.

          "RECEIVABLES ASSETS" means any accounts receivable, instruments,
chattel paper, general intangibles and similar

<Page>

                                                                              25

assets (whether now existing or arising in the future, "RECEIVABLES") of the
Company or any of its Subsidiaries, and any assets related thereto including all
collateral securing such Receivables, all contracts, contract rights and all
guarantees or other obligations in respect of such Receivables, proceeds of such
Receivables and any other assets which are customarily transferred or in respect
of which security interests are customarily granted in connection with asset
securitization transactions.

          "RECEIVABLES SUBSIDIARY" means a Subsidiary of the Company that
satisfies all of the following requirements:

     (1)  such Receivables Subsidiary engages in no activities other than in
          connection with the financing of Receivables Assets;

     (2)  such Receivables Subsidiary is designated by the Board of Directors of
          the Company (as provided below) as a Receivables Subsidiary;

     (3)  no portion of any Obligations (contingent or otherwise) of such
          Receivables Subsidiary (a) is Guaranteed by the Company or any other
          Subsidiary of the Company (excluding Guarantees of Obligations (other
          than the principal of, and interest on, Indebtedness) pursuant to
          representations, warranties, covenants and indemnities entered into in
          the ordinary course of business in connection with a Qualified
          Receivables Transaction); (b) is recourse to or obligates the Company
          or any other Subsidiary of the Company in any way other than pursuant
          to customary representations, warranties, covenants and indemnities
          entered into in connection with a Qualified Receivables Transaction;
          or (c) subjects any property or asset of the Company or any other
          Subsidiary of the Company (other than Receivables Assets), directly or
          indirectly, contingently or otherwise, to the satisfaction of such
          Obligations, other than pursuant to customary representations,
          warranties, covenants and indemnities entered into in connection with
          a Qualified Receivables Transaction;

     (4)  neither the Company nor any other Subsidiary of the Company has any
          material contract, agreement, arrangement or understanding with such
          Receivables Subsidiary other than on terms no less favorable to the
          Company or such other Subsidiary than those that

<Page>

                                                                              26

          might be obtained at the time from Persons who are not Affiliates of
          the Company, other than as may be customary in a Qualified Receivables
          Transaction including for fees payable in the ordinary course of
          business in connection with servicing Receivables Assets; and

     (5)  neither the Company nor any other Subsidiary of the Company has any
          obligation to maintain or preserve such Receivables Subsidiary's
          financial condition or cause such Receivables Subsidiary to achieve
          certain levels of operating results.

          Any such designation of a Receivables Subsidiary by the Board of
Directors of the Company will be evidenced to the Trustee by filing with the
Trustee a certified copy of the resolution of the Board of Directors of the
Company giving effect to such designation and an Officers' Certificate
certifying that such designation complied with the foregoing conditions.

          "REFINANCE" means, in respect of any Indebtedness, to refinance,
extend, renew or refund, or to issue other Indebtedness in exchange or
replacement for, such Indebtedness. "REFINANCED" and "REFINANCING" shall have
correlative meanings.

          "REFINANCING INDEBTEDNESS" means Indebtedness that Refinances any
Indebtedness of the Company or any Restricted Subsidiary existing on the Issue
Date or Incurred in compliance with this Indenture, including Indebtedness that
Refinances Refinancing Indebtedness; PROVIDED, HOWEVER, that:

          (1)  such Refinancing Indebtedness has a Stated Maturity no earlier
     than the Stated Maturity of the Indebtedness being Refinanced;

          (2)  such Refinancing Indebtedness has an Average Life at the time
     such Refinancing Indebtedness is Incurred that is equal to or greater than
     the Average Life of the Indebtedness being Refinanced; and

          (3)  such Refinancing Indebtedness has an aggregate principal amount
     (or if Incurred with original issue discount, an aggregate issue price)
     that is equal to or less than the aggregate principal amount (or if
     Incurred with original issue discount, the aggregate accreted value) then
     outstanding or committed (plus fees and expenses,

<Page>

                                                                              27

     including any premium and defeasance costs) under the Indebtedness being
     Refinanced;

PROVIDED FURTHER, HOWEVER, that Refinancing Indebtedness shall not include (A)
Indebtedness of a Subsidiary that Refinances Indebtedness of the Company or (B)
Indebtedness of the Company or a Restricted Subsidiary that Refinances
Indebtedness of an Unrestricted Subsidiary.

          "RELATED BUSINESS" means any business in which the Company was engaged
on the Issue Date and any business related, ancillary or complementary to any
business of the Company in which the Company was engaged on the Issue Date.

          "RELATED PARTY" means (1) any controlling stockholder, controlling
member, general partner, majority owned Subsidiary, or spouse or immediate
family member (in the case of an individual) of any Permitted Holder, (2) any
estate, trust, corporation, partnership or other entity, the beneficiaries,
stockholders, partners, owners or Persons holding a controlling interest of
which consist solely of one or more Permitted Holders and/or such other Persons
referred to in the immediately preceding clause (1), or (3) any executor,
administrator, trustee, manager, director or other similar fiduciary of any
Person referred to in the immediately preceding clause (2) acting solely in such
capacity.

          "REPRESENTATIVE" means with respect to a Person any trustee, agent or
representative (if any) for an issue of Senior Indebtedness of such Person.

          "RESTRICTED PAYMENT" with respect to any Person means:

          (1)  the declaration or payment of any dividends or any other
     distributions of any sort in respect of its Capital Stock (including any
     payment in connection with any merger or consolidation involving such
     Person) or similar payment to the direct or indirect holders of its Capital
     Stock (other than (A) dividends or distributions payable solely in its
     Capital Stock (other than Disqualified Stock), (B) dividends or
     distributions payable solely to the Company or a Restricted Subsidiary, and
     (C) dividends or other distributions made by a Subsidiary to the holders of
     any class of its Capital Stock on a PRO RATA basis);

          (2)  the purchase, redemption or other acquisition or retirement for
     value of any Capital Stock of the Company held by any Person or of any
     Capital Stock of a Restricted

<Page>

                                                                              28

     Subsidiary held by any Affiliate of the Company (other than a Restricted
     Subsidiary), including the exercise of any option to exchange any Capital
     Stock (other than into Capital Stock of the Company that is not
     Disqualified Stock);

          (3)  the purchase, repurchase, redemption, defeasance or other
     acquisition or retirement for value, prior to scheduled maturity, scheduled
     repayment or scheduled sinking fund payment of any Subordinated Obligations
     of such Person (other than (A) payments made solely to the Company or a
     Wholly Controlled Subsidiary and (B) the purchase, repurchase or other
     acquisition of Subordinated Obligations 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 such purchase,
     repurchase or other acquisition); or

          (4)  the making of any Investment (other than a Permitted Investment)
     in any Person.

          "RESTRICTED SUBSIDIARY" means any Subsidiary of the Company that is
not an Unrestricted Subsidiary.

          "S&P" means Standard & Poor's Ratings Group.

          "SALE/LEASEBACK TRANSACTION" means an arrangement relating to property
owned by the Company or a Restricted Subsidiary on the Issue Date or thereafter
acquired by the Company or a Restricted Subsidiary whereby the Company or a
Restricted Subsidiary transfers such property to a Person and the Company or a
Restricted Subsidiary leases it from such Person.

          "SEC" means the U.S. Securities and Exchange Commission.

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

          "SENIOR INDEBTEDNESS" means with respect to any Person:

          (1)  the Bank Indebtedness and any other Indebtedness of such Person,
     whether outstanding on the Issue Date or thereafter Incurred; and

<Page>

                                                                              29

          (2)  accrued and unpaid interest (including interest accruing on or
     after the filing of any petition in bankruptcy or for reorganization
     relating to such Person whether or not post-filing interest is allowed in
     such proceeding) in respect of (A) indebtedness of such Person for money
     borrowed (and all Interest Rate Agreements directly related thereto) and
     (B) indebtedness evidenced by notes, debentures, bonds or other similar
     instruments for the payment of which such Person is responsible or liable;

UNLESS, in the case of clauses (1) and (2), in the instrument creating or
evidencing the same or pursuant to which the same is outstanding, it is provided
that such obligations are subordinate or PARI PASSU in right of payment to the
Notes or the Guaranty of such Person, as the case may be; PROVIDED, HOWEVER,
that Senior Indebtedness shall not include:

               (A)  any obligation of such Person to any Subsidiary;

               (B)  any liability for Federal, state, local or other taxes owed
          or owing by such Person;

               (C)  any accounts payable or other liability to trade creditors
          arising in the ordinary course of business (including Guarantees
          thereof or instruments evidencing such liabilities);

               (D)  any Indebtedness of such Person (and any accrued and unpaid
          interest in respect thereof) which is subordinate or junior in right
          of payment to any other Indebtedness or other obligation of such
          Person; or

               (E)  that portion of any Indebtedness which at the time of
          Incurrence is Incurred in violation of the Indenture.

          "SENIOR SUBORDINATED INDEBTEDNESS" means, with respect to a Person,
the Notes (in the case of the Company), the Guaranty (in the case of a
Guarantor) and any other Indebtedness of such Person that specifically provides
that such Indebtedness is to rank PARI PASSU with the Notes or such Guaranty, as
the case may be, in right of payment and is not subordinated by its terms in
right of payment to any Indebtedness or other obligation of such Person which is
not Senior Indebtedness of such Person.

<Page>

                                                                              30

          "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 security, the date
specified in such security as the fixed date on which the final payment of
principal of such security is due and payable, including pursuant to any
mandatory redemption provision (but excluding any provision providing for the
repurchase of such security at the option of the holder thereof upon the
happening of any contingency unless such contingency has occurred).

          "SUBORDINATED OBLIGATION" means, with respect to a Person, any
Indebtedness of such Person (whether outstanding on the Issue Date or thereafter
Incurred) which is subordinate or junior in right of payment to the Notes or a
Guaranty of such Person, as the case may be, pursuant to a written agreement to
that effect.

          "SUBSIDIARY" means, with respect to any Person, any corporation,
association, partnership or other business entity of which more than 50% of the
total voting power of shares of Voting Stock is at the time owned or controlled,
directly or indirectly, by:

          (1)  such Person;

          (2)  such Person and one or more Subsidiaries of such Person; or

          (3)  one or more Subsidiaries of such Person.

Unless otherwise specified or inappropriate in the context, "SUBSIDIARY" means a
Subsidiary of the Company.

          "SUPPLEMENTAL GUARANTY AGREEMENT" means a supplemental indenture, in a
form satisfactory to the Trustee, pursuant to which a Guarantor guarantees the
Company's obligations with respect to the Notes on the terms provided for in
this Indenture.

          "TEMPORARY CASH INVESTMENTS" means any of the following:

          (1)  any investment in direct obligations of the United States of
     America or any agency thereof or

<Page>

                                                                              31

     obligations guaranteed by the United States of America or any agency
     thereof;

          (2)  investments in demand accounts, time deposit accounts,
     certificates of deposit and money market deposits maturing within 180 days
     of the date of acquisition thereof issued by a bank or trust company which
     is organized under the laws of the United States of America, any State
     thereof or any foreign country recognized by the United States of America,
     and which bank or trust company has capital, surplus and undivided profits
     aggregating in excess of $50.0 million (or the foreign currency equivalent
     thereof) and has outstanding debt which is rated "A" (or such similar
     equivalent rating) or higher by at least one nationally recognized
     statistical rating organization (as defined in Rule 436 under the
     Securities Act) or any money-market fund sponsored by a registered broker
     dealer or mutual fund distributor;

          (3)  repurchase obligations with a term of not more than 30 days for
     underlying securities of the types described in clause (1) above entered
     into with a bank meeting the qualifications described in clause (2) above;

          (4)  investments in commercial paper, maturing not more than 90 days
     after the date of acquisition, issued by a corporation (other than an
     Affiliate of the Company) organized and in existence under the laws of the
     United States of America or any foreign country recognized by the United
     States of America with a rating at the time as of which any investment
     therein is made of "P-1" (or higher) according to Moody's or "A-1" (or
     higher) according to S&P; and

          (5)  investments in securities with maturities of six months or less
     from the date of acquisition issued or fully guaranteed by any state,
     commonwealth or territory of the United States of America, or by any
     political subdivision or taxing authority thereof, and rated at least "A"
     by S&P or "A" by Moody's.

          "TIA" or "TRUST INDENTURE ACT" means the Trust Indenture Act of 1939
(15 U.S.C. Sections 77aaa-77bbbb) as in effect on the Issue Date.

          "TREASURY RATE" means the yield to maturity at the time of computation
of U.S. Treasury securities with a constant maturity (as compiled and published
in the most recent Federal

<Page>

                                                                              32

Reserve Release H 15 (519) which has become publicly available at least two
Business Days prior to the Change of Control Redemption Date (or, if such
Statistical Release is no longer published, any publicly available source or
similar market data)) closest to the period from the Change of Control
Redemption Date to the First Call Date; PROVIDED, HOWEVER, that if the period
from the Change of Control Redemption Date to the First Call Date is not equal
to the constant maturity of a U.S. Treasury security for which a weekly average
yield is given, the Treasury Rate shall be obtained by linear interpolation
(calculated to the nearest one-twelfth of one year) from the weekly average
yields of U.S. Treasury securities for which such yields are given, except that
if the period from the Change of Control Redemption Date to the First Call Date
is less than one year, the weekly average yield on actually traded U.S. Treasury
securities adjusted to a constant maturity of one year shall be used.

          "TRUSTEE" means Wells Fargo Bank Minnesota, National Association until
a successor replaces it and, thereafter, means the successor.

          "TRUST OFFICER" means the Chairman of the Board, the President or any
other officer or assistant officer of the Trustee assigned by the Trustee to
administer its corporate trust matters.

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

          "UNRESTRICTED SUBSIDIARY" means:

          (1)  any Subsidiary of the Company that at the time of determination
     shall be designated an Unrestricted Subsidiary by the Board of Directors in
     the manner provided below; and

          (2)  any Subsidiary of an Unrestricted Subsidiary,

in each case unless and until such Subsidiary is designated a Restricted
Subsidiary for purposes of this Indenture.

          The Board of Directors of the Company may designate any Subsidiary of
the Company (including any newly acquired or newly formed Subsidiary) to be an
Unrestricted Subsidiary unless such Subsidiary or any of its Subsidiaries owns
any Capital Stock or Indebtedness of, or holds any Lien on any property of, the
Company or any other Subsidiary of the Company that is not a

<Page>

                                                                              33

Subsidiary of the Subsidiary to be so designated; PROVIDED, HOWEVER, that either
(A) the Subsidiary to be so designated has total assets of $1,000 or less or (B)
if such Subsidiary has assets greater than $1,000, such designation would be
permitted under Section 4.05 (the amount of such Restricted Payment being
calculated in the manner set forth in the definition of the term "Investment").

          The Board of Directors of the Company may designate any Unrestricted
Subsidiary to be a Restricted Subsidiary; PROVIDED, HOWEVER, that immediately
after giving effect to such designation (A) the Company could Incur $1.00 of
additional Indebtedness under Section 4.06(a) and (B) no Default shall have
occurred and be continuing. Any such designation by the Board of Directors shall
be evidenced to the Trustee by promptly filing with the Trustee a copy of the
resolution of the Board of Directors giving effect to such designation and an
Officers' Certificate certifying that such designation complied with the
foregoing provisions.

          "U.S. GOVERNMENT OBLIGATIONS" means direct obligations (or
certificates representing an ownership interest in such obligations) of the
United States of America (including any agency or instrumentality thereof) for
the payment of which the full faith and credit of the United States of America
is pledged and which are not callable at the issuer's option.

          "VOTING STOCK" of a Person means all classes of Capital Stock or other
interests (including partnership interests) of such Person then outstanding and
normally entitled (without regard to the occurrence of any contingency) to vote
in the election of directors, managers or trustees thereof.

          "WHOLLY CONTROLLED SUBSIDIARY" means (i) any Wholly Owned Subsidiary
and (ii) any Foreign Subsidiary if (A) such Foreign Subsidiary is a Restricted
Subsidiary, (B) all of the Capital Stock of such Foreign Subsidiary (other than
directors' qualifying shares and Foreign Required Minority Shares, in each case
only to the extent required by applicable law) is owned by the Company or one or
more Wholly Owned Subsidiaries, and (C) the Company, by contract or otherwise,
controls the management and business of such Foreign Subsidiary and derives the
economic benefits of ownership of such Foreign Subsidiary to substantially the
same extent as if such Foreign Subsidiary were a Wholly Owned Subsidiary.

<Page>

                                                                              34

          "WHOLLY OWNED SUBSIDIARY" means a Restricted Subsidiary all the
Capital Stock of which is owned by the Company or one or more Wholly Owned
Subsidiaries.

          SECTION 1.02.  OTHER DEFINITIONS.

<Table>
<Caption>
                                                                             Defined in
                             Term                                             Section
                             ----                                             -------
<S>                                                                       <C>
"Affiliate Transaction"................................................      4.08
"Bankruptcy Law".......................................................      6.01
"Blockage Notice"......................................................     10.03/12.03
"Change of Control Offer"..............................................      4.09(b)
"Change of Control Redemption Date" ...................................   5(b) of the Notes
"Company Website" .....................................................      4.02
"covenant defeasance option"...........................................      8.01(b)
"Custodian"............................................................      6.01
"Event of Default".....................................................      6.01
"Guaranteed Obligations" ..............................................     11.01
"legal defeasance option"..............................................      8.01(b)
"Legal Holiday"........................................................     13.08
"Offer"................................................................      4.07(b)
"Offer Amount".........................................................      4.07(c)(2)
"Offer Period".........................................................      4.07(c)(2)
"pay its Subsidiary Guaranty"..........................................     12.03
"pay the Notes"........................................................     10.03
"Paying Agent".........................................................      2.03
"Payment Default"......................................................     10.03/12.03
"Payment Blockage Period"..............................................     10.03/12.03
"Purchase Date"........................................................      4.07(c)(1)
"Registrar"............................................................      2.03
"Successor Company"....................................................      5.01
</Table>

          In addition, terms defined in APPENDIX A shall have the meanings set
forth therein.

          SECTION 1.03.  INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT.
This Indenture is subject to the mandatory provisions of the TIA which are
incorporated by reference in and made a part of this Indenture. The following
TIA terms have the following meanings:

          "Commission" means the SEC;

          "indenture securities" means the Notes;

          "indenture security holder" means a Noteholder;

<Page>

                                                                              35

          "indenture to be qualified" means this Indenture;

          "indenture trustee" or "institutional trustee" means the Trustee; and

          "obligor" on the indenture securities means the Company and any other
obligor on the indenture securities.

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

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

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

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

          (3)  "or" is not exclusive;

          (4)  "including" means including without limitation;

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

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

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

          (8)  the principal amount of any Preferred Stock shall be (i) the
     maximum liquidation value of such Preferred Stock or (ii) the maximum
     mandatory redemption or mandatory repurchase price with respect to such
     Preferred Stock, whichever is greater;

          (9)  all references to the date the Notes were originally issued shall
     refer to the Issue Date; and

          (10) in the event of a conflict between the definitions set forth in
     Section 1.01 and the definitions

<Page>

                                                                              36

     set forth in the first paragraph of this Indenture, the definitions set
     forth in Section 1.01 shall govern.

                                    ARTICLE 2

                                    THE NOTES

          SECTION 2.01.  FORM AND DATING.  Provisions relating to the Initial
Notes, the Private Exchange Notes and the Exchange Notes are set forth in the
APPENDIX A attached hereto which is hereby incorporated in and expressly made
part of this Indenture. The Initial Notes and the Trustee's certificate of
authentication shall be substantially in the form of EXHIBIT 1 to APPENDIX A
which is hereby incorporated in and expressly made a part of this Indenture. The
Exchange Notes, the Private Exchange Notes and the Trustee's certificate of
authentication shall be substantially in the form of EXHIBIT 2 to APPENDIX A,
which is hereby incorporated in and expressly made a part of this Indenture. The
Notes may have notations, legends or endorsements required by law, stock
exchange rule, agreements to which the Company is subject, if any, or usage
(PROVIDED, that any such notation, legend or endorsement is in a form acceptable
to the Company). Each Note shall be dated the date of its authentication. The
terms of the Notes set forth in EXHIBITS 1 and 2 to APPENDIX A are part of the
terms of this Indenture.

          SECTION 2.02.  EXECUTION AND AUTHENTICATION.  Two Officers shall
sign the Notes for the Company by manual or facsimile signature. The Company's
seal, if any, may be impressed, affixed, imprinted or reproduced on the Notes
and may be in facsimile form.

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

          A Note shall not be valid until an authorized signatory of the Trustee
manually signs the certificate of authentication on the Note. The signature
shall be conclusive evidence that the Note has been authenticated under this
Indenture. The Trustee shall authenticate Notes in the amounts and at the times
specified in Section 2.2 of APPENDIX A attached hereto.

          The Trustee may appoint an authenticating agent reasonably acceptable
to the Company to authenticate the Notes. Unless limited by the terms of such
appointment, an authenticating agent may authenticate Notes whenever the Trustee

<Page>

                                                                              37

may do so. Each reference in this Indenture to authentication by the Trustee
includes authentication by such agent. An authenticating agent has the same
rights as any Registrar, Paying Agent or agent for service of notices and
demands.

          SECTION 2.03.  REGISTRAR AND PAYING AGENT.  The Company shall maintain
an office or agency where Notes may be presented for registration of transfer or
for exchange (the "REGISTRAR") and an office or agency where Notes may be
presented for payment (the "PAYING AGENT"). The Registrar shall keep a register
of the Notes and of their transfer and exchange. The Company may have one or
more co-registrars and one or more additional paying agents. The term
"REGISTRAR" includes any appointed co-registrar and the term "PAYING AGENT"
includes any additional paying agent.

          The Company shall enter into an appropriate agency agreement with any
Registrar, Paying Agent or co-registrar not a party to this Indenture, which
shall incorporate the terms of the TIA. The agreement shall implement the
provisions of this Indenture that relate to such agent. The Company shall notify
the Trustee of the name and address of any such agent. If the Company fails to
maintain a Registrar or Paying Agent, the Trustee shall act as such and shall be
entitled to appropriate compensation therefor pursuant to Section 7.07. The
Company or any Wholly Owned Subsidiary incorporated or organized within The
United States of America may act as Paying Agent, Registrar, co-registrar or
transfer agent.

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

          SECTION 2.04.  PAYING AGENT TO HOLD MONEY IN TRUST.  Prior to each due
date of the principal and interest on any Note, the Company shall deposit with
the Paying Agent a sum sufficient to pay such principal and interest when so
becoming due. The Company shall require each Paying Agent (other than the
Trustee) to agree in writing that the Paying Agent shall hold in trust for the
benefit of Noteholders or the Trustee all money held by the Paying Agent for the
payment of principal of or interest on the Notes and shall notify the Trustee of
any default by the Company in making any such payment. If the Company or a
Subsidiary acts as Paying Agent, it shall segregate the money held by it as
Paying Agent and hold it as a separate trust fund. The Company at any time may
require a Paying Agent to pay all money held by it to the Trustee and to account
for any funds disbursed by the Paying Agent. Upon complying with

<Page>

                                                                              38

this Section 2.04, the Paying Agent shall have no further liability for the
money delivered to the Trustee.

          SECTION 2.05.  NOTEHOLDER LISTS.  The Trustee shall preserve in as
current a form as is reasonably practicable the most recent list available to it
of the names and addresses of Noteholders and shall otherwise comply with TIA
Section 312(a). If the Trustee is not the Registrar, the Company shall furnish
to the Trustee, in writing, at least five Business Days before each interest
payment date and at such other times as the Trustee may request in writing, a
list in such form and as of such date as the Trustee may reasonably require of
the names and addresses of Noteholders.

          SECTION 2.06.  TRANSFER AND EXCHANGE.  The Notes shall be issued in
registered form and shall be transferable only upon the surrender of a Note for
registration of transfer. When a Note is presented to the Registrar or a
co-registrar with a request to register a transfer, the Registrar shall register
the transfer as requested if the requirements of this Indenture and Section
8-401(a) of the Uniform Commercial Code are met. When Notes are presented to the
Registrar or a co-registrar with a request to exchange them for an equal
principal amount of Notes of other denominations, the Registrar shall make the
exchange as requested if the same requirements are met. The Company may require
payment of a sum sufficient to cover any transfer tax or similar governmental
charge payable in connection with the transfer or exchange of the Notes (other
than any such transfer taxes or other similar governmental charges payable upon
exchange pursuant to Section 2.07, 2.09, 3.06 or 9.05).

          SECTION 2.07.  REPLACEMENT NOTES.  If a mutilated Note is surrendered
to the Registrar or if the Holder of a Note claims that the Note has been lost,
destroyed or wrongfully taken, the Company shall issue, and the Trustee shall
authenticate, a replacement Note if the requirements of Section 8-405 of the
Uniform Commercial Code are met and the Holder satisfies any other reasonable
requirements of the Trustee. If required by the Trustee or the Company, such
Holder shall furnish an indemnity bond sufficient in the judgment of the Company
and the Trustee to protect the Company, the Trustee, the Paying Agent, the
Registrar and any co-registrar from any loss which any of them may suffer if a
Note is replaced. The Company and the Trustee may charge the Holder for their
expenses in replacing a Note.

          Every replacement Note is an additional Obligation of the Company.

<Page>

                                                                              39

          SECTION 2.08.  OUTSTANDING NOTES.  Notes outstanding at any time are
all Notes authenticated by the Trustee except for those canceled by it, those
delivered to it for cancellation and those described in this Section 2.08 as not
outstanding. Subject to Section 13.06, a Note does not cease to be outstanding
because the Company or an Affiliate of the Company holds the Note.

          If a Note is replaced pursuant to Section 2.07, it ceases to be
outstanding unless the Trustee and the Company receive proof satisfactory to
them that the replaced Note is held by a bona fide purchaser.

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

          SECTION 2.09.  TEMPORARY NOTES.  Until Definitive Notes are ready
for delivery, the Company may prepare, and the Trustee shall authenticate,
temporary Notes. Temporary Notes shall be substantially in the form of
definitive Notes but may have variations that the Company considers appropriate
for temporary Notes. Without unreasonable delay, the Company shall prepare and
the Trustee shall authenticate Definitive Notes and deliver them in exchange for
temporary Notes.

          SECTION 2.10.  CANCELLATION.  The Company at any time may deliver
Notes to the Trustee for cancellation. The Registrar and the Paying Agent shall
forward to the Trustee any Notes surrendered to them for registration of
transfer, exchange or payment. The Trustee and no one else shall cancel and
destroy (subject to the record retention requirements of the Exchange Act) all
Notes surrendered for registration of transfer, exchange, payment or
cancellation and deliver a certificate of such destruction to the Company unless
the Company directs the Trustee to deliver canceled Notes to the Company. The
Company may not issue new Notes to replace Notes it has redeemed, paid or
delivered to the Trustee for cancellation.

<Page>

                                                                              40

          SECTION 2.11.  DEFAULTED INTEREST.  If the Company defaults in a
payment of interest on the Notes, the Company shall pay defaulted interest (plus
interest on such defaulted interest to the extent lawful) in any lawful manner.
The Company may pay the defaulted interest to the Persons who are Noteholders on
a subsequent special record date. The Company shall fix or cause to be fixed any
such special record date and payment date to the reasonable satisfaction of the
Trustee and shall promptly mail to each Noteholder a notice that states the
special record date, the payment date and the amount of defaulted interest to be
paid.

          SECTION 2.12.  CUSIP NUMBERS.  The Company in issuing the Notes may
use "CUSIP" numbers and corresponding "ISINs" (if then generally in use) and, if
so, the Trustee shall use "CUSIP" numbers and corresponding "ISINs" in notices
of redemption as a convenience to Holders; PROVIDED, HOWEVER, that any such
notice may state that no representation is made as to the correctness of such
numbers either as printed on the Notes or as contained in any notice of a
redemption and that reliance may be placed only on the other identification
numbers printed on the Notes, and any such redemption shall not be affected by
any defect in or omission of such numbers.

          SECTION 2.13.  ADDITIONAL NOTES.  The Company shall be entitled,
subject to its compliance with this Section and Section 4.06, to issue
Additional Notes under this Indenture. Additional Notes shall have the same
terms and conditions as the Initial Notes issued on the Issue Date or Exchange
Notes, except for issue date, issue price, pre-issuance accrued interest and
first interest payment date. The Initial Notes, any Additional Notes and all
Exchange Notes shall be treated as a single class for all purposes under this
Indenture, including waivers, amendments, redemptions and offers to purchase,
but may be treated as separate classes, with, among other things, separate issue
prices, for United States federal tax purposes.

          With respect to any issuance of Additional Notes, the Company shall
deliver to the Trustee a resolution of the Board of Directors and an Officers'
Certificate, and, if the Company elects, a supplemental indenture, which shall
together provide the following information:

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

<Page>

                                                                              41

          (2)  the issue date, issue price, pre-issuance accrued interest and
     first interest payment date, and the CUSIP number and corresponding ISIN of
     such Additional Notes; and

          (3)  whether such Additional Notes shall be Transfer Restricted
     Securities and issued in the form of Initial Notes as set forth in EXHIBIT
     1 to APPENDIX A or shall be issued in the form of Exchange Notes as set
     forth in EXHIBIT 2 to APPENDIX A.

          In addition, the Officers' Certificate shall certify that such
issuance is in compliance with Section 4.06.

                                    ARTICLE 3

                                   REDEMPTION

          SECTION 3.01.  NOTICES TO TRUSTEE.  If the Company elects to redeem
Notes pursuant to paragraph 5 of the Notes, it shall notify the Trustee in
writing of the redemption date, the principal amount of Notes to be redeemed and
the paragraph of the Notes pursuant to which the redemption will occur.

          The Company shall give each notice to the Trustee provided for in this
Section at least 60 days before the redemption date unless the Trustee consents
to a shorter period. Such notice shall be accompanied by an Officers'
Certificate and an Opinion of Counsel from the Company to the effect that such
redemption will comply with the conditions herein.

          SECTION 3.02.  SELECTION OF NOTES TO BE REDEEMED.  If fewer than all
the Notes are to be redeemed, the Trustee shall select the Notes to be redeemed
pro rata or by lot or by a method that complies with applicable legal and
securities exchange requirements, if any, and that the Trustee in its sole
discretion shall deem to be fair and appropriate and in accordance with methods
generally used at the time of selection by fiduciaries in similar circumstances.
The Trustee shall make the selection from outstanding Notes not previously
called for redemption. The Trustee may select for redemption portions of the
principal of Notes that have denominations larger than $1,000. Notes and
portions of them the Trustee selects shall be in principal amounts of $1,000 or
a whole multiple of $1,000. Provisions of this Indenture that apply to Notes
called for redemption also apply to portions of Notes called for redemption. The
Trustee shall notify the Company promptly of the Notes or portions of Notes to
be redeemed.

<Page>

                                                                              42

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

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

          (1)  the redemption date;

          (2)  the redemption price;

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

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

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

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

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

          At the Company's request, the Trustee shall give the notice of
redemption in the Company's name and at the Company's expense. In such event,
the Company shall provide the Trustee with the information required by this
Section 3.03.

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

<Page>

                                                                              43

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

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

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

                                    ARTICLE 4

                                    COVENANTS

          SECTION 4.01.  PAYMENT OF NOTES.  The Company shall promptly pay the
principal of and interest on the Notes on the dates and in the manner provided
in the Notes and in this Indenture. Payment shall be made in New York, New York
unless the Trustee otherwise specifies. Principal and interest shall be
considered paid on the date due if on such date the Trustee or the Paying Agent
holds in accordance with this Indenture money sufficient to pay all principal
and interest then due and the Trustee or the Paying Agent, as the case may be,
is not prohibited from paying such money to the Noteholders on that date
pursuant to the terms of this Indenture.

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

          SECTION 4.02.  SEC REPORTS.  Notwithstanding that the Company may not
be subject to the reporting requirements of Section 13 or 15(d) of the Exchange
Act, the Company shall file with the SEC (to the extent the SEC will accept such
filings) and provide the Trustee and Noteholders with such annual reports and
such information, documents, certifications and other reports as are specified
in Sections 13 and 15(d) of the Exchange Act and applicable to a U.S.
corporation subject to

<Page>

                                                                              44

such Sections, such information, documents, certifications and other reports to
be so filed and provided at the times specified for the filings of such
information, documents, certifications and reports under such Sections.
Notwithstanding the foregoing, the Company may satisfy such requirements prior
to the effectiveness of the Exchange Offer Registration Statement or the Shelf
Registration Statement by posting on the Company Website and making freely
accessible the same information as would be required to be filed by the Company
if it were subject to the reporting requirements of Section 13 or 15(d) of the
Exchange Act, and will include a representation that the Company has received a
review report of the Company's then current independent auditors as contemplated
by Statement on Auditing Standards No. 100 of the American Institute of
Certified Public Accountants, Inc. with respect to any interim financial
information so posted on the Company Website; PROVIDED, that the Company may (A)
redact those portions of any exhibits that are required to be posted pursuant
hereto with respect to which the Company expects to request confidential
treatment in connection with the filing of the Exchange Offer Registration
Statement or the Shelf Registration Statement, (B) omit such information as the
Company believes in good faith is not applicable as a result of the fact that
the Company is not actually filing reports with the SEC and is otherwise
immaterial and (C) change the form of certificate that would otherwise be
required pursuant to 18 U.S.C. Section 1350 as a result of the preceding clauses
(A) and (B). In such event, notwithstanding the time of filing that would
otherwise be required pursuant to the first sentence of this Section 4.02, the
Company shall post quarterly information on the Company Website not later than
60 days after the end of the applicable quarterly reporting period. For purposes
of this Section 4.02, the term "COMPANY WEBSITE" means the collection of web
pages that may be accessed on the World Wide Web using the URL address
http://www.merisant.com or such other address as the Company may from time to
time designate in writing to the Trustee.

          In addition, the Company shall furnish to the Holders of the Notes and
to prospective investors, upon the requests of such Holders, any information
required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act so
long as any Notes are not freely transferable under the Securities Act. The
Company also shall comply with the other provisions of TIA Section 314(a).

          SECTION 4.03.  COMPLIANCE CERTIFICATE.  The Company shall deliver to
the Trustee within 120 days after the end of

<Page>

                                                                              45

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

          SECTION 4.04.  CHANGE OF CONTROL.

          (a)  Upon the occurrence of a Change of Control, each Holder shall
have the right to require that the Company repurchase such Holder's Notes at a
purchase price in cash equal to 101% of the principal amount thereof on the date
of the purchase PLUS accrued and unpaid interest, if any, to the date of
purchase (subject to the right of holders of record on the relevant record date
to receive interest on the relevant interest payment date), in accordance with
the terms of Section 4.04(b). In the event that at the time of such Change of
Control, the terms of the Credit Agreement or any other Credit Facility prohibit
the Company from making a Change of Control Offer or from purchasing the Notes
pursuant to this Section 4.04, the Company shall, prior to the mailing of the
notice to Holders provided for in Section 4.04(b) below but, in any event within
30 days following any Change of Control: (1) repay in full all Indebtedness
outstanding under the relevant Credit Facility; or (2) obtain the requisite
consent under the relevant Credit Facility to permit the purchase of the Notes
as provided for in Section 4.04(b).

          (b)  Within 30 days following any Change of Control, the Company shall
mail a notice to each Holder with a copy to the Trustee (the "CHANGE OF CONTROL
OFFER") stating:

          (1)  that a Change of Control has occurred and that such Holder has
     the right to require the Company to purchase such Holder's Notes at a
     purchase price in cash equal to 101% of the principal amount thereof on the
     date of purchase, plus accrued and unpaid interest, if any, to the date of
     purchase (subject to the right of Holders of record on the relevant record
     date to receive interest on the relevant interest payment date);

          (2)  the circumstances and relevant facts regarding such Change of
     Control (including information with respect to PRO FORMA historical income,
     cash flow and

<Page>

                                                                              46

     capitalization, in each case after giving effect to such Change of
     Control);

          (3)  the purchase date (which shall be no earlier than 30 days nor
     later than 60 days from the date such notice is mailed); and

          (4)  the instructions, determined by the Company, consistent with this
     Section 4.04, that a Holder must follow in order to have its Notes
     purchased; and

          (5)  that if the Change of Control Offer is accepted by Holders of not
     less than 75% of the Notes then outstanding, the Company shall have the
     option to redeem the Untendered Notes as described in Section 5 of the
     Notes, and setting forth the formula used to determine the redemption price
     in such circumstances.

          (c)  Holders electing to have a Note purchased will be required to
surrender the Note, with an appropriate form duly completed, to the Company at
the address specified in the notice at least three Business Days prior to the
purchase date. Holders will be entitled to withdraw their election if the
Trustee or the Company receives not later than one Business Day prior to the
purchase date, a telegram, telex, facsimile transmission or letter setting forth
the name of the Holder, the principal amount of the Note which was delivered for
purchase by the Holder and a statement that such Holder is withdrawing their
election to have such Note purchased.

          (d)  On the purchase date, all Notes purchased by the Company under
this Section 4.04 shall be delivered by the Company to the Trustee for
cancellation, and the Company shall pay the purchase price plus accrued and
unpaid interest, if any, to the Holders entitled thereto.

          (e)  Notwithstanding the foregoing provisions of this Section 4.04,
the Company shall not be required to make a Change of Control Offer upon a
Change of Control if 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 Section 4.04 applicable to a Change of Control Offer made by the Company
and purchases all Notes validly tendered and not withdrawn under such Change of
Control Offer.

          (f)  The Company shall comply, to the extent applicable, with the
requirements of Section 14(e) of the Exchange Act and any other securities laws
or regulations in

<Page>

                                                                              47

connection with the repurchase of Notes pursuant to this Section 4.04. To the
extent that the provisions of any securities laws or regulations conflict with
provisions of this Section 4.04, the Company shall comply with the applicable
securities laws and regulations and shall not be deemed to have breached its
obligations under this Section 4.04 by virtue of its compliance with such
securities laws or regulations.

          (g)  The provisions under this Indenture relative to the Company's
obligation to make an offer to purchase the Notes as a result of a Change of
Control may be waived or modified with the written consent of the holders of a
majority in principal amount of the Notes.

          SECTION 4.05.  LIMITATION ON RESTRICTED PAYMENTS.

          (a)  The Company shall not, and shall not permit any Restricted
Subsidiary to, directly or indirectly, make a Restricted Payment if at the time
the Company or such Restricted Subsidiary makes such Restricted Payment:

          (1)  a Default shall have occurred and be continuing (or would result
     therefrom);

          (2)  the Company is not entitled to Incur an additional $1.00 of
     Indebtedness under Section 4.06(a); or

          (3)  the aggregate amount of such Restricted Payment and all other
     Restricted Payments since the Issue Date made pursuant to this Section
     4.05(a)(3) and all Restricted Payments since the Issue Date made pursuant
     to Section 4.05 (b)(1), (b)(3), (b)(4) and (b)(8) would exceed the sum of
     (without duplication):

               (A)  50% of the Consolidated Net Income accrued during the period
          (treated as one accounting period) from the beginning of the fiscal
          quarter immediately following the fiscal quarter during which the
          Issue Date occurs to the end of the most recent fiscal quarter ending
          at least 45 days prior to the date of such Restricted Payment (or, in
          case such Consolidated Net Income shall be a deficit, minus 100% of
          such deficit); PLUS

               (B)  100% of the aggregate Net Cash Proceeds received by the
          Company from the issuance or sale of its Capital Stock (other than
          Disqualified Stock) subsequent to the Issue Date (other than an
          issuance

<Page>

                                                                              48

          or sale to a Subsidiary of the Company and other than an issuance or
          sale to an ESOP) and 100% of any cash capital contribution received by
          the Company from its shareholders subsequent to the Issue Date; PLUS

               (C)  the amount by which Indebtedness of the Company is reduced
          on the Company's balance sheet upon the conversion or exchange (other
          than by a Subsidiary of the Company) subsequent to the Issue Date of
          any Indebtedness of the Company convertible or exchangeable for
          Capital Stock (other than Disqualified Stock) of the Company (less the
          amount of any cash, or the fair value of any other property,
          distributed by the Company upon such conversion or exchange); PLUS

               (D)  an amount equal to the sum of (x) the net reduction in the
          Investments (other than Permitted Investments) made by the Company or
          any Restricted Subsidiary in any Person resulting from repurchases,
          repayments or redemptions of such Investments by such Person, proceeds
          realized on the sale of such Investment and proceeds representing the
          return of capital (excluding amounts that contribute to Consolidated
          Net Income), in each case received by the Company or any Guarantor and
          (y) the portion (proportionate to the Company's equity interest in
          such Subsidiary) of the fair market value of the net assets of an
          Unrestricted Subsidiary at the time such Unrestricted Subsidiary is
          designated a Restricted Subsidiary; PROVIDED, HOWEVER, that the
          foregoing sum shall not exceed, in the case of any such Person or
          Unrestricted Subsidiary, the amount of Investments (excluding
          Permitted Investments) previously made (and treated as a Restricted
          Payment) by the Company or any Restricted Subsidiary in such Person or
          Unrestricted Subsidiary.

          (b)  The provisions of Section 4.05(a) shall not prohibit (but in the
case of subparagraphs (b)(3), (b)(4), (b)(7) and (b)(8) of this Section 4.05,
only if no Default has occurred and is continuing or would result therefrom):

          (1)  any Restricted Payment made out of the Net Cash Proceeds of the
     substantially concurrent issuance or sale of, or made by conversion into or
     exchange for, Capital Stock of the Company (other than Disqualified Stock
     and other than Capital Stock issued or sold to a Subsidiary of

<Page>

                                                                              49

     the Company or an ESOP) or a substantially concurrent cash capital
     contribution received by the Company from one or more of its shareholders;

          (2)  any purchase, repurchase, redemption, defeasance or other
     acquisition or retirement for value of Subordinated Obligations of the
     Company or a Guarantor made by exchange for, or out of the proceeds of the
     substantially concurrent Issuance or sale of, Indebtedness which is
     permitted to be Incurred pursuant to Section 4.06;

          (3)  dividends paid within 60 days after the date of declaration
     thereof if at such date of declaration such dividend would have complied
     with this Section 4.05; PROVIDED, HOWEVER, that such dividend shall be
     included in the calculation of the amount of Restricted Payments;

          (4)  the purchase, redemption or other acquisition or retirement for
     value of shares of Capital Stock of the Company or any of its Subsidiaries,
     and dividends, distributions or advances to Holdings to be used by Holdings
     for the purchase, redemption or other acquisition or retirement for value
     of shares of Capital Stock of Holdings, in each case from employees, former
     employees, directors or former directors of Holdings or any of its
     Subsidiaries (or permitted transferees of such employees, former employees,
     directors or former directors), pursuant to the terms of the agreements
     (including employment agreements) or plans (or amendments thereto) approved
     by the Board of Directors or the Holdings Board, as appropriate, under
     which such individuals purchase or sell or are granted the option to
     purchase or sell, shares of such Capital Stock; PROVIDED, HOWEVER, that the
     aggregate amount of such purchases, redemptions and other acquisitions or
     retirements shall not exceed the lesser of (A) the sum of (i) $1.5 million
     multiplied by the number of calendar years that have commenced since the
     Issue Date, plus (ii) $0.75 million, and (B) $5.0 million;

          (5)  dividends, distributions or advances to Holdings or Parent to be
     used by Holdings or Parent to pay Federal, state and local taxes payable by
     Holdings or Parent and directly attributable to (or arising as a result of)
     the operations of the Company and its Restricted Subsidiaries; PROVIDED,
     HOWEVER, that (A) the amount of such dividends shall not exceed the amount
     that the Company and its Restricted Subsidiaries would be required to pay
     in respect of such Federal, state and local taxes were the Company to

<Page>

                                                                              50

     pay such taxes as a stand-alone taxpayer and (B) such dividends pursuant to
     this clause (5) are used by Holdings or Parent for such purposes within 20
     days of the receipt of such dividends;

          (6)  dividends, distributions or advances to Holdings or Parent to the
     extent necessary to pay for general corporate and overhead expenses
     incurred by Holdings or Parent, in an aggregate amount not to exceed $0.5
     million in any fiscal year of the Company;

          (7)  if the Credit Agreement has become effective and the Company has
     received the proceeds of the term loan thereunder, the Permitted Closing
     Date Payment; and

          (8)  Restricted Payments in an aggregate amount which, when taken
     together with all other Restricted Payments made pursuant to this clause
     (8) and then outstanding, do not exceed $10.0 million.

          The amount of all Restricted Payments (other than cash) shall be the
fair market value on the date of the Restricted Payment of the assets proposed
to be transferred by the Company or such Restricted Subsidiary, as the case may
be, in accordance with the Restricted Payment. The fair market value of any
non-cash Restricted Payment shall be determined in good faith by an executive
officer of the Company (if such fair market value is less than $1.0 million), or
by the Board of Directors (in all other cases), in each case pursuant to an
Officers' Certificate delivered to the Trustee.

          SECTION 4.06.  LIMITATION ON INDEBTEDNESS.

          (a)  The Company shall not, and shall not permit any Restricted
Subsidiary to, Incur, directly or indirectly, any Indebtedness; PROVIDED,
HOWEVER, that the Company and the Guarantors shall be entitled to Incur
Indebtedness if, on the date of such Incurrence and after giving effect thereto
on a PRO FORMA basis, no Default has occurred and is continuing and the
Consolidated Coverage Ratio exceeds 2.0 to 1.

          (b)  Notwithstanding the foregoing paragraph (a), the Company and the
Restricted Subsidiaries shall be entitled to Incur any or all of the following
Indebtedness:

          (1)  Indebtedness Incurred pursuant to Credit Facilities; PROVIDED,
     HOWEVER, that (A) after giving effect to any such Incurrence, the aggregate
     principal amount of

<Page>

                                                                              51

     all Indebtedness Incurred under this clause (1) and then outstanding does
     not exceed $310.0 million, and (B) such amount specified in clause (A)
     shall be reduced to the extent of any reduction or elimination of any
     commitment under any Credit Facility or, without duplication, any permanent
     repayment of principal of Indebtedness under any Credit Facility, in each
     case resulting from or relating to the formation of any Receivables
     Subsidiary or the consummation of any Qualified Receivables Transaction and
     shall thereafter be increased to the extent of any subsequent increase in
     the commitment under any Credit Facility resulting from or relating to the
     termination of any Qualified Receivables Transaction or the elimination of
     any Receivables Subsidiary (but in no event may such amount exceed the
     amount specified in clause (A));

          (2)  Indebtedness owed to and held by the Company or a Wholly
     Controlled Subsidiary; PROVIDED, HOWEVER, that (A) any subsequent issuance
     or transfer of any Capital Stock which results in any such Wholly
     Controlled Subsidiary ceasing to be a Wholly Controlled Subsidiary or any
     subsequent transfer of such Indebtedness (other than to the Company or a
     Wholly Controlled Subsidiary) shall be deemed, in each case, to constitute
     the Incurrence of such Indebtedness by the obligor thereon and (B) if the
     Company or a Guarantor is the obligor on such Indebtedness, such
     Indebtedness is expressly subordinated to the prior payment in full in cash
     of all obligations with respect to the Notes or such Guarantor's Guaranty;

          (3)  the Notes and the Exchange Notes (other than any Additional
     Notes) and the Guaranties;

          (4)  Indebtedness outstanding on the Issue Date (other than
     Indebtedness described in clause (1), (2) or (3) of this Section 4.06(b));

          (5)  Indebtedness of a Restricted Subsidiary Incurred and outstanding
     on or prior to the date on which such Subsidiary was acquired by the
     Company (other than Indebtedness Incurred in connection with, or to provide
     all or any portion of the funds or credit support utilized to consummate,
     the transaction or series of related transactions pursuant to which such
     Subsidiary became a Subsidiary or was acquired by the Company); PROVIDED,
     HOWEVER, that on the date of such acquisition and after giving PRO FORMA
     effect thereto, the Company would have

<Page>

                                                                              52

     been able to Incur at least $1.00 of additional Indebtedness pursuant to
     Section 4.06(a);

          (6)  Refinancing Indebtedness in respect of Indebtedness Incurred
     pursuant to Section 4.06(a) or pursuant to clause (3), (4) or (5) of this
     Section 4.06(b) or this clause (6); PROVIDED, HOWEVER, that to the extent
     such Refinancing Indebtedness directly or indirectly Refinances
     Indebtedness of a Subsidiary Incurred pursuant to clause (5), such
     Refinancing Indebtedness shall be Incurred only by such Subsidiary;

          (7)  Hedging Obligations consisting of (A) Interest Rate Agreements
     directly related to Indebtedness of the Company and its Restricted
     Subsidiaries, and (B) Currency Agreements directly related to the revenues
     or expenses of the Company and its Restricted Subsidiaries;

          (8)  obligations in respect of performance, bid and surety bonds and
     completion guarantees provided by the Company or any Restricted Subsidiary
     in the ordinary course of business;

          (9)  Indebtedness arising from the honoring by a bank or other
     financial institution of a check, draft or similar instrument drawn against
     insufficient funds in the ordinary course of business; PROVIDED, HOWEVER,
     that such Indebtedness is extinguished within two Business Days of its
     Incurrence;

          (10) Indebtedness consisting of any Guarantee by the Company or a
     Guarantor of Indebtedness of the Company or a Guarantor outstanding on the
     Issue Date or permitted by this Indenture to be Incurred by the Company or
     a Guarantor;

          (11) Indebtedness (including Capital Lease Obligations) Incurred by
     the Company or any of its Restricted Subsidiaries to finance the purchase,
     lease, construction or improvement of property (real or personal) or
     equipment (whether through the direct purchase of assets or the purchase of
     Capital Stock of any Person owning such assets), and any Refinancing
     Indebtedness Incurred to Refinance such Indebtedness, in an aggregate
     principal amount which, when taken together with all other Indebtedness
     Incurred pursuant to this clause (11) and then outstanding, does not exceed
     $2.0 million;

<Page>

                                                                              53

          (12) Indebtedness of a Receivables Subsidiary Incurred pursuant to a
     Qualified Receivables Transaction;

          (13) Indebtedness consisting of indemnification, adjustment of
     purchase price, earn-out or similar obligations (other than Guarantees of
     Indebtedness), in each case incurred in connection with the acquisition or
     disposition of assets; and

          (14) Indebtedness of the Company or the Guarantors in an aggregate
     principal amount which, when taken together with all other Indebtedness of
     the Company and the Guarantors outstanding under this clause (14) does not
     exceed the greater of (A) $15.0 million, and (B) 5% of Consolidated
     Tangible Assets.

          (c)  Notwithstanding the foregoing, the Company shall not, and shall
not permit any Guarantor to, Incur any Indebtedness pursuant to Section 4.06(b)
if the proceeds thereof are used, directly or indirectly, to Refinance any
Subordinated Obligations of the Company or any Guarantor unless such
Indebtedness shall be subordinated to the Notes or the applicable Guaranty to at
least the same extent as such Subordinated Obligations.

          (d)  For purposes of determining compliance with this Section 4.06, in
the event that an item of Indebtedness meets the criteria of more than one of
the categories of Indebtedness described in Section 4.06(a) or 4.06(b), (1) the
Company, in its sole discretion, is entitled to classify such item of
Indebtedness at the time of Incurrence, in any manner in compliance with this
Section 4.06, (2) the Company will only be required to include the amount and
type of such Indebtedness in one of the above categories and (3) the Company
will be entitled to divide and classify an item of Indebtedness in more than one
of the categories of Indebtedness described above. Notwithstanding the first
sentence of this Section 4.06(d), any Bank Indebtedness Incurred on the Issue
Date will be deemed to have been Incurred under Section 4.06(b)(1). For purposes
of determining compliance with Sections 4.06(b)(1) and 4.06(b)(14), Indebtedness
Incurred in a currency other than U.S. dollars shall at all times be deemed to
be outstanding in U.S. dollars calculated at an exchange rate equal to the
applicable exchange rate at the time of the Incurrence of such non-U.S. dollar
Indebtedness (or, in case of revolving Indebtedness, at the time of the most
recent Incurrence of any Indebtedness under such revolving credit facility).

<Page>

                                                                              54

          (e)  Notwithstanding Section 4.06(a) or 4.06(b), the Company shall
not, and shall not permit any Guarantor to, Incur any Indebtedness, unless such
Indebtedness is Incurred in compliance with Sections 4.07 and 4.08.

          SECTION 4.07.  LIMITATION ON LIENS.  The Company shall not, and shall
not permit any Guarantor to, directly or indirectly, create, incur, assume or
suffer to exist or become effective any Lien securing Indebtedness of any kind
(other than Senior Indebtedness), on or with respect to any of its assets,
whether owned at the Issue Date or thereafter acquired, unless (a) in the case
of any Lien securing Subordinated Obligations, the Notes (or the appropriate
Guaranty) are secured by a Lien on such assets that is senior in priority to
such Lien and (b) in the case of any other Lien, the Notes (or the appropriate
Guaranty) are either secured equally and ratably with such Indebtedness or are
secured by a Lien on such assets that is senior in priority to such Lien.

          SECTION 4.08.  ANTI-LAYERING.  The Company shall not, and shall not
permit any Guarantor to, Incur any Indebtedness if such Indebtedness is
subordinate or junior in right of payment to any Senior Indebtedness of such
Person, unless such Indebtedness is Senior Subordinated Indebtedness or is
expressly subordinated in right of payment to Senior Subordinated Indebtedness
of such Person.

          SECTION 4.09.  LIMITATION ON RESTRICTIONS ON DISTRIBUTIONS FROM
RESTRICTED SUBSIDIARIES.  The Company shall not, and shall not permit any
Restricted Subsidiary to, create or otherwise cause or permit to exist or become
effective any consensual encumbrance or restriction on the ability of any
Restricted Subsidiary to (a) pay dividends or make any other distributions on
its Capital Stock to the Company or a Restricted Subsidiary or pay any
Indebtedness owed to the Company or a Restricted Subsidiary, (b) make any loans
or advances to the Company or a Restricted Subsidiary or (c) transfer any of its
property or assets to the Company or a Restricted Subsidiary, except:

          (1)  with respect to clauses (a), (b) and (c),

               (A)  any encumbrance or restriction pursuant to an agreement in
          effect at or entered into on the Issue Date;

               (B)  any encumbrance or restriction with respect to a Restricted
          Subsidiary pursuant to an agreement

<Page>

                                                                              55

          relating to any Indebtedness Incurred by such Restricted Subsidiary on
          or prior to the date on which such Restricted Subsidiary was acquired
          by the Company (other than Indebtedness Incurred as consideration in,
          or to provide all or any portion of the funds or credit support
          utilized to consummate, the transaction or series of related
          transactions pursuant to which such Restricted Subsidiary became a
          Restricted Subsidiary or was acquired by the Company) and outstanding
          on such date;

               (C)  any encumbrance or restriction pursuant to an agreement
          effecting an amendment, modification, restatement, renewal,
          replacement or Refinancing of Indebtedness Incurred pursuant to an
          agreement referred to in Section 4.09(1)(A) or 4.09(1)(B) or this
          clause (C) or contained in any amendment to an agreement referred to
          in Section 4.09(1)(A) or 4.09(1)(B) or this clause (C); PROVIDED,
          HOWEVER, that the encumbrances and restrictions with respect to such
          Restricted Subsidiary contained in any such refinancing agreement or
          amendment are no less favorable to the Noteholders than encumbrances
          and restrictions with respect to such Restricted Subsidiary contained
          in such predecessor agreements;

               (D)  any encumbrance or restriction arising under any applicable
          law, rule, regulation or order; and

               (E)  any encumbrance or restriction that (i) arises pursuant to
          the terms of any agreement entered into in connection with any
          Qualified Receivables Transaction and (ii) applies only to a
          Receivables Subsidiary; and

          (2)  with respect to clause (c) only,

               (A)  any encumbrance or restriction consisting of a customary
          nonassignment provision in a lease, license or similar ordinary course
          of business agreement;

               (B)  any restriction contained in a security agreement or
          mortgage securing Indebtedness of a Restricted Subsidiary to the
          extent such restriction restricts the transfer of the property subject
          to such security agreement or mortgage; and

<Page>

                                                                              56

               (C)  any restriction with respect to a Restricted Subsidiary
          imposed pursuant to an agreement entered into for the sale or
          disposition of all or substantially all the Capital Stock or assets of
          such Restricted Subsidiary pending the closing of such sale or
          disposition.

          SECTION 4.10.  LIMITATION ON SALES OF ASSETS AND SUBSIDIARY STOCK.

          (a)  The Company shall not, and shall not permit any Restricted
Subsidiary to, directly or indirectly, consummate any Asset Disposition unless:

          (1)  the Company or such Restricted Subsidiary receives consideration
     at the time of such Asset Disposition at least equal to the fair market
     value (including as to the value of all non-cash consideration), as
     determined in good faith by an executive officer of the Company (if such
     fair market value is less than $1.0 million) or by the Board of Directors
     (in all other cases), of the shares and assets subject to such Asset
     Disposition;

          (2)  at least 75% of the consideration thereof received by the Company
     or such Restricted Subsidiary is in the form of cash or cash equivalents;
     and

          (3)  an amount equal to 100% of the Net Available Cash from such Asset
     Disposition is applied by the Company (or such Restricted Subsidiary, as
     the case may be)

               (A)  FIRST, to the extent the Company elects (or is required by
          the terms of any Indebtedness), to prepay, repay, redeem or purchase
          Senior Indebtedness of the Company or any Guarantor or Indebtedness of
          a Wholly Controlled Subsidiary that is not a Guarantor (in each case
          other than Indebtedness owed to the Company or an Affiliate of the
          Company) within one year from the later of the date of such Asset
          Disposition or the receipt of such Net Available Cash;

               (B)  SECOND, to the extent of the balance of such Net Available
          Cash after application in accordance with clause (A), to the extent
          the Company elects, to acquire Additional Assets within one year from
          the later of the date of such Asset Disposition or the receipt of such
          Net Available Cash; and

<Page>

                                                                              57

               (C)  THIRD, to the extent of the balance of such Net Available
          Cash after application in accordance with clauses (A) and (B), to make
          an offer to the holders of the Notes (and to holders of other Senior
          Subordinated Indebtedness of the Company designated by the Company) to
          purchase Notes (and such other Senior Subordinated Indebtedness of the
          Company) pursuant to and subject to the conditions contained in this
          Indenture;

     PROVIDED, HOWEVER, that in connection with any prepayment, repayment or
     purchase of Indebtedness pursuant to clause (A) or (C) of this Section
     4.07(a), the Company or such Restricted Subsidiary shall permanently retire
     such Indebtedness and shall cause the related loan commitment (if any) to
     be permanently reduced in an amount equal to the principal amount so
     prepaid, repaid or purchased.

          Notwithstanding the foregoing provisions of this Section 4.10, the
Company and the Restricted Subsidiaries shall not be required to apply any Net
Available Cash in accordance with this Section 4.10 except to the extent that
the aggregate Net Available Cash from all Asset Dispositions which is not
applied in accordance with this Section 4.10 exceeds $10.0 million. Pending
application of Net Available Cash pursuant to this Section 4.10, such Net
Available Cash shall be invested in Temporary Cash Investments or applied to
temporarily reduce revolving credit indebtedness.

          For the purposes of clause (a)(2) of this Section 4.10, the following
are deemed to be cash or cash equivalents: (1) the assumption of Senior
Indebtedness of the Company or any Guarantor or Indebtedness of any Wholly
Controlled Subsidiary that is not a Guarantor (in each case other than
Indebtedness owed to the Company or an Affiliate of the Company) and the release
of the Company or such Restricted Subsidiary from all liability on such
Indebtedness in connection with such Asset Disposition; and (2) securities
received by the Company or any Restricted Subsidiary from the transferee that
are promptly converted by the Company or such Restricted Subsidiary into cash.

          (b)  In the event of an Asset Disposition that requires the purchase
of Notes (and other Senior Subordinated Indebtedness of the Company) pursuant to
Section 4.10(a)(3)(C), the Company shall make such offer to purchase Notes on or
before the 366th day after the date of such Asset Disposition, and shall
purchase Notes tendered pursuant to an offer by the

<Page>

                                                                              58

Company for the Notes (and such other Senior Subordinated Indebtedness of the
Company) at a purchase price of 100% of their principal amount (or, in the event
such other Senior Subordinated Indebtedness of the Company was issued with
significant original issue discount, 100% of the accreted value thereof) without
premium, PLUS accrued but unpaid interest (or, in respect of such other Senior
Subordinated Indebtedness of the Company, such lesser price, if any, as may be
provided for by the terms of such Senior Subordinated Indebtedness of the
Company) in accordance with the procedures (including prorating in the event of
oversubscription) set forth in this Indenture. If the aggregate purchase price
of the Notes and other Senior Subordinated Indebtedness tendered exceeds the Net
Available Cash allotted to their purchase, the Company shall select the
securities to be purchased on a PRO RATA basis but in round denominations, which
in the case of the Notes shall be denominations of $1,000 principal amount or
multiples thereof. The Company shall not be required to make such an offer to
purchase Notes (and other Senior Subordinated Indebtedness of the Company)
pursuant to this Section 4.10 if the Net Available Cash available therefor is
less than $10.0 million (which lesser amount shall be carried forward for
purposes of determining whether such an offer is required with respect to the
Net Available Cash from any subsequent Asset Disposition). Upon completion of
any application of Net Available Cash in accordance with the foregoing
provisions of clause (a) (3) of this Section 4.10, the amount of Net Available
Cash shall be reset at zero.

          (c)  The Company shall comply, to the extent applicable, with the
requirements of Section 14(e) of the Exchange Act and any other securities laws
or regulations in connection with the repurchase of Notes pursuant to this
Section 4.10. To the extent that the provisions of any securities laws or
regulations conflict with provisions of this Section 4.10, the Company shall
comply with the applicable securities laws and regulations and shall not be
deemed to have breached its obligations under this Section 4.10 by virtue of its
compliance with such securities laws or regulations.

          (d)  The provisions under this Indenture relative to the Company's
obligation to make an offer to purchase the Notes as a result of an Asset
Disposition may be waived or modified with the written consent of the holders of
a majority in principal amount of the Notes.

          SECTION 4.11.  LIMITATION ON AFFILIATE TRANSACTIONS.

<Page>

                                                                              59

          (a)  The Company shall not, and shall not permit any Restricted
Subsidiary to, enter into or permit to exist any transaction (including the
purchase, sale, lease or exchange of any property, employee compensation
arrangements or the rendering of any service) with, or for the benefit of, any
Affiliate of the Company (an "AFFILIATE TRANSACTION") unless:

          (1)  the terms of the Affiliate Transaction are no less favorable to
     the Company or such Restricted Subsidiary than those that could be obtained
     at the time of the Affiliate Transaction in arm's-length dealings with a
     Person who is not an Affiliate;

          (2)  if such Affiliate Transaction involves an amount in excess of
     $5.0 million, the terms of the Affiliate Transaction are set forth in
     writing and a majority of the non-employee directors of the Company
     disinterested with respect to such Affiliate Transaction shall have
     determined in good faith that the criteria set forth in clause (1) of this
     Section 4.11 are satisfied and shall have approved the relevant Affiliate
     Transaction as evidenced by a resolution of the Board of Directors; and

          (3)  if such Affiliate Transaction involves an amount in excess of
     $15.0 million, the Board of Directors shall also have received a written
     opinion from an Independent Qualified Party to the effect that such
     Affiliate Transaction is fair, from a financial standpoint, to the Company
     and its Restricted Subsidiaries or is not less favorable to the Company and
     its Restricted Subsidiaries than could reasonably be expected to be
     obtained at the time in an arm's-length transaction with a Person who was
     not an Affiliate.

          (b)  The provisions of Section 4.11(a) shall not prohibit:

          (1)  any Investment (other than a Permitted Investment) or other
     Restricted Payment, in each case permitted to be made pursuant to Section
     4.05;

          (2)  any issuance of securities, or other payments, awards or grants
     in cash, securities or otherwise pursuant to, or the funding of, employment
     arrangements, stock options and stock ownership plans approved by the Board
     of Directors;

<Page>

                                                                              60

          (3)  loans or advances to employees in the ordinary course of business
     in accordance with the past practices of the Company or its Restricted
     Subsidiaries, but in any event not to exceed $0.5 million in the aggregate
     outstanding at any one time;

          (4)  the payment of reasonable fees and compensation (including health
     benefits, vacation, severance, compensation and similar benefits) to, and
     provision of customary indemnification on behalf of, directors, employees,
     consultants and agents of the Company or any Restricted Subsidiary as
     determined in good faith by the Board of Directors or the Company's senior
     management;

          (5)  any transaction (i) between or among the Company and/or its
     Restricted Subsidiaries or (ii) between or among the Company, a Restricted
     Subsidiary or any other Person that would constitute an Affiliate
     Transaction solely because the Company or a Restricted Subsidiary owns an
     equity interest in or otherwise controls such Person;

          (6)  the issuance or sale of any Capital Stock (other than
     Disqualified Stock) of the Company;

          (7)  transactions with distributors, suppliers or other purchasers or
     sellers of goods or services, in each case in the ordinary course of
     business consistent with past practices and otherwise in compliance with
     the terms of this Indenture, and which are on terms at least as favorable
     to the Company as might reasonably have been obtained at such time from an
     unaffiliated third party;

          (8)  any transaction in connection with a Qualified Receivables
     Transaction between a Receivables Subsidiary and any Person in which the
     Receivables Subsidiary has an Investment; and

          (9)  any agreement that was outstanding as of the Issue Date and was
     disclosed in the Offering Circular under the heading "Related Party
     Transactions" and any amendment to such agreement so long as such amendment
     is not more disadvantageous to the Holders than the original agreement as
     in effect on the Issue Date.

          SECTION 4.12.  GUARANTORS.  The Company shall cause (1) each Domestic
Subsidiary (other than a Receivables Subsidiary) and (2) each Foreign Subsidiary
that Guarantees any Indebtedness of the Company or a Domestic Subsidiary, in
each

<Page>

                                                                              61

case to, at the same time, execute and deliver to the Trustee a Supplemental
Guaranty Agreement pursuant to which such Restricted Subsidiary will Guarantee
payment of the Notes on the same terms and conditions as those set forth in this
Indenture.

          SECTION 4.13.  FURTHER INSTRUMENTS AND ACTS.  Upon request of the
Trustee, the Company will execute and deliver such further instruments and do
such further acts as may be reasonably necessary or proper to carry out more
effectively the purpose of this Indenture.

                                    ARTICLE 5

                                     MERGER

          SECTION 5.01.  MERGER AND CONSOLIDATION.

          (a)  The Company shall not consolidate with or merge with or into, or
convey, transfer or lease, in one transaction or a series of transactions,
directly or indirectly, all or substantially all its assets to, any Person,
unless:

          (1)  the resulting, surviving or transferee Person (the "SUCCESSOR
     COMPANY") shall be a Person organized and existing under the laws of the
     United States of America, any State thereof or the District of Columbia and
     the Successor Company (if not the Company) shall expressly assume, by an
     indenture supplemental hereto, executed and delivered to the Trustee, in
     form satisfactory to the Trustee, all the obligations of the Company under
     the Notes and this Indenture;

          (2)  immediately after giving PRO FORMA effect to such transaction
     (and treating any Indebtedness of the Successor Company (if not the
     Company) and its Subsidiaries as having been Incurred by the Successor
     Company or such Subsidiary at the time of such transaction), no Default
     shall have occurred and be continuing;

          (3)  immediately after giving PRO FORMA effect to such transaction,
     the Successor Company would be able to Incur an additional $1.00 of
     Indebtedness pursuant to Section 4.06(a);

          (4)  each Person that is required pursuant to the terms of this
     Indenture to be a Guarantor shall have become a Guarantor pursuant to a
     Supplemental Guaranty Agreement or shall have confirmed its Guaranty
     pursuant to a

<Page>

                                                                              62

     supplemental indenture in form reasonably satisfactory to the Trustee (but
     this clause (4) shall not apply to Guarantors that were Guarantors prior to
     such transaction if, as a result of such transaction, the Company is the
     Successor Company);

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

          (6)  the Company shall have delivered to the Trustee an Opinion of
     Counsel to the effect that the Holders will not recognize income, gain or
     loss for Federal income tax purposes as a result of such transaction and
     will be subject to Federal income tax on the same amounts, in the same
     manner and at the same times as would have been the case if such
     transaction had not occurred;

PROVIDED, HOWEVER, that clause (3) will not be applicable (A) to the Company
consolidating with, merging into, conveying, transferring or leasing all or part
of its assets to the Company or a Guarantor or (B) to the Company merging with
an Affiliate of the Company solely for the purpose and with the sole effect of
reincorporating the Company in another jurisdiction within the United States of
America.

          The Successor Company (if not the Company) shall be the successor to
the Company and shall succeed to, and be substituted for, and may exercise every
right and power of, the Company under this Indenture, and the predecessor
Company, except in the case of a lease, shall be released from the obligation to
pay the principal of and interest on the Notes.

          (b)  The Company shall not permit any Guarantor to consolidate with or
merge with or into, or convey, transfer or lease, in one transaction or a series
of transactions, all or substantially all of its assets to any Person unless:

          (1)  except in the case of a Guarantor that has been disposed of in
     its entirety to another Person (other than to the Company or an Affiliate
     of the Company), whether through a merger, consolidation or sale of Capital
     Stock or assets, if in connection therewith the Company provides an
     Officers' Certificate to the Trustee to the effect that the Company will
     comply with, and does comply with, its obligations under Section 4.10 in
     respect of such

<Page>

                                                                              63

     disposition, the resulting, surviving or transferee Person (if not such
     Subsidiary) shall be a Person organized and existing under the laws of the
     jurisdiction under which such Subsidiary was organized or under the laws of
     the United States of America, or any State thereof or the District of
     Columbia, and such Person shall expressly assume, by a Supplemental
     Guaranty Agreement, in a form satisfactory to the Trustee, all the
     obligations of such Subsidiary, if any, under its Guaranty; and

          (2)  the Company delivers to the Trustee an Officers' Certificate and
     an Opinion of Counsel, each stating that such consolidation, merger or
     transfer and such Supplemental Guaranty Agreement, if any, complies with
     this Indenture.

          (c)  Notwithstanding clauses (a) and (b) of this Section 5.01, any
Guarantor may consolidate with or merge with or into or convey, transfer or
lease, in one transaction or a series of transactions, all or substantially all
of its assets to the Company.

                                    ARTICLE 6

                              DEFAULTS AND REMEDIES

          SECTION 6.01.  EVENTS OF DEFAULT.  Each of the following is an
"EVENT OF DEFAULT":

          (1)  the Company defaults in any payment of interest on any Note when
     the same becomes due and payable, whether or not such payment shall be
     prohibited by Article 10, and such default continues for 30 days;

          (2)  the Company (i) defaults in the payment of the principal of any
     Note when the same becomes due and payable at its Stated Maturity, upon
     optional redemption, upon declaration of acceleration or otherwise, or (ii)
     fails to purchase any Note when required pursuant to this Indenture or the
     Notes, in each case whether or not such payment, redemption or purchase
     shall be prohibited by Article 10;

          (3)  the Company fails to comply with Section 5.01;

          (4)  the Company fails to comply with Section 4.02, 4.04, 4.05, 4.06,
     4.07, 4.08, 4.09, 4.10, 4.11 or 4.12 (other than a failure to purchase
     Notes when required under

<Page>

                                                                              64

     Section 4.04 or 4.10) and such failure continues for 30 days after the
     notice specified below;

          (5)  the Company or any Guarantor fails to comply with any of its
     agreements in the Notes or this Indenture (other than those referred to in
     clause (1), (2), (3) or (4) above) and such failure continues for 60 days
     after the notice specified below;

          (6)  Indebtedness of the Company, any Guarantor or any Significant
     Subsidiary is not paid within any applicable grace period after final
     maturity or is accelerated by the holders thereof because of a default and
     the total amount of such Indebtedness unpaid or accelerated exceeds $10.0
     million, or its foreign currency equivalent at the time;

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

               (A)  commences a voluntary case;

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

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

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

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

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

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

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

               (C)  orders the winding up or liquidation of the Company, any
          Guarantor or any Significant Subsidiary;

<Page>

                                                                              65

     or any similar relief is granted under any foreign laws and the order or
     decree remains unstayed and in effect for 60 days; or

          (9)  any judgment or decree for the payment of money in excess of
     $10.0 million (or its foreign currency equivalent at the time) is entered
     against the Company, a Guarantor or any Significant Subsidiary, remains
     outstanding for a period of 60 consecutive days following the entry of such
     judgment or decree and is not discharged, waived or the execution thereof
     stayed; or

          (10) a Guaranty ceases to be in full force and effect (other than in
     accordance with the terms of such Guaranty) or any Guarantor denies or
     disaffirms its obligations under its Guaranty.

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

          The term "BANKRUPTCY LAW" means Title 11, UNITED STATES CODE, or any
similar Federal or state law for the relief of debtors. The term "CUSTODIAN"
means any receiver, trustee, assignee, liquidator, custodian or similar official
under any Bankruptcy Law.

          A Default under clauses (4) or (5) of this Section 6.01 is not an
Event of Default until the Trustee or the holders of at least 25% in principal
amount of the outstanding Notes notify the Company of the default and the
Company does not cure such default within the time specified after receipt of
such notice.

          The Company shall deliver to the Trustee, within 30 days after the
occurrence thereof, written notice in the form of an Officers' Certificate of
any Event of Default under clause (6) or (10) of this Section 6.01 and any event
which with the giving of notice or the lapse of time would become an Event of
Default under clause (4), (5) or (9) of this Section 6.01, its status and what
action the Company is taking or proposes to take with respect thereto.

          SECTION 6.02.  ACCELERATION.  If an Event of Default (other than an
Event of Default specified in Section 6.01(7) or

<Page>

                                                                              66

(8)) occurs and is continuing, the Trustee by notice to the Company, or the
Holders of at least 25% in principal amount of the outstanding Notes by notice
to the Company and the Trustee, may declare the principal of and accrued but
unpaid interest on all the Notes to be due and payable. Upon such a declaration,
such principal and interest shall be due and payable immediately. If an Event of
Default specified in Section 6.01(7) or (8) with respect to the Company or a
Guarantor occurs and is continuing, the principal of and interest on all the
Notes shall IPSO FACTO become and be immediately due and payable without any
declaration or other act on the part of the Trustee or any Noteholders. The
Holders of a majority in principal amount of the Notes by notice to the Trustee
may rescind an acceleration and its consequences if the rescission would not
conflict with any judgment or decree and if all existing Events of Default have
been cured or waived except nonpayment of principal or interest that has become
due solely because of acceleration. No such rescission shall affect any
subsequent Default or impair any right consequent thereto.

          In the event of a declaration of acceleration of the Notes because an
Event of Default described in clause (5) of this Section 6.01 has occurred and
is continuing, the declaration of acceleration of the Notes shall be
automatically annulled if (A) the event of default or payment default triggering
such Event of Default pursuant to clause (5) of this Section 6.01 shall be
remedied or cured by the Company or a Restricted Subsidiary or waived by the
holders of the relevant Indebtedness within 20 days after the declaration of
acceleration with respect thereto, (B) the annulment of the acceleration of the
Notes would not conflict with any judgment or decree of a court of competent
jurisdiction and (C) all existing Events of Default, except nonpayment of
principal, premium or interest on the Notes that became due solely because of
the acceleration of the Notes, have been cured or waived.

          SECTION 6.03.  OTHER REMEDIES.  If an Event of Default occurs and is
continuing, the Trustee may pursue any available remedy to collect the payment
of principal of or interest on the Notes or to enforce the performance of any
provision of the Notes or this Indenture.

          The Trustee may maintain a proceeding even if it does not possess any
of the Notes or does not produce any of them in the proceeding. A delay or
omission by the Trustee or any Noteholder in exercising any right or remedy
accruing upon an Event of Default shall not impair the right or remedy or
constitute a waiver of or acquiescence in the Event of Default.

<Page>

                                                                              67

No remedy is exclusive of any other remedy. All available remedies are
cumulative.

          SECTION 6.04.  WAIVER OF PAST DEFAULTS.  The Holders of a majority in
principal amount of the Notes by notice to the Trustee may waive an existing
Default and its consequences except (i) a Default in the payment of the
principal of or interest on a Note, (ii) a Default arising from the failure to
redeem or purchase any Note when required pursuant to this Indenture or (iii) a
Default in respect of a provision that under Section 9.02 cannot be amended
without the consent of each Noteholder affected. When a Default is waived, it is
deemed cured, but no such waiver shall extend to any subsequent or other Default
or impair any consequent right.

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

          SECTION 6.06.  LIMITATION ON SUITS.  Except to enforce the right to
receive payment of principal, premium (if any) or interest when due, no
Noteholder may pursue any remedy with respect to this Indenture or the Notes
unless:

          (1)  the Holder gives to the Trustee written notice stating that an
     Event of Default is continuing;

          (2)  the Holders of at least 25% in principal amount of the Notes make
     a written request to the Trustee to pursue the remedy;

          (3)  such Holder or Holders offer to the Trustee reasonable security
     or indemnity against any loss, liability or expense;

<Page>

                                                                              68

          (4)  the Trustee does not comply with the request within 60 days after
     receipt of the request and the offer of security or indemnity; and

          (5)  the Holders of a majority in principal amount of the Notes do not
     give the Trustee a direction inconsistent with the request during such
     60-day period.

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

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

          SECTION 6.08.  COLLECTION SUIT BY TRUSTEE.  If an Event of Default
specified in Section 6.01(1) or (2) occurs and is continuing, the Trustee may
recover judgment in its own name and as trustee of an express trust against the
Company or any Guarantor for the whole amount then due and owing (together with
interest on any unpaid interest to the extent lawful) and the amounts provided
for in Section 7.07.

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

<Page>

                                                                              69

          SECTION 6.10.  PRIORITIES.  If the Trustee collects any money or
property pursuant to this Article 6, it shall pay out the money or property in
the following order:

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

          SECOND:  to holders of Senior Indebtedness of the Company and, if such
     money or property has been collected from a Guarantor, to holders of Senior
     Indebtedness of such Guarantor, in each case to the extent required by
     Articles 10 and 12;

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

          FOURTH:  to the Company.

          The Trustee may fix a record date and payment date for any payment to
Noteholders pursuant to this Section 6.10. At least 15 days before such record
date, the Company shall mail to each Noteholder and the Trustee a notice that
states the record date, the payment date and amount to be paid.

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

          SECTION 6.12.  WAIVER OF STAY OR EXTENSION LAWS.  The Company and each
Guarantor (to the extent it may lawfully do so) covenants that it shall not at
any time insist upon, or plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay or extension law wherever enacted, now or at
any time hereafter in force, which may affect the covenants or the performance
of this Indenture; and the Company and each

<Page>

                                                                              70

Guarantor (to the extent that it may lawfully do so) hereby expressly waives all
benefit or advantage of any such law, and shall not hinder, delay or impede the
execution of any power herein granted to the Trustee, but shall suffer and
permit the execution of every such power as though no such law had been enacted.

                                    ARTICLE 7

                                     TRUSTEE

          SECTION 7.01.  DUTIES OF TRUSTEE.

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

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

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

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

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

          (1)  this paragraph does not limit the effect of paragraph (b) of this
     Section 7.01;

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

<Page>

                                                                              71

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

          (d)  Every provision of this Indenture that in any way relates to the
Trustee is subject to Sections 7.01 and 7.02.

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

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

          (g)  No provision of this Indenture shall require the Trustee to
expend or risk its own funds or otherwise incur financial liability in the
performance of any of its duties hereunder or in the exercise of any of its
rights or powers, if it shall have reasonable grounds to believe that repayment
of such funds or adequate indemnity against such risk or liability is not
reasonably assured to it.

          (h)  Every provision of this Indenture relating to the conduct or
affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section 7.01 and to the provisions of the TIA.

          SECTION 7.02.  RIGHTS OF TRUSTEE.

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

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

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

          (d)  The Trustee shall not be liable for any action it takes or omits
to take in good faith which it believes to be

<Page>

                                                                              72

authorized or within its rights or powers; PROVIDED, HOWEVER, that the Trustee's
conduct does not constitute willful misconduct or negligence.

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

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

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

          SECTION 7.05.  NOTICE OF DEFAULTS.  If a Default occurs and is
continuing and if it is known to the Trustee, the Trustee shall mail to each
Noteholder notice of the Default within 90 days after it occurs. Except in the
case of a Default in payment of principal of or interest on any Note (including
payments pursuant to the mandatory redemption provisions of such Note, if any),
the Trustee may withhold the notice if and so long as a committee of its Trust
Officers in good faith determines that withholding the notice is not opposed to
the interests of Noteholders.

          SECTION 7.06.  REPORTS BY TRUSTEE TO HOLDERS.  As promptly as
practicable after each May 15 beginning with the May 15 following the date of
this Indenture, and in any event prior to July 15 in each year, the Trustee
shall mail to each Noteholder a brief report dated as of May 15 that complies
with TIA Section 313(a) (but if no event described in TIA Section 313(a) has
occurred within the twelve months preceding the reporting date,

<Page>

                                                                              73

no report need be mailed). The Trustee also shall comply with TIA Section
313(b).

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

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

          To secure the Company's payment obligations in this Section 7.07, the
Trustee shall have a lien prior to the Notes on all money or property held or
collected by the Trustee other than money or property held in trust to pay
principal of and interest on particular Notes.

          The Company's payment obligations pursuant to this Section 7.07 shall
survive the discharge of this Indenture. When the Trustee incurs expenses after
the occurrence of a Default specified in Section 6.01(7) or (8) with respect to
the

<Page>

                                                                              74

Company, the expenses are intended to constitute expenses of administration
under the Bankruptcy Law.

          SECTION 7.08.  REPLACEMENT OF TRUSTEE.  The Trustee may resign at any
time by so notifying the Company in writing at least 30 days prior to the date
of the proposed resignation. The Holders of a majority in principal amount of
the Notes may remove the Trustee by so notifying the Trustee and may appoint a
successor Trustee. The Company may remove the Trustee if:

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

          (2)  the Trustee is adjudged bankrupt or insolvent;

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

          (4)  the Trustee otherwise becomes incapable of acting.

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

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

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

          If the Trustee fails to comply with Section 7.10, any Noteholder may
petition any court of competent jurisdiction for

<Page>

                                                                              75

the removal of the Trustee and the appointment of a successor Trustee.

          Notwithstanding the replacement of the Trustee pursuant to this
Section 7.08, the Company's obligations under Section 7.07 shall continue for
the benefit of the retiring Trustee.

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

          In case at the time such successor or successors by merger, conversion
or consolidation to the Trustee shall succeed to the trusts created by this
Indenture any of the Notes shall have been authenticated but not delivered, any
such successor to the Trustee may adopt the certificate of authentication of any
predecessor trustee, and deliver such Notes so authenticated; and in case at
that time any of the Notes shall not have been authenticated, any successor to
the Trustee may authenticate such Notes either in the name of any predecessor
hereunder or in the name of the successor to the Trustee; and in all such cases
such certificates shall have the full force which it is anywhere in the Notes or
in this Indenture provided that the certificate of the Trustee shall have.

          SECTION 7.10.  ELIGIBILITY; DISQUALIFICATION.  The Trustee shall at
all times satisfy the requirements of TIA Section 310(a). The Trustee shall have
a combined capital and surplus of at least $50,000,000 as set forth in its most
recent published annual report of condition. The Trustee shall comply with TIA
Section 310(b); PROVIDED, HOWEVER, that there shall be excluded from the
operation of TIA Section 310(b)(1) any indenture or indentures under which other
securities or certificates of interest or participation in other securities of
the Company are outstanding if the requirements for such exclusion set forth in
TIA Section 310(b)(1) are met.

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

<Page>

                                                                              76

                                    ARTICLE 8

                       DISCHARGE OF INDENTURE; DEFEASANCE

          SECTION 8.01.  DISCHARGE OF LIABILITY ON NOTES; DEFEASANCE.

          (a)  When (1) the Company delivers to the Trustee all outstanding
Notes (other than Notes replaced pursuant to Section 2.07) for cancellation or
(2) all outstanding Notes have become due and payable, whether at maturity or on
a redemption date as a result of the mailing of a notice of redemption pursuant
to Article 3 hereof, or (3) all outstanding Notes will become due and payable
within one year or are to be called for redemption within one year under
arrangements reasonably satisfactory to the Trustee and, in the case of clauses
(a)(2) and (a)(3) of this Section 8.01, the Company irrevocably deposits with
the Trustee funds sufficient to pay at maturity or upon redemption all
outstanding Notes, including interest thereon to maturity or such redemption
date (other than Notes replaced pursuant to Section 2.07), and if in any case
the Company pays all other sums payable hereunder by the Company, then this
Indenture shall, subject to Section 8.01(c), be satisfied and discharged and
cease to be of further effect. The Trustee shall acknowledge satisfaction and
discharge of this Indenture on demand of the Company accompanied by an Officers'
Certificate and an Opinion of Counsel and at the cost and expense of the
Company.

          (b)  Subject to Sections 8.01(c) and 8.02, the Company at any time may
terminate (1) all its and the Guarantors' Obligations under the Notes and this
Indenture ("LEGAL DEFEASANCE OPTION") or (2) its and the Guarantors' Obligations
under Sections 4.02, 4.04, 4.05, 4.06, 4.07, 4.08, 4.09, 4.10, 4.11 and 4.12 and
the operation of Sections 6.01(4), 6.01(6), 6.01(7), 6.01(8), 6.01(9) and
6.01(10) (but, in the case of Sections 6.01(7) and (8), with respect only to
Significant Subsidiaries) and the limitations contained in Sections 5.01(a)(3)
and (a)(4) ("COVENANT DEFEASANCE OPTION"). The Company may exercise its legal
defeasance option not withstanding its prior exercise of its covenant defeasance
option.

          If the Company exercises its legal defeasance option, payment of the
Notes may not be accelerated because of an Event of Default with respect
thereto. If the Company exercises its covenant defeasance option, payment of the
Notes may not be accelerated because of an Event of Default specified in
Sections 6.01(4), 6.01(6), 6.01(7), 6.01(8), 6.01(9) and 6.01(10) (but,

<Page>

                                                                              77

in the case of Sections 6.01(7) and (8), with respect only to Significant
Subsidiaries) or because of the failure of the Company to comply with Sections
5.01(a)(3) and (a)(4). If the Company exercises its legal defeasance option or
its covenant defeasance option, each Guarantor shall be released from all of its
obligations with respect to its Guaranty.

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

          (c)  Notwithstanding clauses (a) and (b) of this Section 8.01, the
Company's Obligations in Sections 2.03, 2.04, 2.05, 2.06, 2.07, 2.08, 7.07 and
7.08 and in this Article 8 shall survive until the Notes have been paid in full.
Thereafter, the Company's obligations in Sections 7.07, 8.04 and 8.05 shall
survive.

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

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

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

          (3)  123 days pass after the deposit is made and during the 123-day
     period no Default specified in Sections 6.01(7) or (8) with respect to the
     Company or a Guarantor occurs which is continuing at the end of the period;

          (4)  the deposit does not constitute a default under any other
     agreement binding on the Company and is not prohibited by Article 10;

<Page>

                                                                              78

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

          (6)  in the case of the legal defeasance option, the Company shall
     have delivered to the Trustee an Opinion of Counsel stating that (A) the
     Company has received from, or there has been published by, the Internal
     Revenue Service a ruling, or (B) since the date of this Indenture there has
     been a change in the applicable Federal income tax law, in either case to
     the effect that, and based thereon such Opinion of Counsel shall confirm
     that, the Noteholders will not recognize income, gain or loss for Federal
     income tax purposes as a result of such deposit and defeasance and will be
     subject to Federal income tax on the same amounts, in the same manner and
     at the same times as would have been the case if such defeasance had not
     occurred;

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

          (8)  the Company delivers to the Trustee an Officers' Certificate and
     an Opinion of Counsel, each stating that all conditions precedent to the
     defeasance and discharge of the Notes as contemplated by this Article 8
     have been complied with.

          Before or after a deposit, the Company may make arrangements
satisfactory to the Trustee for the redemption of Notes at a future date in
accordance with Article 3.

          SECTION 8.03.  APPLICATION OF TRUST MONEY.  The Trustee shall hold in
trust money or U.S. Government Obligations deposited with it pursuant to this
Article 8. It shall apply the deposited money and the money from U.S. Government
Obligations through the Paying Agent and in accordance with this Indenture to
the payment of principal of and interest on the Notes. Money and securities so
held in trust are not subject to Article 10.

<Page>

                                                                              79

          SECTION 8.04.  REPAYMENT TO COMPANY.  The Trustee and the Paying Agent
shall promptly turn over to the Company upon request any excess money or
securities held by them at any time.

          Subject to any applicable abandoned property law, the Trustee and the
Paying Agent shall pay to the Company upon request any money held by them for
the payment of principal or interest that remains unclaimed for two years, and,
thereafter, Noteholders entitled to the money must look to the Company for
payment as general creditors.

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

          SECTION 8.06.  REINSTATEMENT.  If the Trustee or Paying Agent is
unable to apply any money or U.S. Government Obligations in accordance with this
Article 8 by reason of any legal proceeding or by reason of any order or
judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, the Company's obligations under this
Indenture and the Notes shall be revived and reinstated as though no deposit had
occurred pursuant to this Article 8 until such time as the Trustee or Paying
Agent is permitted to apply all such money or U.S. Government Obligations in
accordance with this Article 8; PROVIDED, HOWEVER, that, if the Company has made
any payment of interest on or principal of any Notes because of the
reinstatement of its obligations, the Company shall be subrogated to the rights
of the Holders of such Notes to receive such payment from the money or U.S.
Government Obligations held by the Trustee or Paying Agent.

                                    ARTICLE 9

                                   AMENDMENTS

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

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

          (2)  to provide for the assumption by a Successor Company of the
     Obligations of the Company or any Guarantor under this Indenture pursuant
     to Article 5;

<Page>

                                                                              80

          (3)  to provide for uncertificated Notes in addition to or in place of
     certificated Notes; PROVIDED, HOWEVER, that the uncertificated Notes are
     issued in registered form for purposes of Section 163(f) of the Code, or in
     a manner such that the uncertificated Notes are described in Section
     163(f)(2)(B) of the Code;

          (4)  to add guarantees with respect to the Notes, including any
     Guaranties, or to secure the Notes;

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

          (6)  to make any change that does not adversely affect the rights of
     any Noteholder;

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

          (8)  to evidence the release of a Guarantor pursuant to and in
     accordance with the terms of this Indenture; or

          (9)  to evidence the issuance of Additional Notes pursuant to and in
     compliance with Section 2.13.

          However, an amendment under this Section 9.01 may not make any change
that adversely affects the rights under Article 10 or Article 12 of any holder
of Senior Indebtedness of the Company or of a Guarantor then outstanding unless
such holder of such Senior Indebtedness (or its Representative) consents to such
change.

          After an amendment under this Section 9.01 becomes effective, the
Company shall mail to Noteholders a notice briefly describing such amendment.
The failure to give such notice to all Noteholders, or any defect therein, shall
not impair or affect the validity of an amendment under this Section 9.01.

          SECTION 9.02.  WITH CONSENT OF HOLDERS.  The Company, the Guarantors
and the Trustee may amend this Indenture or the Notes without notice to any
Noteholder but with the written consent of the Holders of at least a majority in
principal amount of the Notes then outstanding (including consents obtained in
connection with a tender offer or exchange offer for

<Page>

                                                                              81

the Notes). However, without the consent of each Noteholder affected thereby, an
amendment may not:

          (1)  reduce the amount of Notes whose Holders must consent to an
     amendment;

          (2)  reduce the rate of or extend the time for payment of interest on
     any Note;

          (3)  reduce the principal amount of or extend the Stated Maturity of
     any Note;

          (4)  reduce the amount payable upon the redemption of any Note or
     change the time at which any Note may be redeemed in accordance with
     Article 3;

          (5)  make any Note payable in money other than that stated in the
     Note;

          (6)  impair the right of any Noteholder to receive payment of
     principal of and interest on such Noteholder's Notes on or after the due
     dates therefor or to institute suit for the enforcement of any payment on
     or with respect to such Noteholder's Notes;

          (7)  impair the Company's obligation to make an offer to purchase
     Notes pursuant to Section 4.04 or 4.10 except as permitted under Section
     4.04(g) or 4.10(d), respectively.

          (8)  make any change in the last sentence of Section 4.04(g), Section
     4.10(d), Section 6.04, 6.07 or the second sentence of this Section;

          (9)  make any change in the ranking or priority of any Note that would
     adversely affect the Noteholders; or

          (10) make any change in any Guaranty that would adversely affect the
     Noteholders.

          It shall not be necessary for the consent of the Holders under this
Section 9.02 to approve the particular form of any proposed amendment, but it
shall be sufficient if such consent approves the substance thereof.

          An amendment under this Section 9.02 may not make any change that
adversely affects the rights under Article 10 or 12 of any holder of Senior
Indebtedness of the Company or of a Guarantor then outstanding unless the
holders of such Senior

<Page>

                                                                              82

Indebtedness (or any group or representative thereof authorized to give a
consent) consent to such change or as otherwise permitted by the notes,
debentures, bonds or other similar instruments evidencing such Senior
Indebtedness.

          After an amendment under this Section 9.02 becomes effective, the
Company shall mail to Noteholders a notice briefly describing such amendment.
The failure to give such notice to all Noteholders, or any defect therein, shall
not impair or affect the validity of an amendment under this Section 9.02.

          Pursuant to Section 13.06, in certain circumstances a Note may be
disregarded and deemed not to be outstanding for purposes of this Section.

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

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

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

<Page>

                                                                              83

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

          SECTION 9.06.  TRUSTEE TO SIGN AMENDMENTS.  The Trustee shall sign any
amendment authorized pursuant to this Article 9 if the amendment does not
adversely affect the rights, duties, liabilities or immunities of the Trustee.
If it does, the Trustee may but need not sign it. In signing such amendment the
Trustee shall be entitled to receive indemnity reasonably satisfactory to it and
to receive, and (subject to Section 7.01) shall be fully protected in relying
upon, an Officers' Certificate and an Opinion of Counsel stating that such
amendment is authorized or permitted by this Indenture.

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

                                   ARTICLE 10

                                  SUBORDINATION

          SECTION 10.01. AGREEMENT TO SUBORDINATE.  The Company agrees, and each
Noteholder by accepting a Note agrees, that the Indebtedness evidenced by the
Notes is subordinated in right of payment, to the extent and in the manner
provided in this Article 10, to the prior payment of all Senior Indebtedness of
the Company and that the subordination is for the benefit of and enforceable by
the holders of such Senior Indebtedness. The Notes shall in all respects rank
PARI PASSU with all other Senior Subordinated Indebtedness of the Company and
only Indebtedness of the Company which is Senior Indebtedness of the Company
shall rank senior to the Notes in accordance with the

<Page>

                                                                              84

provisions set forth herein. All provisions of this Article 10 shall be subject
to Section 10.14.

          SECTION 10.02. LIQUIDATION, DISSOLUTION, BANKRUPTCY.  Upon any payment
or distribution of the assets of the Company to creditors upon a total or
partial liquidation or a total or partial dissolution of the Company or in a
bankruptcy, reorganization, insolvency, receivership or similar proceeding
relating to the Company or its property:

          (1)  holders of Senior Indebtedness of the Company shall be entitled
     to receive payment in full in cash of such Senior Indebtedness before
     Noteholders shall be entitled to receive any payment; and

          (2)  until the Senior Indebtedness of the Company is paid in full in
     cash, any payment or distribution to which Noteholders would be entitled
     but for this Article 10 shall be made to holders of such Senior
     Indebtedness as their interests may appear, except that Noteholders may
     receive shares of stock and any debt securities that are subordinated to
     such Senior Indebtedness to at least the same extent as the Notes.

          SECTION 10.03. DEFAULT ON SENIOR INDEBTEDNESS OF THE COMPANY.  The
Company shall not pay the principal of, premium, if any, or interest on the
Notes or any other payment Obligation of the Company in respect of the Notes
(including any Obligation to repurchase the Notes) or make any deposit pursuant
to Article 8, and may not purchase, redeem or otherwise retire any Notes
(collectively, "PAY THE NOTES") if either of the following occurs (a "PAYMENT
DEFAULT"): (1) any portion of any Designated Senior Indebtedness of the Company
is not paid in full in cash when due; or (2) any other default on Designated
Senior Indebtedness of the Company occurs and the maturity of such Designated
Senior Indebtedness is accelerated in accordance with its terms; UNLESS, in
either case, the Payment Default has been cured or waived and any such
acceleration has been rescinded or such Designated Senior Indebtedness has been
paid in full in cash; PROVIDED, HOWEVER, that the Company shall be entitled to
pay the Notes without regard to the foregoing if the Company and the Trustee
receive written notice approving such payment from the Representatives of all
Designated Senior Indebtedness with respect to which the Payment Default has
occurred and is continuing.

          During the continuance of any default (other than a Payment Default)
with respect to any Designated Senior

<Page>

                                                                              85

Indebtedness of the Company pursuant to which the maturity thereof may be
accelerated without further notice (except such notice as may be required to
effect such acceleration) or the expiration of any applicable grace periods, the
Company shall not pay the Notes for a period (a "PAYMENT BLOCKAGE PERIOD")
commencing upon the receipt by the Trustee (with a copy to the Company) of a
written notice (a "BLOCKAGE NOTICE") of such default from the Representative of
such Designated Senior Indebtedness specifying an election to effect a Payment
Blockage Period and ending 179 days thereafter. The Payment Blockage Period
shall end earlier if such Payment Blockage Period is terminated: (1) by written
notice to the Trustee and the Company from the Person or Persons who gave such
Blockage Notice, (2) because the default giving rise to such Blockage Notice is
cured, waived or otherwise no longer continuing, or (3) because such Designated
Senior Indebtedness has been discharged or repaid in full in cash.

          Notwithstanding the provisions described in the above paragraph (but
subject to the provisions contained in the first sentence of this Section
10.03), unless the holders of such Designated Senior Indebtedness or the
Representative of such Designated Senior Indebtedness have accelerated the
maturity of such Designated Senior Indebtedness, the Company shall be entitled
to resume payments on the Notes after termination of such Payment Blockage
Period. The Notes shall not be subject to more than one Payment Blockage Period
in any consecutive 360-day period irrespective of the number of defaults with
respect to Designated Senior Indebtedness of the Company during such period;
PROVIDED, HOWEVER, that if any Blockage Notice within such 360-day period is
delivered to the Trustee by or on behalf of any holders of Designated Senior
Indebtedness of the Company (other than holders of the Bank Indebtedness), a
Representative of the holders of the Bank Indebtedness shall be entitled to give
another Blockage Notice within such period; PROVIDED FURTHER, HOWEVER, that in
no event shall the total number of days during which any Payment Blockage Period
or Periods is in effect exceed 179 days in the aggregate during any consecutive
360-day period, and there must be 181 days during any consecutive 360-day period
during which no Payment Blockage Period is in effect.

          SECTION 10.04. ACCELERATION OF PAYMENT OF NOTES.  If payment of the
Notes is accelerated because of an Event of Default, the Company or the Trustee
shall promptly notify the holders of Designated Senior Indebtedness of the
Company or the

<Page>

                                                                              86

Representative of such Designated Senior Indebtedness of the acceleration.

          SECTION 10.05. WHEN DISTRIBUTION MUST BE PAID OVER.  If a payment or
distribution is made to Noteholders that, because of this Article 10, should not
have been made to them, the Noteholders who receive the payment or distribution
shall hold it in trust for the holders of Senior Indebtedness of the Company and
pay it over to them as their interests may appear.

          SECTION 10.06. REINSTATEMENT OF SENIOR INDEBTEDNESS.  To the extent
any payment of or distribution in respect of Senior Indebtedness (whether by or
on behalf of the Company as proceeds of security or enforcement of any right of
setoff or otherwise) is declared to be fraudulent or preferential, set aside or
required to be paid to any receiver, trustee in bankruptcy, liquidating trustee,
agent or other similar Person under any bankruptcy, insolvency, receivership,
fraudulent conveyance or similar law, then if such payment or distribution is
recovered by, or paid over to, such receiver, trustee in bankruptcy, liquidating
trustee, agent or other similar Person, the Senior Indebtedness or part thereof
originally intended to be satisfied shall be deemed to be reinstated and
outstanding as if such payment had not occurred.

          SECTION 10.07. SUBROGATION.  After all Senior Indebtedness of the
Company is paid in full and until the Notes are paid in full, Noteholders shall
be subrogated to the rights of holders of such Senior Indebtedness to receive
distributions applicable to such Senior Indebtedness. A distribution made under
this Article 10 to holders of such Senior Indebtedness which otherwise would
have been made to Noteholders is not, as between the Company and Noteholders, a
payment by the Company on such Senior Indebtedness.

          SECTION 10.08. RELATIVE RIGHTS.  This Article 10 defines the relative
rights of Noteholders and holders of Senior Indebtedness of the Company. Nothing
in this Indenture shall:

          (1)  impair, as between the Company and Noteholders, the obligation of
     the Company, which is absolute and unconditional, to pay principal of and
     interest on the Notes in accordance with their terms; or

          (2)  prevent the Trustee or any Noteholder from exercising its
     available remedies upon a Default, subject to the rights of holders of
     Senior Indebtedness of the

<Page>

                                                                              87

     Company to receive distributions otherwise payable to Noteholders.

          SECTION 10.09. SUBORDINATION MAY NOT BE IMPAIRED BY COMPANY.  No right
of any present or future holders of any Senior Indebtedness of the Company to
enforce subordination as provided in this Indenture will at any time in any way
be prejudiced or impaired by noncompliance by the Company with the terms of this
Indenture, regardless of any knowledge thereof that any such holder of Senior
Indebtedness may have or otherwise be charged with.

          SECTION 10.10. RIGHTS OF TRUSTEE AND PAYING AGENT.  Notwithstanding
Section 10.03, the Trustee or Paying Agent shall continue to make payments on
the Notes and shall not be charged with knowledge of the existence of facts that
under this Article 10 would prohibit the making of any such payments unless, not
less than two Business Days prior to the date of such payment, a Trust Officer
of the Trustee receives written notice satisfactory to it that such payments are
prohibited by this Article 10. The Company, the Registrar or co-registrar, the
Paying Agent, a Representative or a holder of Senior Indebtedness of the Company
shall be entitled to give the notice; PROVIDED, HOWEVER, that, if an issue of
Senior Indebtedness of the Company has a Representative, only the Representative
shall be entitled to give the notice.

          The Trustee in its individual or any other capacity shall be entitled
to hold Senior Indebtedness of the Company with the same rights it would have if
it were not the Trustee. The Registrar and co-registrar and the Paying Agent
shall be entitled to do the same with like rights. The Trustee shall be entitled
to all the rights set forth in this Article 10 with respect to any Senior
Indebtedness of the Company which may at any time be held by it, to the same
extent as any other holder of such Senior Indebtedness; and nothing in Article 7
shall deprive the Trustee of any of its rights as such holder. Nothing in this
Article 10 shall apply to claims of, or payments to, the Trustee under or
pursuant to Section 7.07.

          SECTION 10.11. RIGHTS OF HOLDERS OF SENIOR INDEBTEDNESS.  The holders
of Senior Indebtedness may, at any time and from time to time, subject to the
terms of such Senior Indebtedness, without the consent of or notice to the
Trustee or the Noteholders, without incurring responsibility to the Noteholders
and without impairing or releasing the subordination provided in this Indenture
or the obligations hereunder of the

<Page>

                                                                              88

Noteholders to the holders of Senior Indebtedness, do any one or more of the
following:

          (1)  change the manner, place or terms of payment or extend the time
     of payment of, or renew or alter, Senior Indebtedness or any instrument
     evidencing the same or any agreement under which Senior Indebtedness is
     outstanding or secured;

          (2)  sell, exchange, release or otherwise deal with any property
     pledged, mortgaged or otherwise securing Senior Indebtedness;

          (3)  release any Person liable in any manner for the collection of
     Senior Indebtedness; and

          (4)  exercise or refrain from exercising any rights against the
     Company and any other Person.

          SECTION 10.12. DISTRIBUTION OR NOTICE TO REPRESENTATIVE.  Whenever any
Person is to make a distribution or give a notice to holders of Senior
Indebtedness of the Company, such Person shall be entitled to make such
distribution or give such notice to their Representative (if any).

          SECTION 10.13. ARTICLE 10 NOT TO PREVENT EVENTS OF DEFAULT OR LIMIT
RIGHT TO ACCELERATE. The failure to make a payment pursuant to the Notes by
reason of any provision in this Article 10 shall not be construed as preventing
the occurrence of a Default. Nothing in this Article 10 shall have any effect on
the right of the Noteholders or the Trustee to accelerate the maturity of the
Notes.

          SECTION 10.14. TRUST MONEYS NOT SUBORDINATED.  Notwithstanding
anything contained herein to the contrary, payments from money or the proceeds
of U.S. Government Obligations held in trust under Article 8 by the Trustee for
the payment of principal of and interest on the Notes shall not be subordinated
to the prior payment of any Senior Indebtedness of the Company or subject to the
restrictions set forth in this Article 10, and none of the Noteholders shall be
obligated to pay over any such amount to the Company or any holder of Senior
Indebtedness of the Company or any other creditor of the Company.

          SECTION 10.15. TRUSTEE ENTITLED TO RELY.  Upon any payment or
distribution pursuant to this Article 10, the Trustee and the Noteholders shall
be entitled to rely (1) upon any order

<Page>

                                                                              89

or decree of a court of competent jurisdiction in which any proceedings of the
nature referred to in Section 10.02 are pending, (2) upon a certificate of the
liquidating trustee or agent or other Person making such payment or distribution
to the Trustee or to the Noteholders or (3) upon the Representatives of Senior
Indebtedness of the Company for the purpose of ascertaining the Persons entitled
to participate in such payment or distribution, the holders of such Senior
Indebtedness and other Indebtedness of the Company, the amount thereof or
payable thereon, the amount or amounts paid or distributed thereon and all other
facts pertinent thereto or to this Article 10. In the event that the Trustee
determines, in good faith, that evidence is required with respect to the right
of any Person as a holder of Senior Indebtedness of the Company to participate
in any payment or distribution pursuant to this Article 10, the Trustee shall be
entitled to request such Person to furnish evidence to the reasonable
satisfaction of the Trustee as to the amount of such Senior Indebtedness held by
such Person, the extent to which such Person is entitled to participate in such
payment or distribution and other facts pertinent to the rights of such Person
under this Article 10, and, if such evidence is not furnished, the Trustee shall
be entitled to defer any payment to such Person pending judicial determination
as to the right of such Person to receive such payment. The provisions of
Sections 7.01 and 7.02 shall be applicable to all actions or omissions of
actions by the Trustee pursuant to this Article 10.

          SECTION 10.16. TRUSTEE TO EFFECTUATE SUBORDINATION.  Each Noteholder
by accepting a Note authorizes and directs the Trustee on its behalf to take
such action as may be necessary or appropriate to acknowledge or effectuate the
subordination between the Noteholders and the holders of Senior Indebtedness of
the Company as provided in this Article 10 and appoints the Trustee as
attorney-in-fact for any and all such purposes.

          SECTION 10.17. TRUSTEE NOT FIDUCIARY FOR HOLDERS  OF SENIOR
INDEBTEDNESS OF THE COMPANY. The Trustee shall not be deemed to owe any
fiduciary duty to the holders of Senior Indebtedness of the Company and shall
not be liable to any such holders if it shall mistakenly pay over or distribute
to Noteholders or the Company or any other Person, money or assets to which any
holders of Senior Indebtedness of the Company shall be entitled by virtue of
this Article 10 or otherwise.

          SECTION 10.18. RELIANCE BY HOLDERS OF SENIOR INDEBTEDNESS OF THE
COMPANY ON SUBORDINATION PROVISIONS. Each Noteholder by accepting a Note
acknowledges and agrees that the foregoing subordination provisions are, and are
intended to be,

<Page>

                                                                              90

an inducement and a consideration to each holder of any Senior Indebtedness of
the Company, whether such Senior Indebtedness was created or acquired before or
after the issuance of the Notes, to acquire and continue to hold, or to continue
to hold, such Senior Indebtedness and such holder of such Senior Indebtedness
shall be deemed conclusively to have relied on such subordination provisions in
acquiring and continuing to hold, or in continuing to hold, such Senior
Indebtedness.

                                   ARTICLE 11

                                   GUARANTIES

          SECTION 11.01. GUARANTIES.  Each Guarantor hereby unconditionally and
irrevocably guarantees, jointly and severally, to each Holder and to the Trustee
and its successors and assigns (a) the full and punctual payment of principal of
and interest on the Notes when due, whether at maturity, by acceleration, by
redemption or otherwise, and all other monetary obligations of the Company under
this Indenture and the Notes and (b) the full and punctual performance within
applicable grace periods of all other obligations of the Company under this
Indenture and the Notes (all the foregoing being hereinafter collectively called
the "GUARANTEED OBLIGATIONS"). Each Guarantor further agrees that the Guaranteed
Obligations may be extended or renewed, in whole or in part, without notice or
further assent from such Guarantor and that such Guarantor will remain bound
under this Article 11 notwithstanding any extension or renewal of any Guaranteed
Obligation.

          Each Guarantor waives presentation to, demand of, payment from and
protest to the Company of any of the Guaranteed Obligations and also waives
notice of acceleration, notice of intent to accelerate and notice of protest for
nonpayment. Subject to Section 6.01, each Guarantor waives notice of any default
under the Notes or the Guaranteed Obligations. The obligations of each Guarantor
hereunder shall not be affected by: (a) the failure of any Holder or the Trustee
to assert any claim or demand or to enforce any right or remedy against the
Company or any other Person under this Indenture, the Notes or any other
agreement or otherwise; (b) any extension or renewal of any thereof; (c) any
rescission, waiver, amendment or modification of any of the terms or provisions
of this Indenture, the Notes or any other agreement; (d) the release of any
security held by any Holder or the Trustee for the Guaranteed Obligations or any
of them; (e) the failure of any Holder or the Trustee to exercise any right or
remedy against

<Page>

                                                                              91

any other guarantor of the Guaranteed Obligations; or (f) except as set forth in
Section 11.06, any change in the ownership of such Guarantor.

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

          Each Guaranty is, to the extent and in the manner set forth in Article
12, subordinated and subject in right of payment to the prior payment in full of
the principal of and premium, if any, and interest on all Senior Indebtedness of
the Guarantor giving such Guaranty and each Guaranty is made subject to such
provisions of this Indenture.

          Except as expressly set forth in Sections 8.01(b), 11.02 and 11.06,
the obligations of each Guarantor hereunder shall not be subject to any
reduction, limitation, impairment or termination for any reason, including any
claim of waiver, release, surrender, alteration or compromise, and shall not be
subject to any defense of setoff, counterclaim, recoupment or termination
whatsoever or by reason of the invalidity, illegality or unenforceability of the
Guaranteed Obligations or otherwise. Without limiting the generality of the
foregoing, the obligations of each Guarantor herein shall not be discharged or
impaired or otherwise affected by the failure of any Holder or the Trustee to
assert any claim or demand or to enforce any remedy under this Indenture, the
Notes or any other agreement, by any waiver or modification of any thereof, by
any default, failure or delay, willful or otherwise, in the performance of the
obligations, or by any other act or thing or omission or delay to do any other
act or thing which may or might in any manner or to any extent vary the risk of
such Guarantor or would otherwise operate as a discharge of such Guarantor as a
matter of law or equity.

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

          In furtherance of the foregoing and not in limitation of any other
right which any Holder or the Trustee has at law or

<Page>

                                                                              92

in equity against any Guarantor by virtue hereof, upon the failure of the
Company to pay the principal of or interest on any Guaranteed Obligation when
and as the same shall become due, whether at maturity, by acceleration, by
redemption or otherwise, or to perform or comply with any other Guaranteed
Obligation, each Guarantor hereby promises to and shall, upon receipt of written
demand by the Trustee, forthwith pay, or cause to be paid, in cash, to the
Holders or the Trustee an amount equal to the sum of (1) the unpaid amount of
such Guaranteed Obligations, (2) accrued and unpaid interest on such Guaranteed
Obligations (but only to the extent not prohibited by law) and (3) all other
monetary Guaranteed Obligations of the Company to the Holders and the Trustee.

          Each Guarantor agrees that it shall not be entitled to any right of
subrogation in respect of any Guaranteed Obligations guaranteed hereby until
payment in full of all Guaranteed Obligations and all obligations to which the
Guaranteed Obligations are subordinated as provided in Article 12. Each
Guarantor further agrees that, as between it, on the one hand, and the Holders
and the Trustee, on the other hand, (x) the maturity of the Guaranteed
Obligations guaranteed hereby may be accelerated as provided in Article 6 for
the purposes of such Guarantor's Guaranty herein, notwithstanding any stay,
injunction or other prohibition preventing such acceleration in respect of the
Guaranteed Obligations guaranteed hereby, and (y) in the event of any
declaration of acceleration of such Guaranteed Obligations as provided in
Article 6, such Guaranteed Obligations (whether or not due and payable) shall
forthwith become due and payable by such Guarantor for the purposes of this
Section 11.01.

          Each Guarantor also agrees to pay any and all costs and expenses
(including reasonable attorneys' fees) incurred by the Trustee or any Holder in
enforcing any rights under this Section 11.01.

          SECTION 11.02. LIMITATION ON LIABILITY.  Any term or provision of this
Indenture to the contrary notwithstanding, the maximum aggregate amount of the
Guaranteed Obligations guaranteed hereunder by any Guarantor shall not exceed
the maximum amount that can be hereby guaranteed without rendering this
Indenture, as it relates to such Guarantor, voidable under applicable law
relating to fraudulent conveyance or fraudulent transfer or similar laws
affecting the rights of creditors generally.

<Page>

                                                                              93

          SECTION 11.03. SUCCESSORS AND ASSIGNS.  This Article 11 shall be
binding upon each Guarantor and its successors and assigns and shall enure to
the benefit of the successors and assigns of the Trustee and the Holders and, in
the event of any transfer or assignment of rights by any Holder or the Trustee,
the rights and privileges conferred upon that party in this Indenture and in the
Notes shall automatically extend to and be vested in such transferee or
assignee, all subject to the terms and conditions of this Indenture.

          SECTION 11.04. NO WAIVER.  Neither a failure nor a delay on the part
of either the Trustee or the Holders in exercising any right, power or privilege
under this Article 11 shall operate as a waiver thereof, nor shall a single or
partial exercise thereof preclude any other or further exercise of any right,
power or privilege. The rights, remedies and benefits of the Trustee and the
Holders herein expressly specified are cumulative and not exclusive of any other
rights, remedies or benefits which either may have under this Article 11 at law,
in equity, by statute or otherwise.

          SECTION 11.05. MODIFICATION.  No modification, amendment or waiver of
any provision of this Article 11, nor the consent to any departure by any
Guarantor therefrom, shall in any event be effective unless the same shall be in
writing and signed by the Trustee, and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which given. No
notice to or demand on any Guarantor in any case shall entitle such Guarantor to
any other or further notice or demand in the same, similar or other
circumstances.

          SECTION 11.06. RELEASE OF GUARANTOR.  The Guaranty of a Guarantor
(other than Merisant US, Inc.) will be automatically released:

          (1)  upon the sale or other disposition (including by way of
     consolidation or merger) of that Guarantor to a Person that is not (either
     before or after giving effect to such transaction) the Company or an
     Affiliate of the Company, if such sale or other disposition complies with
     Section 4.10;

          (2)  upon the sale or other disposition of all or substantially all
     the assets of that Guarantor to a Person that is not (either before or
     after giving effect to such transaction) the Company or an Affiliate of the
     Company, if such sale or other disposition complies with Section 4.10; or

<Page>

                                                                              94

          (3)  if the Company designates that Guarantor as an Unrestricted
     Subsidiary in compliance with the applicable provisions of this Indenture.

                                   ARTICLE 12

                           SUBORDINATION OF GUARANTIES

          SECTION 12.01. AGREEMENT TO SUBORDINATE.  Each Guarantor agrees, and
each Noteholder by accepting a Note agrees, that the Indebtedness evidenced by
such Guarantor's Guaranty is subordinated in right of payment, to the extent and
in the manner provided in this Article 12, to the prior payment of all Senior
Indebtedness of such Guarantor and that the subordination is for the benefit of
and enforceable by the holders of such Senior Indebtedness. The obligations of a
Guarantor shall in all respects rank PARI PASSU with all other Senior
Subordinated Indebtedness of such Guarantor and only Senior Indebtedness of such
Guarantor (including such Guarantor's Guaranty of Senior Indebtedness of the
Company) shall rank senior to the obligations of such Guarantor in accordance
with the provisions set forth herein. All provisions of this Article 12 shall be
subject to Section 12.14.

          SECTION 12.02. LIQUIDATION, DISSOLUTION, BANKRUPTCY.  Upon any payment
or distribution of the assets of any Guarantor to creditors upon a total or
partial liquidation or a total or partial dissolution of such Guarantor or in a
bankruptcy, reorganization, insolvency, receivership or similar proceeding
relating to such Guarantor or its property:

          (1)  holders of Senior Indebtedness of such Guarantor shall be
     entitled to receive payment in full in cash of such Senior Indebtedness
     before Noteholders shall be entitled to receive any payment pursuant to the
     Guaranty of such Guarantor; and

          (2)  until the Senior Indebtedness of any Guarantor is paid in full in
     cash, any payment or distribution to which Noteholders would be entitled
     but for this Article 12 shall be made to holders of such Senior
     Indebtedness as their interests may appear, except that Noteholders may
     receive shares of stock and any debt securities of such Guarantor that are
     subordinated to such Senior Indebtedness to at least the same extent as the
     Guaranty.

          SECTION 12.03. DEFAULT ON SENIOR INDEBTEDNESS OF GUARANTOR.  No
Guarantor shall make any payment of principal,

<Page>

                                                                              95

premium, if any, or interest pursuant to its Guaranty or purchase, redeem or
otherwise retire or defease any Guaranteed Obligations (collectively, "PAY ITS
GUARANTY") if either of the following occurs (a "PAYMENT DEFAULT"): (1) any
portion of any Designated Senior Indebtedness of such Guarantor is not paid in
full in cash when due; or (2) any other default on Designated Senior
Indebtedness of such Guarantor occurs and the maturity of such Designated Senior
Indebtedness is accelerated in accordance with its terms; UNLESS, in either
case, the Payment Default has been cured or waived and any such acceleration has
been rescinded or such Designated Senior Indebtedness has been paid in full in
cash; PROVIDED, HOWEVER, that any Guarantor shall be entitled to pay its
Guaranty without regard to the foregoing if such Guarantor and the Trustee
receive written notice approving such payment from the Representatives of all
Designated Senior Indebtedness with respect to which the Payment Default has
occurred and is continuing.

          During the continuance of any default (other than a Payment Default)
with respect to any Designated Senior Indebtedness of such Guarantor pursuant to
which the maturity thereof may be accelerated without further notice (except
such notice as may be required to effect such acceleration) or the expiration of
any applicable grace periods, such Guarantor shall not pay its Guaranty for a
period (a "PAYMENT BLOCKAGE PERIOD") commencing upon the receipt by the Trustee
(with a copy to such Guarantor) of a written notice (a "BLOCKAGE NOTICE") of
such default from the Representative of such Designated Senior Indebtedness
specifying an election to effect a Payment Blockage Period and ending 179 days
thereafter. The Payment Blockage Period shall end earlier if such Payment
Blockage Period is terminated: (1) by written notice to the Trustee and such
Guarantor from the Person or Persons who gave such Blockage Notice, (2) because
the default giving rise to such Blockage Notice is cured, waived or otherwise no
longer continuing, or (3) because such Designated Senior Indebtedness has been
discharged or repaid in full in cash.

          Notwithstanding the provisions described in the above paragraph (but
subject to the provisions contained in the first sentence of this Section
12.03), unless the holders of such Designated Senior Indebtedness or the
Representative of such Designated Senior Indebtedness have accelerated the
maturity of such Designated Senior Indebtedness, any Guarantor shall be entitled
to resume payments pursuant to its Guaranty after termination of such Payment
Blockage Period. No Guarantor shall be subject to more than one Payment Blockage
Period in any

<Page>

                                                                              96

consecutive 360-day period irrespective of the number of defaults with respect
to Designated Senior Indebtedness of such Guarantor during such period;
PROVIDED, HOWEVER, that if any Blockage Notice within such 360-day period is
delivered to the Trustee by or on behalf of any holders of Designated Senior
Indebtedness of such Guarantor (other than holders of the Bank Indebtedness), a
Representative of the holders of the Bank Indebtedness shall be entitled to give
another Blockage Notice within such period; PROVIDED FURTHER, HOWEVER, that in
no event shall the total number of days during which any Payment Blockage Period
or Periods is in effect exceed 179 days in the aggregate during any consecutive
360-day period, and there must be 181 days during any consecutive 360-day period
during which no Payment Blockage Period is in effect.

          SECTION 12.04. DEMAND FOR PAYMENT.  If a demand for payment is made on
a Guarantor pursuant to Article 11, the Trustee shall promptly notify the
holders of the Designated Senior Indebtedness of such Guarantor (or their
Representatives) of such demand.

          SECTION 12.05. WHEN DISTRIBUTION MUST BE PAID OVER.  If a payment or
distribution is made to Noteholders that, because of this Article 12, should not
have been made to them, the Noteholders who receive the payment or distribution
shall hold it in trust for the holders of Senior Indebtedness of the relevant
Guarantor and pay it over to them as their interests may appear.

          SECTION 12.06. REINSTATEMENT OF SENIOR INDEBTEDNESS.   To the extent
any payment of or distribution in respect of Senior Indebtedness of a Guarantor
(whether by or on behalf of any Guarantor as proceeds of security or enforcement
of any right of setoff or otherwise) is declared to be fraudulent or
preferential, set aside or required to be paid to any receiver, trustee in
bankruptcy, liquidating trustee, agent or other similar Person under any
bankruptcy, insolvency, receivership, fraudulent conveyance or similar law, then
if such payment or distribution is recovered by, or paid over to, such receiver,
trustee in bankruptcy, liquidating trustee, agent or other similar Person, the
Senior Indebtedness or part thereof originally intended to be satisfied shall be
deemed to be reinstated and outstanding as if such payment had not occurred.

          SECTION 12.07. SUBROGATION.  After all Senior Indebtedness of a
Guarantor is paid in full and until the Notes are paid in full, Noteholders
shall be subrogated to the rights of holders of such Senior Indebtedness to
receive distributions

<Page>

                                                                              97

applicable to Senior Indebtedness of such Guarantor. A distribution made under
this Article 12 to holders of such Senior Indebtedness which otherwise would
have been made to Noteholders is not, as between the relevant Guarantor and
Noteholders, a payment by such Guarantor on such Senior Indebtedness.

          SECTION 12.08. RELATIVE RIGHTS.  This Article 12 defines the relative
rights of Noteholders and holders of Senior Indebtedness of a Guarantor. Nothing
in this Indenture shall:

          (1)  impair, as between a Guarantor and Noteholders, the obligation of
     such Guarantor, which is absolute and unconditional, to pay its Guaranty to
     the extent set forth in Article 11; or

          (2)  prevent the Trustee or any Noteholder from exercising its
     available remedies upon a default by such Guarantor under its Guaranty,
     subject to the rights of holders of Senior Indebtedness of such Guarantor
     to receive distributions otherwise payable to Noteholders.

          SECTION 12.09. SUBORDINATION MAY NOT BE IMPAIRED BY GUARANTOR.  No
right of any present or future holders of any Senior Indebtedness of any
Guarantor to enforce subordination as provided in this Indenture will at any
time in any way be prejudiced or impaired by noncompliance by such Guarantor
with the terms of this Indenture, regardless of any knowledge thereof that any
such holder of Senior Indebtedness may have or otherwise be charged with.

          SECTION 12.10. RIGHTS OF TRUSTEE AND PAYING AGENT.  Notwithstanding
Section 12.03, the Trustee or Paying Agent shall continue to make payments on
any Guaranty and shall not be charged with knowledge of the existence of facts
that under this Article 12 would prohibit the making of any such payments
unless, not less than two Business Days prior to the date of such payment, a
Trust Officer of the Trustee receives written notice satisfactory to it that
such payments are prohibited by this Article 12. The Company, the relevant
Guarantor, the Registrar or co-registrar, the Paying Agent, a Representative or
a holder of Senior Indebtedness of such Guarantor shall be entitled to give the
notice; PROVIDED, HOWEVER, that, if an issue of Senior Indebtedness of any
Guarantor has a Representative, only the Representative shall be entitled to
give the notice.

<Page>

                                                                              98

          The Trustee in its individual or any other capacity shall be entitled
to hold Senior Indebtedness of any Guarantor with the same rights it would have
if it were not the Trustee. The Registrar and co-registrar and the Paying Agent
shall be entitled to do the same with like rights. The Trustee shall be entitled
to all the rights set forth in this Article 12 with respect to any Senior
Indebtedness of any Guarantor which may at any time be held by it, to the same
extent as any other holder of such Senior Indebtedness; and nothing in Article 7
shall deprive the Trustee of any of its rights as such holder. Nothing in this
Article 12 shall apply to claims of, or payments to, the Trustee under or
pursuant to Section 7.07.

          SECTION 12.11. RIGHTS OF HOLDERS OF SENIOR INDEBTEDNESS.  The holders
of Senior Indebtedness may, at any time and from time to time, subject to the
terms of such Senior Indebtedness, without the consent of or notice to the
Trustee or the Noteholders, without incurring responsibility to the Noteholders
and without impairing or releasing the subordination provided in this Indenture
or the obligations hereunder of the Noteholders to the holders of Senior
Indebtedness, do any one or more of the following:

          (1)  change the manner, place or terms of payment or extend the time
     of payment of, or renew or alter, Senior Indebtedness or any instrument
     evidencing the same or any agreement under which Senior Indebtedness is
     outstanding or secured;

          (2)  sell, exchange, release or otherwise deal with any property
     pledged, mortgaged or otherwise securing Senior Indebtedness;

          (3)  release any Person liable in any manner for the collection of
     Senior Indebtedness; and

          (4)  exercise or refrain from exercising any rights against any
     Guarantor and any other Person.

          SECTION 12.12. DISTRIBUTION OR NOTICE TO REPRESENTATIVE.  Whenever any
Person is to make a distribution or give a notice to holders of Senior
Indebtedness of any Guarantor, such Person shall be entitled to make such
distribution or give such notice to their Representative (if any).

          SECTION 12.13. ARTICLE 12 NOT TO PREVENT EVENTS OF DEFAULT OR LIMIT
RIGHT TO DEMAND PAYMENT. The failure to make a

<Page>

                                                                              99

payment pursuant to a Guaranty by reason of any provision in this Article 12
shall not be construed as preventing the occurrence of a Default. Nothing in
this Article 12 shall have any effect on the right of the Noteholders or the
Trustee to make a demand for payment on any Guarantor pursuant to its Guaranty.

          SECTION 12.14. TRUST MONEYS NOT SUBORDINATED.   Notwithstanding
anything contained herein to the contrary, payments from money or the proceeds
of U.S. Government Obligations held in trust under Article 8 by the Trustee for
the payment of principal of and interest on the Notes shall not be subordinated
to the prior payment of any Senior Indebtedness of any Guarantor or subject to
the restrictions set forth in this Article 12, and none of the Noteholders shall
be obligated to pay over any such amount to any Guarantor or any holder of
Senior Indebtedness of any Guarantor or any other creditor of any Guarantor.

          SECTION 12.15. TRUSTEE ENTITLED TO RELY.  Upon any payment or
distribution pursuant to this Article 12, the Trustee and the Noteholders shall
be entitled to rely (1) upon any order or decree of a court of competent
jurisdiction in which any proceedings of the nature referred to in Section 12.02
are pending, (2) upon a certificate of the liquidating trustee or agent or other
Person making such payment or distribution to the Trustee or to the Noteholders
or (3) upon the Representatives for the holders of Senior Indebtedness of any
Guarantor for the purpose of ascertaining the Persons entitled to participate in
such payment or distribution, the holders of such Senior Indebtedness and other
Indebtedness of such Guarantor, the amount thereof or payable thereon, the
amount or amounts paid or distributed thereon and all other facts pertinent
thereto or to this Article 12. In the event that the Trustee determines, in good
faith, that evidence is required with respect to the right of any Person as a
holder of Senior Indebtedness of any Guarantor to participate in any payment or
distribution pursuant to this Article 12, the Trustee shall be entitled to
request such Person to furnish evidence to the reasonable satisfaction of the
Trustee as to the amount of Senior Indebtedness of such Guarantor held by such
Person, the extent to which such Person is entitled to participate in such
payment or distribution and other facts pertinent to the rights of such Person
under this Article 12, and, if such evidence is not furnished, the Trustee shall
be entitled to defer any payment to such Person pending judicial determination
as to the right of such Person to receive such payment. The provisions of
Sections 7.01 and 7.02 shall be

<Page>

                                                                             100

applicable to all actions or omissions of actions by the Trustee pursuant to
this Article 12.

          SECTION 12.16. TRUSTEE TO EFFECTUATE SUBORDINATION.  Each Noteholder
by accepting a Note authorizes and directs the Trustee on its behalf to take
such action as may be necessary or appropriate to acknowledge or effectuate the
subordination between the Noteholders and the holders of Senior Indebtedness of
the Guarantors as provided in this Article 12 and appoints the Trustee as
attorney-in-fact for any and all such purposes.

          SECTION 12.17. TRUSTEE NOT FIDUCIARY FOR HOLDERS OF SENIOR
INDEBTEDNESS OF GUARANTOR. The Trustee shall not be deemed to owe any fiduciary
duty to the holders of Senior Indebtedness of any Guarantor and shall not be
liable to any such holders if it shall mistakenly pay over or distribute to
Noteholders or the Company or any other Person, money or assets to which any
holders of such Senior Indebtedness shall be entitled by virtue of this Article
12 or otherwise.

          SECTION 12.18. RELIANCE BY HOLDERS OF SENIOR INDEBTEDNESS OF THE
GUARANTORS ON SUBORDINATION PROVISIONS. Each Noteholder by accepting a Note
acknowledges and agrees that the foregoing subordination provisions are, and are
intended to be, an inducement and a consideration to each holder of any Senior
Indebtedness of the Guarantors, whether such Senior Indebtedness was created or
acquired before or after the issuance of the Notes, to acquire and continue to
hold, or to continue to hold, such Senior Indebtedness and such holder of such
Senior Indebtedness shall be deemed conclusively to have relied on such
subordination provisions in acquiring and continuing to hold, or in continuing
to hold, such Senior Indebtedness.

                                   ARTICLE 13

                                  MISCELLANEOUS

          SECTION 13.01. TRUST INDENTURE ACT CONTROLS.  If any provision of this
Indenture limits, qualifies or conflicts with another provision which is
required to be included in this Indenture by the TIA, the required provision
shall control.

          SECTION 13.02. NOTICES.  Any notice, request or communication shall be
in writing and delivered in person or mailed by first-class mail addressed as
follows:

          if to the Company or any Guarantor:

          Merisant Company

<Page>

                                                                             101

          One North Brentwood Boulevard, Suite 510
          Clayton, Missouri  63105
          Attention:  Luke C. Kissam, Esq.

          with a copy to:

          Sidley Austin Brown & Wood
          Bank One Plaza
          10 South Dearborn
          Chicago, Illinois  60603
          Attention:  Carol M. Lind, Esq.

          if to the Trustee:

          Wells Fargo Corporate Trust Services
          MAC N9303-110
          Sixth and Marquette Avenue
          Minneapolis, MN 55479
          Attention:  Michael T. Lechner, Assistant Vice President

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

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

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

          Any notice or communication shall also be so mailed to any Person
described in TIA Section 313(c), to the extent required by the TIA. Copies of
any such communication or notice to a Holder shall also be mailed to the
Trustee, the Registrar, co-registrar, Paying Agent and transfer agent at the
same time.

          Where this Indenture provides for notice in any manner, such notice
may be expressly waived in writing by the Person entitled to receive such
notice, either before or after the event, and such waiver shall be the
equivalent of such notice. Waiver of notice by Holders shall be filed with the

<Page>

                                                                             102

Trustee, but such filing shall not be a condition precedent to the validity of
any action taken in reliance upon such waiver.

          In case by reason of the suspension of regular mail service it shall
be impracticable to give such notice by mail, then such notification as shall be
made with the approval of the Trustee shall constitute a sufficient notification
for every purpose hereunder.

          SECTION 13.03. COMMUNICATION BY HOLDERS WITH OTHER HOLDERS.
Noteholders may communicate pursuant to TIA Section 312(b) with other
Noteholders with respect to their rights under this Indenture or the Notes. The
Company, any Guarantor, the Trustee, the Registrar and anyone else shall have
the protection of TIA Section 312(c).

          SECTION 13.04. CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT.
Upon any request or application by the Company to the Trustee to take or refrain
from taking any action under this Indenture, the Company shall furnish to the
Trustee:

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

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

          SECTION 13.05. STATEMENTS REQUIRED IN CERTIFICATE OR OPINION.  Each
certificate or opinion with respect to compliance with a covenant or condition
provided for in this Indenture shall include:

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

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

          (3) a statement that, in the opinion of such individual, he has or she
     made such examination or investigation as is necessary to enable him or her
     to

<Page>

                                                                             103

     express an informed opinion as to whether or not such covenant or condition
     has been complied with; and

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

PROVIDED, HOWEVER, that with respect to matters of fact an Opinion of Counsel
may rely on an Officers' Certificate or certificates of public officials.

          SECTION 13.06. WHEN NOTES DISREGARDED.  In determining whether the
Holders of the required principal amount of Notes have concurred in any
direction, waiver or consent, Notes owned by the Company or by any Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with the Company shall be disregarded and deemed not to be
outstanding, except that, for the purpose of determining whether the Trustee
shall be protected in relying on any such direction, waiver or consent, only
Notes which a Trust Officer of the Trustee knows are so owned shall be so
disregarded. Also, subject to the foregoing, only Notes outstanding at the time
shall be considered in any such determination.

          SECTION 13.07. RULES BY TRUSTEE, PAYING AGENT AND REGISTRAR.  The
Trustee may make reasonable rules for action by or a meeting of Noteholders. The
Registrar and the Paying Agent may make reasonable rules for their functions.

          SECTION 13.08. LEGAL HOLIDAYS.  A "LEGAL HOLIDAY" is a Saturday, a
Sunday or a day on which banking institutions are not required to be open in the
State of New York. If a payment date is a Legal Holiday, payment shall be made
on the next succeeding day that is not a Legal Holiday, and no interest shall
accrue for the intervening period. If a regular record date is a Legal Holiday,
the record date shall not be affected.

          SECTION 13.09. GOVERNING LAW.  This Indenture and the Notes shall be
governed by, and construed in accordance with, the laws of the State of New York
but without giving effect to applicable principles of conflicts of law to the
extent that the application of the laws of another jurisdiction would be
required thereby.

          SECTION 13.10. NO RECOURSE AGAINST OTHERS.  No director, officer,
employee, incorporator or stockholder of the Company or any Guarantor will have
any liability for any obligations of the Company or any Guarantor under the
Notes, any

<Page>

                                                                             104

Guaranty or this Indenture or for any claim based on, in respect of, or by
reason of such obligations or their creation. Each Holder of the Notes by
accepting a Note waives and releases all such liability. The waiver and release
are part of the consideration for issuance of the Notes.

          SECTION 13.11. SUCCESSORS.  All agreements of the Company in this
Indenture and the Notes shall bind its successors. All agreements of the Trustee
in this Indenture shall bind its successors.

          SECTION 13.12. MULTIPLE ORIGINALS.  The parties may sign any number of
copies of this Indenture. Each signed copy shall be an original, but all of them
together represent the same agreement. One signed copy is enough to prove this
Indenture.

          SECTION 13.13. TABLE OF CONTENTS; HEADINGS.  The table of contents,
cross-reference sheet and headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not intended
to be considered a part hereof and shall not modify or restrict any of the terms
or provisions hereof.

<Page>

                                                                             105

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

                                MERISANT COMPANY

                                By:  /s/ Luther C. Kissam IV
                                   ----------------------------------
                                Name:  Luther C. Kissam IV
                                     --------------------------------
                                Title:VP, Secretary & General Counsel
                                      ----------------------------------

                                MERISANT US, INC.

                                By:  /s/ Luther C. Kissam IV
                                   ----------------------------------
                                Name:  Luther C. Kissam IV
                                     --------------------------------
                                Title:VP, Secretary & General Counsel
                                      ----------------------------------

                                MERISANT FOREIGN HOLDINGS I, INC.

                                By:  /s/ Luther C. Kissam IV
                                   ----------------------------------
                                Name:  Luther C. Kissam IV
                                     ------------------------
                                Title:VP, Secretary & General Counsel
                                      ----------------------------------

                                WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION

                                By:  /s/ Michael T. Lechner
                                   ----------------------------------
                                Name:  Michael T. Lechner
                                     --------------------------------
                                Title: Assistant Vice President
                                      ----------------------------------

<Page>

                                                                             A-1

                                                                      APPENDIX A

                      PROVISIONS RELATING TO INITIAL NOTES,
                             PRIVATE EXCHANGE NOTES
                               AND EXCHANGE NOTES

        1.     DEFINITIONS.

     1.1.      CERTAIN DEFINITIONS.

         For the purposes of this APPENDIX A the following terms shall have the
meanings indicated below:

          "APPLICABLE PROCEDURES" means, with respect to any transfer or
transaction involving a Temporary Regulation S Global Note or beneficial
interest therein, the rules and procedures of the Depository, Euroclear and
Clearstream for such a Temporary Regulations S Global Note, in each case to the
extent applicable to such transaction and as in effect from time to time.

          "CLEARING AGENCY" means Clearstream Banking, societe anonyme, or any
successor securities clearing agency.

          "DEFINITIVE NOTE" means a certificated Initial Note or Exchange Note
or Private Exchange Note bearing, if required, the restricted securities legend
set forth in Section 2.3(e).

          "DEPOSITORY" means The Depository Trust Company, its nominees and
their respective successors.

          "DISTRIBUTION COMPLIANCE PERIOD", with respect to any Notes, means the
period of 40 consecutive days beginning on and including the later of (i) the
day on which such Notes are first offered to Persons other than distributors (as
defined in Regulation S under the Securities Act) in reliance on Regulation S
and (ii) the issue date with respect to such Notes.

          "EUROCLEAR" means Euroclear Bank S.A./N.V., as operator of the
Euroclear System or any successor securities clearing agency.

          "EXCHANGE NOTES" means (1) the 9 1/2% Senior Subordinated Notes Due
2013 issued pursuant to the Indenture in connection with a Registered Exchange
Offer pursuant to a Registration Rights Agreement and (2) Additional Notes, if
any, issued pursuant to a registration statement filed with the SEC under the
Securities Act.

<Page>

                                                                             A-2

          "INITIAL PURCHASERS" means (1) with respect to the Initial Notes
issued on the Issue Date, Credit Suisse First Boston LLC, Wachovia Securities,
LLC and Banc One Capital Markets, Inc., and (2) with respect to each issuance of
Additional Notes, the Persons purchasing such Additional Notes under the related
Purchase Agreement.

          "INITIAL NOTES" means (1) $225,000,000 aggregate principal amount of
9 1/2% Senior Subordinated Notes Due 2013 issued on the Issue Date and (2)
Additional Notes, if any, issued in a transaction exempt from the registration
requirements of the Securities Act.

          "NOTES CUSTODIAN" means the custodian with respect to a Global Note
(as appointed by the Depository), or any successor Person thereto and shall
initially be the Trustee.

          "PRIVATE EXCHANGE" means the offer by the Company, pursuant to a
Registration Rights Agreement, to the Initial Purchasers to issue and deliver to
each Initial Purchaser, in exchange for the Initial Notes held by the Initial
Purchaser as part of its initial distribution, a like aggregate principal amount
of Private Exchange Notes.

          "PRIVATE EXCHANGE NOTES" means any 9 1/2% Senior Subordinated Notes
Due 2013 issued in connection with a Private Exchange.

          "PURCHASE AGREEMENT" means (1) with respect to the Initial Notes
issued on the Issue Date, the Purchase Agreement dated June 27, 2003, among the
Company, the Guarantors and the Initial Purchasers, and (2) with respect to each
issuance of Additional Notes, the purchase agreement or underwriting agreement
among the Company, the Guarantors and the Persons purchasing such Additional
Notes.

          "QIB" means a "qualified institutional buyer" as defined in Rule 144A.

          "REGISTERED EXCHANGE OFFER" means the offer by the Company, pursuant
to a Registration Rights Agreement, to certain Holders of Initial Notes, to
issue and deliver to such Holders, in exchange for the Initial Notes, a like
aggregate principal amount of Exchange Notes registered under the Securities
Act.

          "REGISTRATION RIGHTS AGREEMENT" means (1) with respect to the Initial
Notes issued on the Issue Date, the Registration Rights Agreement dated July 11,
2003, among the Company, the

<Page>

                                                                             A-3

Guarantors and the Initial Purchasers, and (2) with respect to each issuance of
Additional Notes issued in a transaction exempt from the registration
requirements of the Securities Act, the registration rights agreement, if any,
among the Company, the Guarantors and the Persons purchasing such Additional
Notes under the related Purchase Agreement.

          "RULE 144A NOTES" means all Initial Notes offered and sold to QIBs in
reliance on Rule 144A.

          "SHELF REGISTRATION STATEMENT" means the registration statement issued
by the Company in connection with the offer and sale of Initial Notes or Private
Exchange Notes pursuant to a Registration Rights Agreement.

          "TRANSFER RESTRICTED SECURITIES" means Notes that bear or are required
to bear the legend set forth in Section 2.3(e) hereto.

     1.2.      OTHER DEFINITIONS.

<Table>
<Caption>
                                                                      Defined in
           Term                                                        Section
           ----                                                       ----------
<S>                                                                     <C>
                                                                        2.1(b)
"Agent Members"......................................................   2.1(a)
"Global Notes".......................................................   2.1(a)
"Permanent Regulation S Global Note".................................   2.1(a)
"Regulation S".......................................................   2.1(a)
"Rule 144A"..........................................................   2.1(a)
"Rule 144A Global Note"..............................................   2.1(a)
"Temporary Regulation S Global Note".................................   2.1(a)
</Table>

        2.     THE NOTES.

     2.1.      FORM AND DATING.

          (a)  GENERAL. The Initial Notes will be offered and sold by the
Company, from time to time, pursuant to one or more Purchase Agreements. The
Initial Notes will be resold initially only to (i) QIBs in reliance on Rule 144A
under the Securities Act ("RULE 144A") and (ii) Persons other than U.S. Persons
(as defined in Regulation S) in reliance on Regulation S under the Securities
Act ("REGULATION S"). Initial Notes may thereafter be transferred to, among
others, QIBs and purchasers in reliance on Regulation S, subject to the
restrictions on transfer set forth herein. Initial Notes initially resold
pursuant to Rule 144A shall be issued initially in the form of one or more

<Page>

                                                                             A-4

permanent global notes in definitive, fully registered form (collectively, the
"RULE 144A GLOBAL NOTE") and Initial Notes initially resold pursuant to
Regulation S shall be issued initially in the form of one or more temporary
global notes in definitive, fully registered form (collectively, the "TEMPORARY
REGULATION S GLOBAL NOTE"), in each case without interest coupons and with the
global securities legend and restricted securities legend set forth in EXHIBIT 1
hereto, which shall be deposited on behalf of the purchasers of the Initial
Notes represented thereby with the Notes Custodian, and registered in the name
of the Depository or a nominee of the Depository, duly executed by the Company
and authenticated by the Trustee as provided in this Indenture. Beneficial
ownership interests in the Temporary Regulation S Global Note will not be
exchangeable for interests in the Rule 144A Global Note, a permanent global
security (the "PERMANENT REGULATION S GLOBAL NOTE"), or any other Note without a
legend containing restrictions on transfer of such Note prior to the expiration
of the Distribution Compliance Period and then only upon certification in form
reasonably satisfactory to the Trustee that beneficial ownership interests in
such Temporary Regulation S Global Note are owned either by non-U.S. Persons or
U.S. Persons who purchased such interests in a transaction that did not require
registration under the Securities Act. The Rule 144A Global Note, the Temporary
Regulation S Global Note and the Permanent Regulation S Global Note are
collectively referred to herein as "GLOBAL NOTES." The aggregate principal
amount of the Global Notes may from time to time be increased or decreased by
adjustments made on the records of the Trustee and the Depository or its nominee
as hereinafter provided.

          (b)  BOOK-ENTRY PROVISIONS. This Section 2.1(b) shall apply only to a
Global Note deposited with or on behalf of the Depository.

          The Company shall execute and the Trustee shall, in accordance with
this Section 2.1(b), authenticate and deliver initially one or more Global Notes
that (a) shall be registered in the name of the Depository for such Global Note
or Global Notes or the nominee of such Depository and (b) shall be delivered by
the Trustee to such Depository or pursuant to such Depository's instructions or
held by the Trustee as custodian for the Depository.

          Members of, or participants in, the Depository ("AGENT MEMBERS") shall
have no rights under this Indenture with respect to any Global Note held on
their behalf by the Depository or by the Trustee as the custodian of the
Depository or under such

<Page>

                                                                             A-5

Global Note, and the Company, the Trustee and any agent of the Company or the
Trustee shall be entitled to treat the Depository as the absolute owner of such
Global Note for all purposes whatsoever. Notwithstanding the foregoing, nothing
herein shall prevent the Company, the Trustee or any agent of the Company or the
Trustee from giving effect to any written certification, proxy or other
authorization furnished by the Depository or impair, as between the Depository
and its Agent Members, the operation of customary practices of such Depository
governing the exercise of the rights of a holder of a beneficial interest in any
Global Note.

          (c)  CERTIFICATED NOTES. Except as provided in this Section 2.1,
Section 2.3 or 2.4, owners of beneficial interests in Global Notes shall not be
entitled to receive physical delivery of Definitive Notes.

     2.2.      AUTHENTICATION. The Trustee shall authenticate and deliver: (1)
on the Issue Date, an aggregate principal amount of $225,000,000 9 1/2% Senior
Subordinated Notes Due 2013, (2) from time to time, any Additional Notes for
original issue in aggregate principal amounts specified in written orders of the
Company pursuant to Section 2.02 of the Indenture, and (3) Exchange Notes or
Private Exchange Notes for issue only in a Registered Exchange Offer or a
Private Exchange, respectively, pursuant to a Registration Rights Agreement, for
a like principal amount of Initial Notes, in each case upon a written order of
the Company signed by two Officers or by an Officer and either an Assistant
Treasurer or an Assistant Secretary of the Company. Such order shall specify the
amount of the Notes to be authenticated and the date on which the original issue
of Notes is to be authenticated.

     2.3.      TRANSFER AND EXCHANGE.

          (a)  TRANSFER AND EXCHANGE OF DEFINITIVE NOTES. When Definitive Notes
are presented to the Registrar or a co-registrar with a request:

          (x)  to register the transfer of such Definitive Notes; or

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

the Registrar or co-registrar shall register the transfer or make the exchange
as requested if its reasonable requirements

<Page>

                                                                             A-6

for such transaction are met; PROVIDED, HOWEVER, that the Definitive Notes
surrendered for transfer or exchange:

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

          (ii) if such Definitive Notes are required to bear a restricted
     securities legend, they are being transferred or exchanged pursuant to an
     effective registration statement under the Securities Act, pursuant to
     Section 2.3(b) or pursuant to clause (A), (B) or (C) below, and are
     accompanied by the following additional information and documents, as
     applicable:

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

               (B)  if such Definitive Notes are being transferred to the
          Company, a certification to that effect; or

               (C)  if such Definitive Notes are being transferred (x) pursuant
          to an exemption from registration in accordance with Rule 144A,
          Regulation S or Rule 144 under the Securities Act; or (y) in reliance
          upon another exemption from the requirements of the Securities Act:
          (i) a certification to that effect (in the form set forth on the
          reverse of the Note) and (ii) if the Company so requests, an opinion
          of counsel or other evidence reasonably satisfactory to it as to the
          compliance with the restrictions set forth in the legend set forth in
          Section 2.3(e)(i).

          (b)  RESTRICTIONS ON TRANSFER OF A DEFINITIVE NOTE FOR A BENEFICIAL
INTEREST IN A GLOBAL NOTE. A Definitive Note may not be exchanged for a
beneficial interest in a Rule 144A Global Note or a Permanent Regulation S
Global Note except upon satisfaction of the requirements set forth below. Upon
receipt by the Trustee of a Definitive Note, duly endorsed or accompanied by
appropriate instruments of transfer, in form satisfactory to the Trustee,
together with:

<Page>

                                                                             A-7

          (i)  certification, in the form set forth on the reverse of the Note,
     that such Definitive Note is either (A) being transferred to a QIB in
     accordance with Rule 144A or (B) is being transferred after expiration of
     the Distribution Compliance Period by a Person who initially purchased such
     Note in reliance on Regulation S to a buyer who elects to hold its interest
     in such Note in the form of a beneficial interest in the Permanent
     Regulation S Global Note; and

          (ii) written instructions directing the Trustee to make, or to direct
     the Notes Custodian to make, an adjustment on its books and records with
     respect to such Rule 144A Global Note (in the case of a transfer pursuant
     to clause (b)(i)(A)) or Permanent Regulation S Note (in the case of a
     transfer pursuant to clause (b)(i)(B)) to reflect an increase in the
     aggregate principal amount of the Notes represented by the Rule 144A Global
     Note or Permanent Regulation S Global Note, as applicable, such
     instructions to contain information regarding the Depositary account to be
     credited with such increase;

then the Trustee shall cancel such Definitive Note and cause, or direct the
Notes Custodian to cause, in accordance with the standing instructions and
procedures existing between the Depository and the Notes Custodian, the
aggregate principal amount of Notes represented by the Rule 144A Global Note or
Permanent Regulation S Global Note, as applicable, to be increased by the
aggregate principal amount of the Definitive Note to be exchanged and shall
credit or cause to be credited to the account of the Person specified in such
instructions a beneficial interest in the Rule 144A Global Note or Permanent
Regulation S Global Note, as applicable, equal to the principal amount of the
Definitive Note so canceled. If no Rule 144A Global Notes or Permanent
Regulation S Global Notes, as applicable, are then outstanding, the Company
shall issue and the Trustee shall authenticate, upon written order of the
Company in the form of an Officers' Certificate, a new Rule 144A Global Note or
Permanent Regulation S Global Note, as applicable, in the appropriate principal
amount.

          (c)  TRANSFER AND EXCHANGE OF GLOBAL NOTES.

          (i)  The transfer and exchange of Global Notes or beneficial interests
     therein shall be effected through the Depository, in accordance with this
     Indenture (including applicable restrictions on transfer set forth herein,
     if any) and the procedures of the Depository therefor. A

<Page>

                                                                             A-8

     transferor of a beneficial interest in a Global Note shall deliver to the
     Registrar a written order given in accordance with the Depository's
     procedures containing information regarding the participant account of the
     Depository to be credited with a beneficial interest in the Global Note.
     The Registrar shall, in accordance with such instructions instruct the
     Depository to credit to the account of the Person specified in such
     instructions a beneficial interest in the Global Note and to debit the
     account of the Person making the transfer the beneficial interest in the
     Global Note being transferred.

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

          (iii) Notwithstanding any other provisions of this APPENDIX A (other
     than the provisions set forth in Section 2.4), a Global Note may not be
     transferred as a whole except by the Depository to a nominee of the
     Depository or by a nominee of the Depository to the Depository or another
     nominee of the Depository or by the Depository or any such nominee to a
     successor Depository or a nominee of such successor Depository.

          (iv) In the event that a Global Note is exchanged for Definitive Notes
     pursuant to Section 2.4 of this APPENDIX A, prior to the consummation of a
     Registered Exchange Offer or the effectiveness of a Shelf Registration
     Statement with respect to such Notes, such Notes may be exchanged only in
     accordance with such procedures as are substantially consistent with the
     provisions of this Section 2.3 (including the certification requirements
     set forth on the reverse of the Initial Notes intended to ensure that such
     transfers comply with Rule 144A or Regulation S, as the case may be) and
     such other procedures as may from time to time be adopted by the Company.

          (d)  RESTRICTIONS ON TRANSFER OF TEMPORARY REGULATION S GLOBAL NOTES.
During the Distribution Compliance Period,

<Page>

                                                                             A-9

beneficial ownership interests in Temporary Regulation S Global Notes may only
be sold, pledged or transferred through Euroclear and Clearstream in accordance
with the Applicable Procedures and only (i) to the Company, (ii) so long as such
Note is eligible for resale pursuant to Rule 144A, to a Person whom the selling
holder reasonably believes is a QIB that purchases for its own account or for
the account of a QIB to whom notice is given that the resale, pledge or transfer
is being made in reliance on Rule 144A, (iii) in an offshore transaction in
accordance with Regulation S, (iv) pursuant to an exemption from registration
under the Securities Act provided by Rule 144 (if applicable) under the
Securities Act or (v) pursuant to an effective registration statement under the
Securities Act, in each case in accordance with any applicable securities laws
of any state of the United States.

          (e)  LEGEND.

          (i)  Except as permitted by the following paragraphs (ii), (iii) and
     (iv), each Note certificate evidencing the Global Notes and the Definitive
     Notes (and all Notes issued in exchange therefor or in substitution
     thereof) shall bear a legend in substantially the following form:

          THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION
          EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF
          1933, AS AMENDED (THE "SECURITIES ACT"), AND THIS NOTE MAY NOT BE
          OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH
          REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF
          THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE
          RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE
          SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.

          THE HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF THE COMPANY THAT (A)
          THIS NOTE MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED,
          ONLY (I) IN THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY
          BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A
          UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF
          RULE 144A, (II) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION
          IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (III) PURSUANT
          TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY
          RULE 144 THEREUNDER (IF AVAILABLE) OR (IV) PURSUANT TO AN EFFECTIVE
          REGISTRATION STATEMENT UNDER THE SECURITIES

<Page>

                                                                            A-10

          ACT, IN EACH OF CASES (I) THROUGH (IV) IN ACCORDANCE WITH ANY
          APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND (B)
          THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY
          PURCHASER OF THE NOTE FROM IT OF THE RESALE RESTRICTIONS REFERRED TO
          IN (A) ABOVE.

Each Definitive Note will also bear the following additional legend:

          IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE
          REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION
          AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE
          TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

          (ii) Upon any sale or transfer of a Transfer Restricted Note
     (including any Transfer Restricted Note represented by a Global Note)
     pursuant to Rule 144 under the Securities Act, the Registrar shall permit
     the transferee thereof to exchange such Transfer Restricted Note for a
     certificated Note that does not bear the legend set forth above and rescind
     any restriction on the transfer of such Transfer Restricted Note, if the
     transferor thereof certifies in writing to the Registrar that such sale or
     transfer was made in reliance on Rule 144 (such certification to be in the
     form set forth on the reverse of the Note).

          (iii) After a transfer of any Initial Notes or Private Exchange Notes
     pursuant to and during the period of the effectiveness of a Shelf
     Registration Statement with respect to such Initial Notes or Private
     Exchange Notes, as the case may be, all requirements pertaining to legends
     on such Initial Note or such Private Exchange Note will cease to apply, the
     requirements requiring any such Initial Note or such Private Exchange Note
     issued to certain Holders be issued in global form will cease to apply, and
     a certificated Initial Note or Private Exchange Note or an Initial Note or
     Private Exchange Note in global form, in each case without restrictive
     transfer legends, will be available to the transferee of the Holder of such
     Initial Notes or Private Exchange Notes upon exchange of such transferring
     Holder's certificated Initial Note or Private Exchange Note or directions
     to transfer such Holder's interest in the Global Note, as applicable.

<Page>

                                                                            A-11

          (iv) Upon the consummation of a Registered Exchange Offer with respect
     to the Initial Notes, all requirements pertaining to such Initial Notes
     that Initial Notes issued to certain Holders be issued in global form will
     still apply with respect to Holders of such Initial Notes that do not
     exchange their Initial Notes, and Exchange Notes in certificated or global
     form will be available to Holders that exchange such Initial Notes in such
     Registered Exchange Offer.

          (v)  Upon the consummation of a Private Exchange with respect to the
     Initial Notes, all requirements pertaining to such Initial Notes that
     Initial Notes issued to certain Holders be issued in global form will still
     apply with respect to Holders of such Initial Notes that do not exchange
     their Initial Notes, and Private Exchange Notes in global form with the
     global securities legend and the restricted securities legend set forth in
     Exhibit 1 hereto will be available to Holders that exchange such Initial
     Notes in such Private Exchange.

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

          (g)  OBLIGATIONS WITH RESPECT TO TRANSFERS AND EXCHANGES OF NOTES.

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

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

<Page>

                                                                            A-12

     assessments or similar governmental charge payable upon exchange or
     transfer pursuant to Sections 3.06, 4.02 and 9.05 of the Indenture).

          (iii) The Registrar or co-registrar shall not be required to register
     the transfer of or exchange of (a) any Definitive Note selected for
     redemption in whole or in part pursuant to Article 3 of this Indenture,
     except the unredeemed portion of any Definitive Note being redeemed in
     part, or (b) any Note for a period beginning 15 days before the mailing of
     a notice of an offer to repurchase or redeem Notes or 15 days before an
     interest payment date.

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

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

          (h)  NO OBLIGATION OF THE TRUSTEE.

          (i)  The Trustee shall have no responsibility or obligation to any
     beneficial owner of a Global Note, a member of, or a participant in the
     Depository or other Person with respect to the accuracy of the records of
     the Depository or its nominee or of any participant or member thereof, with
     respect to any ownership interest in the Notes or with respect to the
     delivery to any participant, member, beneficial owner or other Person
     (other than the Depository) of any notice (including any notice of
     redemption) or the payment of any amount, under or with respect to such
     Notes. All notices and communications to be given to the Holders and all
     payments to be made to Holders under the Notes shall be given or made only
     to or upon the order of the registered Holders (which shall be the
     Depository or its nominee in the case of a Global Note). The rights of
     beneficial owners in any Global Note

<Page>

                                                                            A-13

     shall be exercised only through the Depository subject to the applicable
     rules and procedures of the Depository. The Trustee may rely and shall be
     fully protected in relying upon information furnished by the Depository
     with respect to its members, participants and any beneficial owners.

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

     2.4.      DEFINITIVE NOTES.

          (a)  A Global Note deposited with the Depository or with the Trustee
as Notes Custodian for the Depository pursuant to Section 2.1 shall be
transferred to the beneficial owners thereof in the form of Definitive Notes in
an aggregate principal amount equal to the principal amount of such Global Note,
in exchange for such Global Note, only if such transfer complies with Section
2.3 and (i) the Depository notifies the Company that it is unwilling or unable
to continue as Depository for such Global Note or if at any time such Depository
ceases to be a "clearing agency" registered under the Exchange Act and a
successor Depositary is not appointed by the Company within 90 days of such
notice, or (ii) an Event of Default has occurred and is continuing or (iii) the
Company, in its sole discretion, notifies the Trustee in writing that it elects
to cause the issuance of Definitive Notes under this Indenture.

          (b)  Any Global Note that is transferable to the beneficial owners
thereof pursuant to this Section shall be surrendered by the Depository to the
Trustee located at its principal corporate trust office, to be so transferred,
in whole or from time to time in part, without charge, and the Trustee shall
authenticate and deliver, upon such transfer of each portion of such Global
Note, an equal aggregate principal amount of Definitive Notes of authorized
denominations. Any portion of a Global Note transferred pursuant to this Section
shall be executed, authenticated and delivered only in denominations of $1,000
principal amount and any integral multiple thereof and

<Page>

                                                                            A-14

registered in such names as the Depository shall direct. Any Definitive Note
delivered in exchange for an interest in a Transfer Restricted Note shall,
except as otherwise provided by Section 2.3(e), bear the restricted securities
legend set forth in EXHIBIT 1 hereto.

          (c)  Subject to the provisions of Section 2.4(b), the registered
Holder of a Global Note shall be entitled to grant proxies and otherwise
authorize any Person, including Agent Members and Persons that may hold
interests through Agent Members, to take any action which a Holder is entitled
to take under this Indenture or the Notes.

          (d)  In the event of the occurrence of one of the events specified in
Section 2.4(a), the Company shall promptly make available to the Trustee a
reasonable supply of Definitive Notes in definitive, fully registered form
without interest coupons.

<Page>

                                                                       EXHIBIT 1
                                                                              to
                                                                      APPENDIX A

                         [FORM OF FACE OF INITIAL NOTE]

                              [Global Note Legend]

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

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

                         [Restricted Securities Legend]

          THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION
EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), AND THIS NOTE MAY NOT BE OFFERED, SOLD OR
OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE
EXEMPTION THEREFROM. EACH PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE
SELLER OF THIS NOTE MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF
SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.

          THE HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF THE COMPANY THAT (A)
THIS NOTE MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) IN
THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) OUTSIDE THE UNITED
STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE
SECURITIES ACT, (III) PURSUANT TO AN EXEMPTION FROM REGISTRATION

<Page>

                                                                               2

UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR (IV)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN
EACH OF CASES (I) THROUGH (IV) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS
OF ANY STATE OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT
HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THE NOTE FROM IT OF THE RESALE
RESTRICTIONS REFERRED TO IN (A) ABOVE.

                   [Temporary Regulation S Global Note Legend]

          BENEFICIAL OWNERSHIP INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL
NOTE WILL NOT BE EXCHANGEABLE FOR INTERESTS IN THE RULE 144A GLOBAL NOTE OR THE
PERMANENT REGULATION S GLOBAL NOTE OR ANY OTHER NOTE REPRESENTING AN INTEREST IN
THE NOTES REPRESENTED HEREBY WHICH DO NOT CONTAIN A LEGEND CONTAINING
RESTRICTIONS ON TRANSFER, UNTIL THE EXPIRATION OF THE "40-DAY DISTRIBUTION
COMPLIANCE PERIOD" (WITHIN THE MEANING OF RULE 903(c)(3) OF REGULATION S UNDER
THE SECURITIES ACT) AND THEN ONLY UPON CERTIFICATION IN FORM REASONABLY
SATISFACTORY TO THE TRUSTEE THAT SUCH BENEFICIAL INTERESTS ARE OWNED EITHER BY
NON-U.S. PERSONS OR U.S. PERSONS WHO PURCHASED SUCH INTERESTS IN A TRANSACTION
THAT DID NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT. DURING SUCH 40-DAY
DISTRIBUTION COMPLIANCE PERIOD, BENEFICIAL OWNERSHIP INTERESTS IN THIS TEMPORARY
REGULATION S GLOBAL NOTE MAY ONLY BE SOLD, PLEDGED OR TRANSFERRED THROUGH THE
EUROCLEAR BANK S.A./N.A., AS OPERATOR OF THE EUROCLEAR SYSTEM OR CLEARSTREAM
BANKING, SOCIETE ANONYME AND ONLY (I) TO THE COMPANY, (II) IN THE UNITED STATES
TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL
BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION
MEETING THE REQUIREMENTS OF RULE 144A, (III) OUTSIDE THE UNITED STATES IN AN
OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (IV)
PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY
RULE 144 THEREUNDER (IF AVAILABLE) OR (V) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES (I) THROUGH (V) IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES. HOLDERS OF INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL NOTE WILL
NOTIFY ANY PURCHASER OF SUCH RESALE RESTRICTIONS, IF THEN APPLICABLE.

                            [Definitive Notes Legend]

          IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE
REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH
TRANSFER AGENT MAY REASONABLY

<Page>

                                                                               3

REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

<Page>

                                                                               4

No.-                                                                          $-
                                                                     CUSIP No. -
                                                                      ISIN No. -

                    9 1/2% Senior Subordinated Notes Due 2013

          MERISANT COMPANY, a Delaware corporation, promises to pay to CEDE &
CO., or registered assigns, the principal sum of TWO HUNDRED TWENTY-FOUR MILLION
SIXTY-FIVE THOUSAND DOLLARS, or such greater or lesser amount as may from time
to time be endorsed on the Schedule of Increases or Decreases in Global Note
attached hereto (but in no event may such amount exceed the maximum principal
amount of Notes authenticated pursuant to Section 2.2 of Appendix A to the
Indenture referred to below and then outstanding pursuant to Section 2.08 of the
Indenture), on July 15, 2013.

     Interest Payment Dates:  January 15 and July 15, commencing
                              January 15, 2004.

     Record Dates:   January 1 and July 1.

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

Dated: -, 20-
                                              MERISANT COMPANY

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

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

TRUSTEE'S CERTIFICATE OF
    AUTHENTICATION

Wells Fargo Bank Minnesota, National Association,
  as Trustee, certifies
     that this is one of
     the Notes referred
     to in the Indenture.

<Page>

                                                                               5

By:

     --------------------------
     Authorized Signatory

<Page>

                                                                               6

                     [FORM OF REVERSE SIDE OF INITIAL NOTE]
                    9 1/2% Senior Subordinated Notes Due 2013

1.  INTEREST

          MERISANT COMPANY, a Delaware corporation (such corporation, and its
successors and assigns under the Indenture hereinafter referred to, being herein
called the "COMPANY"), promises to pay interest on the principal amount of this
Note at the rate per annum shown above; PROVIDED, HOWEVER, that if a
Registration Default (as defined in the Registration Rights Agreement) occurs,
additional interest will accrue on this Note at a rate specified in the
Registration Rights Agreement. Interest on overdue principal (and, to the extent
lawful, on overdue installments of interest) shall accrue at the rate that is 1%
per annum in excess of the rate specified in the preceding sentence. The Company
will pay interest semiannually on January 15 and July 15 of each year,
commencing January 15, 2004. Interest on the Notes (other than Additional Notes)
will accrue from the most recent date to which interest has been paid or, if no
interest has been paid, from [insert date of issuance]. Interest on Additional
Notes will accrue from the most recent interest payment date, or, if such
Additional Notes are issued prior to the first interest payment date, from the
Issue Date. Interest will be computed on the basis of a 360-day year of twelve
30-day months.

2.  METHOD OF PAYMENT

          The Company will pay interest on the Notes (except defaulted interest)
to the Persons who are registered holders of Notes at the close of business on
the January 1 or July 1 next preceding the interest payment date even if Notes
are canceled after the record date and on or before the interest payment date.
Holders must surrender Notes to a Paying Agent to collect principal payments.
The Company will pay principal and interest in money of the United States that
at the time of payment is legal tender for payment of public and private debts.
Payments in respect of the Notes represented by a Global Note (including
principal, premium and interest) will be made by wire transfer of immediately
available funds to the accounts specified by The Depository Trust Company. The
Company will make all payments in respect of a certificated Note (including
principal, premium and interest) by mailing a check to the registered address of
each Holder thereof; PROVIDED, HOWEVER, that payments on a certificated Note
will be made by wire transfer to a U.S. dollar account maintained by the payee
with a bank in the United States if such Holder elects payment by wire transfer
by giving written

<Page>

                                                                               7

notice to the Trustee or the Paying Agent to such effect designating such
account no later than 30 days immediately preceding the relevant due date for
payment (or such other date as the Trustee may accept in its discretion).

3.  PAYING AGENT AND REGISTRAR

          Initially, Wells Fargo Bank Minnesota, National Association (the
"TRUSTEE"), will act as Paying Agent and Registrar. The Company may appoint and
change any Paying Agent, Registrar or co-registrar without notice. The Company
or any of its domestically incorporated Wholly Owned Subsidiaries may act as
Paying Agent, Registrar or co-registrar.

4.  INDENTURE

          The Company issued the Notes under an Indenture dated as of July 11,
2003 (as such may be amended or supplemented from time to time, "INDENTURE"),
among the Company, the Guarantors and the Trustee. The terms of the Notes
include those stated in the Indenture and those made part of the Indenture by
reference to the Trust Indenture Act of 1939 (15 U.S.C. Sections 77aaa-77bbbb)
as in effect on the date of the Indenture (the "TIA"). Terms defined in the
Indenture and not defined herein have the meanings ascribed thereto in the
Indenture. The Notes are subject to all such terms, and Noteholders are referred
to the Indenture and the TIA for a statement of those terms.

          The Notes are general unsecured obligations of the Company. The
Company shall be entitled, subject to its compliance with Sections 2.13 and 4.06
of the Indenture, to issue Additional Notes pursuant to Section 2.13 of the
Indenture. The Initial Notes issued on the Issue Date, any Additional Notes and
all Exchange Notes or Private Exchange Notes issued in exchange therefor will be
treated as a single class for all purposes under the Indenture. The Indenture
contains covenants that limit the ability of the Company and its subsidiaries to
incur additional indebtedness; layer indebtedness; pay dividends or
distributions on, or redeem or repurchase capital stock; make investments;
engage in transactions with affiliates; create liens on assets; transfer or sell
assets; restrict dividends or other payments from subsidiaries; and consolidate,
merge or transfer all or substantially all of its assets and the assets of its
subsidiaries. These covenants are subject to important exceptions and
qualifications.

5.  OPTIONAL REDEMPTION

<Page>

                                                                               8

          Except as set forth below, the Company shall not be entitled to redeem
the Notes at its option prior to July 15, 2008.

          (a)  On and after July 15, 2008, the Company shall be entitled at its
option to redeem all or a portion of the Notes upon not less than 30 nor more
than 60 days' notice, at the redemption prices (expressed in percentages of
principal amount on the redemption date), plus accrued and unpaid interest
thereon, if any, 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 12-month period
commencing on July 15 of the years set forth below:

<Table>
<Caption>
                                             Redemption
                        Period                 Price
                        ------               ----------
                 <S>                          <C>
                         2008                 104.750%
                         2009                 103.167%
                         2010                 101.583%
                 2011 and thereafter          100.000%
</Table>

          In addition, before July 16, 2006, the Company may at its option on
one or more occasions redeem Notes (which includes Additional Notes, if any) in
an aggregate principal amount not to exceed 35% of the aggregate principal
amount of the Notes (which includes Additional Notes, if any) issued prior to
such date at a redemption price (expressed as a percentage of principal amount)
of 109.5%, plus accrued and unpaid interest to the redemption date, with the Net
Cash Proceeds from one or more Qualified Equity Offerings; PROVIDED, HOWEVER,
that (1) at least 65% of such aggregate principal amount of Notes (which
excludes Additional Notes, if any) remains outstanding immediately after the
occurrence of each such redemption (other than Notes held, directly or
indirectly, by the Company or its Affiliates); (2) each such redemption occurs
within 60 days after the date of the related Qualified Equity Offering; and (3)
if the Qualified Equity Offering is an offering by Parent or Holdings, a portion
of the Net Cash Proceeds thereof equal to the amount required to redeem any such
Notes is contributed to the equity capital of the Company or used to acquire
from the Company Capital Stock (other than Disqualified Stock) of the Company.

          (b)  At any time on or prior to the First Call Date, after the
completion of a Change of Control Offer that was accepted by Holders of not less
than 75% of the Notes then

<Page>

                                                                               9

outstanding, the Company may redeem the Notes of any Holder who has not accepted
the Change of Control Offer (the "UNTENDERED NOTES") upon not less than 30 nor
more than 60 days' prior notice but in no event more than 90 days after the
completion of such Change of Control Offer, mailed by first-class mail to each
Holder's registered address, at a redemption price equal to 100% of the
principal amount of the Untendered Notes plus the Applicable Premium as of, and
accrued and unpaid interest, if any, to, the date of redemption (the "CHANGE OF
CONTROL REDEMPTION DATE"), except that installments of interest which are due
and payable on dates falling on or prior to the applicable redemption date will
be payable to the Persons who were the Holders of record at the close of
business on the relevant record dates.

6.  NOTICE OF REDEMPTION

          Notice of redemption will be mailed by first class mail at least 30
days but not more than 60 days before the redemption date to each Holder of
Notes to be redeemed at the Holder's registered address. Notes in denominations
of $1,000 principal amount or less may be redeemed in whole and not in part.
Notes in denominations larger than $1,000 principal amount 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 Notes (or portions thereof) to
be redeemed on the redemption date is deposited with the Paying Agent on or
before the redemption date and certain other conditions are satisfied, on and
after such date interest ceases to accrue on such Notes (or such portions
thereof) called for redemption.

7.  PUT PROVISIONS

          Upon a Change of Control, each Holder will have the right to require
that the Company purchase such Holder's Notes at a purchase price equal to 101%
of the principal amount of the Notes to be purchased plus accrued and unpaid
interest, if any, to the date of purchase (subject to the right of holders of
record on the relevant record date to receive interest due on the related
interest payment date) as provided in, and subject to the terms of, the
Indenture.

          In certain circumstances, the Company must use the Net Available Cash
from Asset Dispositions to make an offer to Holders to purchase Notes at a
purchase price of 100% of the principal amount, plus accrued and unpaid
interest.

8.  SUBORDINATION

<Page>

                                                                              10

          The Notes are subordinated to Senior Indebtedness of the Company. To
the extent provided in the Indenture, Senior Indebtedness of the Company must be
paid before the Notes may be paid. The Company agrees, and each Noteholder by
accepting a Note agrees, to the subordination provisions contained in the
Indenture and authorizes the Trustee to give it effect and appoints the Trustee
as attorney-in-fact for such purpose.

9.  GUARANTY

          The payment by the Company of the principal of, and premium and
interest on, the Notes is fully and unconditionally guaranteed on a joint and
several senior subordinated basis by each of the Guarantors. Not all
Subsidiaries are Guarantors.

10.  DENOMINATIONS; TRANSFER; EXCHANGE

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

11.  PERSONS DEEMED OWNERS

          The registered Holder of this Note may be treated as the Note's owner
for all purposes.

12.  UNCLAIMED MONEY

          If money for the payment of principal or interest remains unclaimed
for two years, the Trustee or Paying Agent shall pay the money back to the
Company at its request unless an abandoned property law designates another
Person. After any such payment, Holders entitled to the money must look only to
the Company and not to the Trustee for payment.

13.  DISCHARGE AND DEFEASANCE

<Page>

                                                                              11

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

14.  AMENDMENT, WAIVER

          Subject to certain exceptions set forth in the Indenture, (i) the
Indenture and the Notes may be amended with the written consent of the Holders
of at least a majority in principal amount outstanding of the Notes and (ii) any
default or noncompliance with any provision may be waived with the written
consent of the Holders of a majority in principal amount outstanding of the
Notes. Subject to certain exceptions set forth in the Indenture, without the
consent of any Noteholder, the Company, the Guarantors and the Trustee shall be
entitled to amend the Indenture or the Notes to cure any ambiguity, omission,
defect or inconsistency, to comply with Article 5 of the Indenture, to provide
for uncertificated Notes in addition to or in place of certificated Notes, to
add guarantees with respect to the Notes, including any Guaranties, to secure
the Notes, to add additional covenants or surrender rights and powers conferred
on the Company or any Guarantors, to comply with any request of the SEC in
connection with qualifying the Indenture under the TIA, to make any change that
does not adversely affect the rights of any Noteholder, or to evidence the
release of a Guarantor in accordance with the Indenture.

15.  DEFAULTS AND REMEDIES

          Under the Indenture, Events of Default include: (i) default in payment
of interest on the Notes, continued for 30 days; (ii) default in payment of
principal on the Notes at maturity, upon optional redemption pursuant to
paragraph 5 of the Notes, upon declaration of acceleration or otherwise, or
failure by the Company to redeem or purchase Notes when required; (iii) failure
by the Company or any Guarantor to comply with other agreements in the Indenture
or the Notes, in certain cases subject to notice and lapse of time; (iv) certain
accelerations (including failure to pay within any grace period after final
maturity) of other Indebtedness of the Company, any Guarantor or any Significant
Subsidiary if the amount accelerated (or so unpaid) exceeds $10 million; (v)
certain events of bankruptcy or insolvency with respect to the Company, any
Guarantor and the Significant Subsidiaries; (vi) certain judgments or decrees
for the payment of money in excess of $10

<Page>

                                                                              12

million; and (vii) certain defaults with respect to Guaranties. If an Event of
Default occurs and is continuing, the Trustee or the Holders of at least 25% in
principal amount of the Notes may declare all the Notes to be due and payable by
notice in writing to the Company and the Trustee, and upon such declaration, the
Notes will be due and payable immediately. Certain events of bankruptcy or
insolvency are Events of Default which will result in the Notes being due and
payable immediately upon the occurrence of such Events of Default.

          Noteholders may not enforce the Indenture or the Notes except as
provided in the Indenture. The Trustee may refuse to enforce the Indenture or
the Notes unless it receives reasonable indemnity or security against any loss,
liability or expense. Subject to certain limitations, Holders of a majority in
principal amount of the Notes may direct the Trustee in its exercise of any
trust or power. The Trustee may withhold from Noteholders notice of any
continuing Default (except a Default in payment of principal or interest) if it
determines that withholding notice is in the interest of the Holders.

16.  TRUSTEE DEALINGS WITH THE COMPANY

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

17.  NO RECOURSE AGAINST OTHERS

          No director, officer, employee, incorporator or stockholder of the
Company or any Guarantor will have any liability for any obligations of the
Company or any Guarantor under the Notes, any Guaranty or the Indenture or for
any claim based on, in respect of, or by reason of such obligations or their
creation. Each Holder of the Notes by accepting a Note waives and releases all
such liability. The waiver and release are part of the consideration for
issuance of the Notes.

18.  AUTHENTICATION

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

<Page>

                                                                              13

19.  ABBREVIATIONS

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

20.  CUSIP NUMBERS

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

21.  HOLDERS' COMPLIANCE WITH REGISTRATION RIGHTS AGREEMENT

          Each Holder of a Note, by acceptance hereof, acknowledges and agrees
to the provisions of the Registration Rights Agreement, including the
obligations of the Holders with respect to a registration and the
indemnification of the Company to the extent provided therein.

22.  GOVERNING LAW

          THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES
OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION WOULD BE REQUIRED THEREBY.

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

          Merisant Company
          One North Brentwood Boulevard, Suite 510
          Clayton, Missouri  63103
          Attention:  Luke C. Kissam, Esq.

<Page>

                                                                              14

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

                                 ASSIGNMENT FORM

To assign this Note, fill in the form below:

I or we assign and transfer this Note to

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

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

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

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

Date:                    Your Signature:
     --------------------               --------------------------

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

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

In connection with any transfer of any of the Notes evidenced by this
certificate occurring prior to the expiration of the period referred to in Rule
144(k) under the Securities Act of 1933, as amended (the "SECURITIES ACT"),
after the later of the date of the original issuance of such Notes and the last
date, if any, on which such Notes were owned by the Company or any Affiliate of
the Company, the undersigned confirms that such Notes are being transferred in
accordance with its terms:

CHECK ONE BOX BELOW

(1)    / /     to the Company; or

(2)    / /     in the United States to a "qualified institutional buyer" (as
               defined in Rule 144A under the Securities Act) that purchases for
               its own account or for the account of a qualified institutional
               buyer to whom notice is given that such transfer is being made in
               reliance on Rule

<Page>

                                                                              15

               144A, in each case pursuant to and in compliance with Rule 144A
               under the Securities Act; or

(3)    / /     outside the United States in an offshore transaction within
               the meaning of Regulation S under the Securities Act in
               compliance with Rule 904 under the Securities Act; or

(4)    / /     pursuant to the exemption from registration provided by Rule 144
               under the Securities Act; or

(5)    / /     pursuant to an effective registration statement under the
               Securities Act.

       If such transfer is being made pursuant to an offshore transaction in
accordance with Rule 904 under the Securities Act, the undersigned further
certifies that:

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

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

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

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

       (v) we have advised the transferee of the transfer restrictions
applicable to the Notes; and

       (vi) if the circumstances set forth in Rule 904(B) under the Securities
Act, are applicable, we have complied with the additional conditions therein,
including (if applicable) sending a confirmation or other notice stating that
the Notes may be offered and sold during the distribution compliance period
specified in Rule 903 of

<Page>

                                                                              16

Regulation S; pursuant to registration of the Notes under the Securities Act; or
pursuant to an available exemption from the registration requirements under the
Securities Act.

       Unless one of the boxes is checked, the Trustee will refuse to register
any of the Notes evidenced by this certificate in the name of any person other
than the registered holder thereof; PROVIDED, HOWEVER, that if box (3) or (4) is
checked, the Trustee shall be entitled to require, prior to registering any such
transfer of the Notes, such legal opinions, certifications and other information
as the Company has reasonably requested to confirm that such transfer is being
made pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act such as the exemption provided
by Rule 144 under such Act.

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

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

       Signatures must be guaranteed by an "eligible guarantor institution"
meeting the requirements of the Registrar, which requirements include membership
or participation in the Security Transfer Agent Medallion Program ("STAMP") or
such other "signature guarantee program" as may be determined by the Registrar
in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

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

  TO BE COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED.

       The undersigned represents and warrants that it is purchasing this Note
for its own account or an account with respect to which it exercises sole
investment discretion and that it and any such account is a "qualified
institutional buyer" within the meaning of Rule 144A under the Securities Act
and is aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Company as the
undersigned has requested pursuant to Rule 144A or has

<Page>

                                                                              17

determined not to request such information and that it is aware that the
transferor is relying upon the undersigned's foregoing representations in order
to claim the exemption from registration provided by Rule 144A.

Dated:
      --------------                           ---------------------------------
                                               NOTICE:  To be executed by
                                                        an executive officer

<Page>

                                                                              18

                        [TO BE ATTACHED TO GLOBAL NOTES]

                SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE

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

<Table>
<Caption>
                                                               Principal
                       Amount of          Amount of            amount of this     Signature of
                       decrease in        increase in          Global Note        authorized
                       Principal          Principal            following such     officer of
                       amount of this     amount of this       decrease or        Trustee or
Date of Exchange       Global Note        Global Note          increase           Notes  Custodian
<S>                    <C>                <C>                  <C>                <C>

</Table>

<Page>

                                                                              19

                       OPTION OF HOLDER TO ELECT PURCHASE

       If you want to elect to have this Note purchased by the Company pursuant
to Section 4.04 or 4.10 of the Indenture, check the box:  / /

       If you want to elect to have only part of this Note purchased by the
Company pursuant to Section 4.04 or 4.10 of the Indenture, state the amount in
principal amount: $_____________

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

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

Signatures must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program ("STAMP") or such
other "signature guarantee program" as may be determined by the Registrar in
addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

<Page>

                                                                       EXHIBIT 2
                                                                              to
                                                                      APPENDIX A

                         [FORM OF FACE OF EXCHANGE NOTE
                         OR PRIVATE EXCHANGE NOTE] */**/

No.-                                                                          $-
                                                                     CUSIP No. -
                                                                      ISIN No. -

                    9 1/2% Senior Subordinated Notes Due 2013

          MERISANT COMPANY, a Delaware corporation, promises to pay to -, or
registered assigns, the principal sum of - DOLLARS, or such greater or lesser
amount as may from time to time be endorsed on the Schedule of Increases or
Decreases in Global Note attached hereto (but in no event may such amount exceed
the maximum principal amount of Notes authenticated pursuant to Section 2.2 of
Appendix A to the Indenture referred to below and then outstanding pursuant to
Section 2.08 of the Indenture), on July 15, 2013.

     Interest Payment Dates:  January 15 and July 15, commencing
                              January 15, 2004.

     Record Dates:  January 1 and July 1.

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

Dated:  -, 20-
                                              MERISANT COMPANY

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

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

TRUSTEE'S CERTIFICATE OF
     AUTHENTICATION

[TRUSTEE],
  as Trustee, certifies
     that this is one of

<Page>

                                                                       EXHIBIT 2
                                                                              to
                                                                      APPENDIX A

     the Notes referred
     to in the Indenture.

By:

     ----------------------------------
     Authorized Signatory

----------
*/If the Note is to be issued in global form add the Global Notes Legend from
EXHIBIT 1 to APPENDIX A and the attachment from such EXHIBIT 1 captioned "TO BE
ATTACHED TO GLOBAL NOTES - SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE".

**/If the Note is a Private Exchange Note issued in a Private Exchange to an
Initial Purchaser holding an unsold portion of its initial allotment, add the
restricted securities legend from EXHIBIT 1 to APPENDIX A and replace the
Assignment Form included in this EXHIBIT 2 with the Assignment Form included in
such EXHIBIT 1.

<Page>

                                                                               3

                     [FORM OF REVERSE SIDE OF EXCHANGE NOTE
                            OR PRIVATE EXCHANGE NOTE]

                    9 1/2% Senior Subordinated Notes Due 2013

1.  INTEREST

          MERISANT COMPANY, a Delaware corporation (such corporation, and its
successors and assigns under the Indenture hereinafter referred to, being herein
called the "COMPANY"), promises to pay interest on the principal amount of this
Note at the rate per annum shown above; PROVIDED, HOWEVER, that if a
Registration Default (as defined in the Registration Rights Agreement) occurs,
additional interest will accrue on this Note at a rate specified in the
Registration Rights Agreement. Interest on overdue principal (and, to the extent
lawful, on overdue installments of interest) shall accrue at the rate that is 1%
per annum in excess of the rate specified in the preceding sentence. The Company
will pay interest semiannually on January 15 and July 15 of each year,
commencing January 15, 2004. Interest on the Notes (other than Additional Notes)
will accrue from the most recent date to which interest has been paid or, if no
interest has been paid, from [insert last payment date on which interest was
paid on the Initial Notes or, if no interest has been paid on the Initial Notes,
insert the date of original issuance of the Initial Notes]. Interest on
Additional Notes will accrue from the most recent interest payment date, or, if
such Additional Notes are issued prior to the first interest payment date, from
the Issue Date. Interest will be computed on the basis of a 360-day year of
twelve 30-day months.

2.  METHOD OF PAYMENT

          The Company will pay interest on the Notes (except defaulted interest)
to the Persons who are registered holders of Notes at the close of business on
the January 1 or July 1 next preceding the interest payment date even if Notes
are canceled after the record date and on or before the interest payment date.
Holders must surrender Notes to a Paying Agent to collect principal payments.
The Company will pay principal and interest in money of the United States that
at the time of payment is legal tender for payment of public and private debts.
Payments in respect of the Notes represented by a Global Note (including
principal, premium and interest) will be made by wire transfer of immediately
available funds to the accounts specified by The Depository Trust Company. The
Company will make all payments in respect of a certificated Note (including
principal, premium and interest) by mailing a check to the registered address of
each

<Page>

                                                                               4

Holder thereof; PROVIDED, HOWEVER, that payments on a certificated Note will be
made by wire transfer to a U.S. dollar account maintained by the payee with a
bank in the United States if such Holder elects payment by wire transfer by
giving written notice to the Trustee or the Paying Agent to such effect
designating such account no later than 30 days immediately preceding the
relevant due date for payment (or such other date as the Trustee may accept in
its discretion).

3.  PAYING AGENT AND REGISTRAR

          Initially, [THE TRUSTEE] (the "TRUSTEE"), will act as Paying Agent and
Registrar. The Company may appoint and change any Paying Agent, Registrar or
co-registrar without notice. The Company or any of its domestically incorporated
Wholly Owned Subsidiaries may act as Paying Agent, Registrar or co-registrar.

4.  INDENTURE

          The Company issued the Notes under an Indenture dated as of July 11,
2003 (as such may be amended or supplemented from time to time, "INDENTURE"),
among the Company, the Guarantors and the Trustee. The terms of the Notes
include those stated in the Indenture and those made part of the Indenture by
reference to the Trust Indenture Act of 1939 (15 U.S.C. Sections 77aaa-77bbbb)
as in effect on the date of the Indenture (the "TIA"). Terms defined in the
Indenture and not defined herein have the meanings ascribed thereto in the
Indenture. The Notes are subject to all such terms, and Noteholders are referred
to the Indenture and the TIA for a statement of those terms.

          The Notes are general unsecured obligations of the Company. The
Company shall be entitled, subject to its compliance with Sections 2.13 and 4.06
of the Indenture, to issue Additional Notes pursuant to Section 2.13 of the
Indenture. The Initial Notes issued on the Issue Date, any Additional Notes and
all Exchange Notes or Private Exchange Notes issued in exchange therefor will be
treated as a single class for all purposes under the Indenture. The Indenture
contains covenants that limit the ability of the Company and its subsidiaries to
incur additional indebtedness; layer indebtedness; pay dividends or
distributions on, or redeem or repurchase capital stock; make investments;
engage in transactions with affiliates; create liens on assets; transfer or sell
assets; restrict dividends or other payments from subsidiaries; and consolidate,
merge or transfer all or substantially all of its assets and the assets of its

<Page>

                                                                               5

subsidiaries. These covenants are subject to important exceptions and
qualifications.

5.  OPTIONAL REDEMPTION

          Except as set forth below, the Company shall not be entitled to redeem
the Notes at its option prior to July 15, 2008.

          (a)  On and after July 15, 2008, the Company shall be entitled at its
option to redeem all or a portion of the Notes upon not less than 30 nor more
than 60 days' notice, at the redemption prices (expressed in percentages of
principal amount on the redemption date), plus accrued and unpaid interest
thereon, if any, 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 12-month period
commencing on July 15 of the years set forth below:

<Table>
<Caption>
                                                   Redemption
                    Period                           Price
                    ------                         ----------
             <S>                                    <C>
                     2008                           104.750%
                     2009                           103.167%
                     2010                           101.583%
             2011 and thereafter                    100.000%
</Table>

          In addition, before July 15, 2006, the Company may at its option on
one or more occasions redeem Notes (which includes Additional Notes, if any) in
an aggregate principal amount not to exceed 35% of the aggregate principal
amount of the Notes (which includes Additional Notes, if any) originally issued
at a redemption price (expressed as a percentage of principal amount) of 109.5%,
plus accrued and unpaid interest to the redemption date, with the Net Cash
Proceeds from one or more Qualified Equity Offerings; PROVIDED, HOWEVER, that
(1) at least 65% of such aggregate principal amount of Notes (which excludes
Additional Notes, if any) remains outstanding immediately after the occurrence
of each such redemption (other than Notes held, directly or indirectly, by the
Company or its Affiliates); (2) each such redemption occurs within 60 days after
the date of the related Qualified Equity Offering; and (3) if the Qualified
Equity Offering is an offering by Parent or Holdings, a portion of the Net Cash
Proceeds thereof equal to the amount required to redeem any such Notes is
contributed to the equity capital of

<Page>

                                                                               6

the Company or used to acquire from the Company Capital Stock (other than
Disqualified Stock) of the Company.

          (b)  At any time on or prior to the First Call Date, after the
completion of a Change of Control Offer that was accepted by Holders of not less
than 75% of the Notes then outstanding, the Company may redeem the Notes of any
Holder who has not accepted the Change of Control Offer (the "UNTENDERED NOTES")
upon not less than 30 nor more than 60 days' prior notice but in no event more
than 90 days after the completion of such Change of Control Offer, mailed by
first-class mail to each Holder's registered address, at a redemption price
equal to 100% of the principal amount of the Untendered Notes plus the
Applicable Premium as of, and accrued and unpaid interest, if any, to, the date
of redemption (the "CHANGE OF CONTROL REDEMPTION DATE"), except that
installments of interest which are due and payable on dates falling on or prior
to the applicable redemption date will be payable to the Persons who were the
Holders of record at the close of business on the relevant record dates.

6.  NOTICE OF REDEMPTION

          Notice of redemption will be mailed by first class mail at least 30
days but not more than 60 days before the redemption date to each Holder of
Notes to be redeemed at the Holder's registered address. Notes in denominations
of $1,000 principal amount or less may be redeemed in whole and not in part.
Notes in denominations larger than $1,000 principal amount 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 Notes (or portions thereof) to
be redeemed on the redemption date is deposited with the Paying Agent on or
before the redemption date and certain other conditions are satisfied, on and
after such date interest ceases to accrue on such Notes (or such portions
thereof) called for redemption.

7.  PUT PROVISIONS

          Upon a Change of Control, each Holder will have the right to require
that the Company purchase such Holder's Notes at a purchase price equal to 101%
of the principal amount of the Notes to be purchased plus accrued and unpaid
interest, if any, to the date of purchase (subject to the right of holders of
record on the relevant record date to receive interest due on the related
interest payment date) as provided in, and subject to the terms of, the
Indenture.

<Page>

                                                                               7

          In certain circumstances, the Company must use the Net Available Cash
from Asset Dispositions to make an offer to Holders to purchase Notes at a
purchase price of 100% of the principal amount, plus accrued and unpaid
interest.

8.  SUBORDINATION

          The Notes are subordinated to Senior Indebtedness of the Company. To
the extent provided in the Indenture, Senior Indebtedness of the Company must be
paid before the Notes may be paid. The Company agrees, and each Noteholder by
accepting a Note agrees, to the subordination provisions contained in the
Indenture and authorizes the Trustee to give it effect and appoints the Trustee
as attorney-in-fact for such purpose.

9.  GUARANTY

          The payment by the Company of the principal of, and premium and
interest on, the Notes is fully and unconditionally guaranteed on a joint and
several senior subordinated basis by each of the Guarantors. Not all
Subsidiaries are Guarantors.

10.  DENOMINATIONS; TRANSFER; EXCHANGE

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

11.  PERSONS DEEMED OWNERS

          The registered Holder of this Note may be treated as the Note's owner
for all purposes.

12.  UNCLAIMED MONEY

          If money for the payment of principal or interest remains unclaimed
for two years, the Trustee or Paying Agent shall pay the money back to the
Company at its request unless an

<Page>

                                                                               8

abandoned property law designates another Person. After any such payment,
Holders entitled to the money must look only to the Company and not to the
Trustee for payment.

13.  DISCHARGE AND DEFEASANCE

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

14.  AMENDMENT, WAIVER

          Subject to certain exceptions set forth in the Indenture, (i) the
Indenture and the Notes may be amended with the written consent of the Holders
of at least a majority in principal amount outstanding of the Notes and (ii) any
default or noncompliance with any provision may be waived with the written
consent of the Holders of a majority in principal amount outstanding of the
Notes. Subject to certain exceptions set forth in the Indenture, without the
consent of any Noteholder, the Company, the Guarantors and the Trustee shall be
entitled to amend the Indenture or the Notes to cure any ambiguity, omission,
defect or inconsistency, to comply with Article 5 of the Indenture, to provide
for uncertificated Notes in addition to or in place of certificated Notes, to
add guarantees with respect to the Notes, including any Guaranties, to secure
the Notes, to add additional covenants or surrender rights and powers conferred
on the Company or any Guarantors, to comply with any request of the SEC in
connection with qualifying the Indenture under the TIA, to make any change that
does not adversely affect the rights of any Noteholder, or to evidence the
release of a Guarantor in accordance with the Indenture.

15.  DEFAULTS AND REMEDIES

          Under the Indenture, Events of Default include: (i) default in payment
of interest on the Notes, continued for 30 days; (ii) default in payment of
principal on the Notes at maturity, upon optional redemption pursuant to
paragraph 5 of the Notes, upon declaration of acceleration or otherwise, or
failure by the Company to redeem or purchase Notes when required; (iii) failure
by the Company or any Guarantor to comply with other agreements in the Indenture
or the Notes, in certain cases subject to notice and lapse of time; (iv) certain
accelerations (including failure to pay within any grace period

<Page>

                                                                               9

after final maturity) of other Indebtedness of the Company, any Guarantor or any
Significant Subsidiary if the amount accelerated (or so unpaid) exceeds $10
million; (v) certain events of bankruptcy or insolvency with respect to the
Company, any Guarantor and the Significant Subsidiaries; (vi) certain judgments
or decrees for the payment of money in excess of $10 million; and (vii) certain
defaults with respect to Guaranties. If an Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of
the Notes may declare all the Notes to be due and payable by notice in writing
to the Company and the Trustee, and upon such declaration, the Notes will be due
and payable immediately. Certain events of bankruptcy or insolvency are Events
of Default which will result in the Notes being due and payable immediately upon
the occurrence of such Events of Default.

          Noteholders may not enforce the Indenture or the Notes except as
provided in the Indenture. The Trustee may refuse to enforce the Indenture or
the Notes unless it receives reasonable indemnity or security against any loss,
liability or expense. Subject to certain limitations, Holders of a majority in
principal amount of the Notes may direct the Trustee in its exercise of any
trust or power. The Trustee may withhold from Noteholders notice of any
continuing Default (except a Default in payment of principal or interest) if it
determines that withholding notice is in the interest of the Holders.

16.  TRUSTEE DEALINGS WITH THE COMPANY

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

17.  NO RECOURSE AGAINST OTHERS

          No director, officer, employee, incorporator or stockholder of the
Company or any Guarantor will have any liability for any obligations of the
Company or any Guarantor under the Notes, any Guaranty or the Indenture or for
any claim based on, in respect of, or by reason of such obligations or their
creation. Each holder of the Notes by accepting a Note waives and releases all
such liability. The waiver and release are part of the consideration for
issuance of the Notes.

<Page>

                                                                              10

18.  AUTHENTICATION

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

19.  ABBREVIATIONS

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

20.  CUSIP NUMBERS

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

21.  HOLDERS' COMPLIANCE WITH REGISTRATION RIGHTS AGREEMENT

          Each Holder of a Note, by acceptance hereof, acknowledges and agrees
to the provisions of the Registration Rights Agreement, including the
obligations of the Holders with respect to a registration and the
indemnification of the Company to the extent provided therein.

22.  GOVERNING LAW

          THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES
OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION WOULD BE REQUIRED THEREBY.

          The Company will furnish to any Noteholder upon written request and
without charge to the Noteholder a copy of

<Page>

                                                                              11

the Indenture which has in it the text of this Note in larger type. Requests may
be made to:

          Merisant Company
          One North Brentwood Boulevard, Suite 510
          Clayton, Missouri  63103
          Attention:  Luke C. Kissam, Esq.

<Page>

                                                                              12

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

                                 ASSIGNMENT FORM

To assign this Note, fill in the form below:

I or we assign and transfer this Note to

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

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

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

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

Date:                           Your Signature:
     --------------------------                ---------------------------------

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

<Page>

                                                                              13

                       OPTION OF HOLDER TO ELECT PURCHASE

       If you want to elect to have this Note purchased by the Company pursuant
to Section 4.04 or 4.10 of the Indenture, check the box: / /

       If you want to elect to have only part of this Note purchased by the
Company pursuant to Section 4.04 or 4.10 of the Indenture, state the amount in
principal amount: $_____________

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

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

     Signatures must be guaranteed by an "eligible guarantor institution"
meeting the requirements of the Registrar, which requirements include membership
or participation in the Security Transfer Agent Medallion Program ("STAMP") or
such other "signature guarantee program" as may be determined by the Registrar
in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00064-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00064-of-00352.parquet"}]]