Document:

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                                                                    EXHIBIT 4.11

                                WARRANT AGREEMENT

                                     BETWEEN

                            GOTHIC ENERGY CORPORATION

                                       AND

                     AMERICAN STOCK TRANSFER & TRUST COMPANY
                                AS WARRANT AGENT

                         DATED AS OF JANUARY 23, 1998

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                                TABLE OF CONTENTS

<TABLE>
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                                                                        Page
                                                                        ----
<S>                                                                     <C>
  1.  Appointment of Warrant Agent......................................   1
  2.  Warrant Certificates..............................................   1
  3.  Execution of Warrant Certificates.................................   2
  4.  Registration and Countersignature.................................   2
  5.  Transfer and Exchange of Warrants.................................   3
  6.  Registration of Transfers and Exchanges...........................   4
  7.  Terms of Warrants; Exercise Warrants..............................   8
  8.  Payment of Taxes..................................................  10
  9.  Mutilated or Missing Warrant Certificates.........................  10
 10.  Reservation of Warrants Shares....................................  11
 11.  Public Equity Offering of Common Stock; Obtaining Stock Exchange
                Listings................................................  11
 12.  Adjustment of Number of Warrant Shares Issuable...................  12
 13.  Fractional Interests..............................................  20
 14.  Notices to Warrant Holders........................................  20
 15.  Notices to the Company and Warrant Agent..........................  22
 16.  Supplements and Amendments........................................  22
 17.  Concerning the Warrant Agent......................................  23
 18.  Change of Warrant Agent...........................................  25
 19.  Identity of Transfer Agent........................................  26
 20.  Registration Rights...............................................  26
 21.  Successors........................................................  26
 22.  Termination.......................................................  26
 23.  Governing Law.....................................................  26
 24.  Benefits of This Agreement........................................  27
 25.  Counterparts......................................................  27
 26.  Headings..........................................................  27

Exhibit A       Form of Warrant Certificate
Exhibit B       Certificate
Exhibit C       Legends
Exhibit D       Transferee Letter
</TABLE>

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         Warrant Agreement (the "Agreement"), dated as of January 23, 1998,
between Gothic Energy Corporation, an Oklahoma corporation (together with any
successors and assigns (the "Company") and American Stock Transfer & Trust
Company, a New York corporation, as Warrant Agent (the "Warrant Agent").

         WHEREAS, the Company proposes to issue and sell pursuant to a
Securities Purchase Agreement (the "Purchase Agreement'), dated as of January
23, 1998, among the Company and the Purchasers named therein (the "Purchasers"),
up to $45,000,000 in aggregate liquidation value of its Senior Redeemable
Preferred Stock, Series A, par value $.05 per share (the "Preferred Stock"),
along with warrants (each a "Warrant," and collectively, the "Warrants") for the
purchase of up to 1,430,000 shares of its Common Stock, par value $.01 per share
(the "Common Stock," and the shares of Common Stock issuable upon exercise of
the Warrants being referred to herein as the "Warrant Shares") and Additional
Warrants (as hereinafter defined), constituting up to 50% of the Company's fully
diluted Common Stock;

         WHEREAS, the Company desires the Warrant Agent to act on behalf of the
Company and the Warrant Agent is willing to act in connection with the issuance,
transfer, exchange and exercise of Warrants as provided herein; and

         WHEREAS, the holders of Warrants and Warrant Shares shall, from time to
time, have certain rights and obligations with respect thereto as set forth in
the Common Stock Registration Rights Agreement, dated as of January 23, 1998,
among the Company and the Purchasers.

  NOW, THEREFORE, in consideration of the premises and mutual agreements herein,
the Company and the Warrant Agent hereby agree as follows:

         Section 1. Appointment of Warrant Agent. The Company hereby appoints
the Warrant Agent to act as agent for the Company in accordance with the
instructions hereinafter set forth in this Agreement, and the Warrant Agent
hereby accepts such appointment.

         Section 2. Warrant Certificates.  The Warrants will initially be
issued either in global form (the "Global Warrants"), substantially in the form
of Exhibit A hereto (including the footnote thereto), or in registered form as
definitive warrant certificates (the "Definitive Warrants"). Any certificates
(the "Warrant Certificates") evidencing the Global Warrants or the Definitive
Warrants to be delivered pursuant to this Agreement shall be substantially in
the form set forth in Exhibit A hereto. Such Global Warrants shall represent
such of the outstanding Warrants as shall be specified therein and each shall
provide that it shall represent the aggregate amount of outstanding Warrants
from time to time endorsed thereon and that the aggregate amount of outstanding
Warrants represented thereby may from time to time be reduced or increased, as
appropriate, provided that the issuance of Additional Warrants (as defined in
the Purchase Agreement) on each date set forth in Section 5.5 of the Purchase
Agreement shall require the issuance of a new Global Warrant or Definitive
Warrant with respect to the

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Additional Warrants issued on such date. Any endorsement of a Global Warrant to
reflect the amount of any increase or decrease in the amount of outstanding
Warrants represented thereby shall be made by the Warrant Agent and Depositary
(as defined below) in accordance with instructions given by the holder thereof.
The Depository Trust Company shall act as the Depositary with respect to the
Global Warrants until a successor shall be appointed by the Company. Upon
written request, a Warrant holder may receive from the Depositary and Warrant
Agent Definitive Warrants as set forth in Section 6 below.

         Section 3.  Execution of Warrant Certificates. Warrant Certificates
shall be signed on behalf of the Company by its Chairman of the Board or its
President, Chief Executive Officer, Chief Operating Officer, Chief Financial
Officer or a Vice President and by its Secretary or an Assistant Secretary under
its corporate seal. Each such signature upon the Warrant Certificates may be in
the form of a facsimile signature of the present or any future Chairman of the
Board, President, Chief Executive Officer, Chief Operating Officer, Chief
Financial Officer, a Vice President, Secretary or Assistant Secretary and may be
imprinted or otherwise reproduced on the Warrant Certificates and for that
purpose the Company may adopt and use the facsimile signature of any person who
shall have been Chairman of the Board, President, Vice President, Secretary or
Assistant Secretary, notwithstanding the fact that at the time the Warrant
Certificates shall be countersigned and delivered or disposed of such person
shall have ceased to hold such office. The seal of the Company may be in the
form of a facsimile thereof and may be impressed, affixed, imprinted or
otherwise reproduced on the Warrant Certificates.

         In case any officer of the Company who shall have signed any of the
Warrant Certificates shall cease to be such officer before the Warrant
Certificates so signed shall have been countersigned by the Warrant Agent, or
disposed of by the Company, such Warrant Certificates nevertheless may be
countersigned and delivered or disposed of as though such person had not ceased
to be such officer of the Company; and any Warrant Certificate may be signed on
behalf of the Company by any person who, at the actual date of the execution of
such Warrant Certificate, shall be a proper officer of the Company to sign such
Warrant Certificate, although at the date of the execution of this Warrant
Agreement any such person was not such officer.

         Warrant Certificates shall be dated the date of countersignature by the
Warrant Agent.

         Section 4. Registration and Countersignature.  The Warrants shall be
numbered and shall be registered on the books of the Company maintained at the
principal office of the Warrant Agent in the Borough of Manhattan, City of New
York (the "Warrant Register") as they are issued.

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         Warrant Certificates shall be manually countersigned by the Warrant
Agent and shall not be valid for any purpose unless so countersigned. The
Warrant Agent shall, upon written instructions of the Chairman of the Board, the
President, Chief Executive Officer, Chief Operating Officer, Chief Financial
Officer, a Vice President, the Secretary or an Assistant Secretary of the
Company, initially countersign and deliver Warrants entitling the holders
thereof to purchase not more than the number of Warrant Shares referred to above
in the first recital hereof and shall thereafter countersign and deliver
Warrants as otherwise provided in this Agreement.

         The Company and the Warrant Agent may deem and treat the registered
holders (the "Holders") of the Warrant Certificates as the absolute owners
thereof (notwithstanding any notation of ownership or other writing thereon made
by anyone) for all purposes, and neither the Company nor the Warrant Agent shall
be affected by any notice to the contrary.

         Section 5.  Transfer and Exchange of Warrants.  The Warrant Agent shall
from time to time, subject to the limitations of Section 6, register the
transfer of any outstanding Warrants upon the records to be maintained by it for
that purpose, upon surrender thereof duly endorsed or accompanied (if so
required by it) by a written instrument or instruments of transfer in form
satisfactory to the Warrant Agent, duly executed by the registered Holder or
Holders thereof or by the duly appointed legal representative thereof or by a
duly authorized attorney. Subject to the terms of this Agreement, each Warrant
Certificate may be exchanged for another certificate or certificates entitling
the Holder thereof to purchase a like aggregate number of Warrant Shares as the
certificate or certificates surrendered then entitle each Holder to purchase.
Any Holder desiring to exchange a Warrant Certificate or Warrant Certificates
shall make such request in writing delivered to the Warrant Agent, and shall
surrender, duly endorsed or accompanied (if so required by the Warrant Agent) by
a written instrument or instruments of transfer in form satisfactory to the
Warrant Agent, the Warrant Certificate or Warrant Certificates to be so
exchanged.

         Upon registration of transfer, the Warrant Agent shall countersign and
deliver by certified or first class mail a new Warrant Certificate or Warrant
Certificates to the persons entitled thereto. The Warrant Certificates may be
exchanged at the option of the Holder thereof, when surrendered at the office or
agency of the Company maintained for such purpose, which initially will be the
corporate trust office of the Warrant Agent in New York, New York for another
Warrant Certificate, or other Warrant Certificates of different denominations,
of like tenor and representing in the aggregate the right to purchase a like
number of Warrant Shares.

         No service charge shall be made for any exchange or registration of
transfer of Warrant Certificates, but the Company may require payment of a sum
sufficient to cover any

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stamp or other tax or other governmental charge that is imposed in connection
with any such exchange or registration of transfer.

         Section 6.  Registration of Transfer and Exchanges.

                (a)  Transfer and Exchange of Definitive Warrants. When
Definitive Warrants are presented to the Warrant Agent with a request:

                     (i)  to register the transfer of the Definitive Warrants;
or

                     (ii) to exchange such Definitive Warrants for an equal
number of Definitive Warrants of other authorized denominations, the Warrant
Agent shall register the transfer or make the exchange as requested if its
requirements under this Agreement are met; provided, however, that the
Definitive Warrants presented or surrendered for registration of transfer or
exchange:

                          (x) shall be duly endorsed or accompanied by a written
instruction of transfer in form satisfactory to the Warrant Agent, duly executed
by the Holder thereof or by such Holder's attorney, duly authorized in writing;
and

                          (y) in the case of Warrants (the "Restricted
Warrants") which constitute Restricted Securities (as such term is defined in
Rule 144(a)(3) of the Securities Act of 1933, as amended (the "Securities
Act")), such Warrants shall be accompanied, in the reasonable discretion of the
Company, by the following additional information and documents, as applicable,
however, it being understood that the Warrant Agent need not determine which
clause (A) through (C) below is applicable:

                          (A) if such Restricted Warrant is being delivered to
the Warrant Agent by a Holder for registration in the name of such Holder,
without transfer, a certification from such holder to that effect (in
substantially the form of Exhibit B hereto); or

                          (B) if such Restricted Warrant is being transferred to
a qualified institutional buyer (as defined in Rule 144A under the Act, a "QIB")
in accordance with Rule 144A under the Act or pursuant to an exemption from
registration in accordance with Rule 144 under the Securities Act or Regulation
S under the Securities Act or pursuant to an effective registration statement
under the Securities Act, a certification to that effect (in substantially the
form of Exhibit B hereto) and, with respect to transfers pursuant to Rule 144 or
Regulation S, an opinion of counsel reasonably acceptable to the Company and the
Warrant Agent to the effect that such transfer does not require registration
under the Securities Act; or

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                          (C) if such Restricted Warrant is being transferred in
reliance on another exemption from the registration requirements of the
Securities Act, a certification to that effect (in substantially the form of
Exhibit B hereto) and an opinion of counsel reasonably acceptable to the Company
and to the Warrant Agent to the effect that such transfer does not require
registration under the Securities Act.

             (b) Restrictions on Transfer of a Definitive Warrant for a
Beneficial Interest in a Global Warrant. A Definitive Warrant may not be
exchanged for a beneficial interest in a Global Warrant except upon satisfaction
of the requirements set forth below. Upon receipt by the Warrant Agent of a
Definitive Warrant, duly endorsed or accompanied by appropriate instruments of
transfer, in form satisfactory to the Warrant Agent, together with:

                 (A) if such Definitive Warrant constitutes a Restricted
Warrant, certification, substantially in the form of Exhibit B hereto, that such
Definitive Warrant is being transferred to a QIB in accordance with Rule 144A
under the Securities Act; and

                 (B) written instructions directing the Warrant Agent to make,
or to direct the Depositary to make, an endorsement on the Global Warrant to
reflect an increase in the aggregate amount of the Warrants represented by the
Global Warrant, then the Warrant Agent shall cancel such Definitive Warrant and
cause, or direct the Depositary to cause, in accordance with the standing
instructions and procedures existing between the Depositary and the Warrant
Agent, the number of Warrant Shares represented by the Global Warrant to be
increased accordingly. If no Global Warrant is then outstanding, the Company
shall issue and the Warrant Agent shall countersign a new Global Warrant in the
appropriate amount.

             (c) Transfer and Exchange of Global Warrants. The transfer and
exchange of Global Warrants or beneficial interests therein shall be effected
through the Depositary, in accordance with this Warrant Agreement (including the
restrictions on transfer set forth herein) and the procedures of the Depositary
therefor.

             (d) Transfer of a Beneficial interest in a Global Warrant for a
Definitive Warrant.

                 (i) Any person having a beneficial interest in a Global Warrant
may upon request exchange such beneficial interest for a Definitive Warrant.
Upon receipt by the Warrant Agent of written instructions or such other form of
instructions as is customary for the Depositary from the Depositary or its
nominee on behalf of any person having a beneficial interest in a Global Warrant
and upon receipt by the Warrant Agent of

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a written order or such other form of instructions as is customary for the
Depositary or the person designated by the Depositary as having such a
beneficial interest containing registration instructions and, in the case of a
beneficial interest in Restricted Warrants, the following additional information
and documents, however, it being understood that the Warrant Agent need not
determine which clause (A) through (C) below is applicable;

                 (A) if such beneficial interest is being transferred to the
person designated by the Depositary as being the beneficial owner, a
certification from such person to that effect (in substantially the form of
Exhibit B hereto); or

                 (B) if such beneficial interest is being transferred to a QIB
in accordance with Rule 144A under the Securities Act or pursuant to an
exemption from registration in accordance with Rule 144 or Regulation S under
the Securities Act or pursuant to an effective registration statement under the
Securities Act, a certification to that effect from the transferee or transferor
(in substantially the form of Exhibit B hereto) and, with respect to transfers
pursuant to Rule 144 or Regulation S, an opinion of counsel reasonably
acceptable to the Company and the Warrant Agent to the effect that such transfer
does not require registration under the Securities Act, or

                 (C) if such beneficial interest is being transferred in
reliance on another exemption from the registration requirements of the
Securities Act, a certification to that effect from the transferee or transferor
(in substantially the form of Exhibit B hereto) and an opinion of counsel from
the transferee or transferor reasonably acceptable to the Company and to the
Warrant Agent to the effect that such transfer does not require registration
under the Securities Act,

then the Warrant Agent will cause, in accordance with the standing instructions
and procedures existing between the Depositary and the Warrant Agent, the
aggregate amount of the Global Warrant to be reduced and, following such
reduction, the Company will execute and, upon receipt of an authentication order
in the form of an officers' certificate signed by the Chief Executive Officer,
the President or any Vice President and the Chief Financial Officer, the
Treasurer, the Secretary or any Assistant Secretary of the Company (an
"Officers' Certificate"), the Warrant Agent will countersign and deliver to the
transferee a Definitive Warrant.

             (ii) Definitive Warrants issued in exchange for a beneficial
interest in a Global Warrant pursuant to this Section 6(d) shall be registered
in such names and in such authorized denominations as the Depositary, pursuant
to instructions from its direct or indirect participants or otherwise, shall
instruct the Warrant Agent in writing, provided such designation is in
accordance with this Section 6(d). The Warrant Agent shall deliver such
Definitive Warrants to the persons in whose names such Definitive Warrants are
registered.

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          (e)  Restrictions on Transfer and Exchange of Global Warrants.
Notwithstanding any other provisions of this Warrant Agreement (other than the
provisions set forth in subsection (f) of this Section 6), a Global Warrant may
not be transferred as a whole except by the Depositary to a nominee of the
Depositary or by a nominee of the Depositary to the Depositary or another
nominee of the Depositary or by the Depositary or any such nominee to a
successor Depositary or a nominee of such successor Depositary.

          (f)  Authentication of Definitive Warrants in Absence of Depositary.
If at any time:

               (i) the Depositary for the Global Warrants notifies the Company
that the Depositary is unwilling or unable to continue as Depositary for the
Global Warrant and a successor Depositary for the Global Warrant is not
appointed by the Company within 90 days after delivery of such notice; or

               (ii) the Company, at its sole discretion, notifies the Warrant
Agent in writing that it elects to cause the issuance of Definitive Warrants
under this Warrant Agreement,

then the Company will execute, and the Warrant Agent, upon receipt of an
Officers' Certificate requesting the countersignature and delivery of Definitive
Warrants, will countersign and deliver Definitive Warrants, in an aggregate
number equal to the aggregate number of Warrants represented by the Global
Warrant, in exchange for such Global Warrant.

          (g)  Legends.

               (i) Except as permitted by the following paragraph (ii), each
Warrant Certificate evidencing the Global Warrants and the Definitive Warrants
(and all warrants issued in exchange therefor or substitution thereof) shall
bear a legend substantially as set forth in Exhibit C.

               (ii) Upon any sale or transfer of a Warrant pursuant to Rule 144
under the Securities Act or an effective registration statement under the
Securities Act:

                    (A) in the case of any Warrant that is a Definitive Warrant,
the Warrant Agent shall permit the Holder thereof to exchange such Restricted
Warrant for a Definitive Warrant that does not bear the legend set forth in
Exhibit C and rescind any related restriction on the transfer of such Warrant;
and

                    (B) any such warrant represented by a Global Warrant shall
not be subject to the provisions set forth in (i) above (such sales or transfers

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being subject only to the provisions of Section 6(c) hereof); provided, however,
that with respect to any request for an exchange of a Warrant that is
represented by a Global Warrant for a Definitive Warrant that does not bear the
legend set forth in Exhibit C, which request is made in reliance upon Rule 144,
the Holder thereof shall certify in writing to the Warrant Agent that such
request is being made pursuant to Rule 144 (such certification to be
substantially in the form of Exhibit B hereto) and shall obtain an opinion of
counsel, reasonably acceptable to the Company and the Warrant Agent, to the
effect that such transfer does not require registration under the Securities
Act.

            (h)  Cancellation and/or Adjustment of a Global Warrant. At such
time as all beneficial interests in a Global Warrant have either been exchanged
for Definitive Warrants, redeemed, repurchased or canceled, such Global Warrant
shall be returned to or retained and canceled by the Warrant Agent. At any time
prior to such cancellation, if any beneficial interest in a Global Warrant is
exchanged for Definitive Warrants, redeemed, repurchased or canceled, the number
of Warrants represented by such Global Warrant shall be reduced and an
endorsement shall be made on such Global Warrant by the Warrant Agent to reflect
such reduction.

            (i)  Obligations with Respect to Transfers and Exchanges of
Definitive Warrants.

                 (i) To permit registrations of transfers and exchanges in
accordance with the terms of this Agreement, the Company shall execute, and the
Warrant Agent shall countersign, Definitive Warrants and Global Warrants.

                 (ii) All Definitive Warrants and Global Warrants issued upon
any registration, transfer or exchange of Definitive Warrants or Global Warrants
shall be the valid obligations of the Company, entitled to the same benefits
under this Warrant Agreement as the Definitive Warrants or Global Warrants
surrendered upon the registration of transfer or exchange.

                 (iii) Prior to due presentment for registration of transfer of
any Warrant, the Warrant Agent and the Company may deem and treat the person in
whose name any Warrant is registered as the absolute owner of such Warrant, and
neither the Warrant Agent nor the Company shall be affected by notice to the
contrary.

    Section 7.   Terms of Warrants; Exercise Warrants.  Subject to the terms of
this Agreement, each Warrant Holder shall have the right, which may be exercised
commencing on or after the Exercisability Date (as defined below) and until 5:00
P.M., New York City time, on the fifth anniversary of the date of original
issuance of a Warrant or Additional Warrant (with respect to any Warrant or
Additional Warrant, respectively, the "Expiration Date"), to receive

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from the Company the number of fully paid and non-assessable Warrant Shares
which the Holder may at the time be entitled to receive on exercise of such
Warrants and payment of the Exercise Price (as defined below) then in effect for
such Warrant Shares. Each Warrant not exercised prior to the Expiration Date
shall become void and all rights thereunder and all rights in respect thereof
under this Agreement shall cease as of such time. No adjustments as to dividends
will be made upon exercise of the Warrants.

          "Exercisability Date" shall mean January 23, 1998.

          The initial price per share at which Warrant Shares shall be
purchasable upon exercise of Warrants (the `Exercise Price") shall be the lesser
of (a) $2.75 per share or (b) the average of the daily closing bid prices (as
defined in Section 12(d)) for each Business Day during the period commencing 5
Business Days before the date of exercise and ending on the date one day prior
to such date, to be reset to $.01 on March 31, 1998, as provided in Section 2.1
of the Purchase Agreement, in the event the Preferred Stock remains outstanding
on that date, in each case subject to adjustment as provided herein. A Warrant
may be exercised upon surrender at the office or agency of the Company
maintained for such purpose, which initially will be the corporate trust office
of the Warrant Agent in New York, New York, of the certificate or certificates
evidencing the Warrants to be exercised with the form of election to purchase on
the reverse thereof duly filled in and signed, which signature shall be
guaranteed by a participant in a recognized Signature Guarantee Medallion
Program, and upon payment to the Company of the Exercise Price, as adjusted as
herein provided, for the number of Warrant Shares in respect of which such
Warrants are then exercised. Payment of the aggregate Exercise Price shall be
made in cash or by certified or official bank check to the order of the Company
in New York Clearing House Funds.

         Subject to the provisions of Section 6 hereof, upon such surrender of
Warrants and payment of the Exercise Price, the Company shall issue and cause to
be delivered with all reasonable dispatch to or upon the written order of the
Holder and in such name or names as the Warrant Holder may designate a
certificate or certificates for the number of Warrant Shares issuable upon the
exercise of such Warrants together with cash as provided in Section 13;
provided, however, that if any consolidation, merger or lease or sale of assets
is proposed to be effected by the Company as described in subsection (j) of
Section 12 hereof, or a tender offer or an exchange offer for shares of Common
Stock of the Company shall be made, upon such surrender of Warrants and payment
of the Exercise Price as aforesaid, the Company shall, as soon as possible, but
in any event not later than three days, other than a Saturday or Sunday or a day
on which banking institutions in the State of New York are not open for business
("Business Day") thereafter, issue and cause to be delivered the full number of
Warrant Shares issuable upon the exercise of such Warrants in the manner
described in this sentence together with cash as provided in Section 13. Such
certificate or certificates shall be deemed to have been issued and any person
so named therein shall be deemed to have become a holder of record of such
Warrant Shares as of the date of the surrender of such Warrants and payment of
the Exercise Price.

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             The Warrants shall be exercisable, at the election of the Holders
thereof, either in full or from time to time in part and, in the event that a
certificate evidencing Warrants is exercised in respect of fewer than all of the
Warrant Shares issuable on such exercise at any time prior to the date of
expiration of the Warrants, a new certificate evidencing the remaining Warrant
or Warrants will be issued, and the Warrant Agent is hereby irrevocably
authorized to countersign and to deliver the required new Warrant Certificate or
Warrant Certificates pursuant to the provisions of this Section 7 and of Section
3 hereof, and the Company, whenever required by the Warrant Agent, will promptly
supply the Warrant Agent with Warrant Certificates duly executed on behalf of
the Company for such purpose.

             All Warrant Certificates surrendered upon exercise of Warrants
shall be canceled by the Warrant Agent. Such canceled Warrant Certificates shall
then be disposed of by the Warrant Agent in a manner consistent with the Warrant
Agent's customary procedure for such disposal and in a manner reasonably
satisfactory to the Company.

             The Warrant Agent shall keep copies of this Agreement available for
inspection by the Holders during normal business hours at its office. The
Company shall supply the Warrant Agent from time to time with such numbers of
copies of this Agreement as the Warrant Agent may request.

             Section 8.  Payment of Taxes.  The Company will pay all documentary
stamp taxes attributable to the initial issuance of Warrant Shares upon the
exercise of Warrants; provided, however, that the Company shall not be required
to pay any tax or taxes which may be payable in respect of any transfer involved
in the issue of any Warrant Certificates or any certificates for Warrant Shares
in a name other than that of the registered Holder of a Warrant Certificate
surrendered upon the exercise of a Warrant, and the Company shall not be
required to issue or deliver such Warrant Certificates unless or until the
person or persons requesting the issuance thereof shall have paid to the Company
the amount of such tax or shall have established to the satisfaction of the
Company that such tax has been paid.

             Section 9.  Mutilated or Missing Warrant Certificates. In case any
of the Warrant Certificates shall be mutilated, lost, stolen or destroyed, the
Company may in its discretion issue and the Warrant Agent may countersign, in
exchange and substitution for and upon cancellation of the mutilated Warrant
Certificate, or in lieu of and substitution for the Warrant Certificate lost,
stolen or destroyed, a new Warrant Certificate of like tenor and representing an
equivalent number of Warrants, but only upon receipt of evidence satisfactory to
the Company and the Warrant Agent of such loss, theft or destruction of such
Warrant Certificate and indemnity, if requested, also satisfactory to them.
Applicants for such substitute Warrant Certificates shall also comply with such
other reasonable regulations and pay such other reasonable charges as the
Company or the Warrant Agent may prescribe.

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        Section 10. Reservation of Warrant Shares.  The Company will at all
times reserve and keep available, free from preemptive rights, out of the
aggregate of its authorized but unissued Common Stock or its authorized and
issued Common Stock held in its treasury, for the purpose of enabling it to
satisfy any obligation to issue Warrant Shares upon exercise of Warrants, the
maximum number of shares of Common Stock which may then be deliverable upon the
exercise of all outstanding Warrants.

         The Company or, if appointed, the transfer agent for the Common Stock
(the "Transfer Agent") and every subsequent transfer agent for any shares of the
Company's capital stock issuable upon the exercise of any of the rights of
purchase aforesaid will be irrevocably authorized and directed at all times to
reserve such number of authorized shares as shall be required for such purpose.
The Company will keep a copy of this Agreement on file with the Transfer Agent
and with every subsequent transfer agent for any shares of the Company's capital
stock issuable upon the exercise of the rights of purchase represented by the
Warrants. The Warrant Agent is hereby irrevocably authorized to requisition from
time to time from such Transfer Agent the stock certificates required to honor
outstanding Warrants upon exercise thereof in accordance with the terms of this
Agreement. The Company will supply such Transfer Agent with duly executed
certificates for such purposes and will provide or otherwise make available any
cash which may be payable as provided in Section 13. The Company will furnish
such Transfer Agent a copy of all notices of adjustments and certificates
related thereto transmitted to each Holder pursuant to Section 14 hereof.

         The Company covenants that all Warrant Shares which may be issued upon
exercise of Warrants will, upon payment of the Exercise Price therefor and
issue, be validly authorized and issued, fully paid, non-assessable, free of
preemptive rights and free from all taxes, liens, charges and security interests
with respect to the issuance thereof. The Company will take no action to
increase the par value of the Common Stock to an amount in excess of the
Exercise Price, and the Company will not enter into any agreements inconsistent
in any material respect with the rights of Holders hereunder. The Company will
use its reasonable best efforts to obtain all such authorizations, exemptions or
consents from any public regulatory body having jurisdiction thereof as may be
necessary to enable the Company to perform its obligations under this Agreement.

         Section 11. Public Equity Offering of Common Stock; Obtaining Stock
Exchange Listings.  The Company covenants and agrees with the Warrant Agent, for
the benefit of each Warrant Holder, that at any time while the Warrants are
outstanding, the Company will not make

                                      -11-
<PAGE>   14

a Public Equity offering (as defined below) of any class of its common stock
other than the Common Stock. In the event that, at any time during the period in
which the Warrants are exercisable, the Common Stock is not listed on any
principal securities exchanges or markets within the United States of America,
the Company will use its best efforts to permit the Warrant Shares to be
designated PORTAL securities in accordance with the rules and regulations
adopted by the National Association of Securities Dealers, Inc. relating to
trading in the Private Offerings, Resales and Trading through Automated Linkages
market.

         "Public Equity Offering' means a public offering by the Company of
shares of its common stock pursuant to an effective registration statement filed
with the Securities and Exchange Commission (other than a public offering on a
registration statement on Form S-4 or S-8 or similar form).

         Section 12.  Adjustment of Number of Warrant Shares Issuable.  The
number of shares of Common Stock issuable upon the exercise of each Warrant (the
"Exercise Rate") is subject to adjustment from time to time upon the occurrence
of the events enumerated in this Section 12.

                 (a) Adjustment for Change in Capital Stock.  If the Company:

                     (1) pays a dividend or makes a distribution on its Common
Stock in shares of its Common Stock or other capital stock of the Company; or

                     (2) subdivides, combines or reclassifies its outstanding
 shares of Common Stock;

then the Exercise Rate in effect immediately prior to such action shall be
proportionately adjusted so that the Holder of any Warrant thereafter exercised
may receive the aggregate number and kind of shares of capital stock of the
Company which such Holder would have owned immediately following such action if
such Warrant had been exercised immediately prior to such action.

         The adjustment shall become effective immediately after the record date
in the case of a dividend or distribution (the "Time of Determination") and
immediately after the effective date in the case of a subdivision, combination
or reclassification.

         If after an adjustment a Holder of a Warrant upon exercise of it may
receive shares of two or more classes of capital stock of the Company, the board
of directors of the Company shall determine the allocation of the adjusted
Exercise Price between the classes of capital stock. After such allocation, the
exercise privilege and the Exercise Price of each class of capital stock shall
thereafter be subject to adjustment on terms comparable to those applicable to
Common Stock in this Section 12.

                                      -12-
<PAGE>   15

                Such adjustment shall be made successively whenever any event
listed above shall occur.

            (b) Adjustment for Certain Issuances of Common Stock. If the
Company issues or sells shares of its Common Stock or distributes any rights,
options or warrants to any Person entitling them to purchase shares of Common
Stock, or securities convertible into or exchangeable for Common Stock, at a
price per share less than the Current Market Value at the Time of Determination,
the Exercise Rate shall be adjusted in accordance with the formula:

                E'     =     E   x   O   +   N
                                     ---------
                                     O   +   N   x   P
                                             ---------
                                                 M

where:

        E' = the adjusted Exercise Rate.

        E = the Exercise Rate immediately prior to the Time of Determination for
        any such issuance, sale or distribution.

        O = the number of Fully Diluted Shares (as defined below) outstanding
        immediately prior to the Time of Determination for any such issuance,
        sale or distribution.

        N = the number of additional shares of Common Stock issued, sold or
        issuable upon exercise of such rights, options or warrants.

        P = the price received in the case of any issuance or sale of Common
        Stock or rights, options or warrants inclusive of the exercise price per
        share of Common Stock upon exercise of such rights, options or warrants.

        M = the Current Market Value per share of Common Stock on the Time of
        Determination for any such issuance, sale or distribution.

                                      -13-
<PAGE>   16

             The adjustment shall be made successively whenever any such rights,
options or warrants are issued and shall become effective immediately after the
record date for the determination of stockholders entitled to receive the
rights, options or warrants. Notwithstanding the foregoing, the Exercise Rate
shall not be subject to adjustment in connection with (i) the issuance of any
shares of Common Stock upon exercise of any such rights, options, warrants or
convertible securities which have previously been the subject of an adjustment
under this Agreement for which the required adjustment has been made and (ii)
the exercise of the Warrants or any rights, options or warrants outstanding on
the date hereof and described in the Memorandum (as defined in the Purchase
Agreement). If at the end of the period during which any such rights, options,
warrants or convertible securities are exercisable, not all rights, options,
warrants or convertible securities shall have been exercised, the Warrant shall
be immediately readjusted to what it would have been if "N" in the above formula
had been the number of shares actually issued.

             (c) Adjustment for Other Distribution. If the Company distributes
to all holders of its Common Stock (i) any evidences of indebtedness of the
Company or any of its subsidiaries, (ii) any assets of the Company or any of its
subsidiaries (other than cash dividends or other cash distributions or
distributions from current or retained earnings other than any Extraordinary
Cash Dividend), or (iii) any rights, options or warrants to acquire any of the
foregoing or to acquire any other securities of the Company, the Exercise Rate
shall be adjusted in accordance with the formula:

                E'  =  E     x        M
                                   -------
                                   M  -  F

where:

     E'         the adjusted Exercise Rate.

     E the current Exercise Rate on the record date mentioned below.

     M the Current Market Value per share of Common Stock on the record date
     mentioned below.

     F the fair market value on the record date mentioned below of the
     indebtedness, assets, rights, options or warrants distributable in respect
     of one share of Common Stock.

                                      -14-
<PAGE>   17

             The adjustment shall be made successively whenever any such
distribution is made and shall become effective immediately after the record
date for the determination of stockholders entitled to receive the distribution.
If an adjustment is made pursuant to clause (iii) above of this subsection (c)
as a result of the issuance of rights, options or warrants and at the end of the
period during which any such rights, options or warrants are exercisable, not
all such rights, options or warrants shall have been exercised, the Warrant
shall be immediately readjusted as if "F" in the above formula was the fair
market value on the record date of the indebtedness or assets actually
distributed upon exercise of such rights, options or warrants divided by the
number of shares of Common Stock outstanding on the record date.

             This subsection does not apply to rights, options or warrants
referred to in subsection (b) of this Section 12.

             (d) Current Market Value; Extraordinary Cash Dividend. "Current
Market Value" per share of Common Stock or of any other security (herein
collectively referred to as a "Security") at any date shall be:

                 (1) if the security is not registered under the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), (i) the value of the
Security determined in good faith by the board of directors of the Company and
certified in a board resolution, based on the most recently completed arm's
length transaction between the Company and a person other than an Affiliate of
the Company and the closing of which occurs on such date or shall have occurred
within the six months preceding such date or (ii) if no such transaction shall
have occurred on such date or within such six-month period, the value of the
Security most recently determined as of a date within the six months preceding
such date by the board of directors of the Company if the transaction is for
less than $500,000 and is not with an Affiliate and by an independent Financial
Expert in all other instances, or

                 (2) if the Security is registered under the Exchange Act, the
average of the daily closing bid prices (as defined below) for each Business Day
during the period commencing 15 Business Days before such date and ending on the
date one day prior to such date or, if the Security has been registered under
the Exchange Act for less than 15 consecutive Business Days before such date,
then the average of the daily closing bid prices for all of the Business Days
before such date for which daily closing bid prices are available. If the
closing bid price is not determinable for at least 10 Business Days in such
period, the Current Market Value of the Security shall be determined as if the
Security was not registered under the Exchange Act.

                                      -15-
<PAGE>   18

         The "closing bid price" for any Security on each Business Day means:
(A) if such Security is listed or admitted to trading on any securities exchange
or market the closing price, regular way, on such day on the principal exchange
or market on which such Security is traded, or if no sale takes place on such
day, the average of the closing bid and asked prices on such day, (a) if such
Security is not then listed or admitted to trading on any securities exchange or
market, the last reported sale price on such day, or if there is no such last
reported sale price on such day, the average of the closing bid and the asked
prices on such day, as reported by a reputable quotation source designated by
the Company or (C) if neither clause (A) nor (B) is applicable, the average of
the reported high bid and low asked prices on such day, as reported by a
reputable quotation service, or a newspaper of general circulation in the
Borough of Manhattan, City of New York, customarily published on each Business
Day, designated by the Company. If there are no such prices on a Business Day,
then the market price shall not be determinable for such Business Day.

         "Independent Financial Expert" shall mean (a) CIBC Oppenheimer Corp.
(or any successor) or (b) another nationally recognized investment banking firm
reasonably acceptable to the Warrant Agent (i) that does not (and whose
directors, officers, employees and Affiliates do not) have a direct or indirect
material financial interest in the Company, (ii) that has not been, and, at the
time it is called upon to serve as an Independent Financial Expert under this
Agreement is not (and none of whose directors, officers, employees or Affiliates
is) a promoter, director or officer of the Company, (iii) that has not been
retained by the Company for any purpose, other than to perform an equity
valuation, within the preceding twelve months and (iv) that, in the reasonable
judgment of the board of directors of the Company (certified by a board
resolution), is otherwise qualified to serve as an independent financial
advisor. Any such person may receive customary compensation and indemnification
by the Company for opinions or services it provides as an Independent Financial
Expert.

         "Affiliate" of any specified person means any other person which
directly or indirectly through one or more intermediaries controls or is
controlled by, or is under common control with, such specified person. For the
purposes of this definition, "control" (including with correlative meanings, the
terms "controlling," "controlled by" and "under common control with") as used
with respect to any person, means the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of such
person, whether through the ownership of voting securities, by agreement or
otherwise; provided, however, that beneficial ownership of at least 10% of the
voting securities of a person shall be deemed to be control.

                                      -16-
<PAGE>   19

             "Extraordinary Cash Dividend" means any cash dividends with respect
to the Common Stock the aggregate amount of which prior to the Exercisability
Date in any fiscal year exceeds the greater of (i) 20% of the net income of the
Company and its subsidiaries for the fiscal year immediately preceding the
payment of such dividend or (ii) $250,000.

         (e) When De Minimis Adjustment May Be Deferred.  No adjustment in the
Exercise Rate need be made unless the adjustment would require an increase or
decrease of at least 1% in the Exercise Rate. Notwithstanding the foregoing, any
adjustments that are not made shall be carried forward and taken into account in
any subsequent adjustment, provided that no such adjustment shall be deferred
beyond the date on which a Warrant is exercised.

             All calculations under this Section 12 shall be made to the nearest
cent or to the nearest 1/100th of a share, as the case may be.

         (f) When No Adjustment Required. If an adjustment is made upon the
establishment of a record date for a distribution subject to subsections (a),
(b) or (c) hereof and such distribution is subsequently canceled, the Exercise
Rate then in effect shall be readjusted, effective as of the date when the board
of directors determines to cancel such distribution, to that which would have
been in effect if such record date had not been fixed. If an adjustment would be
required under two or more of subsections (a), (b) and (c), such adjustments
will be determined without duplication.

             To the extent the Warrants become convertible into cash, no
adjustment need be made thereafter as to the amount of cash into which such
Warrants are exercisable. Interest wall not accrue on the cash.

         (g) Notice of Adjustment.  Whenever the Exercise Rate is adjusted, the
Company shall provide the notices required by Section 14 hereof.

         (h) Voluntary Reduction.  The Company from time to time may increase
the Exercise Rate by any amount for any period of time (including, without
limitation, permanently) if the period is at least 20 Business Days.

             An increase of the Exercise Rate under this subsection (h) (other
than a permanent increase) does not change or adjust the Exercise Rate otherwise
in effect for purposes of subsections (a), (b) or (c) of this Section 12.

         (i) When Issuance or Payment May Be Deferred.  In any case in which
this Section 12 shall require that an adjustment in the Exercise Rate be made
effective as of a record date for a specified event, the Company may elect to
defer until the occurrence of such event

                                      -17-
<PAGE>   20

(i) issuing to the Holder of any Warrant exercised after such record date the
Warrant Shares and other capital Stock of the Company, if any, issuable upon
such exercise over and above the Warrant Shares and other capital stock of the
Company, if any, issuable upon such exercise on the basis of the Exercise Rate
prior to such adjustment, and (ii) paying to such Holder any amount in cash in
lieu of a fractional share pursuant to Section 13; provided, however, that the
Company shall deliver to the Warrant Agent and shall cause the Warrant Agent, on
behalf of and at the expense of the Company, to deliver to such Holder a due
bill or other appropriate instrument evidencing such Holder's right to receive
such additional Warrant Shares, other capital stock and cash upon the occurrence
of the event requiring such adjustment.

         (j) Reorganizations. In case of any capital reorganization, other than
in the cases referred to in Sections 12(a), (b) or (c) hereof, or the
consolidation or merger of the Company with or into another corporation (other
than a merger or consolidation in which the Company is the continuing
corporation and which does not result in any reclassification of the outstanding
shares of Common Stock into shares of other stock or other securities or
property), or the sale of the property of the Company as an entirety or
substantially as an entirety (collectively such actions being hereinafter
referred to as "Reorganizations"), there shall thereafter be deliverable upon
exercise of any Warrant (in lieu of the number of shares of Common Stock
theretofore deliverable) the number of shares of stock or other securities or
property to which a holder of the number of shares of Common Stock that would
otherwise have been deliverable upon the exercise of such Warrant would have
been entitled upon such Reorganization if such Warrant had been exercised in
full immediately prior to such Reorganization. In case of any Reorganization,
appropriate adjustment, as determined in good faith by the board of directors of
the Company, whose determination shall be described in a duly adopted resolution
certified by the Company's Secretary or Assistant Secretary, shall be made in
the application of the provisions herein set forth with respect to the rights
and interests of Holders so that the provisions set forth herein shall
thereafter be applicable, as nearly as possible, in relation to any such shares
or other securities or property thereafter deliverable upon exercise of
Warrants.

             The Company shall not effect any such Reorganization unless prior
to or simultaneously with the consummation thereof the successor corporation (if
other than the Company) resulting from such Reorganization or the corporation
purchasing or leasing such assets or other appropriate corporation or entity
shall (i) expressly assume, by a supplement to the Warrant Agreement or other
acknowledgment executed and delivered to the Warrant Agent the obligation to
deliver to the Warrant Agent and to cause the Warrant Agent to deliver to each
such Holder such shares of stock, securities or assets as, in accordance with
the foregoing provisions, such Holder may be entitled to purchase, and the due
and punctual performance and observance of each and every covenant, condition,
obligation and liability under this Agreement to be performed and observed by
the Company in the manner prescribed herein and (ii) enter into an agreement
providing to the Holders rights and benefits substantially similar to those
enjoyed by the Holders under the Common Stock Registration Rights Agreement of
even date herewith.

                                      -18-
<PAGE>   21

             The foregoing provisions of this Section 12(j) shall apply to
successive Reorganization transactions.

         (k) Form of Warrants. Irrespective of any adjustments in the number or
kind of shares purchasable upon the exercise of the Warrants, Warrants
theretofore or thereafter issued may continue to express the same price and
number and kind of shares as are stated in the Warrants initially issuable
pursuant to this Agreement.

         (l) Warrant Agent's Disclaimer.  The Warrant Agent has no duty to
determine when an adjustment under this Section 12 should be made, how it should
be made or what it should be. The Warrant Agent has no duty to determine whether
any provisions of a supplemental Warrant Agreement under subsection (j) of this
Section 12 are correct. The Warrant Agent makes no representation as to the
validity or value of any securities or assets issued upon exercise of Warrants.
The Warrant Agent shall not be responsible for the Company's failure to comply
with this Section 12.

         (m) Miscellaneous.  For purpose of this Section 12, the term "shares of
Common Stock" shall mean (i) shares of the class of stock designated as the
Common Stock, par value $.01 per share, of the Company as of the date of this
Agreement, and (ii) shares of any other class of stock resulting from successive
changes or reclassification of such shares consisting solely of changes in par
value, or from par value to no par value, or from no par value to par value. For
purposes of this Section 12 the term "Fully Diluted Shares" shall mean (i) the
shares of Common Stock outstanding as of a specified date, and (ii) the shares
of Common Stock into or for which rights, options, warrants or other securities
outstanding as of such date are exercisable or convertible (other than the
Warrants). For purposes of this Section 12, "Common Stock Equivalents" means
(without duplication with any other Common Stock or Common Stock Equivalents)
rights, warrants, options, convertible securities or convertible indebtedness,
exchangeable securities or exchangeable indebtedness, or other rights,
exercisable for or convertible or exchangeable into, directly or indirectly,
Common Stock, whether at the time or upon the occurrence of some future event.
In the event that at any time, as a result of an adjustment made pursuant to
this Section 12, the Holders of Warrants shall become entitled to purchase any
securities of the Company other than, or in addition to, shares of Common Stock,
thereafter the number or amount of such other securities so purchasable upon
exercise of each Warrant shall be subject to adjustment from time to time in a
manner and on terms as nearly equivalent as practicable to the provisions with
respect to the Warrant Shares contained in subsections (a) through (m) of this
Section 12, inclusive, and the provisions of Sections 6, 7, 8, 10 and 13 with
respect to the Warrant Shares or the Common Stock shall apply on like terms to
any such other securities.

                                      -19-
<PAGE>   22

         Section 13. Fractional Interests.  The Company shall not be required to
issue fractional Warrant Shares on the exercise of Warrants. If more than one
Warrant shall be presented for exercise in full at the same time by the same
Holder, the number of full Warrant Shares which shall be issuable upon the
exercise thereof shall be computed on the basis of the aggregate number of
Warrant Shares purchasable on exercise of the Warrants so presented. If any
fraction of a Warrant Share would, except for the provisions of this Section 13,
be issuable on the exercise of any Warrants (or specified portion thereof), the
Company shall pay an amount in cash equal to the excess of the value (as
determined by the Board of Directors in good faith) of a Warrant Share over the
Exercise Price on the day immediately preceding the date the Warrant is
presented for exercise, multiplied by such fraction.

         Section 14. Notices to Warrant Holders.  Upon any adjustment pursuant
to Section 12 hereof, the Company shall give prompt written notice of such
adjustment to the Warrant Agent and shall cause the Warrant Agent, on behalf of
and at the expense of the Company, within 10 days after notification is received
by the Warrant Agent of such adjustment, to mail by first class mail, postage
prepaid, to each Holder a notice of such adjustments) and shall deliver to the
Warrant Agent a certificate of the Chief Financial Officer of the Company,
accompanied by the report thereon by a firm of independent public accountants
selected by the board of directors of the Company (who may be the regular
accountants for the Company), setting forth in reasonable detail (i) the number
of Warrant Shares purchasable upon the exercise of each Warrant and the Exercise
Price of such Warrant after such adjustment(s), (ii) a brief statement of the
facts requiring such adjustment(s) and (iii) the computation by which such
adjustment(s) was made. Where appropriate, such notice may be given in advance
and included as a part of the notice required under the other provisions of this
Section 14.

         In case:

         (a) the Company shall authorize the issuance to all holders of shares
of Common Stock of rights, options or warrants to subscribe for or purchase
shares of Common Stock or of any other subscription rights or warrants; or

         (b) the Company shall authorize the distribution to all holders of
shares of Common Stock of evidences of its indebtedness or assets; or

         (c) of any consolidation or merger to which the Company is a party and
for which approval of any shareholders of the Company is required, or of the
conveyance or transfer of the properties and assets of the Company substantially
as an entirety, or of any reclassification

                                      -20-
<PAGE>   23

or change of Common Stock issuable upon exercise of the Warrants (other than a
change in par value, or from par value to no par value, or from no par value to
par value, or as a result of a subdivision or combination), or a tender offer or
exchange offer for shares of Common Stock; or

          (d) of the voluntary or involuntary dissolution, liquidation or
winding up of the Company; or

          (e) the Company proposes to take any action that would require an
adjustment to the Exercise Rate pursuant to Section 12;

then the Company shall give prompt written notice to the Warrant Agent and shall
cause the Warrant Agent, on behalf of and at the expense of the Company to give
to each of the registered holders of the Warrant Certificates at his or its
address appearing on the Warrant Register, at least 20 days (or 10 days in any
case specified in clauses (a) or (b) above) prior to the applicable record date
hereinafter specified, or the date of the event in the case of events for which
there is no record date, by first-class mail, postage prepaid, a written notice
stating (i) the date as of which the holders of record of shares of Common Stock
to be entitled to receive any such rights, options, warrants or distribution are
to be determined, or (ii) the initial expiration date set forth in any tender
offer or exchange offer for shares of Common Stock, or (iii) the date on which
any such consolidation, merger, conveyance, transfer, dissolution, liquidation
or winding up is expected to become effective or consummated, and the date as of
which it is expected that holders of record of shares of Common Stock shall be
entitled to exchange such shares for securities or other property, if any,
deliverable upon such reclassification, consolidation, merger, conveyance,
transfer, dissolution, liquidation or winding up. The failure by the Company or
the Warrant Agent to give such notice or any defect therein shall not affect the
legality or validity of any distribution, right, option, warrant, consolidation,
merger, conveyance, transfer, dissolution, liquidation or winding up, or the
vote upon any action.

          The Company shall give prompt written notice to the Warrant Agent and
shall cause the Warrant Agent, on behalf of and at the expense of the Company to
give to each Holder written notice of any determination to make a distribution
or dividend to the holders of its Common Stock of any assets (including cash),
debt securities, preferred stock, or any rights or warrants to purchase debt
securities, preferred stock, assets or other securities (other than Common
Stock, or rights, options, or warrants to purchase Common Stock) of the Company,
which notice shall state the nature and amount of such planned dividend or
distribution and the record date therefor, and shall be received by the Holders
at least 30 days prior to such record date therefor.

                                      -21-
<PAGE>   24

         Nothing contained in this Agreement or in any Warrant Certificate shall
be construed as conferring upon the Holders the right to vote or to consent or
to receive notice as shareholders in respect of the meetings of shareholders or
the election of directors of the Company or any other matter, or any rights
whatsoever as shareholders of the Company.

         Section 15.  Notices to the Company and Warrant Agent.  Any notice or
demand authorized by this Agreement to be given or made by the Warrant Agent or
by any Holder to or on the Company shall be sufficiently given or made when
received at the office of the Company expressly designated by the Company as its
office for purposes of this Agreement (until the Warrant Agent is otherwise
notified in accordance with this Section 15 by the Company), as follows:

         If to the Company:
                 Gothic Energy Corporation
                 5727 South Lewis Avenue - Suite 700
                 Tulsa, Oklahoma 74105
                 Attention:  Michael Paulk, President

         With a copy to:
                 William S. Clarke, P.A.
                 457 North Harrison Street - Suite 103
                 Princeton, New Jersey 08540
                 Attention: William S. Clarke, Esquire

          Any notice pursuant to this Agreement to be given by the Company or by
any Holder(s) to the Warrant Agent shall be sufficiently given when received by
the Warrant Agent at the address appearing below (until the Company is otherwise
notified in accordance with this Section by the Warrant Agent).

          American Stock Transfer & Trust Company
          40 Wall Street
          New York, New York  10005
          Attention:  Michael Karfunkel
          Facsimile Number:  (718) 236-4588

          Section 16.  Supplements and Amendments.  The Company and the Warrant
Agent may from time to time supplement or amend this Agreement without the
approval of any holders of Warrants in order to cure any ambiguity or to correct
or supplement any provision contained herein which may be defective or
inconsistent with any other provision herein, or to make any

                                      -22-
<PAGE>   25

other provisions in regard to matters or questions arising hereunder which the
Company and the Warrant Agent may deem necessary or desirable and which shall
not in any way adversely affect the interests of any holder of Warrants. Any
amendment or supplement to this Agreement that has a material adverse effect on
the interests of holders shall require the written consent of registered holders
of a majority of the then outstanding warrants. The consent of each holder of a
Warrant affected shall be required for any amendment pursuant to which the
Exercise Price would be increased or the number of Warrant Shares purchasable
upon exercise of Warrants would be decreased (not including adjustments
contemplated hereunder). The Warrant Agent shall be entitled to receive and
shall be fully protected in relying upon an officers' certificate and opinion of
counsel as conclusive evidence that any such amendment or supplement is
authorized or permitted hereunder, that it is not inconsistent herewith, and
that it will be valid and binding upon the Company in accordance with its terms.

          Section 17.  Concerning the Warrant Agent. The Warrant Agent
undertakes the duties and obligations imposed by this Agreement upon the
following terms and conditions, by all of which the Company and the Holders, by
their acceptance of Warrants, shall be bound:

                  (a) The statements contained herein and in the Warrant
Certificate shall be taken as statements of the Company, and the Warrant Agent
assumes no responsibility for the correctness of any of the same except such as
describe the Warrant Agent or any action taken by it. The Warrant Agent assumes
no responsibility with respect to the distribution of the Warrants except as
herein otherwise provided.

                  (b) The Warrant Agent shall not be responsible for any failure
of the Company to comply with the covenants contained in this Agreement or in
the Warrants to be complied with by the Company.

                  (c) The Warrant Agent may execute and exercise any of the
rights or powers hereby vested in it or perform any duty hereunder either itself
(through its employees) or by or through its attorneys or agents (which shall
not include its employees) and shall not be responsible for the misconduct of
any agent appointed with due care.

                  (d) The Warrant Agent may consult at any time with legal
counsel satisfactory to it (who may be counsel for the Company), and the Warrant
Agent shall incur no liability or responsibility to the Company or to any Holder
in respect of any action taken, suffered or omitted by it hereunder in good
faith and in accordance with the opinion or the advice of such counsel.

                                      -23-
<PAGE>   26

          (e) Whenever in the performance of its duties under this Agreement the
Warrant Agent shall deem it necessary or desirable that any fact or matter be
proved or established by the Company prior to taking or suffering any action
hereunder, such fact or matter (unless such evidence in respect thereof be
herein specifically prescribed) may be deemed to be conclusively proved and
established by a certificate signed by the Chairman of the Board, the President,
Chief Financial Officer, one of the Vice Presidents, the Treasurer or the
Secretary of the Company and delivered to the Warrant Agent; and such
certificate shall be full authorization to the Warrant Agent for any action
taken or suffered in good faith by it under the provisions of this Agreement in
reliance upon such certificate.

          (f) The Company agrees to pay the Warrant Agent reasonable
compensation for all services rendered by the Warrant Agent in the performance
of its duties under this Agreement upon receipt of satisfactory evidence
thereof, to reimburse the Warrant Agent for all reasonable expenses, taxes and
governmental charges and other charges of any kind and nature incurred by the
Warrant Agent (including reasonable fees and expenses of the Warrant Agent's
counsel and agents) in the performance of its duties under this Agreement, and
to indemnify the Warrant Agent and save it harmless against any and all
liabilities, including judgments, costs and counsel fees, for anything done or
omitted by the Warrant Agent in the performance of its duties under this
Agreement, except as a result of the Warrant Agent's negligence or bad faith.

          (g) The Warrant Agent shall be under no obligation to institute any
action, suit or legal proceeding or to take any other action likely to involve
expense unless the Company or one or more Holders shall furnish the Warrant
Agent with reasonable security and indemnity satisfactory to the Warrant Agent
for any costs and expenses which may be incurred, but this provision shall not
affect the power of the Warrant Agent to take such action as the Warrant Agent
may consider proper, whether with or without any such security or indemnity. All
rights of action under this Agreement or under any of the Warrants may be
enforced by the Warrant Agent without the possession of any of the Warrants or
the production thereof at any trial or other proceeding relative thereto, and
any such action, suit or proceeding instituted by the Warrant Agent shall be
brought in its name as Warrant Agent, and any recovery of judgment shall be for
the ratable benefit of the Holders, as their respective rights or interests may
appear.

          (h) The Warrant Agent and any stockholder, director, officer or
employee of the Warrant Agent may buy, sell or deal in any of the Warrants or
other securities of the Company or become pecuniarily interested in any
transactions in which the Company may be interested, or contract with or lend
money to the Company or otherwise act as fully and freely as though it were not
Warrant Agent under this Agreement or such director, officer or employee.
Nothing herein shall preclude the Warrant Agent from acting in any other
capacity for the Company or for any other legal entity including, without
limitation, acting as Transfer Agent or as a lender to the Company or an
affiliate thereof.

                                      -24-
<PAGE>   27

          (i) The Warrant Agent shall act hereunder solely as agent, and its
duties shall be determined solely by the provisions hereof. The Warrant Agent
shall not be liable for anything which it may do or refrain from doing in
connection with this Agreement except for its own negligence or bad faith.

          (j) The Warrant Agent will not incur any liability or responsibility
to the Company or to any Holder for any action taken in reliance on any notice,
resolution, waiver, consent, order, certificate, or other paper, document or
instrument reasonably believed by it to be genuine and to have been signed, sent
or presented by the proper party or parties,

          (k) The Warrant Agent shall not be under any responsibility in respect
of the validity of this Agreement or the execution and delivery hereof (except
the due execution hereof by the Warrant Agent) or in respect of the validity or
execution of any Warrant (except its countersignature thereof), nor shall the
Warrant Agent by any act hereunder be deemed to make any representation or
warranty as to the authorization or reservation of any Warrant Shares (or other
stock) to be issued pursuant to this Agreement or any Warrant, or as to whether
any Warrant Shares (or other stock) will, when issued, be validly issued, fully
paid and non-assessable, or as to the Exercise Price or the number or amount of
Warrant Shares or other securities or other property issuable upon exercise of
any Warrant.

          (l) The Warrant Agent is hereby authorized and directed to accept
instructions with respect to the performance of its duties hereunder from the
Chairman of the Board, the President, any Vice President or the Secretary of the
Company, and to apply to such officers for advice or instructions in connection
with its duties, and shall not be liable for any action taken or suffered to be
taken by it in good faith and without negligence in accordance with instructions
of any such officer or officers.

       Section 18.  Change of Warrant Agent.  The Warrant Agent may resign at
any time and be discharged from its duties under this Agreement by giving to the
Company 30 days' notice in writing. The Warrant Agent may be removed by like
notice to the Warrant Agent from the Company. If the Warrant Agent shall resign
or be removed or shall otherwise become incapable of acting, the Company shall
appoint a successor to the Warrant Agent, If the Company shall fail to make such
appointment within a period of 30 days after such removal or after it has been
notified in writing of such resignation or incapacity by the resigning or
incapacitated Warrant Agent or by any Holder (who shall with such notice submit
his Warrant for inspection by the Company), then any Holder may apply to any
court of competent jurisdiction for the appointment of a successor to the
Warrant Agent. Pending appointment of a successor Warrant Agent, either by the
Company or by such court, the duties of the Warrant Agent shall be carried out
by the Company. Any successor Warrant Agent, whether appointed by the Company or
such a court, shall be a bank or trust company in good standing, incorporated
under the laws of the

                                      -25-
<PAGE>   28

United States of America or any State thereof; or the District of Columbia and
having at the time of its appointment as warrant agent a combined capital and
surplus of at least $10,000,000. After appointment, the successor warrant agent
shall be vested with the same powers, rights, duties and responsibilities as if
it had been originally named as Warrant Agent without further act or deed; but
the former Warrant Agent shall deliver and transfer to the successor warrant
agent any property at the time held by it hereunder, and execute and deliver any
further assurance, conveyance, act or deed necessary for such purpose. Failure
to file any notice provided for in this Section 18, however, or any defect
therein, shall not affect the legality or validity of the resignation or removal
of the Warrant Agent or the appointment of the successor warrant agent, as the
case may be. In the event of such resignation or removal, the Company or the
successor warrant agent shall mail by first class mail, postage prepaid, to each
Holder, written notice of such removal or resignation and the name and address
of such successor warrant agent.

         Section 19. Identity of Transfer Agent.  Forthwith upon the appointment
of any new Transfer Agent for the Common Stock, or any other shares of the
Company's capital stock issuable upon the exercise of the Warrants, the Company
shall promptly file with the Warrant Agent a statement setting forth the name
and address of such Transfer Agent.

         Section 20.  Registration Rights.  The Holder shall be entitled to all
of the benefits of that certain Common Stock Registration Rights Agreement among
the Company and the Purchasers dated as January 23, 1998, in connection with the
Common Stock to be issued in connection with the exercise of the Warrants.

         Section 21. Successors. All the covenants an provisions of this
Agreement by or for the benefit of the Company, the Warrant Agent or any holder
of Warrants shall bind and inure to the benefit of their respective successors
and assigns hereunder .

         Section 22. Termination. This Agreement shall terminate at 5:00 p.m.
New York City time on January 23, 2003. Notwithstanding the foregoing, this
Agreement will terminate on any earlier date if all Warrants have been exercised
pursuant to this Agreement.

         Section 23. GOVERNING LAW. THIS AGREEMENT AND EACH WARRANT CERTIFICATE
ISSUED HEREUNDER SHALL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF THE
STATE OF NEW YORK AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF SAID STATE, WITHOUT REGARD TO THE CONFLICT OF LAW RULES THEREOF.

                                      -26-
<PAGE>   29

         Section 24.  Benefits of This Agreement.  Nothing in this Agreement
shall be construed to give to any person or corporation other than the Company,
the Warrant Agent and the registered Holders of the Warrant Certificates any
legal or equitable right, remedy or claim under this Agreement; but this
Agreement shall be for the sole and exclusive benefit of the Company, the
Warrant Agent and the registered Holders of the Warrant Certificates.

        Section 25. Counterparts. This Agreement may be executed in any number
of counterparts and each of such counterparts shall for all purposes be deemed
to be an original, and all such counterparts shall together constitute but one
and the same instrument.

         Section 26. Headings. The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

                                      -27-
<PAGE>   30

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

                                       Gothic Energy Corporation

                                       By: /s/ Michael Paulk
                                          -------------------------------------
                                          Michael Paulk, President

                                       American Stock Transfer & Trust Company,
                                         as Warrant Agent

                                       By: /s/ Herbert Lemmer
                                          -------------------------------------
                                       Name:  Herbert Lemmer
                                       Title: Vice President

                                      -28-
<PAGE>   31

                                  EXHIBIT "A"

                           FORM OF WARRANT CERTIFICATE
                                     (FACE)

  (THIS SECURITY IS A GLOBAL CERTIFICATE AND IS REGISTERED IN THE NAME OF A
DEPOSITARY OR A NOMINEE OF A DEPOSITARY OR A SUCCESSOR DEPOSITARY. THIS SECURITY
IS NOT EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN
THE DEPOSITARY OR ITS NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN
THE WARRANT AGREEMENT DATED AS OF JANUARY 23, 1998 BETWEEN THE COMPANY AND THE
WARRANT AGENT (THE "WARRANT AGREEMENT"), AND NO TRANSFER OF THIS SECURITY (OTHER
THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF
THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER
NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE WARRANT AGREEMENT. UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY 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 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.)

    This paragraph is to be included only if the Warrant is in global form.

<PAGE>   32

                EXERCISABLE ON OR AFTER THE EXERCISABILITY DATE
                       AND ON OR BEFORE JANUARY 23, 2003

No.                                                                Warrants
    -----------                                         ----------

                               WARRANT CERTIFICATE
                            GOTHIC ENERGY CORPORATION

         This Warrant Certificate certifies that _______ or registered assigns,
is the registered holder of Warrants expiring January 23, 2003 (the "Warrants")
to purchase _______ shares of Common Stock (the "Common Stock") of Gothic Energy
Corporation, an Oklahoma corporation (the "Company"). Each Warrant entitles the
holder upon exercise to receive from the Company on or after the Exercisability
Date and on or before 5:00 p.m., New York City time, on January 23, 2003, one
fully paid and non-assessable share of Common Stock (a "Warrant Share") at the
initial exercise price (the "Exercise Price") of the lesser of (a) $2.75 per
share or (b) the average of the daily closing bid prices (as defined in Section
12(d)) for each Business Day during the period commencing 5 Business Days before
the date of exercise and ending on the date one day prior to such date, to be
reset to $.01 on March 31, 1998, as provided in Section 2.1 of the Purchase
Agreement, in the event the Preferred Stock remains outstanding on that date,
payable in lawful money of the United States of America upon surrender of this
Warrant Certificate and payment of the Exercise Price at the office or agency of
the Warrant Agent, subject only to the conditions set forth herein and in the
Warrant Agreement referred to on the reverse hereof. The Exercise Price and
number of Warrant Shares issuable upon exercise of the Warrants are subject to
adjustment. upon the occurrence of certain events as set forth in the Warrant
Agreement.

         No Warrant may be exercised before the Exercisability Date or after
5:00 p.m., New York City time, on January 23, 2003 and to the extent not
exercised by such time such warrants shall become void.

         This Warrant Certificate shall not be valid unless countersigned by the
Warrant Agent, as such term is used in the Warrant Agreement.

         This Warrant Certificate shall be governed and construed in accordance
with the internal laws of the State of New York.

                                       -2-
<PAGE>   33

         IN WITNESS WHEREOF, Gothic Energy Corporation has caused this Warrant
Certificate to be signed by its President and by its Secretary, each by a
facsimile of his signature, and has caused a facsimile of its corporate seal to
be affixed hereunto or imprinted hereon.

         Dated:

                                            Gothic Energy Corporation

                                       By:
                                          -------------------------------------
                                            Michael Paulk, President

                                       By:
                                          -------------------------------------
                                            John Rainwater, Secretary

Countersigned:

American Stock Transfer & Trust Company,
 as Warrant Agent

By:
   --------------------------------
      Authorized Signature

                                       -3-
<PAGE>   34

                           FORM OF WARRANT CERTIFICATE
                                    (REVERSE)

      The Warrants evidenced by this Warrant Certificate are part of a duly
authorized issue of Warrants expiring January 23, 2003, entitling the holder on
exercise to receive shares of Common Stock of the Company (the "Common Stock"),
$.01 par value, and are issued or to be issued pursuant to a Warrant Agreement
dated as of January 23, 1998 (the "Warrant Agreement"), duly executed and
delivered by the Company to American Stock Transfer & Trust Company, as warrant
agent (the "Warrant Agent"), which Warrant Agreement is hereby incorporated by
reference in and made a part of this instrument and is hereby referred to for a
description of the rights, limitation of rights, obligations, duties and
immunities thereunder of the Warrant Agent, the Company and the holders (the
words "holders" or "holder" meaning the registered holders or registered holder)
of the Warrants. A copy of the Warrant Agreement may be obtained by the holder
hereof upon written request to the Company.

      Warrants may be exercised at any time on or after the "Exercisability
Date" and on or before January 23, 2003, subject to extension as provided in the
Warrant Agreement. The holder of Warrants evidenced by this Warrant Certificate
may exercise them by surrendering this Warrant Certificate, with the form of
election to purchase set forth hereon properly completed and executed, together
with payment of the Exercise Price in cash at the office of the Warrant Agent.
In the event that upon any exercise of Warrants evidenced hereby the number of
Warrants exercised shall be less than the total number of Warrants evidenced
hereby, there shall be issued to the holder hereof or his assignee a new Warrant
Certificate evidencing the number of Warrants not exercised. No adjustment shall
be made for any dividends on any Common Stock issuable upon exercise of this
Warrant.

         The Warrant Agreement provides that upon the occurrence of certain
events the number of Warrants set forth on the face hereof may, subject to
certain conditions, be adjusted. No fractions of a share of Common Stock will be
issued upon the exercise of any Warrant, but the Company will pay the cash value
thereof determined as provided in the warrant Agreement.

         The holders of the Warrants are entitled to certain, registration
rights with respect to the Common Stock purchasable upon exercise thereof. Such
registration rights are set forth in the Common Stock Registration Rights
Agreement, dated as of January 23, 1998, among the Company and the parties named
therein.

                                       -4-
<PAGE>   35

         Warrant Certificates, when surrendered at the office of the Warrant
Agent by the registered holder thereof in person or by legal representative or
attorney duly authorized in writing, may be exchanged, in the manner and subject
to the limitations provided in the Warrant Agreement, but without payment of any
service charge, for another Warrant Certificate or Warrant Certificates of like
tenor evidencing in the aggregate a like number of Warrants.

         Upon due presentation for registration of transfer of this Warrant
Certificate at the office of the Warrant Agent a new Warrant Certificate or
Warrant Certificates of like tenor and evidencing in the aggregate a like number
of Warrants shall be issued to the transferee(s) in exchange for this Warrant
Certificate, subject to the limitations provided in the Warrant Agreement,
without charge except for any tax or other governmental charge imposed in
connection therewith.

         The Company and the Warrant Agent may deem and treat the registered
holder(s) thereof as the absolute owner(s) of this Warrant Certificate
(notwithstanding any notation of ownership or other writing hereon made by
anyone), for the purpose of any exercise hereof, of any distribution to the
holder(s) hereof, and for all other purposes, and neither the Company nor the
Warrant Agent shall be affected by any notice to the contrary. Neither the
Warrants nor this Warrant Certificate entitles any holder hereof to any rights
of a stockholder of the Company.

                                       -5-
<PAGE>   36

                         FORM OF ELECTION TO PURCHASE
                   (TO BE EXECUTED UPON EXERCISE OF WARRANT)

         The undersigned hereby irrevocably elects to exercise the right,
represented by this Warrant Certificate, to receive __________ shares of Common
Stock and herewith tenders payment for such shares to the order of Gothic Energy
Corporation in the amount of $__________ in accordance with the terms hereof.
The undersigned requests that a certificate for such shares be registered in the
name of _________________________, whose address is _________________________,
and that such shares be delivered to _________________________, whose address is
_________________________. If said number of shares is less than all of the
shares of Common Stock purchasable hereunder, the undersigned requests that a
new Warrant Certificate representing the remaining balance of such shares be
registered in the name of _________________________, whose address is
_________________________, and that such Warrant Certificate be delivered to
_________________________, whose address is _________________________.

                              Signature:

Date:
                              ------------------------------------------

                              Signature Guaranteed:

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

                                       -6-
<PAGE>   37

                 SCHEDULE OF EXCHANGES OF CERTIFICATED WARRANTS

    The following exchanges of a part of this Global Warrant for certificated
Warrants have been made:

<TABLE>
<CAPTION>
                                                                       Number of
                          Amount of             AMOUNT OF             WARRANTS
                          DECREASE              INCREASE            of this Global         SIGNATURE OF
                        IN NUMBER OF          IN NUMBER OF        WARRANT FOLLOWING         AUTHORIZED
                      WARRANTS OF THIS      WARRANTS OF THIS        SUCH DECREASE             OFFICER
DATE OF EXCHANGE       GLOBAL WARRANT        GLOBAL WARRANT         (OR INCREASE)        OF WARRANT AGENT
-----------------     ----------------      ----------------      -----------------      ----------------
<S>                   <C>                   <C>                   <C>                    <C>

</TABLE>

         This is to be included only if the Warrant is in global form.

                                       -7-
<PAGE>   38

                                  EXHIBIT "B"

                        CERTIFICATE TO BE DELIVERED UPON
               EXCHANGE OR REGISTRATION OF RESTRICTED SECURITIES

Re:  Warrants to Purchase Common Stock, par value $.01 per share (the
     "Warrants"), of Gothic Energy Corporation

    This Certificate relates to __________ Warrants held in book-entry or
definitive form by _________________________ (the "Transferor").

    The Transferor (check applicable box):

    [ ] has requested the Transfer Agent by written order to deliver in exchange
for its beneficial interest in the Global Certificate held by the Depositary a
Warrant or Warrants in definitive registered form equal to its beneficial
interest in Warrants represented by such Global Certificate (or the portion
thereof indicated above); or

    [ ] has requested the Transfer Agent by written order to exchange or
register the transfer of a Warrant or Warrants.

    In connection with such request, the Transferor does hereby certify that
Transferor is familiar with the Warrant Agreement (the "Agreement") relating to
the Warrants and the restrictions on transfers thereof as provided in Section 6
of such Agreement, and that the transfer of this Warrant requested hereby does
not require registration under the Securities Act (as defined below) because:

    [ ] Such Warrants is being acquired for the Transferor's own account,
without transfer (in satisfaction of Section 6(a)(y)(A) of the Agreement).

    [ ] Such Warrant is being transferred to a qualified institutional buyer (as
defined in Rule 144A under the Securities Act of 1933, as amended (the
"Securities Act")), in reliance on Rule 144A or in accordance with Regulation S
under the Securities Act. If such transfer is in accordance with Regulation S,
an opinion of counsel to the effect that such transfer does not require
registration under the Securities Act accompanies this Certificate.

                                       -8-
<PAGE>   39

    [ ] Such Warrant is being transferred in accordance with Rule 144 under the
Securities Act. An opinion of counsel to the effect that such transfer does not
require registration under the Securities Act accompanies this Certificate.

    [ ] Such Warrant is being transferred in reliance on and in compliance with
an exemption from the registration requirements of the Securities Act, other
than Rule 144A or Rule 144 or Regulation S under the Securities Act. An opinion
of counsel to the effect that such transfer does not require registration under
the Securities Act accompanies this Certificate.

                                    [Insert Name of Transferor]

Date:                             By:
                                     ------------------------------------

                                       -9-
<PAGE>   40

                                  EXHIBIT "C"

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD WITHIN THE
UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS
SET FORTH BELOW. BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT (A)
IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER THE ACT)
OR (B) IT IS AN "ACCREDITED INVESTOR" (AS DEFINED IN RULE 501(a) UNDER THE ACT)
(AN "ACCREDITED INVESTOR") OR (C) IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS
SECURITY IN AN OFFSHORE TRANSACTION, (2) AGREES THAT IT WILL NOT WITHIN TWO
YEARS AFTER THE ORIGINAL ISSUANCE OF THIS SECURITY RESELL OR OTHERWISE TRANSFER
THIS SECURITY EXCEPT (A) TO THE COMPANY OR ANY OF ITS SUBSIDIARIES (B) INSIDE
THE UNITED STATES TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE
144A UNDER THE ACT, (C) INSIDE THE UNITED STATES TO AN ACCREDITED INVESTOR THAT,
PRIOR TO SUCH TRANSFER, FURNISHES (OR HAS FURNISHED ON ITS BEHALF BY A U.S.
BROKER-DEALER) TO THE TRUSTEE OR TRANSFER AGENT A SIGNED LETTER CONTAINING
CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE RESTRICTIONS ON TRANSFER
OF THIS SECURITY (THE FORM OF WHICH LETTER CAN BE OBTAINED FROM THE WARRANT
AGENT FOR THIS SECURITY), (D) OUTSIDE THE UNITED STATES IN AN OFFSHORE
TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE ACT, (E) PURSUANT TO THE
EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE ACT (IF AVAILABLE) OR
(F) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND (3) AGREES
THAT IT WILL GIVE TO EACH PERSON TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE
SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND, IN CONNECTION WITH ANY TRANSFER OF
THIS SECURITY WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS SECURITY, IF
THE PROPOSED TRANSFEREE IS AN ACCREDITED INVESTOR OR SUCH TRANSFER IS MADE IN
ACCORDANCE WITH CLAUSES (D) OR (E) ABOVE, THE HOLDER MUST, PRIOR TO SUCH
TRANSFER, FURNISH TO THE WARRANT AGENT AND THE COMPANY SUCH CERTIFICATIONS,
LEGAL OPINIONS OR OTHER INFORMATION AS EITHER OF THEM MAY REASONABLY REQUIRE 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 ACT. AS USED
HEREIN, THE TERMS "OFFSHORE TRANSACTION," "UNITED STATES" AND "U.S. PERSON" HAVE
THE MEANING GIVEN TO THEM BY REGULATION S UNDER THE ACT.

                                      -10-
<PAGE>   41

                                  EXHIBIT "D"

                       TRANSFEREE LETTER OF REPRESENTATION

Gothic Energy Corporation
5727 South Lewis Avenue - Suite 700
Tulsa, Oklahoma 74105

Ladies and Gentlemen:

          In connection with our proposed purchase of Warrants to purchase
Common Stock (the "Securities") of Gothic Energy Corporation (the "Company"), we
confirm that:

          1. We understand that any subsequent transfer of the Securities is
subject to certain restrictions and conditions set forth in the Warrant
Agreement dated as of January 23, 1998 relating to the Securities and the
undersigned agrees to be bound by, and not to resell, pledge or otherwise
transfer the Securities except in compliance with, such restrictions and
conditions and the Securities Act of 1933, as amended (the "Securities Act").

          2. We understand that the Securities have not been registered under
the Securities Act, and that the Securities may not be offered or sold except as
permitted in the following sentence. We agree, on our own behalf and on behalf
of any accounts for which we are acting as hereinafter stated, that if we should
sell any Securities within two years after the original issuance of the
Securities, we will do so only (A) to the Company or any subsidiary thereof, (B)
inside the United States to a "qualified institutional buyer" in compliance with
Rule 144A under the Securities Act, (C) inside the United States to an
"accredited investor" (as defined below) that, prior to such transfer, furnishes
to you a signed letter substantially in the form of this Letter, (D) outside the
United states to a foreign person in compliance with Rule 904 of Regulation S
under the Securities Act, (E) pursuant to the exemption from registration
provided by Rule 144 under the Securities Act (if available), or (F) pursuant to
an effective registration statement under the Securities Act, and we further
agree to provide to any person purchasing any of the securities from us a notice
advising such purchaser that resales of the Securities are restricted as stated
herein.

                                      -11-
<PAGE>   42

    3. We understand that, on any proposed resale of any Securities, we will be
required to furnish to the Company such certifications, legal opinions and other
information as the Company may reasonably require to confirm that the proposed
sale complies with the foregoing restrictions. We further understand that the
Securities purchased by us will bear a legend to the foregoing effect.

    4. We are an "accredited investor" (as defined in Rule 501(a) under the
Securities Act) and have such knowledge and experience in financial and business
matters as to be capable of evaluating the merits and risks of our investment in
the Securities, and we and any accounts for which we are acting are each able to
bear the economic risk of our or its investment.

    5. We are acquiring the Securities purchased by us for our own account or
for one or more accounts (each of which is an "accredited investor") as to each
of which we exercise sole investment discretion.

    The Company is entitled to rely upon this letter and is irrevocably
authorized to produce this letter or a copy hereof to any interested party in
any administrative or legal proceedings or official inquiry with respect to the
matters covered hereby.

                                Very truly yours,

                                ------------------------------------------
                                (Name of Purchaser)

Date:                        By:
                                ------------------------------------------

                                      -12-
<PAGE>   43

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

Name:
     -------------------------------------------------------------------------

Address:
        ----------------------------------------------------------------------

Taxpayer ID Number:
                   -------------------------------------------------------------

                                      -13-<PAGE>   1
                                                                    EXHIBIT 4.12

                   COMMON STOCK REGISTRATION RIGHTS AGREEMENT

                          DATED AS OF JANUARY 23, 1998

                                     AMONG

                           GOTHIC ENERGY CORPORATION

                                      AND

                          THE PURCHASERS NAMED HEREIN
<PAGE>   2

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>                                                                        <C>
1.   Definitions........................................................      1

2.   Registration Rights................................................      4

3.   Transfers of Warrant Shares........................................      9

4.   Registration Procedures............................................     15

5.   Indemnification and Contribution...................................     18

6.   Miscellaneous......................................................     21

     a.    No Inconsistent Agreements...................................     21
     b.    Amendments and Waivers.......................................     21
     c.    Notices......................................................     22
     d.    Successors and Assigns.......................................     22
     e.    Rules 144 and 144A...........................................     22
     f.    Counterparts.................................................     23
     g.    Headings.....................................................     23
     h.    Governing Law................................................     23
     i.    Severability.................................................     23
     j.    Entire Agreement.............................................     23

</TABLE>

Exhibit A

<PAGE>   3

     This Common Stock Registration Rights Agreement (this "Agreement") is made
and entered into as of January 23, 1998, among Gothic Energy Corporation, an
Oklahoma corporation (the "Company"), and the Purchasers named on the signature
pages hereto (the "Purchasers").

     This Agreement is made pursuant to the Securities Purchase Agreement, dated
as of January 23, 1998, among the Company and the Purchasers (the "Purchase
Agreement"), relating to the sale by the Company to the Purchasers of up to
$45,000,000 in aggregate liquidation value of its Senior Redeemable Preferred
Stock, Series A, par value $.05 per share (the "Preferred Stock"), along with
warrants (the "Warrants") for the purchase of shares of its Common Stock, par
value $0.01 per share ("Common Stock"), constituting up to 50.00% of the
Company's fully diluted Common Stock.  In order to induce the Purchasers to
enter into the Purchase Agreement, the Company has agreed to provide to the
Purchasers and their direct and indirect transferees (the "Holders") the
registration rights for the Common Stock set forth in this Agreement.  The
execution of this Agreement is a condition to the obligations of the Purchasers
to purchase the Preferred Stock and Warrants under the Purchase Agreement.

     In consideration of the foregoing, the parties hereto agree as follows:

     1.   Definitions.  As used in this Agreement, the following capitalized
defined terms shall have the following meanings:

          "Business Day" shall mean a day that is not a Legal Holiday.

          "Closing Date" shall mean the date of Closing, as that term is defined
in the Purchase Agreement.

          "Common Stock" shall mean the Common Stock, par value $.01 per share,
of the Company.

          "Company" shall have the meaning set forth in the preamble and shall
also include the Company's successors.

          "Definitive Certificate" shall mean a certificate representing Warrant
Shares in definitive registered form, other than a Global Certificate.

          "Demand Registration" shall have the meaning set forth in Section 2.1.

          "Depositary" shall mean, with respect to Shares represented by one or
more Global Certificates, The Depository Trust Company or another person
designated as Depositary by the Company, which must be a clearing agency
registered under the Exchange Act.

<PAGE>   4

          "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended from time to time.

          "Global Certificate" shall mean a certificate representing all or part
of the Warrant Shares issued to the Depositary and bearing the legend set forth
in Section 3.4(g)(iii).

          "Holders" shall mean the Purchasers, for so long as the Purchasers own
any Common Stock, and each of their successors, assigns and direct and indirect
transferees who become registered owners of Common Stock.

          "Included Shares" shall have the meaning set forth in Section 2.1(a).

          "Indemnified Party" shall have the meaning set forth in Section 5(c).

          "Indemnifying Party" shall have the meaning set forth in Section 5(c).

          "Legal Holiday" shall mean a Saturday, a Sunday or a day on which
banking institutions in New York, New York are required by law, regulation or
executive order to remain closed. If a payment date is a Legal Holiday, payment
may be made on the next succeeding day that is not a Legal Holiday.

          "Person" shall mean an individual, corporation, partnership, joint
venture, association, joint stock company, trust, unincorporated organization,
or other legal entity.

          "Piggy-Back Registration" shall have the meaning set forth in Section
2.2.

          "Preferred Stock" shall have the meaning set forth in the preamble.

          "Prospectus" means a prospectus which meets the requirements of
Section 10 of the Securities Act.

          "Purchase Agreement" shall have the meaning set forth in the preamble.

          "Purchasers" shall have the meaning set forth in the preamble.

          "Qualified Institutional Buyer" or "QIB" shall have the meaning
specified in Rule 144A under the Securities Act.

                                       -2-
<PAGE>   5

          "Registrable Securities" shall mean the shares of Common Stock
issuable upon exercise of the Warrants.  As to any particular Registrable
Securities, such securities shall cease to be Registrable Securities when (i) a
Registration Statement with respect to such securities shall have been declared
effective under the Securities Act and such securities shall have been disposed
of pursuant to such Registration Statement, (ii) such securities have been sold
to the public pursuant to Rule 144(k) (or any similar provision then in force,
but not Rule 144A) under the Securities Act, (iii) such securities shall have
been otherwise transferred by such Holder and new certificates for such
securities not bearing a legend restricting further transfer shall have been
delivered by the Company or its transfer agent and subsequent disposition of
such securities shall not require registration or qualification under the
Securities Act or any similar state law then in force or (iv) such securities
shall have ceased to be outstanding.

          "Registration Expenses" shall mean all expenses incident to the
Company's performance of or compliance with this Agreement, including, without
limitation, all SEC and stock exchange or National Association of Securities
Dealers, Inc. registration and filing fees and expenses, fees and expenses of
compliance with securities or blue sky laws (including, without limitation,
reasonable fees and disbursements of counsel for the underwriters in connection
with blue sky qualifications of the Registrable Securities), rating agency fees,
printing expenses, messenger, telephone and delivery expenses, fees and
disbursements of counsel for the Company and all independent certified public
accountants (but not including any underwriting discounts or commissions or
transfer taxes, if any, attributable to the sale of Registrable Securities by
Holders of such Registrable Securities).

          "Registration Statement" shall mean any registration statement of the
Company which covers any of the Warrant Shares pursuant to the provisions of
this Agreement, including the Prospectus, amendments and supplements to such
Registration Statement, including post-effective amendments, all exhibits and
all material incorporated by reference or deemed to be incorporated by reference
in such Registration Statement.

          "Regulation S" shall mean Regulation S under the Securities Act.

          "Requisite Shares" shall mean a number of Registrable Securities equal
to not less than 25% of the Registrable Securities held in the aggregate by all
Holders.

          "Restricted Security" shall have the meaning set forth in Rule
144(a)(3) under the Securities Act.

          "Rule 144" shall mean Rule 144 under the Securities Act, as such Rule
may be amended from time to time, or any similar rule (other than Rule 144A) or
regulation hereafter adopted by the SEC providing for offers and sales of
securities made in compliance therewith

                                      -3-
<PAGE>   6

resulting in offers and sales by subsequent holders that are not affiliates of
an issuer of such securities being free of the registration and prospectus
delivery requirements of the Securities Act.

          "Rule 144A" shall mean Rule 144A under the Securities Act, as such
Rule may be amended from time to time, or any similar rule (other than Rule 144)
or regulation hereafter adopted by the SEC providing for offers and sales of
securities made in compliance therewith resulting in offers and sales by
subsequent holders that are not affiliates of an issuer of such securities being
free of the registration and prospectus delivery requirements of the Securities
Act.

          "SEC" shall mean the Securities and Exchange Commission.

          "Securities Act" shall mean the Securities Act of 1933, as amended.

          "Selling Holder" shall mean a Holder who is selling Warrant Shares in
accordance with the provisions of Section 2.1 or 2.2 hereof.

          "Transfer" shall have the meaning set forth in Section 3.2.

          "Transfer Agent" means any transfer agent or registrar appointed by
the Company for the Common Stock.

          "Warrant Shares" means the shares of Common Stock issued and issuable
upon exercise of the Warrants.

          "Warrants" shall have the meaning set forth in the preamble.

          "Withdrawal Election" shall have the meaning set forth in Section 2.3.

     2.   Registration Rights.

          2.1  Demand Registration.

               (a) Request for Registration.  At any time on or after the

Closing Date, Holders owning, individually or in the aggregate, at least the
Requisite Shares may make a written request for registration under the
Securities Act of their Registrable Securities (a "Demand Registration"). Any
such request will specify the number of Registrable Securities proposed to be
sold and will also specify the intended method of disposition thereof. Upon a
demand, the Company prepare, file and use its best efforts to cause to be
effective within 90 days

                                      -4-
<PAGE>   7

of such demand a Registration Statement.  The Company shall give written notice
of such registration request within 10 days after the receipt thereof to all
other Holders.  Within 20 days after receipt of such notice by any Holder, such
Holder may request in writing that Registrable Securities be included in such
registration and the Company shall include in the Demand Registration the
Registrable Securities of any such Selling Holder requested to be so included
(the "Included Shares").  Each such request by such other Selling Holders shall
specify the number of Included Shares proposed to be sold and the intended
method of disposition thereof.  Subject to Section 2.1(b), in no event shall the
Company be required to register Registrable Securities pursuant to this Section
2.1 on more than one occasion

              (b) Effective Registration.  A registration will not be deemed
to have been effected as a Demand Registration unless it has been declared
effective by the SEC and the Company has complied in all material respects with
its obligations under this Agreement with respect thereto; provided that if,
                                                           --------
after it has become effective, the offering of Registrable Securities pursuant
to such registration is or becomes the subject of any stop order, injunction or
other order or requirement of the SEC or any other governmental or
administrative agency, or if any court prevents or otherwise limits the sale of
Registrable Securities pursuant to the registration (for any reason other than
the act or omissions of the Selling Holders), such registration will be deemed
not to have been effected unless the Company uses its best efforts to lift or
remove such limitation, such limitation is removed within 90 days and the 180-
day period referred to in the following sentence is extended by the number of
days the registration was suspended. If (i) a registration requested pursuant to
this Section 2.1 is deemed not to have been effected or (ii) the registration
requested pursuant to this Section 2.1 does not remain effective for a period of
at least 180 days beyond the effective date thereof or until the consummation of
the distribution by the Selling Holders of the Included Shares, then the Company
shall continue to be obligated to effect an additional registration pursuant to
this Section 2.1. The Selling Holders of Registrable Securities shall be
permitted to withdraw all or any part of the Included Shares from a Demand
Registration at any time prior to the effective date of such Demand
Registration. If at any time a Registration Statement is filed pursuant to a
Demand Registration, and subsequently a sufficient number of Included Shares are
withdrawn from the Demand Registration so that such Registration Statement does
not cover at least 25% of the Registrable Securities held by all Holders, the
Selling Holders who have not withdrawn their Included Shares shall have the
opportunity to include an additional number of Registrable Securities in the
Demand Registration so that such Registration Statement covers at least 25% of
the Registrable Securities held by all Holders. If an additional number of
Registrable Securities is not so included so that such Registration Statement
does not cover at least 25% of the Registrable Securities held by all Holders,
the Company may withdraw the Registration Statement. In the event that a
Registration Statement has been filed and the Company withdraws the Registration
Statement solely due to the occurrence of the events specified in the prior two
sentences, such withdrawn Registration Statement will count as a Demand
Registration; otherwise such

                                      -5-
<PAGE>   8

withdrawn Registration Statement will not count as a Demand Registration and the
Company shall continue to be obligated to effect a registration pursuant to this
Section 2.1.

               (c) Priority in Demand Registrations Pursuant to Section 2.1. If
a Demand Registration pursuant to this Section 2.1 involves an underwritten
offering and the managing underwriter advises the Company in writing that, in
its opinion, the number of securities requested to be included in such
registration (including securities of the Company which are not Registrable
Securities) exceeds the number which can be sold in such offering, the Company
will not include any securities of the Company which are not Registrable
Securities and will include in such registration only the number of Registrable
Securities requested by the managing underwriter(s) to be included in such
registration. In the event that the number of Registrable Securities requested
to be included in such registration exceeds the number which, in the opinion of
such managing underwriter, can be sold, the number of such Registrable
Securities to be included in such registration shall be allocated pro rata among
all requesting Holders on the basis of the relative number of shares of
Registrable Securities then held by each such Holder (provided that any shares
thereby allocated to any such Holder that exceed such Holder's request shall be
reallocated among the remaining requesting Holders in like manner). In the event
that the number of Registrable Securities requested to be included in such
registration is less than the number which, in the opinion of the managing
underwriter, can be sold, the Company may include in such registration the
securities the Company proposes to sell up to the number of securities that, in
the opinion of the managing underwriter, can be sold.

               (d) Selection of Underwriter.  If the Selling Holders so elect,
the offering of such Registrable Securities pursuant to such Demand Registration
shall be in the form of an underwritten offering. The Selling Holders making
such Demand Registration shall select one or more nationally recognized firms of
investment bankers, who shall be reasonably acceptable to the Company, to act as
the managing underwriter or underwriters in connection with such offering and
shall select any additional investment banker(s) and manager(s) to be used in
connection with the offering.

               (e) Expenses.  The Company will pay all Registration Expenses in
connection with the registrations requested pursuant to Section 2.1(a). Each
Holder shall pay all underwriting discounts and commissions and transfer taxes,
if any, relating to the sale or disposition of such Holder's Registrable
Securities pursuant to a registration statement requested pursuant to this
Section 2.1.

          2.2  Piggy-Back Registration.  If at any time the Company proposes to
file a Registration Statement under the Securities Act with respect to an
offering by the Company for its own account or for the account of any of its
respective securityholders of any class of its common equity securities (other
than (i) a Registration Statement on Form S-4 or S-8 (or any

                                      -6-
<PAGE>   9

substitute form that may be adopted by the SEC), (ii) a Registration Statement
filed in connection with an offer or offering of securities solely to the
Company's existing securityholders or (iii) any Registration Statement filed by
the Company relating to an offering of shares of Common Stock, the proceeds of
which will be used to refinance or redeem indebtedness or preferred stock
incurred or issued by the Company to consummate the Amoco Acquisition (as
defined in the Purchase Agreement), then the Company shall give written notice
of such proposed filing to the Holders of Registrable Securities as soon as
practicable (but in no event less than 20 Business Days before the anticipated
filing date), and such notice shall offer such Holders the opportunity to
register such number of shares of Registrable Securities as each such Holder may
request (which request shall specify the Registrable Securities intended to be
disposed of by such Selling Holder and the intended method of distribution
thereof) (a "Piggy-Back Registration"). The Company shall use its best efforts
to cause the managing underwriter or underwriters of such proposed underwritten
offering to permit the Registrable Securities requested to be included in a
Piggy-Back Registration to be included on the same terms and conditions as any
similar securities of the Company or any other securityholder included therein
and to permit the sale or other disposition of such Registrable Securities in
accordance with the intended method of distribution thereof except as otherwise
provided in Section 2.3. Any Selling Holder shall have the right to withdraw its
request for inclusion of its Registrable Securities in any Registration
Statement pursuant to this Section 2.2 by giving written notice to the Company
of its request to withdraw no later than 5 Business Days before such
Registration Statement becomes effective. The Company may withdraw a Piggy-Back
Registration at any time prior to the time it becomes effective; provided that
the Company shall give prompt notice thereof to participating Selling Holders.
The Company will pay all Registration Expenses in connection with each
registration of Registrable Securities requested pursuant to this Section 2.2,
and each Holder shall pay all underwriting discounts and commissions and
transfer taxes, if any, relating to the sale or disposition of such Holder's
Registrable Securities pursuant to a registration statement effected pursuant to
this Section 2.2.

          No registration effected under this Section 2.2, and no failure to
effect a registration under this Section 2.2, shall relieve the Company of its
obligation to effect a registration upon the request of Holders pursuant to
Section 2.1, and no failure to effect a registration under this Section 2.2 and
to complete the sale of shares of Common Stock in connection therewith shall
relieve the Company of any other obligation under this Agreement.

          2.3  Reduction of Offering.

               (a) Piggy-Back Registration. (i) If the managing underwriter(s)
of any underwritten offering described in Section 2.2 have informed, in writing,
the Selling Holders of the Registrable Securities requesting inclusion in such
offering that it is their opinion that the total number of shares which the
Company, the Selling Holders and any other Persons desiring to

                                      -7-
<PAGE>   10

participate in such registration intend to include in such offering is such as
to adversely affect the success of such offering, including the price at which
such securities can be sold, then the number of shares to be offered for the
account of the Selling Holders and all such other Persons (other than the
Company) participating in such registration shall be reduced or limited pro rata
in proportion to the respective number of shares requested to be registered to
the extent necessary to reduce the total number of shares requested to be
included in such offering to the number of shares, if any, recommended by such
managing underwriters; provided, however, that if such offering is effected for
the account of any securityholder of the Company other than the Selling Holders,
pursuant to the demand registration rights of any such securityholder, then the
number of shares to be offered for the account of the Selling Holders and all
other Persons (other than the Company) participating in such registration (but
not such securityholders who have exercised their demand registration rights)
shall be reduced or limited pro rata in proportion to the respective number of
shares requested to be registered to the extent necessary to reduce the total
number of shares requested to be included in such offering to the number of
shares, if any, recommended by such managing underwriters.

                   (ii) If the managing underwriter or underwriters of any
underwritten offering described in Section 2.2 notify the Selling Holders
requesting inclusion of Registrable Securities in such offering, that the kind
of securities that the Selling Holders, the Company and any other Persons
desiring to participate in such registration intend to include in such offering
is such as to adversely affect the success of such offering, (x) the Registrable
Securities to be included in such offering shall be reduced as described in
clause (i) above or (y) if a reduction in the Registrable Securities pursuant to
clause (i) above would, in the judgment of the managing underwriter(s) or
underwriters, be insufficient to substantially eliminate such adverse effect
that inclusion of the Registrable Securities requested to be included would have
on such offering, such Registrable Securities will be excluded from such
offering.

                   (iii)  Notwithstanding anything herein to the contrary, this
Section 2.3(a) shall be subject to the provisions of the Warrant to purchase
Common Stock expiring on November 24, 2002 held by Amoco Corporation.

               (b) If, as a result of the proration provisions of this Section
2.3, any Selling Holder shall not be entitled to include all Registrable
Securities in a Piggy-Back Registration that such Selling Holder has requested
to be included, such Selling Holder may elect to withdraw his request to include
Registrable Securities in such registration (a "Withdrawal Election"); provided,
however, that a Withdrawal Election shall be irrevocable and, after making a
Withdrawal Election, a Selling Holder shall no longer have any right to include
Registrable Securities in the registration as to which such Withdrawal Election
was made.

                                      -8-
<PAGE>   11

     3.   Transfers of Warrant Shares.

          3.1  Generally.  All Warrant Shares at any time and from time to time
outstanding that are Registrable Securities shall be held subject to the
conditions and restrictions set forth in this Section 3. Each Holder of Warrant
Shares by executing this Agreement or by accepting a certificate representing
Common Stock or other indicia of ownership therefor from the Company agrees with
the Company to such conditions and restrictions.

          3.2  Restrictions on Transfer.  Each Holder of Registrable Securities
agrees that it will not sell, assign, give, transfer, exchange, devise,
bequeath, pledge or otherwise dispose of (collectively, "Transfer") any Warrant
Shares or any interest therein except in compliance with Sections 3.3 and 3.4
hereof.  Each certificate representing Warrant Shares shall contain conspicuous
notation on such certificate indicating that the transfer of such Warrant Shares
is subject to the terms and restrictions of this Agreement.

          3.3  Registration of Transfers and Exchanges.

               (a) Transfer and Exchange of Definitive Certificates.  The
Company and the Transfer Agent shall not be obligated to register the transfer
or exchange of any Definitive Certificate that is a Restricted Security unless
such Warrant Shares are delivered to the Transfer Agent duly endorsed or
accompanied by written instruments of transfer and are accompanied by the
following additional information and documents, as applicable:

                   (A) if such Restricted Security is being delivered to the
Transfer Agent by a Holder for registration in the name of such Holder, without
transfer, a certification from such Holder to that effect (in substantially the
form of Exhibit A hereto); or

                   (B) if such Restricted Security is being transferred to a
Qualified Institutional Buyer in accordance with Rule 144A or pursuant to an
exemption from registration in accordance with Rule 144 or Regulation S or
pursuant to an effective registration statement under the Securities Act, a
certification to that effect (in substantially the form of Exhibit A hereto)
and, with respect to transfers pursuant to Rule 144 or Regulation S, an opinion
of counsel reasonably acceptable to the Company and the Transfer Agent to the
effect that such transfer does not require registration under the Securities
Act; or

                   (C) if such Restricted Security is being transferred in
reliance on another exemption from the registration requirements of the
Securities Act, a certification to that effect (in substantially the form of
Exhibit A hereto) and an opinion of counsel reasonably acceptable to the Company
and to the Transfer Agent to the effect that such transfer does not require
registration under the Securities Act.

                                      -9-
<PAGE>   12

               (b) Restrictions on Transfer of a Definitive Certificate for a
Beneficial Interest in a Global Certificate.  A Definitive Certificate may not
be exchanged for a beneficial interest in a Global Certificate except upon
satisfaction of the requirements set forth below.  Upon receipt by the Transfer
Agent of a Definitive Certificate, duly endorsed or accompanied by appropriate
instruments of transfer, in form satisfactory to the Transfer Agent, together
with:

                   (A) if such Definitive Certificate represents Restricted
Securities, certification, substantially in the form of Exhibit A hereto, that
such Definitive Certificate is being transferred to a Qualified Institutional
Buyer (as defined in Rule 144A) in accordance with Rule 144A; and

                   (B) whether or not such Definitive Certificate represents
Restricted Securities, written instructions directing the Transfer Agent to
make, or to direct the Depositary to make, an endorsement on the Global
Certificate to reflect an increase in the aggregate number of shares of Common
Stock represented by the Global Certificate,

then the Transfer Agent shall cancel such Definitive Certificate and cause, or
direct the Depositary to cause, in accordance with the standing instructions and
procedures existing between the Depositary and the Transfer Agent, the number of
shares of Common Stock represented by the Global Certificate to be increased
accordingly.  If no Global Certificate is then outstanding, the Company shall
issue and the Transfer Agent shall authenticate a new Global Certificate in the
appropriate amount.

               (c) Transfer and Exchange of Global Certificate.  The transfer
and exchange of a Global Certificate or beneficial interests therein shall be
effected through the Depositary, in accordance with this Agreement (including
the restrictions on transfer set forth herein) and the procedures of the
Depositary therefor.

               (d) Transfer of a Beneficial Interest in a Global Certificate for
a Definitive Certificate.

                   (i) Any person having a beneficial interest in a Global
Certificate may upon request exchange such beneficial interest for a Definitive
Certificate. Upon receipt by the Transfer Agent of written instructions or such
other form of instructions as is customary for the Depositary from the
Depositary or its nominee on behalf of any person having a beneficial interest
in a Global Certificate and upon receipt by the Transfer Agent of a written
order or such other form of instructions as is customary for the Depositary or
the person designated by the Depositary as having such a beneficial interest
containing registration instructions and, in the case of a beneficial interest
in shares that are Restricted Securities only, the following additional
information and documents:

                                     -10-
<PAGE>   13

                        (A) If such beneficial interest is being transferred to
the person designated by the Depositary as being the beneficial owner, a
certification from such person to that effect (in substantially the form of
Exhibit A hereto); or

                        (B) if such beneficial interest is being transferred to
a Qualified Institutional Buyer in accordance with Rule 144A or pursuant to an
exemption from registration in accordance with Rule 144 or Regulation S or
pursuant to an effective registration statement under the Securities Act, a
certification to that effect from the transferee or transferor (in substantially
the form of Exhibit A hereto) and, with respect to transfers pursuant to Rule
144 or Regulation S, an opinion of counsel reasonably acceptable to the Company
and the Transfer Agent to the effect that such transfer does not require
registration under the Securities Act; or

                        (C) if such beneficial interest is being transferred in
reliance on another exemption from the registration requirements of the
Securities Act, a certification to that effect from the transferee or transferor
(in substantially the form of Exhibit A hereto) and an opinion of counsel from
the transferee or transferor reasonably acceptable to the Company and to the
Transfer Agent to the effect that such transfer does not require registration
under the Securities Act, then the Transfer Agent will cause, in accordance with
the standing instructions and procedures existing between the Depositary and the
Transfer Agent, the aggregate amount of the Global Certificate to be reduced
and, following such reduction, the Company will execute and, upon receipt of a
written order in the form of an officers' certificate signed by the Chief
Executive Officer, the President, any vice President and the Chief Financial
Officer, the Treasurer, the Secretary or any Assistant Secretary of the Company
(an "Officers' Certificate"), the Transfer Agent will countersign and deliver to
the transferee a Definitive Certificate.

                   (ii) Definitive Certificates issued in exchange for a
beneficial interest in a Global Certificate pursuant to this Section 3.3(d)
shall be registered in such names and in such authorized denominations as the
Depositary, pursuant to instructions from its direct or indirect participants or
otherwise, shall instruct the Transfer Agent in writing. The Transfer Agent
shall deliver such Definitive Certificates to the persons in whose names such
Definitive Certificates are registered.

               (e) Restrictions on Transfer and Exchange of Global Certificates.
Notwithstanding any other provisions of this Agreement (other than the
provisions set forth in subsection (f) of this Section 3.3), a Global
Certificate may not be transferred as a whole except by the Depositary to a
nominee of the Depositary or by a nominee of the Depositary to the Depositary or
another nominee of the Depositary or by the Depositary or any such nominee to a
successor Depositary or a nominee of such successor Depositary.

                                     -11-
<PAGE>   14

               (f) Issuance of Definitive Certificates in Absence of Depositary.
If at any time:

                   (i)  the Depositary for the Global Certificates notifies the
Company that the Depositary is unwilling or unable to continue as Depositary for
the Global Certificates and a successor Depositary for the Global Certificates
is not appointed by the Company within 90 days after delivery of such notice; or

                   (ii) the Company, at its sole discretion, notifies the
Transfer Agent in writing that it elects to cause the issuance of Definitive
Certificates under this Agreement and such action would not cause the Common
Stock to be ineligible for trading in the Private Offerings, Resales and Trading
through Automated Linkages ("PORTAL") Market, then the Company will execute, and
the Transfer Agent, upon receipt of an Officers' Certificate requesting the
issuance and delivery of Definitive Certificates, will countersign and deliver
Definitive Certificates, in an aggregate number equal to the aggregate number of
shares represented by the Global Certificate, in exchange for such Global
Certificate.

               (g) Legends.

                   (i)  Except as permitted by the following paragraph (ii),
each Definitive Certificate (and all shares of Common Stock issued in exchange
therefor or substitution thereof) shall bear a legend substantially to the
following effect:

     THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF
     1933, AS AMENDED (THE "ACT"), OR ANY STATE SECURITIES LAWS AND,
     ACCORDINGLY, MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR
     FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH BELOW. BY
     ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT (A) IT IS A
     "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER THE ACT) OR
     (B) IT IS AN INSTITUTIONAL "ACCREDITED INVESTOR" (AS DEFINED IN RULE 501(a)
     UNDER THE ACT (AN "ACCREDITED INVESTOR") OR (C) IT IS NOT A U.S. PERSON AND
     IS ACQUIRING THIS SECURITY IN AN OFFSHORE TRANSACTION, (2) AGREES THAT IT
     WILL NOT WITHIN TWO YEARS AFTER ORIGINAL ISSUANCE OF THIS SECURITY RESELL
     OR OTHERWISE TRANSFER THIS SECURITY EXCEPT (A) TO THE COMPANY OR ANY OF ITS
     SUBSIDIARIES, (B) INSIDE THE UNITED STATES TO A QUALIFIED INSTITUTIONAL
     BUYER IN COMPLIANCE WITH RULE 144A UNDER

                                     -12-
<PAGE>   15

     THE ACT, (C) INSIDE THE UNITED STATES TO AN INSTITUTIONAL ACCREDITED
     INVESTOR THAT, PRIOR TO SUCH TRANSFER, FURNISHES (OR HAS FURNISHED ON ITS'
     BEHALF BY A U.S. BROKER-DEALER) TO THE TRANSFER AGENT A SIGNED LETTER
     CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE
     RESTRICTIONS ON TRANSFER OF THIS SECURITY (THE FORM OF WHICH LETTER CAN BE
     OBTAINED FROM THE TRANSFER AGENT FOR THIS SECURITY), (D) OUTSIDE THE UNITED
     STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE
     ACT, (E) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144
     UNDER THE ACT (IF AVAILABLE) OR (F) PURSUANT TO AN EFFECTIVE REGISTRATION
     STATEMENT UNDER THE ACT AND (3) AGREES THAT IT WILL GIVE TO EACH PERSON TO
     WHOM THIS SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF
     THIS LEGEND. IN CONNECTION WITH ANY TRANSFER OF THIS SECURITY WITHIN TWO
     YEARS AFTER THE ORIGINAL ISSUANCE OF THIS SECURITY, IF THE PROPOSED
     TRANSFEREE IS AN INSTITUTIONAL ACCREDITED INVESTOR OR SUCH TRANSFER IS MADE
     IN ACCORDANCE WITH CLAUSES (D) OR (E) ABOVE, THE HOLDER MUST, PRIOR TO SUCH
     TRANSFER, FURNISH TO THE TRANSFER AGENT AND THE COMPANY SUCH
     CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS EITHER OF THEM MAY
     REASONABLY REQUIRE 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 ACT. AS USED HEREIN, THE TERMS "OFFSHORE TRANSACTION,"
     "UNITED STATES" AND "U.S. PERSON" HAVE THE MEANING GIVEN TO THEM BY
     REGULATION S UNDER THE ACT.

                   (ii) Upon any sale or transfer of any share of Common Stock
that is a Restricted Security (including any Restricted Security represented by
a Global Certificate) pursuant to Rule 144 under the Securities Act or an
effective registration statement under the Securities Act:

                        (A) in the case of any Restricted Security represented
by a Definitive Certificate, the Transfer Agent shall permit the holder thereof
to exchange such Restricted Security for a Definitive Certificate (subject to
Section 3.3(a) and (b)) that does not bear the legend set forth above and
rescind any related restriction on the transfer of such Restricted Security; and

                                     -13-
<PAGE>   16

                        (B) any Restricted Security represented by a Global
Certificate shall not be subject to the provisions set forth in (i) above (such
sales or transfers being subject only to the provisions of Section 3.3(c)
through (f); provided, however, that with respect to any request for an exchange
of a Restricted Security that is represented by a Global Certificate for a
Definitive Certificate that does not bear the legend set forth above, which
request is made in reliance upon Rule 144, the holder thereof shall certify in
writing to the Transfer Agent that such request is being made pursuant to Rule
144 (such certification to be substantially in the form of Exhibit A hereto) and
shall provide an opinion of counsel reasonably acceptable to the Company to the
effect that such transfer does not require registration under the Securities
Act.

               (iii) Any Global Certificate shall bear a legend (which would be
in addition to any other legends required in the case of a Restricted Security)
in substantially the following form:

     THIS SECURITY IS A GLOBAL CERTIFICATE AND IS REGISTERED IN THE NAME OF A
     DEPOSITARY OR A NOMINEE OF A DEPOSITARY OR A SUCCESSOR DEPOSITARY.  THIS
     SECURITY IS NOT EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A
     PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE EXCEPT IN THE LIMITED
     CIRCUMSTANCES DESCRIBED IN THE COMMON STOCK REGISTRATION RIGHTS AGREEMENT
     DATED AS OF JANUARY 23, 1998 AMONG THE COMPANY AND THE STOCKHOLDERS PARTY
     THERETO (THE "SHAREHOLDERS AGREEMENT") AND NO TRANSFER OF THIS SECURITY
     (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITARY TO A
     NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE
     DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT
     IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE SHAREHOLDERS AGREEMENT.

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
     DEPOSITORY 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

                                     -14-
<PAGE>   17

     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.

          (h) Cancellation and/or Adjustment of a Global Certificate.  At such
time as all beneficial interests in a Global Certificate have either been
exchanged for Definitive Certificates, redeemed, repurchased or canceled, such
Global Certificate shall be returned to or retained and canceled by the Transfer
Agent.  At any time prior to such cancellation, if any beneficial interest in a
Global Certificate is exchanged for Definitive Certificates, redeemed,
repurchased or canceled, the number of shares of Common Stock represented by
such Global Certificate shall be reduced and an endorsement shall be made on
such Global Certificate, by the Transfer Agent to reflect such reduction.

          (i) Obligations with Respect to Transfers and Exchanges of
Definitive Certificates.

              (i)   To permit registrations of transfers and exchanges, the
Company shall execute, at the Transfer Agent's request, and the Transfer Agent
shall countersign and register Definitive Certificates and Global Certificates.

              (ii)  All Definitive Certificates and Global Certificates issued
upon any registration, transfer or exchange of Definitive Certificates or Global
Certificates shall be validly issued, fully paid and non-assessable.

              (iii) Prior to due presentment for registration of transfer of any
Warrant Shares, the Company and the Transfer Agent may deem and treat the person
in whose name any Warrant Share is registered as the absolute owner of such
Warrant Share, and neither the Transfer Agent nor the Company shall be affected
by notice to the contrary.

     4.   Registration Procedures.  In connection with the obligations of the
Company with respect to any Registration Statement pursuant to Sections 2.1 and
2.2 hereof, the Company shall:

          (a) prepare and file with the SEC a Registration Statement on the
appropriate form under the Securities Act, which form (i) shall be selected by
the Company and (ii) shall comply as to form in all material respects with the
requirements of the applicable form and include all financial statements
required by the SEC to be filed therewith, and the Company shall use its best
efforts to cause such Registration Statement to become effective and remain
effective in accordance with Section 2 hereof;

                                     -15-
<PAGE>   18

          (b) prepare and file with the SEC such amendments and post-effective
amendments to each Registration Statement as may be necessary to keep such
Registration Statement effective for the applicable period, cause each
Prospectus to be supplemented by any required prospectus supplement and, as so
supplemented, to be filed pursuant to Rule 424 under the Securities Act;

          (c) furnish to each Selling Holder of Registrable Securities and to
each underwriter of an underwritten offering of Registrable Securities, if any,
without charge, as many copies of each Prospectus, including each preliminary
Prospectus, and any amendment or supplement thereto and such other documents as
such Selling Holder or underwriter may reasonably request, in order to
facilitate the public sale or other disposition of the Registrable Securities;

          (d) use its best efforts to register or qualify the Registrable
Securities under all applicable state securities or "blue sky" laws of such
jurisdictions as any Selling Holder thereof covered by a Registration Statement
shall reasonably request in writing by the time the applicable Registration
Statement is declared effective by the SEC, and do any and all other acts and
things which may be reasonably necessary or advisable to enable such Selling
Holder to consummate the disposition in each such jurisdiction of such
Registrable Securities owned by such Selling-Holder; provided, however, that the
Company shall not be required to (i) qualify generally to do business in any
jurisdiction where it is not then so qualified, (ii) take any action that would
subject it to general service of process in any jurisdiction in which it is not
then so subject or (iii) subject itself to taxation in excess of a nominal
dollar amount in any such jurisdiction;

          (e) notify each Selling Holder of Registrable Securities promptly and,
if requested by such Selling Holder, confirm such advice in writing (i) when a
Registration Statement has become effective and when any post-effective
amendments and supplements thereto become effective, (ii) of any request by the
SEC or any state securities authority for amendments and supplements to a
Registration Statement and Prospectus or for additional information after the
Registration Statement has become effective, (iii) of the issuance by the SEC or
any state securities authority of any stop order suspending the effectiveness of
a Registration Statement or the initiation of any proceedings for that purpose,
(iv) if, between the effective date of a Registration Statement and the closing
of any sale of Registrable Securities covered thereby, the representations and
warranties of the Company contained in any underwriting agreement, securities
sales agreement or other similar agreement, if any, relating to the offering
cease to be true and correct in all material respects or if the Company receives
any notification with respect to the suspension of the qualification of the
Registrable Securities for sale in any jurisdiction or the initiation of any
proceeding for such purpose and (v) of the happening of any event during the
period a Registration Statement is effective which makes any

                                     -16-
<PAGE>   19

statement made in such Registration Statement or the related Prospectus untrue
in any material respect or which requires the making of any changes in such
Registration Statement or Prospectus in order to make the statements therein not
misleading;

          (f) make every reasonable effort to obtain the withdrawal of any order
suspending the effectiveness of a Registration Statement at the earliest
possible moment;

          (g) furnish to each Selling Holder of Registrable Securities and to
the Purchasers, without charge, at least one conformed copy of each Registration
Statement and any post-effective amendment thereto (with documents incorporated
therein by reference or exhibits thereto);

          (h) cooperate with the Selling Holders of Registrable Securities to
facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be sold and not bearing any restrictive legends and
registered in such names as the Selling Holders may reasonably request at least
two business days prior to the closing of any sale of Registrable Securities;

          (i) upon the occurrence of any event contemplated by Section 4(e)(v)
hereof, use reasonable efforts to prepare a supplement or post-effective
amendment to a Registration Statement or the related Prospectus or any document
incorporated therein by reference or file any other required document so that,
as thereafter delivered to the purchasers of the Registrable Securities, such
Prospectus will not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading; provided, however,
that the Company shall not be required to amend or supplement a Registration
Statement, any related Prospectus or any document incorporated therein by
reference in the event that, and for so long as, an event occurs and is
continuing as a result of which the Registration Statement, any related
Prospectus or any document incorporated therein by reference as then amended or
supplemented would, in the Company's good faith judgment, contain an untrue
statement of a material fact or omit to state a material fact necessary in order
to make the statements therein, in light of the circumstances under which they
are made, not misleading.  The Company agrees to notify each Selling Holder to
suspend use of the Prospectus as promptly as practicable after the occurrence of
such an event, and each Selling Holder hereby agrees to suspend use of the
Prospectus until the Company has amended or supplemented the Prospectus to
correct such misstatement or omission.  At such time as such public disclosure
is otherwise made or the Company determines in good faith that such disclosure
is not necessary, the Company agrees promptly to notify each Selling Holder of
such determination, to amend or supplement the Prospectus if necessary to
correct any untrue statement or omission therein and to furnish each Selling
Holder such numbers of copies of the Prospectus as so amended or supplemented as
each Selling Holder may reasonably request;

                                     -17-
<PAGE>   20

          (j) a reasonable time prior to the filing of any Registration
Statement, any Prospectus, any amendment to a Registration Statement or
amendment or supplement to a Prospectus or any document which is to be
incorporated by reference into a Registration Statement or a Prospectus after
initial filing and prior to the effective date of a Registration Statement,
provide copies of such document to the Holders and make available for discussion
of such document the representatives of the Company as shall be reasonably
requested by the Holders of Registrable Securities;

          (k) obtain a CUSIP number for the Common Stock;

          (l) (i) make reasonably available for inspection by a representative
of, and counsel for, any managing underwriter participating in any disposition
pursuant to a Registration Statement, all relevant financial and other records,
pertinent corporate documents and properties of the Company and (ii) cause the
Company's officers, directors and employees to supply all relevant information
reasonably requested by such representative, counsel or any such managing
underwriter in connection with any such Registration Statement;

          (m) take all action necessary so that the Warrant Shares will be
listed on the principal securities exchanges and markets within the United
States of America (including the NASDAQ National Market System), if any, on
which other shares of Common Stock are then listed; and

          (n) if requested by the Holders in connection with any Registration
Statement, shall use its best efforts to cause (x) counsel for the Company to
deliver an opinion relating to the Registration Statement and the Common Stock,
in customary form, (y) its officers to execute and deliver all customary
documents and certificates requested by a representative of the Holders or any
managing underwriter, as applicable and (z) its independent public accountants
to provide a comfort letter in customary form.

          The Company may, as a condition to such Holder's participation in any
Registration Statement, require each Holder of Registrable Securities to (i)
furnish to the Company such information in writing regarding the Holder and the
proposed distribution by such Holder of such Registrable Securities as the
Company may from time to time reasonably request in writing and (ii) agree in
writing to be bound by this Agreement.

     5.   Indemnification and Contribution.

          (a) The Company agrees to indemnify and hold harmless each Holder and
each person, if any, who controls such Holder within the meaning of either
Section 15 of the Securities Act or Section 20 of the Exchange Act, from and
against all losses, claims, damages

                                     -18-

<PAGE>   21
and liabilities (including, without limitation, any reasonable legal fees or
other expenses actually incurred by any Holder or any such controlling or
affiliated person in connection with defending or investigating any such action
or claim) caused by any untrue statement or alleged untrue statement of a
material fact contained in any Registration Statement (or any amendment thereto)
pursuant to which Registrable Securities were registered under the Securities
Act, or caused by any omission or alleged omission to state therein a material
fact necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading, or caused by any untrue statement or
alleged untrue statement of a material fact contained in any Prospectus (as
amended or supplemented if the Company shall have furnished any amendments or
supplements thereto), or caused by any omission or alleged omission to state
therein a material fact necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading, except insofar as
such losses, claims, damages or liabilities are caused by any such untrue
statement or omission or alleged untrue statement or omission made in reliance
upon and in conformity with information relating to any Holder furnished to the
Company in writing by such Holder expressly for use in any such Registration
Statement or Prospectus; provided that the foregoing indemnity with respect to
any preliminary prospectus shall not inure to the benefit of any Holder (or to
the benefit of any person controlling such Holder) from whom the person
asserting any such losses, claims, damages or liabilities purchased Registrable
Securities if such untrue statement or omission or alleged untrue statement or
omission made in such preliminary prospectus is completely eliminated or
remedied in the related Prospectus (as amended or supplemented if the Company
shall have furnished any amendments or supplements thereto) and a copy of the
related Prospectus (as so amended or supplemented) shall have been furnished to
such Holder at or prior to the sale of such Registrable Securities, as the case
may be, to such person, and (i) such Holder failed to send or deliver a copy of
the Prospectus with or prior to the delivery of written confirmation of the sale
of Registrable Securities and (ii) the Prospectus would have completely
corrected such untrue statement or omission.

          (b) Each Holder agrees, severally and not jointly, to indemnify and
hold harmless the Company, its directors, its officers and each person, if any,
who controls the Company within the meaning of either Section 15 of the
Securities Act or Section 20 of the Exchange Act to the same extent as the
foregoing indemnity from the Company to such Holder, but only with reference to
information relating to such Holder furnished to the Company in writing by such
Holder expressly for use in any Registration Statement (or any amendment
thereto), any Prospectus (or any amendment or supplement thereto) or any
preliminary prospectus.  The liability of any Holder under this paragraph (b)
shall in no event exceed the proceeds received by such Holder from sales of
Registrable Securities giving rise to such obligations.

                                     -19-
<PAGE>   22

          (c) In case any proceeding (including any governmental investigation)
shall be instituted involving any person in respect of which indemnity may be
sought pursuant to either paragraph (a) or (b) above, such person (the
"indemnified party") shall promptly notify the person against which such
indemnity may be sought (the "indemnifying party") in writing and the
indemnifying party, upon request of the indemnified party, shall retain one
counsel (and appropriate local counsel) reasonably satisfactory to the
indemnified party to represent the indemnified party and any others the
indemnifying party may designate in such proceeding and shall pay the reasonable
fees and disbursements of such counsel relating to such proceeding.  In any such
proceeding any indemnified party shall have the right to retain its own counsel,
but the fees and expenses of such counsel shall be at the expense of such
indemnified party unless (i) the indemnifying party and the indemnified party
shall have mutually agreed in writing to the contrary or (ii) the indemnifying
party fails promptly to assume the defense of such proceeding or fails to employ
counsel reasonably satisfactory to such indemnified party or parties or (iii)
the named parties to any such proceeding (including any impleaded parties)
include both such indemnified party or parties and the indemnifying parties or
an affiliate of the indemnifying parties or such indemnified parties, and there
may be one or more defenses available to such indemnified party or parties that
are different from or additional to those available to the indemnifying parties,
in which case, if such indemnified party or parties notifies the indemnifying
parties in writing that it elects to employ separate counsel of its choice at
the expense of the indemnifying parties, the indemnifying parties shall not have
the right to assume the defense thereof and such counsel shall be at the expense
of the indemnifying parties, it being understood, however, that unless there
exists a conflict among indemnified parties, the indemnifying parties shall not,
in connection with any one such proceeding or separate but substantially similar
or related proceedings in the same jurisdiction, arising out of the same general
allegations or circumstances, be liable for the fees and expenses of more than
one separate firm of attorneys (together with appropriate local counsel) at any
time for such indemnified party or parties.  The indemnifying party shall not be
liable for any settlement of any proceeding effected without its written consent
but, if settled with such consent or if there be a final judgment for the
plaintiff, the indemnifying party agrees to indemnify the indemnified party from
and against any loss or liability by reason of such settlement or judgment.  No
indemnifying party shall, without the prior written consent of the indemnified
party, effect any settlement of any pending or threatened proceeding in respect
of which any indemnified party is a party, and indemnity could have been sought
hereunder by such indemnified party, unless such settlement includes an
unconditional release of such indemnified party from all liability on claims
that are the subject matter of such proceeding.

          (d) To the extent the indemnification provided for in paragraph (a) or
(b) of this Section 5 is unavailable to an indemnified party in respect of any
losses, claims, damages or liabilities, then each indemnifying party under such
paragraph, in lieu of indemnifying such indemnified party thereunder, shall
contribute to the amount paid or payable by such indemnified

                                     -20-
<PAGE>   23

party as a result of such losses, claims, damages or liabilities in such
proportion as is appropriate to reflect the relative fault of the Company on the
one hand and the Holders on the other hand in connection with the statements or
omissions that resulted in such losses, claims, damages or liabilities, as well
as any other relevant equitable considerations. The relative fault of the
Company on the one hand and the Holders on the other hand shall be determined by
reference to, among other things, whether the untrue or alleged untrue statement
of a material fact or the omission or alleged omission to state a material fact
relates to information supplied by the Company or by the Holders and the
parties, relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission.

          (e) The Company and each Holder agrees that it would not be just or
equitable if contribution pursuant to this Section 5 were determined by pro rata
allocation or by any other method of allocation that does not take account of
the equitable considerations referred to in paragraph (d) above.  The amount
paid or payable by an indemnified party as a result of the losses, claims,
damages and liabilities referred to in paragraph (d) above shall be deemed to
include, subject to the limitations set forth above, any legal or other expenses
reasonably incurred (and not otherwise reimbursed) by such indemnified party in
connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this Section 5, in no event shall a Selling
Holder be required to contribute any amount in excess of the amount by which
proceeds received by such Selling Holder from sales of Registrable Securities
exceeds the amount of damages that such Selling Holder has otherwise been
required to pay by reason of such untrue or allegedly untrue statement or
omission or alleged omission.  No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation. The remedies provided for in this Section 5 are not exclusive
and shall not limit any rights or remedies which may otherwise be available to
any indemnified party at law or in equity.

     6.   Miscellaneous.

          (a) No Inconsistent Agreements.  The Company has not entered into nor
will the Company on or after the date of this Agreement enter into any agreement
which is inconsistent with the rights granted to the Holders of Registrable
Securities in this Agreement or otherwise conflicts with the provisions hereof.
The rights granted to the Holders hereunder do not in any way conflict with and
are not inconsistent with the rights granted to the holders of the Company's
other issued and outstanding securities, if any, under any such agreements.

          (b) Amendments and Waivers.  The provisions of this Agreement,
including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given unless the Company has obtained the written consent of Holders
of at least a majority in aggregate number of the

                                     -21-
<PAGE>   24

outstanding Registrable Securities affected by such amendment, modification,
supplement, waiver or consent; provided, however, a waiver or consent to
departure from the provisions hereof that relates exclusively to the rights of
Holders of Registrable Securities whose securities are being sold pursuant to a
Registration Statement and that does not directly or indirectly affect the
rights of other Holders of Registrable Securities may be given by the Holders of
a majority of the Registrable Securities proposed to be sold.

          (c) Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand delivery, registered first-
class mail, telex, telecopier, or any courier guaranteeing overnight delivery
(i) if to a Holder, at the most current address given by such Holder to the
Company by means of a notice given in accordance with the provisions of this
Section 6(c), which address initially is, with respect to each Purchaser, the
address set forth in the Purchase Agreement; and (ii) if to the Company,
initially at the Company's address set forth in the Purchase Agreement and
thereafter at such other address, notice of which is given in accordance with
the provisions of this Section 6(c).

          All such notices and communications shall be deemed to have been duly
given: (i) at the time delivered by hand, if personally delivered, five business
days after being deposited in the mail, postage prepaid, if mailed; (ii) when
answered back, if telexed; (iii) when receipt is acknowledged, if telecopied;
and (iv) on the next business day, if timely delivered to an air courier
guaranteeing overnight delivery.

          (d) Successors and Assigns.  This Agreement shall inure to the benefit
of and be binding upon the successors, assigns and transferees of each of the
parties, including, without limitation and without the need for an express
assignment, subsequent Holders; provided, however, that nothing herein shall be
deemed to permit any assignment, transfer or other disposition of Registrable
Securities in violation of the terms of this Agreement or the Purchase
Agreement.  If any transferee of any Holder shall acquire Registrable
Securities, in any manner, whether by operation of law or otherwise, such
Registrable Securities shall be held subject to all of the terms of this
Agreement, and by taking and holding such Registrable Securities such person
shall be conclusively deemed to have agreed to be bound by and to perform all of
the terms and provisions of this Agreement and such person shall be entitled to
receive the benefits hereof.

          (e) Rules 144 and 144A.  The Company covenants that it will file the
reports required to be filed by it under the Securities Act and the Exchange Act
and the rules and regulations adopted by the SEC thereunder in a timely manner
and, if at any time the Company is not required to file such reports, it will,
upon the request of any Holder of Registrable Securities, make publicly
available other information of a like nature so long as necessary to permit
sales pursuant to Rule 144 or Rule 144A under the Securities Act.  The Company
further covenants

                                     -22-
<PAGE>   25

that so long as any Registrable Securities remain outstanding to make available
to any Holder of Registrable Securities in connection with any sale thereof, the
information required by Rule 144A(d)(4) under the Securities Act in order to
permit resales of such Registrable Securities pursuant to (a) such Rule 144A, or
(b) any similar rule or regulation hereafter adopted by the SEC.

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

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

          (h) GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS
MADE AND PERFORMED WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF
CONFLICTS OF LAW.  EACH OF THE PARTIES HERETO AGREES TO SUBMIT TO THE
JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK IN ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT.

          (i) Severability.  In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstance, is held
invalid, illegal or unenforceable, the validity, legality and enforceability of
any such provision in every other respect and of the remaining provisions
contained herein shall not be affected or impaired thereby.

          (j) Entire Agreement.  This Agreement, together with the Purchase
Agreement, is intended by the parties as a final expression of their agreement,
and is intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained
herein and therein.

                                     -23-
<PAGE>   26

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first written above.

                                                Gothic Energy Corporation

                                                By:  /s/ Michael Paulk
                                                   ----------------------------
                                                     Michael Paulk, President

                                                Purchaser

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

                                     -24-
<PAGE>   27

                                  EXHIBIT "A"

                        CERTIFICATE TO BE DELIVERED UPON
               EXCHANGE OR REGISTRATION OF RESTRICTED SECURITIES

Re:  Common Stock, par value $.01 per share ("Common Stock"),
     of Gothic Energy Corporation

     This Certificate relates to shares of Common Stock held in  book-entry or
definitive form by _________________________ (the "Transferor").

     The Transferor (check applicable box):

     [_]    has requested the Transfer Agent by written order to deliver in
exchange for its beneficial interest in the Global Certificate held by the
Depositary shares of Common Stock in definitive, registered form equal to its
beneficial interest in the shares of Common Stock represented by such Global
Certificate (or the portion thereof indicated above); or

     [_]    has requested the Transfer Agent by written order to exchange or
register the transfer of shares of Common Stock.

     In connection with such request, the Transferor does hereby certify that
Transferor is familiar with the Common Stock Registration Rights Agreement (the
"Agreement") relating to the shares of Common Stock and the restrictions on
transfers thereof as provided in Sections 3.2 and 3.3 of such Agreement, and
that the transfer of shares of Common Stock requested hereby does not require
registration under the Securities Act (as defined below) because:

     [_]    Such shares of Common Stock are being acquired for the Transferor's
own account, without transfer (in satisfaction of Section 3.3(a)(A) or Section
3.3(d)(i)(A) of the Agreement).

     [_]    Such shares of Common Stock are being transferred to a qualified
institutional buyer (as defined in Rule 144A under the Securities Act of 1933,
as amended (the "Securities Act")), in reliance on Rule 144A or in accordance
with Regulation S under the Securities Act.  If such transfer is in accordance
with Regulation S, an opinion of counsel to the effect that such transfer does
not require registration under the Securities Act accompanies this Certificate.

<PAGE>   28

     [_]    Such shares of Common Stock are being transferred in accordance with
Rule 144 under the Securities Act.  An opinion of counsel to the effect that
such transfer does not require registration under the Securities Act accompanies
this Certificate.

     [_]    Such shares of Common Stock are being transferred pursuant to an
effective registration statement under the Securities Act.

     [_]    Such shares of Common Stock are being transferred in reliance on and
in compliance with an exemption from the registration requirements of the
Securities Act, other than Rule 144A or Rule 144 or Regulation S under the
Securities Act.  An opinion of counsel to the effect that such transfer does not
require registration under the Securities Act accompanies this Certificate.

                                                  [Insert Name of Transferor]

Date:                                         By:
                                                 ------------------------------
                                      -2-

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