Document:

Indenture

 Exhibit 4.1 
  
 Execution Version 
  

  
 TRANSMERIDIAN
EXPLORATION INC. 
  
 Senior
Secured Notes due 2010 
  
 INDENTURE

  
 Dated as of December 12, 2005 
  
 THE BANK OF NEW
YORK 
  
 as Trustee 
  
 TRANSMERIDIAN EXPLORATION INCORPORATED 
 TMEI OPERATING, INC. 
 TRANSMERIDIAN
(KAZAKHSTAN) INCORPORATED 
  
 as Guarantors 

 

 TABLE OF CONTENTS 
  

					
	ARTICLE I	  	 
		
	DEFINITIONS AND INCORPORATION BY REFERENCE	  	 
			
	 Section 1.1
	  	 Definitions
	  	1
	 Section 1.2
	  	 Other Definitions
	  	28
	 Section 1.3
	  	 Incorporation by Reference of Trust Indenture Act
	  	28
	 Section 1.4
	  	 Rules of Construction
	  	29
		
	ARTICLE II	  	 
		
	THE SECURITIES	  	 
			
	 Section 2.1
	  	 Form and Dating
	  	29
	 Section 2.2
	  	 Execution and Authentication
	  	30
	 Section 2.3
	  	 Registrar and Paying Agent
	  	31
	 Section 2.4
	  	 Paying Agent To Hold Money in Trust
	  	32
	 Section 2.5
	  	 Holder Lists
	  	32
	 Section 2.6
	  	 Transfer and Exchange
	  	33
	 Section 2.7
	  	 Replacement Securities
	  	46
	 Section 2.8
	  	 Outstanding Securities
	  	47
	 Section 2.9
	  	 Temporary Securities
	  	47
	 Section 2.10
	  	 Cancellation
	  	47
	 Section 2.11
	  	 Defaulted Interest
	  	48
	 Section 2.12
	  	 CUSIP and ISIN Numbers
	  	48
		
	ARTICLE III	  	 
		
	REDEMPTION	  	 
			
	 Section 3.1
	  	 Notices to Trustee
	  	48
	 Section 3.2
	  	 Selection of Securities To Be Redeemed
	  	49
	 Section 3.3
	  	 Notice of Redemption
	  	49
	 Section 3.4
	  	 Effect of Notice of Redemption
	  	50
	 Section 3.5
	  	 Deposit of Redemption Price
	  	50
	 Section 3.6
	  	 Securities Redeemed in Part
	  	50
	 Section 3.7
	  	 Optional Redemption
	  	50
	 Section 3.8
	  	 Special Mandatory Redemption
	  	51
		
	ARTICLE IV	  	 
		
	COVENANTS	  	 
			
	 Section 4.1
	  	 Payment of Securities
	  	52
	 Section 4.2
	  	 SEC Reports
	  	52
	 Section 4.3
	  	 Incurrence of Indebtedness
	  	53

  

 i 

					
	 Section 4.4
	  	 Restricted Payments
	  	56
	 Section 4.5
	  	 Liens
	  	58
	 Section 4.6
	  	 Dividend and Other Payment Restrictions Affecting Subsidiaries
	  	58
	 Section 4.7
	  	 Asset Sales
	  	59
	 Section 4.8
	  	 Transactions With Affiliates
	  	61
	 Section 4.9
	  	 Additional Subsidiary Guarantees
	  	62
	 Section 4.10
	  	 Business Activities
	  	62
	 Section 4.11
	  	 Change of Control/Material Adverse Change
	  	62
	 Section 4.12
	  	 Maintenance of Office or Agency for Registration of Transfer, Exchange and Payment of Securities
	  	64
	 Section 4.13
	  	 Appointment to Fill a Vacancy in the Office of Trustee
	  	64
	 Section 4.14
	  	 Provision as to Paying Agent
	  	64
	 Section 4.15
	  	 Maintenance of Corporate Existence
	  	65
	 Section 4.16
	  	 Compliance Certificate
	  	66
	 Section 4.17
	  	 Taxes
	  	66
	 Section 4.18
	  	 Payment of Additional Amounts
	  	66
	 Section 4.19
	  	 Foreign Corrupt Practices Act
	  	68
		
	ARTICLE V	  	 
		
	SUCCESSOR COMPANY	  	 
			
	 Section 5.1
	  	 Merger, Consolidation or Sale of Assets
	  	68
		
	ARTICLE VI	  	 
		
	DEFAULTS AND REMEDIES	  	 
			
	 Section 6.1
	  	 Events of Default
	  	69
	 Section 6.2
	  	 Acceleration of Maturity; Rescission and Annulment
	  	72
	 Section 6.3
	  	 Other Remedies
	  	72
	 Section 6.4
	  	 Waiver of Past Defaults
	  	72
	 Section 6.5
	  	 Control by Majority
	  	73
	 Section 6.6
	  	 Limitation on Suits
	  	73
	 Section 6.7
	  	 Rights of Holders to Receive Payment
	  	73
	 Section 6.8
	  	 Collection Suit by Trustee
	  	74
	 Section 6.9
	  	 Trustee May File Proofs of Claim
	  	74
	 Section 6.10
	  	 Priorities
	  	74
	 Section 6.11
	  	 Restoration of Rights and Remedies
	  	75
	 Section 6.12
	  	 Undertaking for Costs
	  	75
	 Section 6.13
	  	 Waiver of Stay, Extension or Usury Laws
	  	75
		
	ARTICLE VII	  	 
		
	TRUSTEE	  	 
			
	 Section 7.1
	  	 Duties of Trustee
	  	75
	 Section 7.2
	  	 Rights of Trustee
	  	76

  

 ii 

					
	 Section 7.3
	  	 Individual Rights of Trustee
	  	77
	 Section 7.4
	  	 Trustee’s Disclaimer
	  	77
	 Section 7.5
	  	 Notice of Defaults
	  	78
	 Section 7.6
	  	 Reports by Trustee to Holders
	  	78
	 Section 7.7
	  	 Compensation and Indemnity
	  	78
	 Section 7.8
	  	 Replacement of Trustee
	  	79
	 Section 7.9
	  	 Successor Trustee by Merger
	  	80
	 Section 7.10
	  	 Eligibility; Disqualification
	  	80
	 Section 7.11
	  	 Preferential Collection of Claims Against Company
	  	81
		
	ARTICLE VIII	  	 
		
	DISCHARGE OF INDENTURE; DEFEASANCE	  	 
			
	 Section 8.1
	  	 Discharge of Liability on Securities; Defeasance
	  	81
	 Section 8.2
	  	 Conditions to Defeasance
	  	83
	 Section 8.3
	  	 Delivery and Application of Trust Money
	  	84
	 Section 8.4
	  	 Repayment to Company
	  	84
	 Section 8.5
	  	 Indemnity for Government Securities
	  	84
	 Section 8.6
	  	 Reinstatement
	  	84
		
	ARTICLE IX	  	 
		
	AMENDMENTS	  	 
			
	 Section 9.1
	  	 Without Consent of Holders
	  	85
	 Section 9.2
	  	 With Consent of Holders
	  	85
	 Section 9.3
	  	 Compliance with Trust Indenture Act
	  	87
	 Section 9.4
	  	 Revocation and Effect of Consents and Waivers
	  	87
	 Section 9.5
	  	 Notation on or Exchange of Securities
	  	87
	 Section 9.6
	  	 Trustee To Sign Amendments
	  	87
		
	ARTICLE X	  	 
		
	GUARANTEES	  	 
			
	 Section 10.1
	  	 Guarantees
	  	88
	 Section 10.2
	  	 Limitation on Liability
	  	89
	 Section 10.3
	  	 Execution and Delivery of Guarantees
	  	90
	 Section 10.4
	  	 Successors and Assigns
	  	90
	 Section 10.5
	  	 No Waiver
	  	90
	 Section 10.6
	  	 Right of Contribution
	  	90
	 Section 10.7
	  	 No Subrogation
	  	91
	 Section 10.8
	  	 Modification
	  	91
	 Section 10.9
	  	 Merger, Consolidation or Sale of Assets of a Guarantor; Release of a Subsidiary Guarantor
	  	91

  

 iii 

					
	ARTICLE XI	  	 
		
	COLLATERAL AND SECURITY	  	 
			
	 Section 11.1
	  	 Collateral Documents
	  	92
	 Section 11.2
	  	 Collateral Agent
	  	93
	 Section 11.3
	  	 Recording and Opinions
	  	93
	 Section 11.4
	  	 Certificates of the Company
	  	94
	 Section 11.5
	  	 Authorization of Actions to Be Taken
	  	94
	 Section 11.6
	  	 Release of Note Liens
	  	95
	 Section 11.7
	  	 Determinations Relating to Collateral
	  	96
		
	ARTICLE XII	  	 
		
	MISCELLANEOUS	  	 
			
	 Section 12.1
	  	 Trust Indenture Act Controls
	  	97
	 Section 12.2
	  	 Notices
	  	97
	 Section 12.3
	  	 Communication by Holders with other Holders
	  	98
	 Section 12.4
	  	 Certificate and Opinion as to Conditions Precedent
	  	98
	 Section 12.5
	  	 Statements Required in Certificate or Opinion
	  	99
	 Section 12.6
	  	 When Securities Disregarded
	  	99
	 Section 12.7
	  	 Legal Holidays
	  	99
	 Section 12.8
	  	 Governing Law
	  	99
	 Section 12.9
	  	 No Personal Liability of Directors, Officers, Employees and Shareholders
	  	100
	 Section 12.10
	  	 Successors
	  	100
	 Section 12.11
	  	 Multiple Originals; Counterparts
	  	100
	 Section 12.12
	  	 Severability
	  	100
	 Section 12.13
	  	 Variable Provisions
	  	100
	 Section 12.14
	  	 Table of Contents; Headings
	  	100
	 Section 12.15
	  	 No Adverse Interpretation of Other Agreements
	  	100

  
 EXHIBITS 
  

					
	Exhibit A	 	–	  	Form of Security
	Exhibit B	 	–	  	Form of Certificate of Transfer
	Exhibit C	 	–	  	Form of Certificate of Exchange
	Exhibit D	 	–	  	Form of Notation of Guarantee
	Exhibit E	 	–	  	Form of Supplemental Indenture to be Delivered by Future Guarantors
	Exhibit F	 	–	  	Form of Certificate From Acquiring Institutional Accredited Investor

  

 iv 

  
 CROSS-REFERENCE TABLE

  

							
	 Trust Indenture Act Section

	  	 Indenture Section

	310	  	 (a)(1)
	  	 	  	7.10
	 	  	 (a)(2)
	  	 	  	7.10
	 	  	 (a)(3)
	  	 	  	N.A.
	 	  	 (a)(4)
	  	 	  	N.A.
	 	  	 (b)
	  	 	  	7.8; 7.10
	 	  	 (c)
	  	 	  	N.A.
	311	  	 (a)
	  	 	  	7.11
	 	  	 (b)
	  	 	  	7.11
	 	  	 (c)
	  	 	  	N.A.
	312	  	 (a)
	  	 	  	2.5
	 	  	 (b)
	  	 	  	12.3
	 	  	 (c)
	  	 	  	12.3
	313	  	 (a)
	  	 	  	7.6
	 	  	 (b)(1)
	  	 	  	N.A.
	 	  	 (b)(2)
	  	 	  	7.6
	 	  	 (c)
	  	 	  	7.6
	 	  	 (d)
	  	 	  	7.6
	314	  	 (a)
	  	 	  	4.2; 4.11; 12.2
	 	  	 (b)
	  	 	  	11.3; 11.4; 11.6
	 	  	 (c)(1)
	  	 	  	11.3; 12.4
	 	  	 (c)(2)
	  	 	  	11.3; 12.4
	 	  	 (c)(3)
	  	 	  	N.A.
	 	  	 (d)
	  	 	  	N.A.
	 	  	 (e)
	  	 	  	11.3
	 	  	 (f)
	  	 	  	N.A.
	315	  	 (a)
	  	 	  	7.1
	 	  	 (b)
	  	 	  	7.5; 12.2
	 	  	 (c)
	  	 	  	7.1
	 	  	 (d)
	  	 	  	7.1
	 	  	 (e)
	  	 	  	6.11
	316	  	 (a)(last sentence)
	  	 	  	12.6
	 	  	 (a)(1)(A)
	  	 	  	6.5
	 	  	 (a)(1)(B)
	  	 	  	6.4
	 	  	 (a)(2)
	  	 	  	N.A.
	 	  	 (b)
	  	 	  	6.7
	317	  	 (a)(1)
	  	 	  	6.8
	 	  	 (a)(2)
	  	 	  	6.9
	 	  	 (b)
	  	 	  	2.4
	318	  	 (a)
	  	 	  	12.1

  
 N.A. means Not Applicable.

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

 v 

 INDENTURE, dated as of December 12, 2005, among TRANSMERIDIAN EXPLORATION INC., a British Virgin
Islands company (the “Company”), each of the GUARANTORS (as defined herein) and THE BANK OF NEW YORK, as trustee (the “Trustee”). 
  
 Each party agrees as follows for the benefit of the other parties and for the equal and ratable benefit of the Holders of the Company’s Senior
Secured Notes due 2010 issued on the date hereof (the “Initial Securities”), and, if and when issued in exchange for the Initial Securities as provided in the Registration Rights Agreement (as hereinafter defined), the Company’s
Senior Secured Notes due 2010 provided in exchange for such Initial Securities (the “Exchange Securities”): 
  
 ARTICLE I 
  
 DEFINITIONS AND INCORPORATION BY REFERENCE 
  

	Section 1.1	Definitions 

  
 “144A Global Security” means a Global Security substantially in the form of Exhibit A hereto bearing the Global Security Legend
and the Private Placement Legend and deposited with or on behalf of, and registered in the name of, the Depositary or its nominee that will be issued in a denomination equal to the outstanding principal amount of the Securities sold in reliance on
Rule 144A. 
  
 “Acquired Debt” means, with
respect to any specified Person: 
  

	 	(1)	Indebtedness of any other Person existing at the time such other Person is merged with or into or became a Subsidiary of such specified Person, whether or not such Indebtedness is
incurred in connection with, or in contemplation of, such other Person merging with or into, or becoming a Subsidiary of, such specified Person; and 

  

	 	(2)	Indebtedness secured by a Lien encumbering any asset acquired by such specified Person. 

  
 “Additional Interest” means the additional interest, if any, required by Section 6 of the Registration
Rights Agreement. 
  
 “Affiliate” of any
specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person. For purposes of this definition, “control,” as used with respect to any
Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, by agreement or otherwise. For purposes of
this definition, the terms “controlling,” “controlled by” and “under common control with” shall have correlative meanings. 
  
 “Agent” means any Registrar or Paying Agent. 
  

 1 

 “Applicable Procedures” means, with respect to any transfer or exchange of or for
beneficial interests in any Global Note, the rules and procedures of the Depositary, Euroclear or Clearstream that apply to such transfer or exchange. 
  
 “Asset Sale” means: 
  

	 	(1)	the sale, lease, conveyance or other disposition of any assets, including, without limitation, by means of a sale and leaseback transaction, and: 

  

	 	(a)	any sale of a net profits or overriding royalty interest, in each case conveyed from or burdening proved developed or proved undeveloped reserves, excluding the conveyance of the
Permitted Net Revenue Interest; and 

  

	 	(b)	any sale of hydrocarbons or other mineral products as a result of the creation of Dollar-Denominated Production Payments or Volumetric Production Payments (other than
Dollar-Denominated Production Payments and Volumetric Production Payments created or sold in connection with the financing of, and within 30 days after, the acquisition of the properties subject thereto); 

  
 provided that the sale, lease conveyance or other disposition of all
or substantially all of the assets of the Parent and its Restricted Subsidiaries taken as a whole will be governed by Section 4.11 hereof and/or Section 5.1 hereof and not by the provisions of Section 4.7 hereof;
and 
  

	 	(2)	the issuance of Equity Interests by any of the Parent’s Restricted Subsidiaries or the sale of Equity Interests in any of its Restricted Subsidiaries, 

 
 Notwithstanding the preceding, the following items shall not be deemed to
be Asset Sales: 
  

	 	(1)	any single transaction or series of related transactions that together involves assets having a Fair Market Value of less than $250,000; 

  

	 	(2)	a transfer of assets between or among the Parent and its Wholly-Owned Restricted Subsidiaries; 

  

	 	(3)	an issuance of Equity Interests by a Restricted Subsidiary to the Parent or to another Restricted Subsidiary; 

  

	 	(4)	a disposition of Cash Equivalents in the ordinary course of business; 

  

	 	(5)	a Restricted Payment or Permitted Investment that is permitted by Section 4.4 hereof; 

  

 2 

	 	(6)	a sale of oil, gas or other hydrocarbons or other mineral products in the ordinary course of business of the Parent’s and its Restricted Subsidiaries’ oil and gas
production operations; 

  

	 	(7)	any abandonment, farm-in, farm-out, lease and sub-lease of developed and/or undeveloped properties made or entered into in the ordinary course of business, but excluding any
disposition described in either clause (a) or (b) of the preceding paragraph; 

  

	 	(8)	the provision of services and equipment for the operation and development of the Parent’s and its Restricted Subsidiaries’ oil and gas wells, in the ordinary course of the
Parent’s and its Restricted Subsidiaries’ oil and gas service businesses, notwithstanding that such transactions may be recorded as asset sales in accordance with full cost accounting guidelines; 

  

	 	(9)	the creation or perfection of a Lien (but not the sale or other disposition of any asset subject to such Lien) in accordance with this Indenture; 

  

	 	(10)	disposition of surplus or obsolete equipment in the ordinary course of business of the Parent and its Restricted Subsidiaries; 

  

	 	(11)	the sale or other disposition of Excluded Assets; and 

  

	 	(12)	the issuance of Foreign Required Minority Shares. 

  
 “Attributable Debt” in respect of a sale and leaseback transaction means, at the time of determination, the present value of the
obligation of the lessee for net rental payments during the remaining term of the lease included in such sale and leaseback transaction including any period for which such lease has been extended or may, at the option of the lessor, be extended.
Such present value shall be calculated using a discount rate equal to the rate of interest implicit in such transaction, determined in accordance with GAAP. As used in the preceding sentence, the “net rental payments” under any lease for
any such period shall mean the sum of rental and other payments required to be paid with respect to such period by the lessee thereunder, excluding any amounts required to be paid by such lessee on account of maintenance and repairs, insurance,
taxes, assessments, water rates or similar charges. In the case of any lease that is terminable by the lessee upon payment of penalty, such net rental payment shall also include the amount of such penalty, but no rent shall be considered as required
to be paid under such lease subsequent to the first date upon which it may be so terminated. 
  
 “Bankruptcy Law” means Title 11, United States Code, or any similar U.S. federal or state law for the relief of debtors or similar applicable British Virgin Islands’ legislation. 
  
 “Beneficial Owner” has the meaning assigned to such term in
Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating the beneficial ownership of any particular “person” (as such term is used in Section 13(d)(3) of the Exchange Act), such “person” shall be deemed
to have beneficial ownership of all securities that such “person” has the right to acquire, whether such right is currently exercisable or is exercisable only upon the occurrence of a subsequent condition. 
  

 3 

 “Board of Directors” means, with respect to any Person, the board of directors of such
Person. 
  
 “Board Resolution” means a copy of a
resolution certified by a Director, the Secretary or an Assistant Secretary of the Company to have been duly adopted by such Board of Directors and to be in full force and effect on the date of such certification, and delivered to the Trustee.

  
 “Bramex” means Bramex Management, Inc., a
British Virgin Islands company. 
  
 “Bramex
Acquisition” means the acquisition of all of the issued and outstanding shares of Capital Stock of Bramex from Seeria Alliance Ltd. 
  
 “Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks in New York, New York are authorized or
required by law to close. 
  
 “Capital Lease
Obligation” means, at the time any determination thereof is to be made, the amount of the liability of a Person in respect of a capital lease that would at that time be required to be capitalized on a balance sheet of such Person in
accordance with GAAP. 
  
 “Capital Stock” means:

  

	 	(1)	in the case of a corporation, corporate stock; 

  

	 	(2)	in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock;

  

	 	(3)	in the case of a partnership or limited liability company, partnership or membership interests (whether general or limited); and 

  

	 	(4)	any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person.

  
 “Cash Equivalents” means:

  

	 	(1)	United States dollars; 

  

	 	(2)	securities issued or directly and fully guaranteed or insured by the United States government or any agency or instrumentality thereof (provided that the full faith and credit of
the United States is pledged in support thereof) having maturities of not more than one year from the date of acquisition; 

  

	 	(3)	 demand accounts, time deposit accounts, certificates of deposit and Eurodollar time deposits with maturities of six months or less from the date of acquisition,
bankers’ acceptances with maturities not exceeding six months and overnight bank deposits, in each case, with any domestic commercial bank having capital and surplus in excess of $500.0 million and a Thompson Bank Watch rating of 

  

 4 

	 	 
“B” or better (or an equivalent rating by any successor to the business of Thompson Bank Watch, including Fitch Ratings);

  

	 	(4)	repurchase obligations with a term of not more than seven days for underlying securities of the types described in clauses (2) and (3) above entered into with any
financial institution meeting the qualifications specified in clause (3) above; 

  

	 	(5)	commercial paper having the highest rating obtainable from Moody’s Investors Service, Inc. (or its successor) or Standard & Poor’s Ratings Service (or its
successor) and in each case maturing within 270 days after the date of acquisition; 

  

	 	(6)	money market or other mutual funds at least 95% of the assets of which constitute Cash Equivalents of the kinds described in clauses (1) through (5) of this definition;
and 

  

	 	(7)	deposits available for withdrawal on demand with any commercial bank that is organized under the laws of any country in which the Company or any Restricted Subsidiary maintains its
chief executive office or is engaged in the Oil and Gas Business, provided that all such deposits are made in such accounts in the ordinary course of business. 

  
 “Caspi Neft” means JSC Caspi Neft TME, a Kazakhstan joint stock company. 
  
 “Caspi Neft Security Agreements” means the nominee or
custodial arrangements, conditional share transfer agreements and other agreements by and among JSC TuranAlem Securities or other Kazakhstani entity of comparable size and reputation, the Company, Bramex, the Collateral Agent and/or the Trustee to
be entered into pursuant to Section 4.40(b) of the Purchase Agreements with respect to the Capital Stock of Caspi Neft held by the Company and Bramex. 
  
 “Change of Control/MAC” means the occurrence of any of the following: 
  

	 	(1)	the sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of
the assets of the Parent or the Company and its Subsidiaries taken as a whole; 

  

	 	(2)	the adoption of a plan relating to the liquidation or dissolution of the Parent or the Company or any Significant Subsidiary; 

  

	 	(3)	the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any “person” (as such term is used in
Section 13(d)(1) or 13(d)(3) of the Exchange Act), becomes the Beneficial Owner, directly or indirectly, of more than 35% of the Voting Stock of the Parent or, except for the Parent, the Company, measured by voting power rather than number of
shares; 

  

 5 

	 	(4)	the first day on which a majority of the members of the Board of Directors of the Parent or the Company are not Continuing Directors; 

  

	 	(5)	the Parent or the Company consolidates with, or merges with or into, any Person, or any Person consolidates with, or merges with or into, the Parent or the Company, in any such
event pursuant to a transaction in which any of the outstanding Voting Stock of the Parent or the Company is converted into or exchanged for cash, securities or other property, other than any such transaction where the Voting Stock of the Parent or
the Company outstanding immediately prior to such transaction is converted into or exchanged for Voting Stock (other than Disqualified Stock) of the surviving or transferee Person constituting a majority of the outstanding shares of such Voting
Stock of such surviving or transferee Person immediately after giving effect to such issuance; or 

  

	 	(6)	the occurrence of a Material Adverse Change. 

  
 “Clearstream” means Clearstream Banking, société anonyme, or any successor securities clearance agency. 
  
 “Code” means the U.S. Internal Revenue Code of 1986, as
amended. 
  
 “Collateral” shall include
(i) the Escrow Account, (ii) in each case as pledged and assigned to, or otherwise made subject to rights in favor of, the Collateral Agent pursuant to the Security Documents, a first priority pledge of the Capital Stock of the existing
Subsidiaries of the Company and the Parent, including all of the Capital Stock of the Company (but excluding Transmeridian Caspian, Emba-Trans and Transmeridian Kazakhstan), and, following consummation of the Bramex Acquisition, all of the Capital
Stock of Bramex and Transmeridian Kazakhstan and (iii) following consummation of the Bramex Acquisition, all of the Capital Stock of Caspi Neft pursuant to the Caspi Neft Security Agreements. 
  
 “Collateral Agent” means The Bank of New York (and its
successors, nominees and agents) serving in its capacity as collateral agent under the Security Documents. 
  
 “Commodity Agreement” means any oil or natural gas hedging agreement and other agreement or arrangement designed to protect the Parent or
a Restricted Subsidiary against fluctuations in oil or natural gas prices. 
  
 “Company Pledge Agreement(s)” means the pledge agreement(s) to be entered into between the Company, the Trustee and the Collateral Agent, subsequent to the Bramex Acquisition, with respect to the
Capital Stock of Bramex and Transmeridian Kazakhstan held by the Company. 
  
 “Consolidated Cash Flow” means, with respect to any Person for any period, the Consolidated Net Income of such Person for such period plus: 
  

	 	(1)	an amount equal to any extraordinary loss plus any net loss realized in connection with an Asset Sale, to the extent such losses were deducted in computing such Consolidated Net
Income; plus 

  

 6 

	 	(2)	provision for taxes based on income or profits of such Person and its Restricted Subsidiaries for such period, to the extent that such provision for taxes was deducted in computing
such Consolidated Net Income; plus 

  

	 	(3)	Fixed Charges of such Person and its Restricted Subsidiaries for such period, whether paid or accrued and whether or not capitalized, to the extent that any such expense was
deducted in computing such Consolidated Net Income; plus 

  

	 	(4)	depreciation, depletion, amortization (including amortization of goodwill and other intangibles but excluding amortization of prepaid cash expenses that were paid in a prior
period), impairment and other non-cash expenses (excluding any such non-cash expense to the extent that it represents an accrual of or reserve for cash expenses in any future period or amortization of a prepaid cash expense that was paid in a prior
period) of such Person and its Restricted Subsidiaries for such period to the extent that such amounts were deducted in computing such Consolidated Net Income; minus 

  

	 	(5)	non-cash items increasing such Consolidated Net Income for such period, other than items that were accrued in the ordinary course of business, in each case, on a consolidated basis
and determined in accordance with GAAP; minus 

  

	 	(6)	to the extent included in determining Consolidated Net Income, the sum of 

  

	 	(a)	the amount of deferred revenues that are amortized during the period and are attributable to reserves that are subject to Volumetric Production Payments; and

  

	 	(b)	amounts recorded in accordance with GAAP as repayments of principal and interest pursuant to Dollar-Denominated Production Payments. 

  
 Notwithstanding the preceding, the provision for taxes based on the income or
profits of, and the depreciation, depletion, amortization, impairment and other non-cash charges of, a Restricted Subsidiary of the Parent shall be added to Consolidated Net Income to compute Consolidated Cash Flow of the Parent only to the extent
that a corresponding amount would be permitted at the date of determination to be dividended to the Parent by such Restricted Subsidiary without prior approval (that has not been obtained), pursuant to the terms of its charter and all agreements,
instruments, judgments, decrees, orders, statutes, rules and governmental regulations applicable to that Subsidiary or its stockholders. 
  
 “Consolidated Net Income” means, with respect to any specified Person for any period, the aggregate of the Net Income of such Person and
its Restricted Subsidiaries for such period, on a consolidated basis, determined in accordance with GAAP; provided that: 
  

	 	(1)	the Net Income (but not loss) of any Person that is not a Restricted Subsidiary or that is accounted for by the equity method of accounting shall be included only to the extent of
the amount of dividends or distributions paid in cash to the specified Person or a Subsidiary thereof; 

  

 7 

	 	(2)	the Net Income of any Restricted Subsidiary shall be excluded to the extent that the declaration or payment of dividends or similar distributions by that Restricted Subsidiary of
that Net Income is not at the date of determination permitted without any prior governmental approval (that has not been obtained) or, directly or indirectly, by operation of the terms of its charter or any agreement, instrument, judgment, decree,
order, statute, rule or governmental regulation applicable to that Restricted Subsidiary or its stockholders; 

  

	 	(3)	the cumulative effect of a change in accounting principles shall be excluded; 

  

	 	(4)	any write-downs or impairments of non-current assets shall be excluded; 

  

	 	(5)	any non-cash gains or losses or changes in respect of hedge or non-hedge derivatives (including those resulting from the application of FAS 133) shall be excluded.

  
 “Continuing Directors” means,
as of any date of determination, any member of the Board of Directors of the Parent or the Company who: 
  

	 	(1)	was a member of such Board of Directors on the Issue Date; or 

  

	 	(2)	was nominated for election or elected to such Board of Directors with the approval of a majority of the Continuing Directors who were members of such Board at the time of such
nomination or election. 

  
 “Currency
Agreements” means, at any time as to the Parent and its Restricted Subsidiaries, any foreign currency exchange agreement, option or future contract or other similar agreement or arrangement designed to protect against or manage the
Parent’s or any or any of its Restricted Subsidiaries’ exposure to fluctuations in foreign currency exchange rates. 
  
 “Custodian” means any receiver, trustee, assignee, liquidator, custodian or similar official under any Bankruptcy Law. 
  
 “Deadline” means December 23, 2005 or such earlier time
that the Company determines that a condition precedent to its obligations to close the Bramex Acquisition cannot or will not be satisfied on or before December 23, 2005. 
  
 “Default” means any event that is, or with the or passage of time or the giving of notice or both would be,
an Event of Default. 
  
 “Definitive Security”
means a certificated Security registered in the name of the Holder thereof and issued in accordance with Section 2.6 hereof, substantially in the form of Exhibit A hereto except that such Security shall not bear the Global
Security Legend and shall not have the “Schedule of Exchanges of Interests in the Global Security” attached thereto. 
  
 “Depositary” means The Depository Trust Company, until a successor shall have been appointed and become such Depositary pursuant to this
Indenture and thereafter shall mean its successor. 
  

 8 

 “Disqualified Stock” means any Capital Stock that, by its terms (or by the terms of any
security into which it is convertible, or for which it is exchangeable, in each case at the option of the holder thereof), or upon the happening of any event, matures or is mandatorily redeemable pursuant to a sinking fund obligation or otherwise,
or is redeemable at the option of the holder thereof, in whole or in part, on or prior to the date that is 91 days after the date on which the Securities mature. Notwithstanding the preceding sentence, any Capital Stock that would constitute
Disqualified Stock solely because the holders thereof have the right to require the Parent to repurchase such Capital Stock upon the occurrence of a change of control or an asset sale shall not constitute Disqualified Stock if the terms of such
Capital Stock provide that the Parent may not repurchase or redeem any such Capital Stock pursuant to such provisions unless such repurchase or redemption complies with Section 4.4 hereof. 
  
 “Dollar-Denominated Production Payments” mean production
payment obligations recorded as liabilities in accordance with GAAP, together with all undertakings and obligations in connection therewith. 
  
 “Emba-Trans” means Emba-Trans LLP, a Kazakhstan limited liability partnership. 
  
 “Equity Interests” mean Capital Stock and all warrants,
options or other rights to acquire Capital Stock (but excluding any debt security that is convertible into, or exchangeable for, Capital Stock). 
  
 “Equity Offering” means any issuance for cash of Equity Interests (other than Disqualified Stock) of the Parent after the Issue Date and
other than any issuance of securities under or to any benefit plan of the Parent or a Restricted Subsidiary. 
  
 “Escrow Account” means an escrow account established under the Escrow Agreement for the deposit of a portion of the net proceeds from the
sale of the Initial Securities, and the proceeds from the investment thereof, which amounts will be sufficient to pay the first four quarterly interest payments on the Securities. 
  
 “Escrow Agent” means The Bank of New York (and its successors). 
  
 “Escrow Agreement” means the Escrow Agreement of even date
herewith between the Company, the Trustee and the Escrow Agent. 
  
 “Euroclear” means Euroclear Bank S.A./N.V., as operator of the Euroclear clearance system, or any successor securities clearance agency. 
  
 “Exchange Act” means the Securities Exchange Act of 1934 and any successor statute thereto, in each case as
amended from time to time. 
  
 “Exchange Offer
Registration Statement” has the meaning set forth in the Registration Rights Agreement. 
  
 “Exchange Securities” has the meaning set forth in the Registration Rights Agreement. 
  
 “Exchanging Dealer” has the meaning set forth in the
Registration Rights Agreement. 
  

 9 

 “Excluded Assets” means Rig 232 as described in Note 6 to the financial statements
included in the Parent’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2005. 
  
 “Exploration Contract” means the Exploration Contract with respect to the South Alibek Field by and between Caspi Neft and the Ministry
of Energy and Mineral Resources of the Republic of Kazakhstan, dated April 29, 1999. 
  
 “Fair Market Value” means, with respect to any Asset Sale or Restricted Payment or other item, the price that would be negotiated in an arm’s-length transaction for cash between a willing seller
and a willing and able buyer, neither of which is under any compulsion to complete the transaction, as such price is determined in good faith by an officer of the Parent if such value is less than $2,000,000; provided, however, if the value of such
Asset Sale or Restricted Payment or other item is $2,000,000 or greater, such determination shall be made in good faith by the Board of Directors of the Parent; and provided further if the value of such Asset Sale or Restricted Payment or other item
is $5,000,000 or greater, such determination shall be made by an accounting, appraisal or investment banking firm of national standing that is not an Affiliate of the Parent. 
  
 “Fixed Charges” means, with respect to any Person for any period, the sum, without duplication, of:

  

	 	(1)	the consolidated interest expense of such Person and its Restricted Subsidiaries for such period, whether paid or accrued, including, without limitation, amortization of debt
issuance costs and original issue discount, non-cash interest payments, the interest component of any deferred payment obligations, the interest component of all payments associated with Capital Lease Obligations, imputed interest with respect to
Attributable Debt, commissions, discounts, and other fees and charges incurred in respect of letter of credit or bankers’ acceptance financings, and net payments, if any, pursuant to Interest Rate Agreements; plus 

  

	 	(2)	the consolidated interest of such Person and its Restricted Subsidiaries that was capitalized during such period; plus 

  

	 	(3)	any interest expense on Indebtedness of another Person that is guaranteed by such Person or one of its Restricted Subsidiaries or secured by a Lien on assets of such Person or one
of its Restricted Subsidiaries, whether or not such guarantee or Lien is called upon; plus 

  

	 	(4)	the product of: 

  

	 	(a)	all dividend payments, whether or not in cash, on any series of preferred stock of such Person or any of its Restricted Subsidiaries, other than dividend payments on Equity
Interests payable solely in Equity Interests of the Parent (other than Disqualified Stock) or to the Parent or a Restricted Subsidiary of the Parent, times 

  

 10 

	 	(b)	a fraction, the numerator of which is one and the denominator of which is one minus the then current combined federal, state and local statutory tax rate of such Person, expressed
as a decimal, in each case, on a consolidated basis and in accordance with GAAP. 

  
 “Fixed Charge Coverage Ratio” means, with respect to any specified Person for any period, the ratio of the Consolidated Cash Flow of such Person and its Restricted Subsidiaries for such period to the
Fixed Charges of such Person for such period. In the event that the specified Person or any of its Restricted Subsidiaries incurs, assumes, guarantees or redeems any Indebtedness (other than revolving credit borrowings not constituting a permanent
commitment reduction) or issues or redeems preferred stock subsequent to the commencement of the period for which the Fixed Charge Coverage Ratio is being calculated but prior to the date on which the event for which the calculation of the Fixed
Charge Coverage Ratio is made (the “Calculation Date”), then the Fixed Charge Coverage Ratio shall be calculated giving pro forma effect to such incurrence, assumption, guarantee or redemption of Indebtedness, or such issuance or
redemption of preferred stock, as if the same had occurred at the beginning of the applicable four-quarter reference period. 
  
 In addition, for purposes of calculating the Fixed Charge Coverage Ratio: 
  

	 	(1)	acquisitions that have been made by the specified Person or any of its Restricted Subsidiaries, including through mergers or consolidations and including any related financing
transactions, during the four-quarter reference period or subsequent to such reference period and on or prior to the Calculation Date shall be deemed to have occurred on the first day of the four-quarter reference period; 

 

	 	(2)	the Consolidated Cash Flow attributable to discontinued operations, as determined in accordance with GAAP, and operations or businesses disposed of prior to the Calculation Date,
shall be excluded; and 

  

	 	(3)	the Fixed Charges attributable to discontinued operations, as determined in accordance with GAAP, and operations or businesses disposed of prior to the Calculation Date, shall be
excluded, but only to the extent that the obligations giving rise to such Fixed Charges will not be obligations of the specified Person or any of its Restricted Subsidiaries following the Calculation Date. 

  
 “Foreign Required Minority Shares” means the minimum amount
of Capital Stock of a Foreign Restricted Subsidiary that is required by the applicable laws and regulations of such foreign jurisdiction to be owned by the government of such foreign jurisdiction or individual or corporate citizens of such foreign
jurisdiction in order for such Foreign Restricted Subsidiary to transact business in such foreign jurisdiction. 
  
 “Foreign Restricted Subsidiary” means any Restricted Subsidiary of the Company organized under the laws of, and conducting a substantial
portion of its business in, any jurisdiction other than the United States of America or any state thereof or the District of Columbia. 
  

 11 

 “GAAP” means generally accepted accounting principles in the United States of America,
as in effect as of the Issue Date. All ratios and calculations under this Indenture based on GAAP measures shall be computed in conformity with GAAP. 
  
 “Global Securities” means, individually and collectively, each of the Restricted Global Securities and the Unrestricted Global
Securities, in the form of Exhibit A hereto. 
  
 “Global Security Legend” means the legend set forth in Section 2.6(g)(2), which is required to be placed on all Global Securities issued under this Indenture. 
  
 “Government Securities” means direct obligations, or
certificates representing an ownership interest in such obligations, of the United States of America (including any agency or instrumentality thereof) for the payment of which the full faith and credit of the United States of America is pledged and
that are not callable at the issuer’s option. 
  
 “guarantee” means, without duplication, any obligation, contingent or otherwise, of any Person directly or indirectly guaranteeing any Indebtedness of any other Person and any other obligation, direct or indirect,
contingent or otherwise, of such Person: 
  

	 	(1)	to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness of such other Person (whether arising by virtue of partnership arrangements, or by
agreements to keep-well, to purchase assets, goods, securities or services, to take-or-pay or to maintain financial statement conditions or otherwise), or 

  

	 	(2)	entered into for the purpose of assuring in any other manner the obligee of such Indebtedness of the payment therefor to protect such obligee against loss in respect thereof (in
whole or in part); 

  
 provided, however, that the
term “guarantee” shall not include endorsements for collection or deposit in the ordinary course of business. The term “guarantee” used as a verb has a corresponding meaning. 
  
 “Guarantees” means the Parent Guarantee and the Subsidiary
Guarantees. 
  
 “Guarantors” means the Parent and
each Subsidiary that executes a guarantee in accordance with the provisions of this Indenture, and its respective successors and assigns. 
  
 “Hedging Obligations” means, with respect to any Person, the obligations of such Person under Currency Agreements, Interest Rate
Agreements and Commodity Agreements. 
  
 “Holder”
means a person in whose name a Security is registered on the Registrar’s books. 
  
 “Hydrocarbons” means oil, gas, casinghead gas, drip gasoline, natural gasoline, condensate, distillate, liquid hydrocarbons, gaseous hydrocarbons and all constituents, elements or compounds thereof
and products refined or processed therefrom. 
  

 12 

 “IAI Global Security” means the Global Security substantially in the form of Exhibit A
hereto bearing the Global Security Legend and the Private Placement Legend and deposited with or on behalf of and registered in the name of the Depositary or its nominee that will be issued in a denomination equal to the outstanding principal amount
of the Securities sold to Institutional Accredited Investors in the United States of America. 
  
 “Indebtedness” means, with respect to any specified Person, without duplication, 
  

	 	(1)	all obligations of such Person, whether or not contingent, in respect of: 

  

	 	(a)	borrowed money; 

  

	 	(b)	evidenced by bonds, notes, debentures or similar instruments or letters of credit (or reimbursement agreements in respect thereof); 

  

	 	(c)	bankers’ acceptances; 

  

	 	(d)	Capital Lease Obligations; and 

  

	 	(e)	the balance deferred and unpaid of the purchase price of any property due more than six months after the date of acquisition thereof, except any such balance that constitutes a
trade payable; 

  

	 	(2)	all net obligations in respect of Currency Agreements, Interest Rate Agreements and Commodity Agreements or Dollar Denominated Production Payments; 

  

	 	(3)	all liabilities of others of the kind described in the preceding clauses (1) or (2) that such Person has guaranteed or assumed or that are otherwise its legal
responsibility (including, with respect to any Production Payment, any warranties or guaranties of production or payment by such Person with respect to such Production Payment but excluding other contractual obligations of such Person with respect
to such Production Payment); 

  

	 	(4)	Indebtedness (as otherwise defined in this definition) of another Person secured by a Lien on any asset of such Person, whether or not such Indebtedness is assumed by such Person,
the amount of such obligations being deemed to be the lesser of 

  

	 	(a)	the full amount of such obligations so secured and 

  

	 	(b)	the Fair Market Value of such asset; 

  

	 	(5)	Disqualified Stock of such Person or a Restricted Subsidiary in an amount equal to the greater of the maximum mandatory redemption or repurchase price (not including, in either
case, any redemption or repurchase premium) or the liquidation preference thereof; 

  

	 	(6)	Attributable Debt in respect of a sale and leaseback transaction; and 

  

 13 

	 	(7)	any and all deferrals, renewals, extensions, refinancings and refundings (whether direct or indirect) of, or amendments, modifications or supplements to, any liability of the kind
described in any of the preceding clauses (1) through (6) or this clause (7), whether or not between or among the same parties. 

  
 Subject to clause (3) of the preceding sentence, Volumetric Production Payments shall not be deemed to be Indebtedness. 
  
 “Indenture” means this Indenture as amended or supplemented
from time to time. 
  
 “Indirect Participant”
means a Person who holds a beneficial interest in a Global Security through a Participant. 
  
 “Institutional Accredited Investor” means an institution that is an “accredited investor” as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act. 
  
 “Initial Purchasers” has the meaning set forth in the
Registration Rights Agreement. 
  
 “Interest Payment
Date,” when used with respect to any Security, means the Stated Maturity of an installment of interest on such Security. 
  
 “Interest Rate Agreements” means, with respect to the Parent and its Restricted Subsidiaries, interest rate agreements, interest rate cap
agreements and interest rate collar agreements and other agreements or arrangements designed to protect such Person against fluctuations in interest rates, with respect to any Indebtedness that is permitted to be incurred under this Indenture.

  
 “Investments” means, with respect to any
Person, all investments by such Person in other Persons (including Affiliates) in the forms of direct or indirect loans (including guarantees of Indebtedness or other obligations), advances or capital contributions (excluding commission, travel and
similar advances to officers and employees made in the ordinary course of business), purchases or other acquisitions for consideration of Indebtedness, Equity Interests or other securities, together with all items that are or would be classified as
investments on a balance sheet prepared in accordance with GAAP. If the Parent or any Restricted Subsidiary of the Parent sells or otherwise disposes of any Equity Interests of any direct or indirect Restricted Subsidiary of the Parent such that,
after giving effect to any such sale or disposition, such Person is no longer a Restricted Subsidiary of the Parent, the Parent shall be deemed to have made an Investment on the date of any such sale or disposition equal to the Fair Market Value of
the Equity Interests of such Restricted Subsidiary not sold or disposed of in an amount determined as provided in Section 4.4(c) hereof. 
  
 “Issue Date” means the date on which Securities are first issued under this Indenture. 
  
 “Lien” means, with respect to any asset, any mortgage, lien,
pledge, charge, security interest or encumbrance of any kind in respect of such asset, whether or not filed, recorded or otherwise perfected under applicable law, including any conditional sale or other title retention agreement, any lease in the
nature thereof, any option or other agreement to sell or give a 

  

 14 

 
security interest in and any filing of or agreement to give any financing statement under the Uniform Commercial Code (or equivalent statutes) of any
jurisdiction. 
  
 “Material Adverse Change” means
the occurrence of any of the following which is not cured within 30 days (i) a loss, revocation, or expiration of Caspi Neft’s Exploration Contract or Production Contract; provided that once the Production Contract has become effective,
Caspi Neft will no longer be obligated to maintain its Exploration Contract; (ii) an increase in the overall statutory tax rate in Kazakhstan to a rate greater than or equal to 50% of income before taxes, or (iii) a material adverse change
in the governmental status of Kazakhstan, including a downgrade of Kazakhstan’s sovereign debt rating by either Moody’s Investors Service, Inc. (or its successors) or Standard and Poors’ Ratings Service (or its successors) to a rating
of B1 or B+, respectively, or worse. 
  
 “Net Available
Proceeds” means the aggregate cash or Cash Equivalents received by the Parent or any of its Restricted Subsidiaries as proceeds in respect of any Asset Sale (including, without limitation, any cash received upon the sale or other
disposition of any non-cash consideration received in any Asset Sale), net of, without duplication: 
  

	 	(1)	the direct costs relating to such Asset Sale, including, without limitation, reasonable legal, accounting and investment banking fees, and sales commissions, recording fees, title
transfer fees and any relocation expenses incurred as a result thereof; 

  

	 	(2)	taxes paid or payable as a result thereof, in each case after taking into account any available tax credits or deductions and any tax sharing arrangements; 

 

	 	(3)	amounts required to be applied to the permanent repayment of Indebtedness secured by a Lien on the asset or assets that were the subject of such Asset Sale; and

  

	 	(4)	any reserve established in accordance with GAAP against liabilities associated with such Asset Sale or any amount placed in escrow for adjustment in respect of the purchase price of
such Asset Sale, until such time as such reserve is reversed or such escrow arrangement is terminated, in which case Net Available Proceeds shall be increased by the amount of the reserve so reversed or the amount returned to the Parent or its
Restricted Subsidiaries from such escrow arrangement, as the case may be. 

  
 “Net Cash Proceeds,” with respect to any issuance or sale of Capital Stock, means the cash proceeds of such issuance or sale net of reasonable attorneys’ fees, accountants’ fees,
underwriters’ or placement agents’ fees, listing fees, discounts or commissions and brokerage, consultant and other fees and charges (other than those payable to Affiliates of the Parent) actually incurred in connection with such issuance
or sale and net of taxes paid or payable as a result of such issuance or sale (after taking into account any available tax credit or deductions and any tax sharing arrangements). 
  

 15 

 “Net Income” means, with respect to any Person, the consolidated net income (loss) of
such Person and its Restricted Subsidiaries, determined in accordance with GAAP and before any reduction in respect of preferred stock dividends, excluding, however: 
  

	 	(1)	any gain (but not loss), together with any related provision for taxes on such gain (but not loss), realized in connection with: (a) any Asset Sale; or (b) the disposition
of any securities by such Person or any of its Restricted Subsidiaries or the extinguishment of any Indebtedness of such Person or any of its Restricted Subsidiaries; and 

  

	 	(2)	any extraordinary gain (but not loss), together with any related provision for taxes on such extraordinary gain (but not loss). 

  
 “Non-Recourse Debt” means Indebtedness: 
  

	 	(1)	as to which neither the Parent nor any of its Restricted Subsidiaries (a) provides credit support of any kind (including any undertaking, agreement or instrument that would
constitute Indebtedness), (b) is directly or indirectly liable as a guarantor or otherwise, or (c) constitutes the lender with respect to such Indebtedness; and 

  

	 	(2)	no default with respect to which (including any rights that the holders thereof may have to take enforcement action against an Unrestricted Subsidiary) would permit upon notice,
lapse of time or both any holder of any other Indebtedness of the Parent or any of its Restricted Subsidiaries to declare a default on such other Indebtedness or cause the payment thereof to be accelerated or payable prior to its Stated Maturity.

  
 “Note Obligations” means the
Securities, the Parent Guarantee, the Subsidiary Guarantees and all other obligations of any Obligor under this Indenture or the Security Documents. 
  
 “Obligor” means each of the Parent, the Company, the Subsidiary Guarantors and any other Person that has granted to the Collateral Agent
a Lien upon any of the Collateral as security for the Note Obligations. 
  
 “Officer” means, with respect to any Person, the Chairman of the Board, the Chief Executive Officer, the President, the Chief Financial Officer, the Chief Accounting Officer, any Vice President, the Treasurer, the
Controller or the Secretary or an Assistant Secretary of such Person. 
  
 “Officer’s Certificate” means a certificate signed on behalf of the Company by an Officer (for which in the case of the annual Officer’s Certificate delivered pursuant to Section 4.16, such Officer
shall be the principal executive officer, principal financial officer or principal accounting officer of the Company) and that complies with Sections 12.4 and 12.5 of this Indenture and is delivered to the Trustee. 
  

 16 

 “Oil and Gas Business” means: 
  

	 	(1)	the acquisition, exploration, exploitation, development, operation or disposition of interests in, or obtaining production from, oil, natural gas or other hydrocarbon properties;

  

	 	(2)	the gathering, marketing, treating, processing (but not refining), storage, selling or transporting of any production from such interests or properties; or 

 

	 	(3)	any activity that is ancillary, necessary or appropriate to facilitate, or that is incidental to, the activities described in clauses (1) and (2) of this definition.

  
 “Opinion of Counsel” means a
written opinion from legal counsel which opinion shall be reasonably acceptable to the Trustee and that complies with Sections 12.4 and 12.5 of this Indenture and is delivered to the Trustee. The counsel may be an employee of or
counsel to the Company or the Trustee. 
  
 “Parent” means Transmeridian Exploration Incorporated, a Delaware corporation. 
  
 “Parent Guarantee” means the guarantee by the Parent of the Company’s Note Obligations with respect to the Securities pursuant to
Article X hereof. 
  
 “Parent Pledge Agreement”
means the Pledge Agreement of even date herewith between the Parent, the Trustee and the Collateral Agent with respect to the Capital Stock of the Company and TMEI held by the Parent. 
  
 “Participant” means, with respect to the Depositary, Euroclear or Clearstream, a Person who has an account
with the Depositary, Euroclear or Clearstream, respectively (and, with respect to The Depository Trust Company, shall include Euroclear and Clearstream). 
  
 “Permitted Investments” means: 
  

	 	(1)	any Investment in the Parent or in a Wholly-Owned Restricted Subsidiary of the Parent; 

  

	 	(2)	any Investment in Cash Equivalents; 

  

	 	(3)	any Investment by the Parent or any Restricted Subsidiary of the Parent in a Person if as a result of such Investment: 

  

	 	(a)	such Person becomes a Restricted Subsidiary of the Parent; or 

  

	 	(b)	such Person is merged, consolidated or amalgamated with or into, or transfers or conveys substantially all of its assets to, or is liquidated into, the Parent or a Restricted
Subsidiary of the Parent; 

  

	 	(4)	any Investment made as a result of the receipt of non-cash consideration from an Asset Sale that was made pursuant to and in compliance with Section 4.7 hereof;

  

 17 

	 	(5)	any acquisition of assets solely in exchange for the issuance of Equity Interests (other than Disqualified Stock) of the Parent; 

  

	 	(6)	receivables owing to the Parent or any Restricted Subsidiary created or acquired in the ordinary course of business and payable or dischargeable in accordance with customary trade
terms; provided, however, that such trade terms may include such concessionary trade terms as the Parent or any such Restricted Subsidiary deems reasonable under the circumstances; 

  

	 	(7)	payroll, travel and similar advances to cover matters that are expected at the time of such advances ultimately to be treated as expenses for accounting purposes and that are made
in the ordinary course of business; 

  

	 	(8)	Capital Stock, obligations or securities received in settlement of debts created in the ordinary course of business and owing to the Parent or any Restricted Subsidiary or in
satisfaction of judgments or pursuant to any plan of reorganization or similar arrangement upon the bankruptcy or insolvency of a debtor; 

  

	 	(9)	Hedging Obligations, which transactions or obligations are incurred in compliance with Section 4.3 hereof; 

  

	 	(10)	the entry into operating agreements, processing agreements, farm-out agreements, development agreements, area of mutual interest agreements, contracts for the sale, transportation
or exchange of oil and natural gas, unitization agreements, pooling arrangements, joint bidding agreements, service contracts, or other similar and customary agreements, transactions, properties, interests or arrangements made or entered into in the
ordinary course of the Oil and Gas Business, excluding, however, Investments in corporations; 

  

	 	(11)	Investments in prepaid expenses, negotiable instruments held for collection or deposit and lease, utility and workers compensation, performance and similar deposits entered into as
a result of the operations of the business in the ordinary course; and 

  

	 	(12)	Investments in Unrestricted Subsidiaries made with proceeds of an Equity Offering. 

  
 “Permitted Liens” means, with respect to any Person: 
  

	 	(1)	pledges or deposits by such Person under workmen’s compensation laws, unemployment insurance laws or similar legislation, or good faith deposits in connection with bids,
tenders, contracts (other than for the payment of Indebtedness) or leases to which such Person is a party, or deposits to secure public or statutory obligations of such Person or deposits of cash or United States government bonds to secure surety or
appeal bonds to which such Person is a party, or deposits as security for contested taxes or import or customs duties or for the payment of rent, in each case Incurred in the ordinary course of business; 

  

 18 

	 	(2)	Liens imposed by law, including carriers’, warehousemen’s and mechanics’ Liens, in each case for sums not yet due or being contested in good faith by appropriate
proceedings if a reserve or other appropriate provisions, if any, as shall be required by GAAP shall have been made in respect thereof; 

  

	 	(3)	Liens for taxes, assessments or other governmental charges not yet subject to penalties for non payment or which are being contested in good faith by appropriate proceedings
provided appropriate reserves required pursuant to GAAP have been made in respect thereof; 

  

	 	(4)	Liens in favor of issuers of surety or performance bonds or letters of credit or bankers’ acceptances issued pursuant to the request of and for the account of such Person in
the ordinary course of its business; provided, however, that such letters of credit do not constitute Indebtedness; 

  

	 	(5)	encumbrances, ground leases, easements or reservations of, or rights of others for, licenses, rights of way, sewers, electric lines, telegraph and telephone lines and other similar
purposes, or zoning, building codes or other restrictions (including, without limitation, minor defects or irregularities in title and similar encumbrances) as to the use of real properties or liens incidental to the conduct of the business of such
Person or to the ownership of its properties which do not in the aggregate materially adversely affect the value of said properties or materially impair their use in the operation of the business of such Person; 

  

	 	(6)	Liens securing Hedging Obligations so long as the related Indebtedness is, and is permitted to be under this Indenture, secured by a Lien on the same property securing such Hedging
Obligation; 

  

	 	(7)	leases, licenses, subleases and sublicenses of assets (including, without limitation, real property and intellectual property rights) which do not materially interfere with the
ordinary conduct of the business of the Parent or any of its Restricted Subsidiaries; 

  

	 	(8)	judgment Liens not giving rise to an Event of Default so long as such Lien is adequately bonded and any appropriate legal proceedings which may have been duly initiated for the
review of such judgment have not been finally terminated or the period within which such proceedings may be initiated has not expired; 

  

	 	(9)	Liens for the purpose of securing the payment of all or a part of the purchase price of, or Capitalized Lease Obligations, purchase money obligations or other payments Incurred to
finance the acquisition, improvement or construction of, assets or property acquired or constructed in the ordinary course of business; provided that: 

  

	 	(a)	the aggregate principal amount of Indebtedness secured by such Liens is otherwise permitted to be Incurred under this Indenture and does not exceed the cost of the assets or
property so acquired or constructed; and 

  

 19 

	 	(b)	such Liens are created within 180 days of construction or acquisition of such assets or property and do not encumber any other assets or property of the Parent or any Restricted
Subsidiary other than such assets or property and assets affixed or appurtenant thereto; 

  

	 	(10)	Liens arising solely by virtue of any statutory or common law provisions relating to banker’s Liens, rights of set-off or similar rights and remedies as to deposit accounts or
other funds maintained with a depositary institution; provided that: 

  

	 	(a)	such deposit account is not a dedicated cash collateral account and is not subject to restrictions against access by the Parent in excess of those set forth by regulations
promulgated by the Federal Reserve Board; and 

  

	 	(b)	such deposit account is not intended by the Parent or any Restricted Subsidiary to provide collateral to the depository institution; 

  

	 	(11)	Liens arising from Uniform Commercial Code financing statement filings regarding operating leases entered into by the Parent and its Restricted Subsidiaries in the ordinary course
of business; 

  

	 	(12)	Liens existing on the Issue Date; 

  

	 	(13)	Liens on property or shares of stock of a Person at the time such Person becomes a Restricted Subsidiary; provided, however, that such Liens are not created, incurred or assumed in
connection with, or in contemplation of, such other Person becoming a Restricted Subsidiary; provided further, however, that any such Lien may not extend to any other property owned by the Parent or any Restricted Subsidiary;

  

	 	(14)	Liens on property at the time the Parent or a Restricted Subsidiary acquired the property, including any acquisition by means of a merger or consolidation with or into the Parent or
any Restricted Subsidiary; provided, however, that such Liens are not created, Incurred or assumed in connection with, or in contemplation of, such acquisition; provided further, however, that such Liens may not extend to any other property owned by
the Parent or any Restricted Subsidiary; 

  

	 	(15)	Liens securing Indebtedness or other obligations of a Restricted Subsidiary owing exclusively to the Parent and/or a Wholly-Owned Restricted Subsidiary; 

  

	 	(16)	Liens securing the Securities, the Guarantees and other obligations under this Indenture; 

  

	 	(17)	any interest or title of a lessor under any Capitalized Lease Obligation or operating lease; 

  

	 	(18)	 Liens arising under farm-out agreements, farm-in agreements, division orders, contracts for the sale, purchase, exchange, transportation, gathering or processing of
Hydrocarbons, unitizations and pooling designations, declarations, orders and 

  

 20 

	 	 
agreements, development agreements, operating agreements, production sales contracts, area of mutual interest agreements, gas balancing or deferred
production agreements, injection, repressuring and recycling agreements, salt water or other disposal agreements, seismic or geophysical permits or agreements, and other agreements which are customary in the Oil and Gas Business; provided, however,
in all instances that such Liens are limited to the assets that are the subject of the relevant agreement, program, order or contract; 

  

	 	(19)	Liens on pipelines or pipeline facilities that arise by operation of law; 

  

	 	(20)	Liens reserved in oil and gas mineral leases for bonus or rental payments and for compliance with the terms of such leases; 

  

	 	(21)	Liens arising under this Indenture in favor of the Trustee for its own benefit and similar Liens in favor of other trustees, agents and representatives arising under instruments
governing Indebtedness permitted to be incurred under this Indenture, provided, however, that such Liens are solely for the benefit of the trustees, agents or representatives in their capacities as such and not for the benefit of the holders
of such Indebtedness; 

  

	 	(22)	set-off, chargeback and other rights of depositary and collection banks and other regulated financial institutions with respect to money or instruments of the Parent or any of its
Restricted Subsidiaries on deposit with or in the possession of such institutions; 

  

	 	(23)	Liens arising from the deposit of funds or securities in trust for the purpose of decreasing or defeasing Indebtedness so long as such deposit of funds or securities and such
decreasing or defeasing of Indebtedness are permitted under Section 4.4 hereof; and 

  

	 	(24)	the Permitted Net Revenue Interest. 

  
 In each case set forth above, notwithstanding any stated limitation on the assets that may be subject to such Lien, a Permitted Lien on a specified asset
or group or type of assets may include Liens on all improvements, additions and accessions thereto and all products and proceeds thereof (including, without limitation, dividends, distributions and increases in respect thereof). 
  
 “Permitted Net Revenue Interest” means the 3.5% net revenue
interest in the South Alibek Field to be granted to Roskilde Enterprises, Ltd., a company organized in the Republic of Seychelles, in connection with the consummation of the Company’s acquisition of the Capital Stock of Bramex. 
  

 21 

 “Permitted Refinancing Indebtedness” means any Indebtedness of the Parent or any of its
Restricted Subsidiaries issued in exchange for, or the net proceeds of which are used to extend, refinance, renew, replace, defease or refund other Indebtedness of the Parent or any of its Restricted Subsidiaries (other than intercompany
Indebtedness); provided that: 
  

	 	(1)	the principal amount (or accreted value, if applicable) of such Permitted Refinancing Indebtedness does not exceed the principal amount of (or accreted value, if applicable), plus
premium, if any, and accrued interest on the Indebtedness so extended, refinanced, renewed, replaced, defeased or refunded (plus the amount of reasonable expenses incurred in connection therewith); 

  

					
	(2)  	 	(a)	 	if the final maturity date of the Indebtedness being extended, refinanced, renewed, replaced, deferred or refunded is earlier than the final maturity date of the Securities, the Permitted
Refinancing Indebtedness has a final maturity date no earlier than the final maturity date of the Indebtedness being extended, refinanced, renewed, replaced, deferred or refunded, or

  

	 	(b)	if the final maturity date of the Indebtedness being extended, refinanced, renewed, replaced, deferred or refunded is later than the final maturity date of the Securities, the
Permitted Refinancing Indebtedness has a final maturity date at least 91 days later than the final maturity date of the Securities; 

  

	 	(3)	the Permitted Refinancing Indebtedness has a Weighted Average Life to Maturity at the time such Permitted Refinancing Indebtedness is incurred that is equal to or greater than the
Weighted Average Life to Maturity of the Indebtedness being extended, refinanced, renewed, replaced, deferred or refunded; 

  

	 	(4)	if the Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded is subordinated in right of payment to the Securities or the Parent Guarantee or a Subsidiary
Guarantee, such Permitted Refinancing Indebtedness is subordinated in right of payment to, the Securities or the Parent Guarantee or such Subsidiary Guarantee on terms at least as favorable, taken as a whole, to the holders of Securities as those
contained in the documentation governing the Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded; and 

  

	 	(5)	such Indebtedness is not incurred by a Restricted Subsidiary if the Parent is the obligor on the Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded;
provided, however, that the Company or a Restricted Subsidiary that is also a Subsidiary Guarantor may guarantee Permitted Refinancing Indebtedness incurred by the Parent, whether or not such Restricted Subsidiary was an obligor or
guarantor of the Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded; provided further, however, that if such Permitted Refinancing Indebtedness is subordinated to the Securities, such guarantee shall be
subordinated to such Restricted Subsidiary’s Subsidiary Guarantee to at least the same extent. 

  
 “Person” means any individual, corporation, partnership, limited liability company, joint venture, association, joint stock company,
trust, unincorporated organization, government or any agency or political subsidiary thereof or any other entity. 
  

 22 

 “Private Placement Legend” means the legend set forth in Section 2.6(g)(1)
to be placed on all Securities issued under this Indenture except where otherwise permitted by the provisions of this Indenture. 
  
 “Production Contract” means the currently pending long-term production contract, once finalized, with respect to the South Alibek Field
by and between Caspi Neft and the Ministry of Energy and Mineral Resources of the Republic of Kazakhstan. 
  
 “Production Payments” means, collectively, Dollar-Denominated Production Payments and Volumetric Production Payments. 
  
 “Purchase Agreements” mean the Purchase Agreements, dated as
of or about December 12, 2005, by and among the Company, the Parent, TMEI, Transmeridian Kazakhstan and each of the Initial Purchasers. 
  
 “QIB” means any “qualified institutional buyer” (as defined under the Securities Act). 
  
 “Redemption Date,” when used with respect to any Security to
be redeemed, means the date fixed for such redemption by or pursuant to this Indenture. 
  
 “Redemption Price,” when used with respect to any Security to be redeemed, means the price at which it is to be redeemed pursuant to this Indenture. 
  
 “Registered Exchange Offer” has the meaning set forth in the
Registration Rights Agreement. 
  
 “Registration Rights
Agreement” means the Registration Rights Agreement, dated as of the date hereof, among the Company, the Guarantors and the Initial Purchasers. 
  
 “Regulation S” means Regulation S promulgated under the Securities Act. 
  
 “Regulation S Global Security” means a permanent Global Security substantially in the form of Exhibit
A hereto bearing the Global Security Legend and the Private Placement Legend and deposited with or on behalf of and registered in the name of the Depositary or its nominee, issued in a denomination equal to the outstanding principal amount of
the Securities initially sold in reliance on Regulation S. 
  
 “Restricted Definitive Security” means a Definitive Security bearing the Private Placement Legend. 
  
 “Restricted Global Security” means a Global Security bearing the Private Placement Legend (including the Regulation S Global Security).

  
 “Restricted Period” means the 40-day
distribution compliance period as defined in Regulation S. 
  

 23 

 “Restricted Subsidiary” of a Person means any Subsidiary of the referenced Person that
is not an Unrestricted Subsidiary. When used with respect to the Parent, “Restricted Subsidiary” includes, without limitation, the Company. 
  
 “Rule 144” means Rule 144 promulgated under the Securities Act. 
  
 “Rule 144A” means Rule 144A promulgated under the Securities Act. 
  
 “144A Global Security” means the Global Security
substantially in the form of Exhibit A hereto bearing the Global Security Legend and the Private Placement Legend and deposited with or on behalf of and registered in the name of the Depositary or its nominee that will be issued in a
denomination equal to the outstanding principal amount of the Securities sold in reliance on Rule 144A. 
  
 “Rule 903” means Rule 903 promulgated under the Securities Act. 
  
 “Rule 904” means Rule 904 promulgated the Securities Act. 
  
 “SEC” means the U.S. Securities and Exchange Commission.

  
 “Securities” means securities issued under
this Indenture. The Initial Securities and the Exchange Securities shall be treated as a single class for all purposes under this Indenture, and unless otherwise provided or the context otherwise requires, all references to the Securities shall
include the Initial Securities and the Exchange Securities. 
  
 “Securities Act” means the Securities Act of 1933 and any successor statute thereto, in each case as amended from time to time. 
  
 “Securities Custodian” means the custodian with respect to a Global Security (as appointed by the Depositary) or any successor Person,
and shall initially be the initial Registrar. 
  
 “Security Documents” means any one or more security agreements, pledge agreements, collateral assignments, mortgages, share pledges, collateral agency agreements, deeds of trust or other grants or transfers for security
executed and delivered by the Company and any other Obligor creating, or purporting to create, a Lien upon Collateral in favor of the Collateral Agent for the benefit of the Holders of the Securities and the Trustee, subject to certain payment
priorities, in each case as amended, modified, renewed, restated or replaced, in whole or part, from time to time, in accordance with its terms. Without limiting the generality of the foregoing, the Security Documents include the Parent Pledge
Agreement, the Company Pledge Agreement(s), the Caspi Neft Security Agreements and the Escrow Agreement. 
  
 “Senior Debt” means any Indebtedness of the Parent, the Company or any Subsidiary Guarantor permitted to be incurred by it under the
terms of this Indenture, unless the instrument under which such Indebtedness is incurred expressly provides that it is subordinated in right of payment to the Securities, the Parent Guarantee or the Subsidiary Guarantees, as the case may be.

  

 24 

 “Shelf Registration Statement” has the meaning set forth in the Registration Rights
Agreement. 
  
 “Significant Subsidiary” means any
Subsidiary that would be a “significant subsidiary” as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the Act, as such Regulation is in effect on the Issue Date. 
  
 “Stated Maturity” means, with respect to any installment of
interest or principal on any series of Indebtedness, the date on which such payment of interest or principal was scheduled to be paid in the original documentation governing such Indebtedness, and shall not include any contingent obligations to
repay, redeem or repurchase any such interest or principal prior to the date originally scheduled for the payment thereof. 
  
 “Subordinated Indebtedness” means Indebtedness of the Parent, the Company or a Subsidiary Guarantor that is subordinated in right of
payment to the Parent Guarantee, the Securities or a Subsidiary Guarantee, as appropriate, pursuant to a written agreement to that effect. 
  
 “Subsidiary” of any Person means any corporation, association, partnership, joint venture, limited liability company or other business
entity of which more than 50% of the total voting power of shares of Capital Stock or other interests (including partnership and joint venture interests) entitled (without regard to the occurrence of any contingency) to vote in the election of
directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by (1) such Person, (2) such Person and one or more Affiliates of such Person or (3) one or more Subsidiaries of such Person. Unless
otherwise specified herein, each reference to a Subsidiary will refer to a Subsidiary of the Parent. 
  
 “Subsidiary Guarantee” means a guarantee by a Subsidiary Guarantor of the Company’s obligations with respect to the Securities.

  
 “Subsidiary Guarantor” means each Subsidiary
that executes a Subsidiary Guarantee in accordance with the provisions of this Indenture, and its respective successors and assigns. 
  
 “TMEI” means TMEI Operating, Inc., a Texas corporation and wholly-owned subsidiary of the Parent. 
  
 “Transmeridian Caspian” means Transmeridian Caspian
Petroleum LLP, a Kazakhstan limited liability partnership. 
  
 “Transmeridian Kazakhstan” means Transmeridian (Kazakhstan) Incorporated, a British Virgin Islands company and wholly-owned subsidiary of the Company. 
  
 “Trust Indenture Act” means the Trust Indenture Act of 1939 as in force at the date as of which this
instrument was executed; provided, however, that in the event the Trust Indenture Act of 1939 is amended after such date, “Trust Indenture Act” means, to the extent required by any such amendment, the Trust Indenture Act of 1939 as
so amended. 
  

 25 

 “Trust Officer” means any officer or assistant officer of the Trustee assigned by the
Trustee to administer its corporate trust matters. 
  
 “Trustee” means the Person named as the “Trustee” in the first paragraph of this Indenture until a successor Trustee shall have become such pursuant to the applicable provisions of this Indenture, and thereafter
“Trustee” shall mean or include each Person who is then a Trustee hereunder. 
  
 “Unrestricted Definitive Note” means one or more Definitive Securities that do not bear and are not required to bear the Private Placement Legend. 
  
 “Unrestricted Global Security” means a permanent Global
Security substantially in the form of Exhibit A attached hereto that bears the Global Security Legend and that has the “Schedule of Exchanges of Interests in the Global Security” attached thereto, and that is deposited with or on
behalf of and registered in the name of the Depositary, representing a series of Securities that do not bear the Private Placement Legend. 
  
 “Unrestricted Subsidiary” means Transmeridian Caspian, Emba-Trans and any other Subsidiary of the Parent (other than the Company) that is
designated by the Board of Directors of the Parent as an Unrestricted Subsidiary pursuant to a Board Resolution, but only to the extent that such Subsidiary: 
  

	 	(1)	has no Indebtedness other than Non-Recourse Debt; 

  

	 	(2)	is not party to any agreement, contract, arrangement or understanding with the Parent or any Restricted Subsidiary of the Parent unless the terms of any such agreement, contract,
arrangement of understanding are no less favorable to the Parent or such Restricted Subsidiary than those that might be obtained at the time from Persons who are not Affiliates of the Parent; 

  

	 	(3)	is a Person with respect to which neither the Parent nor any of its Restricted Subsidiaries has any direct or indirect obligation (a) to subscribe for additional Equity
Interests or (b) to maintain or preserve such Person’s financial condition or to cause such Person to achieve any specified levels of operating results, except in each case to the extent that the full amount of any such commitment is
treated as an Investment in compliance with Section 4.4 hereof or a Permitted Investment; 

  

	 	(4)	such Subsidiary, either alone or in the aggregate with all other Unrestricted Subsidiaries, does not operate, directly or indirectly, all or substantially all of the business of the
Parent and its Subsidiaries; and 

  

	 	(5)	has not guaranteed or otherwise directly or indirectly provided credit support for any Indebtedness of the Parent or any of its Restricted Subsidiaries. 

  
 The Board of Directors of the Parent may designate any Restricted Subsidiary
(other than the Company) to be an Unrestricted Subsidiary if that designation would not cause a Default. If a Restricted Subsidiary is designated as an Unrestricted Subsidiary, all outstanding Investments owned by the Parent and its Restricted
Subsidiaries in the Subsidiary so designated will be 

  

 26 

 
deemed to be an Investment made as of the time of such designation and will reduce the amount available for Restricted Payments under the first paragraph of
Section 4.4 hereof. All such outstanding Investments will be valued at their Fair Market Value at the time of such designation. That designation will only be permitted if such Restricted Payment would be permitted at that time and if
such Restricted Subsidiary otherwise meets the definition of an Unrestricted Subsidiary. 
  
 Any designation of a Subsidiary of the Parent as an Unrestricted Subsidiary shall be evidenced to the Trustee by filing with the Trustee a certified copy of the Board Resolution giving effect to such designation and
an Officer’s Certificate certifying that such designation complied with the preceding conditions and was permitted by Section 4.4 hereof. If, at any time, any Unrestricted Subsidiary would fail to meet the preceding requirements as
an Unrestricted Subsidiary, it shall thereafter cease to be an Unrestricted Subsidiary for purposes of this Indenture and any Indebtedness of such Subsidiary shall be deemed to be incurred by a Restricted Subsidiary of the Parent as of such date
and, if such Indebtedness is not permitted to be incurred as of such date under Section 4.3 hereof, the Parent shall be in default of such covenant. 
  

The Board of Directors of the Parent may at any time designate any Unrestricted Subsidiary to be a Restricted Subsidiary; provided that such
designation shall be deemed to be an incurrence of Indebtedness by a Restricted Subsidiary of the Company of any outstanding Indebtedness of such Unrestricted Subsidiary and such designation shall only be permitted if (1) such Indebtedness is
permitted under Section 4.3 hereof, calculated on a pro forma basis as if such designation had occurred at the beginning of the four-quarter reference period; and (2) no Default would be in existence following such designation.

  
 “Volumetric Production Payments” mean
production payment obligations recorded as deferred revenue in accordance with GAAP, together with all undertakings and obligations in connection therewith. 
  
 “Voting Stock” of any Person as of any date means the Capital Stock of such Person that is at the time entitled (without reference to the
occurrence of any contingency) to vote in the election of the directors, managers or trustees of such Person. 
  
 “Weighted Average Life to Maturity” means, when applied to any Indebtedness at any date, the number of years obtained by dividing:

  

	 	(1)	the sum of the products obtained by multiplying (a) the amount of each then remaining installment, sinking fund, serial maturity or other required payments of principal,
including payment at final maturity, in respect thereof, by (b) the number of years (calculated to the nearest one-twelfth) that will elapse between such date and the making of such payment; by 

  

	 	(2)	the then outstanding principal amount of such Indebtedness. 

  
 “Wholly-Owned Restricted Subsidiary” of any Person means a Restricted Subsidiary of such Person all of the outstanding Capital Stock of
which (other than Foreign Required Minority 

  

 27 

 
Shares) shall at the time be owned by such Person and/or by one or more other Wholly-Owned Restricted Subsidiaries of such Person. 
  

	Section 1.2	Other Definitions 

  

			
	 “Additional Amounts”
	  	Section 4.18
	 “Affiliate Transaction”
	  	Section 4.8(a)
	 “Asset Sale Offer”
	  	Section 4.7(c)
	 “Asset Sale Payment”
	  	Section 4.7(c)
	 “Asset Sale Payment Date”
	  	Section 4.7(d)
	 “Authenticating Agent”
	  	Section 2.2
	 “Authentication Order”
	  	Section 2.2
	 “Change of Control/MAC Offer”
	  	Section 4.11(a)
	 “Change of Control/MAC Payment”
	  	Section 4.11(a)
	 “Change of Control/MAC Payment Date”
	  	Section 4.11(a)
	 “covenant defeasance option”
	  	Section 8.1(b)
	 “Defaulted Interest”
	  	Section 2.11
	 “Event of Default”
	  	Section 6.1
	 “Excess Proceeds”
	  	Section 4.7(c)
	 “Exchange Securities”
	  	Preamble
	 “incur”
	  	Section 4.3(a)
	 “Initial Securities”
	  	Preamble
	 “legal defeasance option”
	  	Section 8.1(b)
	 “Legal Holiday”
	  	Section 12.7
	 “Obligations”
	  	Section 10.1
	 “Paying Agent”
	  	Section 2.3
	 “Payment Default”
	  	Section 6.1(6)
	 “Payor”
	  	Section 4.18
	 “Permitted Asset Exchange”
	  	Section 1.1 (“Asset Sale”)
	 “Permitted Indebtedness”
	  	Section 4.3(b)
	 “Registrar”
	  	Section 2.3
	 “Relevant Tax Jurisdiction”
	  	Section 4.18
	 “Restricted Payment”
	  	Section 4.4(a)
	 “Special Mandatory Redemption”
	  	Section 3.8
	 “Special Mandatory Redemption Date”
	  	Section 3.8
	 “Special Mandatory Redemption Event”
	  	Section 3.8
	 “Special Mandatory Redemption Price”
	  	Section 3.8

  

	Section 1.3	Incorporation by Reference of Trust Indenture Act 

  
 This Indenture is subject to the mandatory provisions of the Trust Indenture Act which are incorporated by reference in and made a part of this Indenture.
The following Trust Indenture Act terms have the following meanings: 
  
 “Commission” means the SEC. 
  
 “indenture
securities” means the Securities. 
  

 28 

 “indenture security holder” means a Holder. 
  
 “indenture to be qualified” means this Indenture. 
  
 “indenture trustee” or “institutional trustee” means the
Trustee. 
  
 “obligor” on the indenture securities means
the Company and any other obligor (including any Guarantor) on the indenture securities. 
  
 All other Trust Indenture Act terms used in this Indenture that are defined by the Trust Indenture Act, defined by the Trust Indenture Act by reference to another statute or defined by an SEC rule have the meanings
assigned to them by such definitions. 
  

	Section 1.4	Rules of Construction 

  
 Unless the context otherwise requires: 
  

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

  

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

  

	 	(3)	“or” is not exclusive; 

  

	 	(4)	“including” means including without limitation; 

  

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

  

	 	(6)	references to sections of or rules under the Exchange Act or the Securities Act shall be deemed to include substitute, replacement or successor sections or rules adopted by the SEC
from time to time; and 

  

	 	(7)	“herein,” “hereof” and other words of similar import refer to this Indenture as a whole (as amended or supplemented from time to time) and not to any particular
Article, Section or other subdivision. 

  
 ARTICLE
II 
  
 THE SECURITIES 
  

	Section 2.1	Form and Dating 

  
 (a) General. The Securities and the Trustee’s certificate of authentication shall be substantially in the form of Exhibit A hereto. The
Securities may have notations, legends or endorsements required by law, stock exchange rule or usage. Each Security shall be dated the date of its authentication. The Securities shall be in denominations of $1,000 and integral multiples thereof.

  

 29 

 The terms and provisions contained in the Securities shall constitute, and are hereby expressly made, a
part of this Indenture and the Company, the Guarantors and the Trustee, by their execution and delivery of this Indenture, expressly agree to such terms and provisions and to be bound thereby. However, to the extent any provision of any Security or
any Guarantee conflicts with the express provisions of this Indenture, the provisions of this Indenture shall govern and be controlling. 
  
 (b) Global Securities. Securities issued in global form shall be substantially in the form of Exhibit A attached hereto (including the
Global Security Legend thereon and the “Schedule of Exchanges of Interests in the Global Security” attached thereto). Securities issued in definitive form shall be substantially in the form of Exhibit A attached hereto (but without
the Global Security Legend thereon and without the “Schedule of Exchanges of Interests in the Global Security” attached thereto). Each Global Security shall represent such of the outstanding Securities as shall be specified therein and
each shall provide that it shall represent the aggregate principal amount of outstanding Securities from time to time endorsed thereon and that the aggregate principal amount of outstanding Securities represented thereby may from time to time be
reduced or increased, as appropriate, to reflect exchanges and redemptions. Any endorsement of a Global Security to reflect the amount of any increase or decrease in the aggregate principal amount of outstanding Securities represented thereby shall
be made by the Trustee or the Securities Custodian, at the direction of the Trustee, in accordance with instructions given by the Holder thereof as required by Section 2.6 hereof. 
  
 (c) Regulation S Global Securities. Securities offered and sold in
reliance on Regulation S may be issued initially in the form of the Regulation S Global Security, which shall be deposited on behalf of the purchasers of the Securities represented thereby with the Registrar, at its office located in The Borough of
Manhattan, The City of New York, State of New York, as custodian for the Depositary, and registered in the name of the Depositary or the nominee of the Depositary for the accounts of designated agents holding on behalf of Euroclear or Clearstream,
duly executed by the Company and authenticated by the Trustee as hereinafter provided. Prior to the expiration of the Restricted Period, any resale or transfer or such interests to U.S. Persons (as defined in Regulation S) shall not be permitted
unless such resale or transfer is made pursuant to Rule 144A or Regulation S. The aggregate principal amount of the Regulation S Global Securities may from time to time be increased or decreased by adjustments made on the records of the Trustee and
the Depositary or its nominee, as the case may be, in connection with transfers of interest as hereinafter provided. 
  
 (d) Euroclear and Clearstream Procedures Applicable. The provisions of the “Operating Procedures of the Euroclear System” and “Terms
and Conditions Governing Use of Euroclear” and the “General Terms and Conditions of Clearstream Banking” and “Customer Handbook” of Clearstream shall be applicable to transfers of beneficial interests in the Regulation S
Global Securities that are held by Participants through Euroclear or Clearstream. 
  

	Section 2.2	Execution and Authentication 

  
 One Officer shall sign the Securities for the Company by manual or facsimile signature. 
  

 30 

 If an Officer whose signature is on a Security no longer holds that office at the time the Trustee
authenticates the Security, the Security shall be valid nevertheless. 
  
 A Security shall not be valid until an authorized signatory of the Trustee manually authenticates the Security. The signature of the Trustee on a Security shall be conclusive evidence that such Security has been duly and validly
authenticated and issued under this Indenture. 
  
 The Trustee
shall authenticate and deliver: (i) Initial Securities for original issue in an aggregate principal amount of $250,000,000, and (ii) Exchange Securities for issue only in a registered exchange offer pursuant to the Registration Rights
Agreement, and only in exchange for Initial Securities of an equal principal amount, in each case upon a written order (the “Authentication Order”) of the Company signed by one Officer of the Company. Such Authentication Order shall
specify the amount of the Securities to be authenticated and the date on which the original issue of Securities is to be authenticated and whether the Securities are to be in the form of Initial Securities or Exchange Securities. 
  
 The Trustee may appoint an agent (the “Authenticating Agent”)
reasonably acceptable to the Company to authenticate the Securities. Unless limited by the terms of such appointment, any such Authenticating Agent may authenticate Securities whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent. 
  

	Section 2.3	Registrar and Paying Agent 

  
 The Company shall at all times maintain in the Borough of Manhattan, The City of New York, the State of New York an office or agency where Securities may
be presented for registration of transfer or for exchange (the “Registrar”) and an office or agency where Securities may be presented for payment (the “Paying Agent”). The Registrar shall keep a register of the Securities and of
their transfer and exchange. The Company may have one or more co-registrars and one or more additional paying agents in the Borough of Manhattan, The City of New York, the State of New York. The term “Registrar” includes any co-registrar,
and the term “Paying Agent” includes any such additional paying agent. 
  
 The Company shall enter into an agreement with the initial Paying Agent and initial Registrar evidencing its acceptance of its appointment as such in accordance with the terms of this Indenture, which shall
incorporate the terms of the Trust Indenture Act, and the Company may enter into further agreements with any of the Trustee, the initial Registrar and the initial Paying Agent with respect to the allocation of responsibilities among them. The
Company shall enter into an appropriate agency agreement with any Registrar, Paying Agent or co-registrar not a party to this Indenture, which shall incorporate the terms of the Trust Indenture Act. The agreement shall implement the provisions of
this Indenture that relate to such agent. The Company shall notify the Trustee of the name and address of each such agent not a party to this Indenture. If the Company fails to maintain a Registrar or Paying Agent, the Trustee either shall act as
such in the designated corporate trust office of the Trustee in the Borough of Manhattan, The City of New York, the State of New York, where the Securities may be presented or surrendered for payment, in which case it shall be entitled to
appropriate compensation therefor 

  

 31 

 
pursuant to Section 7.7 hereof, or the Trustee shall appoint or cause to be appointed such Registrar or Paying Agent. The Company or any of its
Subsidiaries may act as Paying Agent, Registrar, co-registrar or transfer agent from an office in the Borough of Manhattan, The City of New York, the State of New York. The Paying Agent or the Registrar may resign as such upon 30 days’ prior
written notice to the Company and the Trustee; upon resignation of any Paying Agent or Registrar, the Company shall appoint a successor Paying Agent or Registrar, as the case may be, complying with the requirements of this Section 2.3,
no later than 30 days thereafter and shall provide notice to the Trustee of such successor Paying Agent or Registrar. 
  
 If at any time there shall be no Paying Agent with an office or agency in the Borough of Manhattan, the City of New York, where the Securities may be
presented or surrendered for payment, the Company shall forthwith designate such a Paying Agent in order that the Securities shall at all times be payable in the Borough of Manhattan, The City of New York, the State of New York. 
  
 The Company initially appoints The Bank of New York as Registrar and Paying
Agent for the Securities. 
  
 The Bank of New York maintains an
office in the Borough of Manhattan, The City of New York, the State of New York, where Securities may be presented or surrendered for payment which, on the Issue Date, is 101 Barclay, Lobby Level, New York, New York 10286. 
  

	Section 2.4	Paying Agent To Hold Money in Trust 

  
 By at least 11:00 a.m. (New York City time) on the Business Day prior to the date on which any principal, premium, if any, or interest on any Security is
due and payable, the Company shall deposit with the Paying Agent a sum sufficient to pay such principal, premium, if any, and interest when due. The Company shall require each Paying Agent (other than the Trustee) to agree in writing that such
Paying Agent shall hold in trust for the benefit of Holders or the Trustee all money held by such Paying Agent for the payment of principal, premium, if any, and interest (if any) on the Securities and shall notify the Trustee of any default by the
Company in making any such payment. If the Parent, the Company or a Subsidiary acts as Paying Agent, it shall segregate the money held by it as Paying Agent and hold it as a separate trust fund. The Company at any time may require a Paying Agent
(other than the Trustee) to pay all money held by it to the Trustee and to account for any funds disbursed by such Paying Agent. Upon complying with this Section 2.4, the Paying Agent (if other than the Company or a Subsidiary) shall
have no further liability for the money delivered to the Trustee. Upon any bankruptcy, reorganization or similar proceeding with respect to the Company, the Trustee shall serve as Paying Agent for the Securities or, if it does not at such time
maintain an office in the Borough of Manhattan, The City of New York, the State of New York, where Securities may be presented or surrendered for payment, then it shall cause such a Paying Agent to be appointed. 
  

	Section 2.5	Holder Lists 

  
 The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of Holders.
If the Trustee is not the Registrar, the Company shall furnish to the Trustee, in writing at least seven Business Days 

  

 32 

 
before each Interest Payment Date and at such other times as the Trustee may request in writing, a list in such form and as of such date as the Trustee may
reasonably require of the names and addresses of Holders. 
  

	Section 2.6	Transfer and Exchange 

  
 (a) Transfer and Exchange of Global Securities. A Global Security may not be transferred as a whole except by the Depositary to a nominee of the
Depositary, by a nominee of the Depositary to the Depositary or to another nominee of the Depositary, or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary. Owners of beneficial interests in
Global Securities shall not be entitled to receive Definitive Securities unless: 
  
 (1) the Company delivers to the Trustee and the Registrar notice from the Depositary that it is unwilling or unable to continue to act as
Depositary or that it is no longer a clearing agency registered under the Exchange Act and, in either case, a successor Depositary is not appointed by the Company within 90 days after the date of such notice from the Depositary; 
  
 (2) the Company in its sole discretion determines that the
Global Securities (in whole but not in part) should be exchanged for Definitive Securities and delivers a written notice to such effect to the Trustee and the Registrar; provided that in no event shall the Regulation S Global Security be
exchanged by the Company for Definitive Securities prior to (x) the expiration of the Restricted Period and (y) the receipt by the Registrar of any certificates required pursuant to Rule 903(c)(3)(ii)(B) under the Securities Act; or

  
 (3) there has occurred and is continuing an
Event of Default and DTC notifies the Trustee and the Registrar of its decision to exchange the Global Securities for Definitive Securities; provided that in no event shall the Regulation S Global Security be exchanged by the Company for
Definitive Securities prior to (x) the expiration of the Restricted Period and (y) the receipt by the Registrar of any certificates required pursuant to Rule 903(c)(3)(ii)(B) under the Securities Act. 
  
 Upon the occurrence of either of the preceding events in (1) or
(2) above, Definitive Securities shall be issued in such names as the Depositary shall instruct the Trustee and the Registrar. Global Securities also may be exchanged or replaced, in whole or in part, as provided in Sections 2.7 and
Section 2.9 hereof. Every Security authenticated and delivered in exchange for, or in lieu of, a Global Security or any portion thereof, pursuant to this Section 2.6, Section 2.7 or Section 2.9 hereof,
shall be authenticated and delivered in the form of, and shall be, a Global Security. A Global Security may not be exchanged for another Security other than as provided in this Section 2.6(a), however, beneficial interests in a Global Security
may be transferred and exchanged as provided in Sections 2.6(b), (c) or (f) hereof. 
  
 (b) Transfer and Exchange of Beneficial Interests in the Global Securities. The transfer and exchange of beneficial interests in the Global
Securities shall be effected through the Depositary, in accordance with the provisions of this Indenture and the Applicable Procedures. Beneficial interests in the Restricted Global Securities shall be subject to restrictions on transfer comparable
to those set forth herein, including those set forth in the Private Placement Legend to 

  

 33 

 
the extent required by the Securities Act. Transfers of beneficial interests in the Global Securities also shall require compliance with either subparagraph
(1) or (2) below, as applicable, as well as one or more of the other following subparagraphs, as applicable: 
  
 (1) Transfer of Beneficial Interests in the Same Global Security. Beneficial interests in any Restricted Global Security may be
transferred to Persons who take delivery thereof in the form of a beneficial interest in the same Restricted Global Security in accordance with the transfer restrictions set forth in the Private Placement Legend; provided, however, that prior
to the expiration of the Restricted Period, transfers of beneficial interests in the Regulation S Global Security may not be to a U.S. Person or for the account or benefit of a U.S. Person (other than an Initial Purchaser). Beneficial interests in
any Unrestricted Global Security may be transferred to Persons who take delivery thereof in the form of a beneficial interest in an Unrestricted Global Security. No written orders or instructions shall be required to be delivered to the Registrar to
effect the transfers described in this Section 2.6(b)(1). 
  
 (2) All Other Transfers and Exchanges of Beneficial Interests in Global Securities. In connection with all transfers and exchanges of beneficial interests that are not subject to Section 2.6(b)(1)
above, the transferor of such beneficial interest must deliver to the Registrar either: 
  
 (A) (i) a written order from a Participant or an Indirect Participant given to the Depositary in accordance with the Applicable Procedures
directing the Depositary to credit or cause to be credited a beneficial interest in another Global Security in an amount equal to the beneficial interest to be transferred or exchanged; and 
  
 (ii) instructions given in accordance with the Applicable
Procedures containing information regarding the Participant account to be credited with such increase; or 
  
 (B) (i) a written order from a Participant or an Indirect Participant given to the Depositary in accordance with the Applicable Procedures
directing the Depositary to cause to be issued a Definitive Security in an amount equal to the beneficial interest to be transferred or exchanged; and 
  
 (ii) instructions given by the Depositary to the Registrar containing information regarding the Person in whose name such Definitive
Security shall be registered to effect the transfer or exchange referred to in Section 2.6(b)(2)(B)(i) above; provided that in no event shall Definitive Securities be issued upon the transfer or exchange of beneficial interests in
the Regulation S Global Security prior to (x) the expiration of the Restricted Period and (y) the receipt by the Registrar of any certificates required pursuant to Rule 903 under the Securities Act. Upon consummation of a Registered
Exchange Offer by the Company in accordance with Section 2.6(f) hereof, the requirements of this Section 2.6(b)(2) shall be deemed to have been satisfied upon receipt by the Registrar of the instructions contained in the
Letter of Transmittal delivered by the Holder of such beneficial interests in the Restricted Global Securities. Upon satisfaction of all of the requirements for transfer or exchange of beneficial 

  

 34 

 
interests in Global Securities contained in this Indenture, the Securities or otherwise applicable under the Securities Act, the Registrar shall adjust the
principal amount of the relevant Global Security(s) pursuant to Section 2.6(h) hereof. 
  
 (3) Transfer of Beneficial Interests to Another Restricted Global Security. A beneficial interest in any Restricted Global Security
may be transferred to a Person who takes delivery thereof in the form of a beneficial interest in another Restricted Global Security if the transfer complies with the requirements of Section 2.6(b)(2) above and the Registrar receives the
following: 
  
 (A) if the transferee will take
delivery in the form of a beneficial interest in the 144A Global Security, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications in item (1) thereof; 
  
 (B) if the transferee will take delivery in the form of a
beneficial interest in the Regulation S Global Security, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications in item (2) thereof; and 
  
 (C) if the transferee will take delivery in the form of a
beneficial interest in the IAI Global Security, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications and certificates and Opinion of Counsel required by (3) thereof, in each case, if
applicable. 
  
 (4) Transfer and Exchange of
Beneficial Interests in a Restricted Global Security for Beneficial Interests in the Unrestricted Global Security. A beneficial interest in any Restricted Global Security may be exchanged by any holder thereof for a beneficial interest in an
Unrestricted Global Security or transferred to a Person who takes delivery thereof in the form of a beneficial interest in an Unrestricted Global Security if the exchange or transfer complies with the requirements of Section 2.6(b)(2)
above and: 
  
 (A) such exchange or transfer is
effected pursuant to the Registered Exchange Offer in accordance with the Registration Rights Agreement and the holder of the beneficial interest to be transferred, in the case of an exchange, or the transferee, in the case of a transfer, certifies
in the applicable Letter of Transmittal or via the Depositary’s book-entry system that it is not (i) a broker-dealer, (ii) a Person participating in the distribution of the Exchange Securities or (iii) a Person who is an
affiliate (as defined in Rule 144) of the Company; 
  
 (B) such transfer is effected pursuant to the Shelf Registration Statement in accordance with the Registration Rights Agreement; 
  
 (C) such transfer is effected by an Exchanging Dealer pursuant to the Exchange Offer Registration Statement in accordance with the
Registration Rights Agreement; or 
  

 35 

 (D) the Registrar receives the following: 
  
 (i) if the holder of such beneficial interest in a
Restricted Global Security proposes to exchange such beneficial interest for a beneficial interest in an Unrestricted Global Security, a certificate from such holder in the form of Exhibit C hereto, including the certifications in item
(1)(a) thereof; or 
  
 (ii) if the holder
of such beneficial interest in a Restricted Global Security proposes to transfer such beneficial interest to a Person who shall take delivery thereof in the form of a beneficial interest in an Unrestricted Global Security, a certificate from such
holder in the form of Exhibit B hereto, including the certifications in item (4) thereof; 
  
 and, in each such case set forth in this subparagraph (D), if the Registrar so requests or if the Applicable Procedures so require, an Opinion of Counsel in form reasonably acceptable to the Registrar and the Company
to the effect that such exchange or transfer is in compliance with the Securities Act and state “blue sky” laws and that the restrictions on transfer contained herein and in the Private Placement Legend are no longer required in order to
maintain compliance with the Securities Act. 
  
 If any such
transfer is effected pursuant to subparagraph (B) or (D) above at a time when an Unrestricted Global Security has not yet been issued, the Company shall issue and, upon receipt of an Authentication Order in accordance with
Section 2.2 hereof, the Trustee shall authenticate one or more Unrestricted Global Securities in an aggregate principal amount equal to the aggregate principal amount of beneficial interests transferred pursuant to subparagraph
(B) or (D) above. 
  
 Beneficial interests in an
Unrestricted Global Security cannot be exchanged for, or transferred to Persons who take delivery thereof in the form of, a beneficial interest in a Restricted Global Security. 
  
 (c) Transfer or Exchange of Beneficial Interests for Definitive Securities. 
  
 (1) Beneficial Interests in Restricted Global Securities
to Restricted Definitive Securities. If any holder of a beneficial interest in a Restricted Global Security proposes to exchange such beneficial interest for a Restricted Definitive Security or to transfer such beneficial interest to a Person
who takes delivery thereof in the form of a Restricted Definitive Security, then, upon receipt by the Registrar of the following documentation: 
  
 (A) if the holder of such beneficial interest in a Restricted Global Security proposes to exchange such beneficial interest for a
Restricted Definitive Security, a certificate from such holder in the form of Exhibit C hereto, including the certifications in item (2)(a) thereof; 
  
 (B) if such beneficial interest is being transferred to a QIB in accordance with Rule 144A under the
Securities Act, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (1) thereof; 
  
 (C) if such beneficial interest is being transferred to a Non-U.S. Person in an offshore transaction in accordance with Rule 903 or Rule
904 under the Securities Act, 

  

 36 

 
a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (2) thereof; 
  
 (D) if such beneficial interest is being transferred
pursuant to an exemption from the registration requirements of the Securities Act in accordance with Rule 144 under the Securities Act, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item
(3)(a) thereof; 
  
 (E) if such beneficial
interest is being transferred to the Company or any of its Subsidiaries, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(b) thereof; or 
  
 (F) if such beneficial interest is being transferred
pursuant to an effective registration statement under the Securities Act, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(c) thereof, 
  
 the Registrar shall cause the aggregate principal amount of the applicable Global Security to
be reduced accordingly pursuant to Section 2.6(h) hereof, and the Company shall execute and the Trustee shall authenticate and deliver to the Person designated in the instructions a Definitive Security in the appropriate principal
amount. Any Definitive Security issued in exchange for a beneficial interest in a Restricted Global Security pursuant to this Section 2.6(c) shall be registered in such name or names and in such authorized denomination or denominations
as the holder of such beneficial interest shall instruct the Registrar through instructions from the Depositary and the Participant or Indirect Participant. The Trustee shall deliver such Definitive Securities to the Persons in whose names such
Securities are so registered. Any Definitive Security issued in exchange for a beneficial interest in a Restricted Global Security pursuant to this Section 2.6(c)(1) shall bear the Private Placement Legend and shall be subject to all
restrictions on transfer contained therein. Notwithstanding Sections 2.6(c)(1)(A) and (C) hereof, a beneficial interest in the Regulation S Global Security may not be exchanged for a Definitive Security or transferred to a Person
who takes delivery thereof in the form of a Definitive Security prior to (x) the expiration of the Restricted Period and (y) the receipt by the Registrar of any certificates required pursuant to Rule 903(b)(3)(ii)(B) under the Securities
Act, except in the case of a transfer pursuant to an exemption from the registration requirements of the Securities Act other than Rule 903 or Rule 904. 
  
 (2) Beneficial Interests in Restricted Global Securities to Unrestricted Definitive Securities. A holder of a beneficial interest
in a Restricted Global Security may exchange such beneficial interest for an Unrestricted Definitive Security or may transfer such beneficial interest to a Person who takes delivery thereof in the form of an Unrestricted Definitive Security only if:

  
 (A) such exchange or transfer is effected
pursuant to the Registered Exchange Offer in accordance with the Registration Rights Agreement and the holder of such beneficial interest, in the case of an exchange, or the transferee, in the case of a transfer, certifies in the applicable Letter
of Transmittal that it is not (i) a broker-dealer, (ii) a Person participating in the distribution of the Exchange Securities or (iii) a Person who is an affiliate (as defined in Rule 144) of the Company; 
  

 37 

 (B) such transfer is effected pursuant to the Shelf Registration Statement in accordance
with the Registration Rights Agreement; 
  
 (C)
such transfer is effected by an Exchanging Dealer pursuant to the Exchange Offer Registration Statement in accordance with the Registration Rights Agreement; or 
  
 (D) the Registrar receives the following: 
  
 (i) if the holder of such beneficial interest in a Restricted Global Security proposes to exchange such
beneficial interest for a Definitive Security that does not bear the Private Placement Legend, a certificate from such holder in the form of Exhibit C hereto, including the certifications in item (1)(b) thereof; or 
  
 (ii) if the holder of such beneficial interest in a
Restricted Global Security proposes to transfer such beneficial interest to a Person who shall take delivery thereof in the form of a Definitive Security that does not bear the Private Placement Legend, a certificate from such holder in the form of
Exhibit B hereto, including the certifications in item (4) thereof; 
  
 and, in each such case set forth in this subparagraph (D), if the Registrar so requests or if the Applicable Procedures so require, an Opinion of Counsel in form reasonably acceptable to the Registrar and the Company to the effect that such
exchange or transfer is in compliance with the Securities Act and state “blue sky” laws and that the restrictions on transfer contained herein and in the Private Placement Legend are no longer required in order to maintain compliance with
the Securities Act. 
  
 (3) Beneficial
Interests in Unrestricted Global Securities to Unrestricted Definitive Securities. If any holder of a beneficial interest in an Unrestricted Global Security proposes to exchange such beneficial interest for a Definitive Security or to transfer
such beneficial interest to a Person who takes delivery thereof in the form of a Definitive Security, then, upon satisfaction of the conditions set forth in Section 2.6(b)(3) hereof, the Registrar shall cause the aggregate principal
amount of the applicable Global Security to be reduced accordingly pursuant to Section 2.6(h) hereof, and the Company shall execute and the Trustee shall authenticate and deliver to the Person designated in the instructions a Definitive
Security in the appropriate principal amount. Any Definitive Security issued in exchange for a beneficial interest pursuant to this Section 2.6(c)(3) shall be registered in such name or names and in such authorized denomination or
denominations as the holder of such beneficial interest shall instruct the Registrar through instructions from the Depositary and the Participant or Indirect Participant. The Trustee shall deliver such Definitive Securities to the Persons in whose
names such Securities are so registered. Any Definitive Security issued in exchange for a beneficial interest pursuant to this Section 2.6(c)(3) shall not bear the Private Placement Legend. 
  
 (d) Transfer and Exchange of Definitive Securities for Beneficial
Interests. 
  
 (1) Restricted Definitive
Securities to Beneficial Interests in Restricted Global Securities. If any Holder of a Restricted Definitive Security proposes to exchange such Security 

  

 38 

 
for a beneficial interest in a Restricted Global Security or to transfer such Restricted Definitive Security to a Person who takes delivery thereof in the
form of a beneficial interest in a Restricted Global Security, then, upon receipt by the Registrar of the following documentation: 
  
 (A) if the Holder of such Restricted Definitive Security proposes to exchange such Security for a beneficial interest in a Restricted
Global Security, a certificate from such Holder in the form of Exhibit C hereto, including the certifications in item (2)(b) thereof; 
  
 (B) if such Restricted Definitive Security is being transferred to a QIB in accordance with Rule 144A under the Securities Act, a
certificate to the effect set forth in Exhibit B hereto, including the certifications in item (1) thereof; 
  
 (C) if such Restricted Definitive Security is being transferred to a Non-U.S. Person in an offshore transaction in accordance with Rule
903 or Rule 904 under the Securities Act, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (2) thereof; 
  
 (D) if such Restricted Definitive Security is being transferred pursuant to an exemption from the
registration requirements of the Securities Act in accordance with Rule 144 under the Securities Act, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(a) thereof; 
  
 (E) if such Restricted Definitive Security is being
transferred to the Company or any of its Subsidiaries, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(b) thereof; 
  
 (F) if such Restricted Definitive Security is being transferred pursuant to an effective registration
statement under the Securities Act, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(c) thereof; or 
  
 (G) if such Restricted Definitive Security is being transferred to an Institutional Accredited Investor, a
certificate to the effect set forth in Exhibit B hereto, including the certifications and certificates and Opinion of Counsel required by item (3)(d) thereof, in each case, if applicable, 
  
 the Trustee shall cancel the Restricted Definitive Security, the Registrar shall increase or
cause to be increased the aggregate principal amount of, in the case of clause (A) above, the appropriate Restricted Global Security, in the case of clause (B) above, the 144A Global Security, and in the case of clause (C) above, the
Regulation S Global Security. 
  

 39 

 (2) Restricted Definitive Securities to Beneficial Interests in Unrestricted Global
Securities. A Holder of a Restricted Definitive Security may exchange such Security for a beneficial interest in an Unrestricted Global Security or transfer such Restricted Definitive Security to a Person who takes delivery thereof in the form
of a beneficial interest in an Unrestricted Global Security only if: 
  
 (A) such exchange or transfer is effected pursuant to the Exchange Offer in accordance with the Registration Rights Agreement and the Holder, in the case of an exchange, or the transferee, in the case of a transfer,
certifies in the applicable Letter of Transmittal that it is not (1) a broker-dealer, (2) a Person participating in the distribution of the Exchange Securities or (3) a Person who is an affiliate (as defined in Rule 144) of the
Company; 
  
 (B) such transfer is effected
pursuant to the Shelf Registration Statement in accordance with the Registration Rights Agreement; 
  
 (C) such transfer is effected by an Exchanging Dealer pursuant to the Exchange Offer Registration Statement in accordance with the
Registration Rights Agreement; or 
  
 (D) the
Registrar receives the following: 
  
 (i) if the
Holder of such Definitive Securities proposes to exchange such Securities for a beneficial interest in the Unrestricted Global Security, a certificate from such Holder in the form of Exhibit C hereto, including the certifications in item
(1)(c) thereof; or 
  
 (ii) if the Holder
of such Definitive Securities proposes to transfer such Securities to a Person who shall take delivery thereof in the form of a beneficial interest in the Unrestricted Global Security, a certificate from such Holder in the form of Exhibit B
hereto, including the certifications in item (4) thereof; 
  
 and, in each
such case set forth in this subparagraph (D), if the Registrar so requests or if the Applicable Procedures so require, an Opinion of Counsel in form reasonably acceptable to the Registrar and the Company to the effect that such exchange or transfer
is in compliance with the Securities Act and state “blue sky” laws and that the restrictions on transfer contained herein and in the Private Placement Legend are no longer required in order to maintain compliance with the Securities Act.

  
 Upon satisfaction of the conditions of any of the
subparagraphs in this Section 2.6(d)(2), the Trustee shall cancel the Definitive Securities and the Registrar shall increase or cause to be increased the aggregate principal amount of the Unrestricted Global Security. 
  
 (3) Unrestricted Definitive Securities to Beneficial
Interests in Unrestricted Global Securities. A Holder of an Unrestricted Definitive Security may exchange such Security for a beneficial interest in an Unrestricted Global Security or transfer such Definitive Security to a Person who takes
delivery thereof in the form of a beneficial interest in an Unrestricted Global Security at any time. Upon receipt of a request for such an exchange or transfer, the Trustee shall cancel the applicable Unrestricted Definitive Security and the
Registrar shall increase or cause to be increased the aggregate principal amount of one of the Unrestricted Global Securities. 
  

 40 

 If any such exchange or transfer from a Definitive Security to a beneficial interest is effected pursuant
to subparagraphs (2)(B), (2)(D) or (3) above at a time when an Unrestricted Global Security has not yet been issued, the Company shall issue and, upon receipt of an Authentication Order in accordance with Section 2.2 hereof,
the Trustee shall authenticate one or more Unrestricted Global Securities in an aggregate principal amount equal to the principal amount of Definitive Securities so transferred. 
  
 (e) Transfer and Exchange of Definitive Securities for Definitive Securities. Upon request by a Holder of Definitive
Securities and such Holder’s compliance with the provisions of this Section 2.6(e), the Registrar shall register the transfer or exchange of Definitive Securities. Prior to such registration of transfer or exchange, the requesting
Holder shall present or surrender to the Registrar the Definitive Securities duly endorsed or accompanied by a written instruction of transfer in form satisfactory to the Registrar duly executed by such Holder or by his attorney, duly authorized in
writing. In addition, the requesting Holder shall provide any additional certifications, documents and information, as applicable, required pursuant to the following provisions of this Section 2.6(e). 
  
 (1) Restricted Definitive Securities to Restricted
Definitive Securities. Any Restricted Definitive Security may be transferred to and registered in the name of Persons who take delivery thereof in the form of a Restricted Definitive Security if the Registrar receives the following: 

 
 (A) if the transfer will be made pursuant to Rule 144A
under the Securities Act, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications in item (1) thereof; 
  
 (B) if the transfer will be made pursuant to Rule 903 or Rule 904, then the transferor must deliver a
certificate in the form of Exhibit B hereto, including the certifications in item (2) thereof; and 
  
 (C) if the transfer will be made pursuant to any other exemption from the registration requirements of the Securities Act, then the
transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications, certificates and Opinion of Counsel required by item (3) thereof, if applicable. 
  
 (2) Restricted Definitive Securities to Unrestricted
Definitive Securities. Any Restricted Definitive Security may be exchanged by the Holder thereof for an Unrestricted Definitive Security or transferred to a Person or Persons who take delivery thereof in the form of an Unrestricted Definitive
Security if: 
  
 (A) such exchange or transfer is
effected pursuant to the Registered Exchange Offer in accordance with the Registration Rights Agreement and the Holder, in the case of an exchange, or the transferee, in the case of a transfer, certifies in the applicable Letter of Transmittal that
it is not (1) a broker-dealer, (2) a Person participating in the distribution of the Exchange Securities or (3) a Person who is an affiliate (as defined in Rule 144) of the Company; 
  

 41 

 (B) any such transfer is effected pursuant to the Shelf Registration Statement in
accordance with the Registration Rights Agreement; 
  
 (C) any such transfer is effected by an Exchanging-Dealer pursuant to the Exchange Offer Registration Statement in accordance with the Registration Rights Agreement; or 
  
 (D) the Registrar receives the following: 
  
 (i) if the Holder of such Restricted Definitive Securities proposes to exchange such Securities for an
Unrestricted Definitive Security, a certificate from such Holder in the form of Exhibit C hereto, including the certifications in item (1)(d) thereof; or 
  
 (ii) if the Holder of such Restricted Definitive Security proposes to transfer such Securities to a Person
who shall take delivery thereof in the form of an Unrestricted Definitive Security, a certificate from such Holder in the form of Exhibit B hereto, including the certifications in item (4) thereof; 
  
 and, in each such case set forth in this subparagraph (D), if the Registrar so requests, an
Opinion of Counsel in form reasonably acceptable to the Registrar and the Company to the effect that such exchange or transfer is in compliance with the Securities Act and state “blue sky” laws and that the restrictions on transfer
contained herein and in the Private Placement Legend are no longer required in order to maintain compliance with the Securities Act. 
  
 (3) Unrestricted Definitive Securities to Unrestricted Definitive Securities. A Holder of Unrestricted Definitive Securities may
transfer such Securities to a Person who takes delivery thereof in the form of an Unrestricted Definitive Security. Upon receipt of a request to register such a transfer, the Registrar shall register the Unrestricted Definitive Security pursuant to
the instructions from the Holder thereof. 
  
 (f) Registered
Exchange Offer. Upon the occurrence of the Registered Exchange Offer in accordance with the Registration Rights Agreement, the Company shall issue and, upon receipt of an Authentication Order in accordance with Section 2.2, the
Trustee shall authenticate: 
  
 (A) one or more
Unrestricted Global Securities in an aggregate principal amount equal to the principal amount of the beneficial interests in the Restricted Global Securities tendered for acceptance by Persons that certify in the applicable Letters of Transmittal,
among other things, that (I) they are not broker-dealers, (II) they are not participating in a distribution of the Exchange Securities and (III) they are not affiliates (as defined in Rule 144) of the Company, and accepted for exchange in the
Registered Exchange Offer; and 
  
 (B)
Unrestricted Definitive Securities in an aggregate principal amount equal to the principal amount of the Restricted Definitive Securities accepted for exchange in the Registered Exchange Offer. 
  

 42 

 Concurrently with the issuance of such Securities, the Registrar shall cause the aggregate principal
amount of the applicable Restricted Global Securities to be reduced accordingly, and the Company shall execute and the Trustee shall authenticate, and deliver to the Persons designated by the Holders of Definitive Securities so accepted, Definitive
Securities in the appropriate principal amount. 
  
 (g)
Legends. The following legends shall appear on the face of all Global Securities and Definitive Securities issued under this Indenture unless specifically stated otherwise in the applicable provisions of this Indenture. 
  
 (1) Private Placement Legend. 
  
 (A) Except as permitted by subparagraph (B) below, each
Global Security and each Definitive Security (and all Securities issued in exchange therefor or substitution thereof) shall bear the legend in substantially the following form: 
  
 “THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION
UNDER THE UNITED STATES SECURITIES ACT OF 1933 (THE “SECURITIES ACT”), AND THIS SECURITY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS
SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. 
  
 THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS SECURITY MAY BE
OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY TO THE COMPANY OR (I) IN THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (III) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY
RULE 144 THEREUNDER (IF AVAILABLE) OR (IV) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES (I) THROUGH (IV) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES 

  

 43 

 
LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS SECURITY FROM
IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.” 
  
 (B) Notwithstanding the foregoing, any Global Security or Definitive Security issued pursuant to subparagraphs (b)(4), (c)(2), (c)(3), (d)(2), (d)(3), (e)(2), (e)(3) or (f) to this Section 2.6 (and
all Securities issued in exchange therefor or substitution thereof) shall not bear the Private Placement Legend. 
  
 (2) Global Security Legend. Each Global Security shall bear a legend in substantially the following form: 
  
 “THIS GLOBAL SECURITY IS HELD BY THE DEPOSITARY (AS
DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE REGISTRAR MAY MAKE SUCH NOTATIONS HEREON
AS MAY BE REQUIRED PURSUANT TO SECTION 2.6 OF THE INDENTURE, (II) THIS GLOBAL SECURITY MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.6(a) OF THE INDENTURE, (III) THIS GLOBAL SECURITY MAY BE DELIVERED TO THE TRUSTEE
FOR CANCELLATION PURSUANT TO SECTION 2.10 OF THE INDENTURE AND (IV) THIS GLOBAL SECURITY MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY. 
  
 UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR
SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT 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 OR BY THE DEPOSITARY OR
ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”) TO THE
COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS 

  

 44 

 
REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE 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.” 
  
 (h)
Cancellation and/or Adjustment of Global Securities. At such time as all beneficial interests in a particular Global Security have been exchanged for Definitive Securities or a particular Global Security has been redeemed, repurchased or
canceled in whole and not in part, each such Global Security shall be returned to or retained and canceled by the Trustee in accordance with Section 2.10 hereof. At any time prior to such cancellation, if any beneficial interest in a
Global Security is exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Global Security or for Definitive Securities, the principal amount of Securities represented by such Global
Security shall be reduced accordingly and an endorsement shall be made on such Global Security by the Registrar or by the Depositary at the direction of the Registrar to reflect such reduction; and if the beneficial interest is being exchanged for
or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Global Security, such other Global Security shall be increased accordingly and an endorsement shall be made on such Global Security by the
Registrar or by the Depositary at the direction of the Registrar to reflect such increase. 
  
 (i) General Provisions Relating to Transfers and Exchanges. 
  
 (1) To permit registrations of transfers and exchanges, the Company shall execute and the Trustee shall authenticate Global Securities and
Definitive Securities upon the Company’s order or at the Registrar’s request. 
  
 (2) No service charge shall be made to a holder of a beneficial interest in a Global Security or to a Holder of a Definitive Security for
any registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any transfer tax or similar governmental charge or other fee required by law and payable in connection therewith (other than any such transfer
taxes or similar governmental charge payable upon exchange or transfer pursuant to Sections 2.9 , 3.6, 3.7, 4.7 and 4.11 hereof). 
  
 (3) The Registrar or co-registrar shall not be required to register the transfer of or exchange of
(A) any Definitive Security selected for redemption in whole or in part pursuant to Article III hereof, except the unredeemed portion of any Definitive Security being redeemed in part or (B) any Security for a period beginning
(1) 15 Business Days before the mailing of a notice of an offer to repurchase or redeem Securities and ending at the close of business on the day of such mailing or (2) 15 Business Days before an Interest Payment Date and ending on such
Interest Payment Date. 
  

 45 

 (4) All Global Securities and Definitive Securities issued upon any registration of
transfer or exchange of Global Securities or Definitive Securities shall be the valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under this Indenture, as the Global Securities or Definitive Securities
surrendered upon such registration of transfer or exchange. 
  
 (5) None of the Company, the Trustee or the Registrar shall be required (A) to issue, to register the transfer of or to exchange any Securities during a period of 15 days before the day of any selection of
Securities for redemption under Section 3.2 hereof and ending at the close of business on the day of selection, (B) to register the transfer of or to exchange any Securities so selected for redemption in whole or in part, except the
unredeemed portion of any Security being redeemed in part or (C) to register the transfer of or to exchange a Security between a record date and the next succeeding Interest Payment Date. 
  
 (6) Prior to the due presentation for registration of
transfer of any Security, the Company, the Trustee, the Paying Agent, the Registrar or any co-registrar may deem and treat the Person in whose name a Security is registered as the absolute owner of such Security for the purpose of receiving payment
of principal, interest and premium (if any) on such Security and for all other purposes whatsoever, whether or not such Security is overdue, and none of the Company, the Trustee, the Paying Agent, the Registrar or any co-registrar shall be affected
by notice to the contrary. 
  
 (7) Except as
otherwise set forth in this Indenture or a Global Security, owners of beneficial interests in a Global Security will not be entitled to any rights under this Indenture with respect to such Global Security, and the Depositary or, if applicable, its
nominee in whose name such Global Security is registered, may be treated by the Company, the Trustee and any agent of the Company or the Trustee as the owner and Holder of such Global Security for all purposes whatsoever. Notwithstanding the
foregoing, nothing herein shall prevent the Company, the Trustee or any such agent from giving effect to any written certification, proxy or other authorization furnished by the Depositary or, if applicable, such nominee, or impair, as between the
Depositary or its nominee and such owners of beneficial interests, the operation of customary practices governing the exercise of rights of the Depositary or its nominee as the Holder of any Security. 
  
 (8) The Trustee shall authenticate Global Securities and
Definitive Securities in accordance with the provisions of Section 2.2 hereof. 
  
 (9) All certifications, certificates and Opinions of Counsel required to be submitted to the Registrar and the Company pursuant to this
Section 2.6 to effect a registration of transfer or exchange may be submitted by facsimile. 
  

	Section 2.7	Replacement Securities 

  
 If any mutilated Security is surrendered to the Registrar or the Company and the Registrar receives evidence to their satisfaction of the destruction,
loss or theft of any Security, the Company will issue and the Trustee, upon receipt of a written order of the Company conforming to Section 2.2 hereof, will authenticate a replacement Security if the Registrar’s and 

  

 46 

 
the Company’s reasonable requirements are met. If required by the Registrar or the Company, an indemnity bond must be supplied by the Holder that is
sufficient in the judgment of the Registrar, the Trustee and the Company to protect the Company, the Trustee, the Registrar, any other Agent and any Authenticating Agent from any loss that any of them may suffer if a Security is replaced. The
Company may charge for its expenses in replacing a Security. 
  
 Every replacement Security is an additional obligation of the Company and will be entitled to all of the benefits of this Indenture equally and proportionately with all other Securities duly issued hereunder. 
  

	Section 2.8	Outstanding Securities 

  
 The Securities outstanding at any time are all the Securities authenticated by the Trustee except for those canceled by it, those delivered to it for
cancellation, those reductions in the interest in a Global Security effected by the Trustee in accordance with the provisions hereof, and those described in this Section as not outstanding. Except as set forth in Section 12.6 hereof, a
Security does not cease to be outstanding because the Company or an Affiliate of the Company holds the Security. 
  
 If a Security is replaced pursuant to Section 2.7 hereof, it ceases to be outstanding unless the Trustee receives proof satisfactory to it
that the replaced Security is held by a protected purchaser. 
  
 If the principal amount of any Security is considered paid under Section 4.1 hereof, it ceases to be outstanding and interest on it ceases to accrue. 
  
 If the Paying Agent (other than the Company, a Subsidiary or an Affiliate of any thereof) holds, on a Redemption Date or
maturity date, money sufficient to pay Securities payable on that date, then on and after that date such Securities will be deemed to be no longer outstanding and will cease to accrue interest. 
  

	Section 2.9	Temporary Securities 

  
 Until Definitive Securities are ready for delivery, the Company may prepare and the Trustee shall authenticate temporary Securities. Temporary Securities
shall be substantially in the form of Definitive Securities but may have variations that the Company considers appropriate for temporary Securities. Without unreasonable delay, the Company shall prepare and the Trustee shall authenticate Definitive
Securities in exchange for temporary Securities. Holders of temporary Securities shall in all respects be entitled to the same benefits under this Indenture as a holder of Definitive Securities. 
  

	Section 2.10	Cancellation 

  
 The Company at any time may deliver Securities to the Trustee or any Registrar for cancellation. The Registrar and the Paying Agent shall forward to the
Trustee any Securities surrendered to them for registration of transfer, exchange or payment. The Trustee or the Registrar and no one else shall cancel and destroy (subject to the record retention requirements of the Exchange Act) all Securities
surrendered for registration of transfer, exchange, payment, 

  

 47 

 
replacement or cancellation and deliver a certificate of such destruction to the Company unless the Company directs the Trustee and the Registrar to deliver
canceled Securities to the Company. The Company may not issue new Securities to replace Securities it has redeemed, paid or delivered to the Trustee or the Registrar for cancellation. 
  

	Section 2.11	Defaulted Interest 

  
 If the Company defaults in a payment of interest (“Defaulted Interest”) on the Securities, the Company shall pay Defaulted Interest (as provided
in Section 4.1 hereof) in any lawful manner. The Company may pay the Defaulted Interest to the Persons who are Holders on a subsequent special record date. The Company shall fix or cause to be fixed (or upon the Company’s failure to
do so the Trustee shall fix pursuant to a written instruction of Holders of at least a majority in principal amount of the Securities) any such special record date and payment date to the reasonable satisfaction of the Trustee which special record
date shall not be less than 10 days prior to the payment date for such Defaulted Interest and the Company, or at the Company’s request, the Trustee, shall promptly deliver or cause to be delivered to each Holder a notice that states the special
record date, the payment date and the amount of Defaulted Interest to be paid. The Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each Security and the date of the proposed payment, and at the
same time the Company shall deposit with the Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date
of the proposed payment, such money when so deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as provided in this Section 2.11. 
  

	Section 2.12	CUSIP and ISIN Numbers 

  
 The Company in issuing the Securities may use “CUSIP” and ISIN numbers (if then generally in use) and, if so, the Trustee shall use
“CUSIP” numbers or ISIN numbers in notices of redemption as a convenience to Holders; provided, however, that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the
Securities or as contained in any notice of a redemption or exchange or purchase offer and that reliance may be placed only on the other identification numbers printed on the Securities, and any such redemption shall not be affected by any defect in
or omission of such numbers. The Company will promptly notify the Trustee of any change in the CUSIP or ISIN numbers. 
  
 ARTICLE III 
  
 REDEMPTION 
  

	Section 3.1	Notices to Trustee 

  
 If the Company elects to redeem Securities pursuant to Section 3.7 hereof, it shall notify the Trustee in writing of the Redemption Date and
the principal amount of Securities to be redeemed. 
  
 The Company
shall give each notice to the Trustee and the Registrar provided for in this Section 3.1 at least 45 days before the Redemption Date unless the Trustee consents to a shorter 

  

 48 

 
period. Such notice shall be accompanied by an Officer’s Certificate to the effect that such redemption will comply with the conditions herein. If fewer
than all the Securities are to be redeemed, the record date relating to such redemption shall be selected by the Company and set forth in the related notice given to the Trustee, which record date shall be not less than 15 days after the date of
such notice. 
  

	Section 3.2	Selection of Securities To Be Redeemed 

  
 In the case of any partial redemption, selection of the Securities for redemption will be made by the Trustee in compliance with the requirements of the
principal national securities exchange, if any, on which the Securities are listed or, if the Securities are not listed, then on a pro rata basis, by lot or in such manner as the Trustee shall deem fair and appropriate. Securities and
portions of them the Trustee selects shall be in amounts of $1,000 or a whole multiple of $1,000. Provisions of this Indenture that apply to Securities called for redemption also apply to portions of Securities called for redemption. The Trustee
shall notify the Company promptly of the Securities or portions of Securities to be redeemed. The Trustee may rely upon information provided by the Registrar for purposes of this Section 3.2. 
  

	Section 3.3	Notice of Redemption 

  
 At least 30 days but not more than 60 days before a date for redemption of Securities, the Company shall deliver a notice of redemption (with a copy to
the Trustee) to each Holder of Securities to be redeemed at such Holder’s registered address. 
  
 The notice shall identify the Securities to be redeemed and shall state: 
  
 (1) the Redemption Date; 
  
 (2) the Redemption Price; 
  
 (3) the name and address of the Paying Agent where Securities are to be surrendered; 
  
 (4) that Securities called for redemption must be
surrendered to the Paying Agent to collect the Redemption Price; 
  
 (5) if fewer than all the outstanding Securities are to be redeemed, the identification and principal amounts of the particular Securities to be redeemed; 
  
 (6) that, unless the Company defaults in making such redemption payment, interest on Securities (or portion
thereof) called for redemption ceases to accrue on and after the Redemption Date; 
  
 (7) the CUSIP number or ISIN number, if any, printed on the Securities being redeemed; and 
  
 (8) that no representation is made as to the correctness or
accuracy of the CUSIP number or ISIN number, if any, listed in such notice or printed on the Securities. 
  

 49 

 At the Company’s request, the Trustee shall give the notice of redemption in the Company’s name
and at the Company’s expense. In such event, the Company shall provide the Trustee with the information required by this Section 3.3. 
  

	Section 3.4	Effect of Notice of Redemption 

  
 Once notice of redemption is delivered to Holders, Securities (or portions thereof) called for redemption become irrevocably due and payable on the
Redemption Date and at the Redemption Price stated in the notice. A notice of redemption may not be conditional. Upon surrender to the Paying Agent, such Securities shall be paid at the Redemption Price stated in the notice, plus accrued interest to
the Redemption Date; provided that if the Redemption Date is on or after a regular record date and on or prior to the Interest Payment Date, the accrued and unpaid interest shall be payable to the Holder of the redeemed Securities registered
on the relevant record date. Failure to give notice or any defect in the notice to any Holder shall not affect the validity of the notice to any other Holder. 
  

	Section 3.5	Deposit of Redemption Price 

  
 No later than 11:00 a.m. (New York City time) on the Business Date prior to the date on which any principal, interest and premium (if any) on any Security
is due and payable, the Company shall deposit with the Paying Agent (or, if the Parent, the Company or a Subsidiary is the Paying Agent, shall segregate and hold in trust) money sufficient to pay the Redemption Price of and accrued interest on all
Securities to be redeemed on that date other than Securities or portions of Securities called for redemption which are owned by the Parent, the Company or a Subsidiary and have been delivered by the Company or such Subsidiary to the Trustee for
cancellation. If the Company complies with the provisions of this Section, then on and after the Redemption Date, interest will cease to accrue on the Securities or the portions of Securities called for redemption. 
  

	Section 3.6	Securities Redeemed in Part 

  
 Upon cancellation of a Security that is redeemed in part, the Company shall issue and the Trustee shall authenticate for the Holder (at the Company’s
expense) a new Security equal in principal amount to the unredeemed portion of the Security surrendered. The Trustee shall notify the Registrar of the issuance of such new Security. 
  

	Section 3.7	Optional Redemption 

  
 (a) At any time and from time to time on or after December 15, 2008, the Company may redeem all or a part of the Securities upon not less than 30 nor
more than 60 days’ notice at the following Redemption Prices (expressed as percentages of the principal amount) plus accrued and unpaid interest and Additional Amounts, if any, on the Securities, to the applicable Redemption Date (subject to
the right of Holders of record on the relevant regular record date to receive interest and Additional Amounts, if any, due on an Interest Payment Date that is on or prior to the Redemption Date), if redeemed during the 12-month period (or shorter
period, as applicable) beginning on the dates indicated below: 
  

				
	 Year

	  	Redemption Price

	 
	 December 15, 2008
	  	106.00	%
	 December 15, 2009
	  	103.00	%
	 June 15, 2010
	  	100.00	%

  

 50 

 (b) At any time prior to December 15, 2008, the Company may on one or more occasions redeem up to
35% of the Securities originally issued under this Indenture at a redemption price of (i) 106.00% of the principal amount thereof if the redemption occurs prior to June 15, 2006, or (ii) 112.00% of the principal amount thereof if the
redemption occurs on or after June 15, 2006 but prior to December 15, 2008, plus in each case accrued and unpaid interest and Additional Amounts, if any, to the Redemption Date, with the Net Cash Proceeds of one or more Equity Offerings;
provided that 
  
 (1) at least 65% of the
Securities originally issued under this Indenture remains outstanding immediately after the occurrence of such redemption (excluding Securities held by the Company and its Subsidiaries); and 
  
 (2) the redemption must occur within 90 days of the date of
the closing of such Equity Offering. 
  
 (c) Any redemption
pursuant to this Section 3.7 shall be made pursuant to the provisions of Section 3.1 through 3.6 hereof. 
  

	Section 3.8	Special Mandatory Redemption 

  
 Notwithstanding the foregoing, in the event that (i) the closing of the Bramex Acquisition does not occur on or prior to the Deadline, or
(ii) the Parent or the Company fails to timely comply, or fails to cause the timely compliance, with any of the covenants contained in Section 4.40(b) of the Purchase Agreements (the occurrence of either of the events described in the
foregoing clauses (i) or (ii) is referred to as a “Special Mandatory Redemption Event”), the Company shall promptly, but in any event within 3 Business Days following the occurrence of a Special Mandatory Redemption Event (such
redemption day, the “Special Mandatory Redemption Date”), redeem all of the Securities (the “Special Mandatory Redemption”) at a purchase price in cash equal to 100% of the aggregate principal amount of the Securities plus
accrued interest thereon to the Special Mandatory Redemption Date (the “Special Mandatory Redemption Price”). Upon the occurrence of a Special Mandatory Redemption Event, notice of the Special Mandatory Redemption, specifying the Special
Mandatory Redemption Date, will be delivered promptly, but in any event within one Business Day following the occurrence of such Special Mandatory Redemption Event, to each holder of the Securities at its registered address and to the Trustee by
facsimile or overnight mail. At or before 5:00 p.m. (New York City time), on the Special Mandatory Redemption Date, the Trustee will pay, or cause to be paid, to the extent available funds have been received by it from the Company, to the Holder of
the Securities the Special Mandatory Redemption Price for such Holder’s Securities. 
  

 51 

 ARTICLE IV 
  

COVENANTS 
  

	Section 4.1	Payment of Securities 

  
 The Company covenants and agrees for the benefit of the Holders of the Securities that it shall promptly pay the principal of, premium, if any, interest
and Additional Amounts, if any, on the Securities on the dates and in the manner provided in the Securities and in this Indenture. Payments of principal, premium, if any, interest and Additional Amounts, if any, on the Securities shall be deemed due
for all purposes under this Indenture whether such payments are due at Stated Maturity, upon optional redemption, upon required repurchase pursuant to Sections 4.7 or 4.11 hereof, upon declaration or otherwise. Principal, premium, if
any, interest and Additional Amounts, if any, on the Securities shall be considered paid on the date due if on such date the Paying Agent holds in accordance with this Indenture money sufficient to pay all principal, premium, if any, interest and
Additional Amounts, if any, then due. 
  
 The Company will pay, to
the extent lawful, interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal and premium, if any, at the rate per annum of 1% over the rate then in effect on the Securities to the extent lawful; it
will pay, to the extent lawful, interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of interest and Additional Amounts, if any (without regard to any applicable grace periods), from time to
time on demand at the same rate as on overdue principal. 
  
 All
references in this Indenture, the Securities, the Parent Guarantee or the Subsidiary Guarantees to interest shall be deemed to include Additional Interest. 
  

	Section 4.2	SEC Reports 

  
 Whether or not required by the SEC, so long as any Securities are outstanding, the Parent will furnish to the Trustee and the Holders of Securities,
within the time periods (including grace periods) specified in the SEC’s rules and regulations: 
  
 (1) all quarterly and annual financial information that would be required to be contained in a filing with the SEC on Forms 10-Q and 10-K
if the Parent were required to file such Forms, including a section on “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and, with respect to the annual information only, a report on the annual
financial statements by the Parent’s certified independent public accountants; and 
  
 (2) all current reports that would be required to be filed with the SEC on Form 8-K if the Parent were required to file such reports; and

  
 (3) all proxy statements and related proxy
and stockholder materials. 
  
 If the Parent has designated any of
its Subsidiaries as Unrestricted Subsidiaries, then the quarterly and annual financial information required by the preceding paragraph shall include a reasonably detailed presentation, either on the face of the financial statements or in the
footnotes 

  

 52 

 
thereto, and in Management’s Discussion and Analysis of Financial Condition and Results of Operations, of the financial condition and results of
operations of the Parent and its Restricted Subsidiaries separate from the financial condition and results of operations of the Unrestricted Subsidiaries of the Parent. 
  
 In addition, whether or not required by the SEC, the Parent will file a copy of all of the information and reports referred
to in clause (1) and (2) above with the SEC for public availability within the time periods specified in the SEC’s rules and regulations (unless the SEC will not accept such a filing). 
  
 In addition, the Parent agrees that, for so long as any Securities remain
outstanding, if at any time it is not required to file with the SEC the reports required by the preceding paragraphs, it will furnish to Holders of Securities and to prospective investors, upon request, the information required to be delivered
pursuant to Rule 144A(d)(4) under the Securities Act. 
  

	Section 4.3	Incurrence of Indebtedness 

  
 (a) The Parent will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, issue, assume, guarantee or
otherwise become directly or indirectly liable, contingently or otherwise, with respect to (collectively, “incur”) any Indebtedness (including Acquired Debt); provided, however, that the Parent, the Company and any Guarantor may
incur Indebtedness (including Acquired Debt), if the Fixed Charge Coverage Ratio for the Parent’s most recently ended four full fiscal quarters for which internal financial statements are available immediately preceding the date on which such
additional Indebtedness is incurred would have been at least 2.5 to 1, determined on a pro forma basis (including a pro forma application of the net proceeds therefrom), as if the additional Indebtedness had been incurred at the beginning of such
four-quarter period. 
  
 (b) So long as no Default shall have
occurred and be continuing or would be caused thereby, Section 4.3(a) will not prohibit the incurrence of any of the following items of Indebtedness (collectively, “Permitted Indebtedness”): 
  
 (1) the incurrence by the Parent, the Company and the
Subsidiary Guarantors of Indebtedness represented by (a) the Initial Securities, the Parent Guarantee and the Subsidiary Guarantees, and (b) any Securities issued pursuant to the Registration Rights Agreement in exchange for the Initial
Securities, and any Parent Guarantee or Subsidiary Guarantees related thereto; 
  
 (2) the incurrence by the Parent, the Company or any Subsidiary Guarantor of Permitted Refinancing Indebtedness in exchange for, or the
net proceeds of which are used to refund, refinance or replace, Indebtedness (other than intercompany Indebtedness) that was permitted by this Indenture to be incurred under Section 4.3(a) or clause (1), clause (9) or this clause
(2) of this Section 4.3(b); 
  

 53 

 (3) the incurrence by the Parent or any of its Restricted Subsidiaries of intercompany
Indebtedness between or among the Parent and any of its Restricted Subsidiaries; provided, however, that: 
  
 (A) (i) if the Parent or the Company is the obligor on such Indebtedness and a Subsidiary Guarantor is not the obligee thereon, such
Indebtedness must be expressly subordinated to the prior payment in full in cash of all obligations with respect to the Securities or the Parent Guarantee, as applicable, and (ii) if a Subsidiary Guarantor is the obligor of such Indebtedness
and the Parent, the Company or another Subsidiary Guarantor is not the obligee thereon, such Indebtedness must be expressly subordinated to the prior payment in full in cash of all obligations of such Subsidiary Guarantor with respect to its
Subsidiary Guarantee, and 
  
 (B) (i) any
subsequent issuance or transfer of Equity Interests that results in any such Indebtedness being held by a Person other than the Parent or a Restricted Subsidiary thereof and (ii) any sale or other transfer of any such Indebtedness to a Person
that is not either the Parent or a Restricted Subsidiary thereof, shall be deemed, in each case, to constitute an incurrence of such Indebtedness by the Parent or such Restricted Subsidiary, as the case may be, that was not permitted by this clause;

  
 (4) the accrual of interest, accretion or
amortization of original issue discount, the payment of interest on any Indebtedness in the form of additional Indebtedness with the same terms, and the payment of dividends on Disqualified Stock in the form of additional shares of the same class of
Disqualified Stock, provided, in each such case, that the amount thereof is included in Fixed Charges of the Parent as accrued; 
  
 (5) any obligations in respect of completion bonds, performance bonds, bid bonds, appeal bonds, surety bonds, bankers acceptances, letters
of credit, insurance obligations or bonds and other similar bonds and obligations incurred by the Parent or any Restricted Subsidiary in the ordinary course of business and any guaranties or letters of credit functioning as or supporting any of the
foregoing bonds or obligations; 
  
 (6) any
obligation under Interest Rate Agreements, Currency Agreements and Commodity Agreements; provided, that such Interest Rate Agreements, Currency Agreements and Commodity Agreements are related to business transactions of the Parent or its Restricted
Subsidiaries entered into in the ordinary course of business and are entered into for bona fide hedging purposes (and not financing or speculative purposes) of the Parent or its Restricted Subsidiaries (as determined in good faith by the Board of
Directors or senior management of the Parent); 
  
 (7) any obligation arising from agreements of the Parent or a Restricted Subsidiary providing for indemnification, guarantee, adjustment of purchase price, holdback, contingency payment obligation based on the performance of the disposed
asset or similar obligations, in each case, incurred or assumed in connection with the disposition of any business, asset or Capital Stock of a Restricted Subsidiary, provided that the maximum aggregate liability in respect of all such
Indebtedness shall at no time exceed the gross proceeds actually received by the Parent and its Restricted Subsidiaries in connection with such disposition; 
  
 (8) any obligation arising from the honoring by a bank or other financial institution of a check, draft or similar instrument (except in
the case of daylight overdrafts) 

  

 54 

 
drawn against insufficient funds in the ordinary course of business, provided, however, that such Indebtedness is extinguished within five Business Days of
incurrence; 
  
 (9) Indebtedness of a Restricted
Subsidiary incurred after the Issue Date and outstanding on the date on which such Subsidiary was acquired by the Parent (other than Indebtedness incurred in connection with, or to provide all or any portion of the funds or credit support utilized
to consummate, the transaction or series of related transactions pursuant to which such Subsidiary became a Subsidiary or was acquired by the Parent) and excluding therefrom any of such Indebtedness that is extinguished, retired or repaid in
connection with such acquisition; provided that on the date of such acquisition and after giving pro forma effect thereto, the Parent would have been able to Incur at least $1.00 of additional Indebtedness pursuant the first paragraph
of this covenant; and 
  
 (10) Indebtedness
outstanding on the Issue Date. 
  
 (c) The Parent and the Company
will not, and will not permit any Subsidiary Guarantor to, directly or indirectly, incur any Indebtedness which by its terms (or by the terms of any agreement governing such Indebtedness) is subordinated to any other Indebtedness of the Parent or
the Company or of such Subsidiary Guarantor, as the case may be, unless made expressly subordinate to the Securities, the Parent Guarantee or the Subsidiary Guarantee of such Subsidiary Guarantor, as the case may be, at least to the same extent as
such Indebtedness is subordinated to such other Indebtedness of the Parent or the Company or of such Subsidiary Guarantor, as the case may be. 
  
 (d) For purposes of determining compliance with this Section 4.3: 
  
 (1) in the event that an item of proposed Indebtedness meets the criteria of more than one of the categories
of Permitted Indebtedness described in clauses (1) through (10) of Section 4.3(b) above, or is entitled to be incurred pursuant to Section 4.3(a), the Company will be permitted to classify and reclassify such item
of Indebtedness (or any portion thereof) in any manner that complies with this covenant, and only be required to include the amount and type of such Indebtedness in one of such clauses; 
  
 (2) guarantees of, or obligations in respect of letters of credit relating to, Indebtedness which is
otherwise included in the determination of a particular amount of Indebtedness shall not be included; 
  
 (3) Indebtedness permitted by this covenant need not be permitted solely by reference to one provision permitting such Indebtedness but
may be permitted in part by one such provision and in part by one or more other provisions of this covenant permitting such Indebtedness; 
  
 (4) the amount of Indebtedness issued at a price that is less than the principal amount thereof will be equal to the amount of the
liability in respect thereof determined in accordance with GAAP; and 
  

 55 

 (5) Indebtedness of any Person existing at the time such Person becomes a Restricted
Subsidiary shall be deemed to have been incurred by the Company and the Restricted Subsidiary at the time such Person becomes a Restricted Subsidiary. 
  
 (e) For purposes of determining compliance with any U.S. dollar-denominated restriction on the incurrence of Indebtedness, the U.S. dollar-equivalent
principal amount of Indebtedness denominated in a foreign currency shall be calculated based on the relevant currency exchange rate in effect on the date such Indebtedness was incurred, in the case of term Indebtedness, or first committed, in the
case of revolving credit Indebtedness; provided that if such Indebtedness is incurred to refinance other Indebtedness denominated in a foreign currency, and such refinancing would cause the applicable U.S. dollar-dominated restriction to be
exceeded if calculated at the relevant currency exchange rate in effect on the date of such refinancing, such U.S. dollar-dominated restriction shall be deemed not to have been exceeded so long as the principal amount of such refinancing
Indebtedness does not exceed the principal amount of such Indebtedness being refinanced. Notwithstanding any other provision of this covenant, the maximum amount of Indebtedness that may be incurred pursuant to this covenant shall not be deemed to
be exceeded solely as a result of fluctuations in the exchange rate of currencies. The principal amount of any Permitted Refinancing Indebtedness, if incurred in a different currency from the Indebtedness being refinanced, shall be calculated based
on the currency exchange rate applicable to the currencies in which such Permitted Refinancing Indebtedness is denominated that is in effect on the date of such refinancing. 
  

	Section 4.4	Restricted Payments 

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

	 	(i)	declare or pay any dividend or make any other payment or distribution on account of the Parent’s or any of its Restricted Subsidiaries’ Equity Interests (including,
without limitation, any payment in connection with any merger or consolidation involving the Parent or any of its Restricted Subsidiaries) or to the direct or indirect holders of the Parent’s or any of its Restricted Subsidiaries’ Equity
Interests in their capacity as such (other than dividends or distributions payable in Equity Interests (other than Disqualified Stock) of the Parent or to the Parent or a Restricted Subsidiary of the Parent); 

  

	 	(ii)	purchase, redeem or otherwise acquire or retire for value (including, without limitation, in connection with any merger or consolidation involving the Parent or a Restricted
Subsidiary) any Equity Interests of the Parent or any Restricted Subsidiary (other than any such Equity Interests owned by any of its Restricted Subsidiaries) except in exchange for Equity Interests (other than Disqualified Stock) of the Parent;

  

	 	(iii)	 make any payment on or with respect to, or purchase, redeem, defease or otherwise acquire or retire for value any Subordinated Indebtedness of the Parent, the
Company or any Subsidiary Guarantor held by persons other than the Parent 

  

 56 

	 	 
or a Wholly-Owned Restricted Subsidiary, except a payment of interest or principal at the Stated Maturity thereof; or 

  

	 	(iv)	make any Investment other than a Permitted Investment (all such payments and other actions set forth in clauses (i) through (iv) above being collectively referred to as
“Restricted Payments”), 

  
 unless, at the
time of and after giving effect to such Restricted Payment: 
  

	 	(1)	no Default shall have occurred and be continuing or would occur as a consequence thereof; and 

  

	 	(2)	the Parent would, at the time of such Restricted Payment and after giving pro forma effect thereto as if such Restricted Payment had been made at the beginning of the applicable
four-quarter period, have been permitted to incur at least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in Section 4.3(a) hereof; and 

  

	 	(3)	such Restricted Payment, together with the aggregate amount of all other Restricted Payments made by the Parent and its Restricted Subsidiaries after the Issue Date (excluding
Restricted Payments permitted by clauses (2) and (3) of the next succeeding paragraph), is less than $5,000,000. 

  
 (b) The preceding provisions will not prohibit: 
  

	 	(1)	the payment of any dividend within 60 days after the date of declaration thereof, if at said date of declaration such payment would have complied with the provisions of this
Indenture; 

  

	 	(2)	the defeasance, redemption, repurchase or other acquisition of Subordinated Indebtedness of the Parent, the Company or any Subsidiary Guarantor with the Net Cash Proceeds from an
incurrence of Permitted Refinancing Indebtedness; 

  

	 	(3)	the consummation of the Bramex Acquisition and the acquisition of net revenue interests from Kornerstone Investment Group Ltd., each with the proceeds of the offering of the
Securities as described in the confidential offering memorandum distributed in connection with the offering of the Securities under the heading “Transaction Overview – Sources and Uses of Funds”. 

  
 (c) The amount of all Restricted Payments (other than cash) shall be the Fair
Market Value on the date of the Restricted Payment of the asset(s) or securities proposed to be transferred or issued by the Parent or such Restricted Subsidiary, as the case may be, pursuant to the Restricted Payment. The Fair Market Value of any
assets or securities that are required to be valued by this covenant shall be evidenced by an Officer’s Certificate to be delivered to the Trustee. Not later than five Business Days following the date of the making any Restricted Payment (other
than under clause (3) of Section 4.4(b)), the Parent shall deliver to the Trustee an Officer’s Certificate stating that such Restricted Payment is permitted and setting forth the basis 

  

 57 

 
upon which the calculations required by Section 4.4, were computed, together with a copy of any fairness opinion or appraisal required by this
Indenture. 
  

	Section 4.5	Liens 

  
 The Parent will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, assume or suffer to exist any Lien
on any property or asset now owned or hereafter acquired, or any income or profits therefrom or assign or convey any right to receive income therefrom, except Permitted Liens. 
  

	Section 4.6	Dividend and Other Payment Restrictions Affecting Subsidiaries 

  
 (a) The Parent will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, create or permit to exist or become effective
any consensual encumbrance or restriction (other than pursuant to this Indenture or the Security Documents) on the ability of any Restricted Subsidiary to: 
  
 (1) pay dividends or make any other distributions on its Capital Stock to the Parent or any of the Parent’s Restricted Subsidiaries,
or pay any Indebtedness owed to the Parent or any of the Parent’s Restricted Subsidiaries; 
  
 (2) make loans or advances to the Parent or any of the Parent’s Restricted Subsidiaries; or 
  
 (3) transfer any of its properties or assets to the Parent
or any of the Parent’s Restricted Subsidiaries. 
  
 (b)
However, the preceding restrictions will not apply to encumbrances or restrictions existing under or by reason of: 
  
 (1) any instrument governing Indebtedness or Capital Stock of a Person acquired by the Parent or any of its Restricted Subsidiaries as in
effect at the time of such acquisition (except to the extent such Indebtedness was incurred in connection with or in contemplation of such acquisition), which encumbrance or restriction is not applicable to any Person, or the properties or assets of
any Person, other than the Person, or the property or assets of the Person, so acquired, provided that, in the case of Indebtedness, such Indebtedness was permitted by the terms of this Indenture to be incurred; 
  
 (2) any agreement for the sale or other disposition of a
Restricted Subsidiary that restricts distributions by such Restricted Subsidiary pending its sale or other disposition; and 
  
 (3) with respect to clause (3) of Section 4.6(a) only, any of the following encumbrances or restrictions: 
  
 (A) customary non-assignment provisions in leases, licenses
and contracts entered into in the ordinary course of business; 
  

 58 

 (B) purchase money obligations for property acquired in the ordinary course of business
that impose restrictions on the property so acquired; 
  
 (C) encumbrances set forth in agreements governing Liens securing Indebtedness otherwise permitted to be issued pursuant to the provisions of Section 4.5 above that limit the right of the Parent or any of its Restricted
Subsidiaries to dispose of the assets subject to such Lien; 
  
 (D) customary restrictions contained in asset sale agreements limiting the transfer of such assets pending the closing of such sale; 
  
 (E) customary restrictions on the subletting, assignment or transfer of any property or asset that is
subject to a lease, farm-in agreement or farm-out agreement, license or similar contract, or the assignment or transfer of any such lease, license or other contract; and 
  
 (F) customary restrictions on the disposition or distribution of assets or property in operating agreements,
joint venture agreements, development agreements, area of mutual interest agreements and other agreements that are customary in the Oil and Gas Business and entered into in the ordinary course of business. 
  

	Section 4.7	Asset Sales 

  
 (a) The Parent will not, and will not permit any Restricted Subsidiary to, directly or indirectly, consummate any Asset Sale unless: 
  
 (1) the Parent or such Restricted Subsidiary receives
consideration at the time of such Asset Sale at least equal to the Fair Market Value (including as to the value of all non-cash consideration), of the shares or other assets subject to such Asset Sale; provided, the foregoing requirement shall not
apply to any Asset Sale pursuant to any loss, destruction or damage to an asset, a condemnation, appropriation or other similar taking, including by deed in lieu of condemnation, or pursuant to the foreclosure or other enforcement of a Lien incurred
not in violation of the Section 4.5 hereof; and 
  
 (2) at least 85% of the consideration received therefrom by the Parent or such Restricted Subsidiary is in the form of cash or cash equivalents. 
  
 For the purposes of this provision, the following are deemed to be cash or cash equivalents: (i) the assumption of all
Indebtedness of the Parent or any Restricted Subsidiary (other than liabilities that are Subordinated Obligations), and the release of the Parent or such Restricted Subsidiary from all liability on such Indebtedness, in connection with such Asset
Sale; and (ii) securities received by the Parent or any Restricted Subsidiary from the transferee which are promptly converted by the Parent or such Restricted Subsidiary into cash. 
  
 (b) Within 30 days after the receipt of any Net Available Proceeds from an Asset Sale, the Parent or such Restricted
Subsidiary, as the case may be, may apply such Net Available Proceeds to repurchase Securities or redeem Securities in accordance with, and to the extent 

  

 59 

 
permitted by, Section 3.7. Any Net Available Proceeds that are not so applied within 30 days shall be deemed to constitute “Excess
Proceeds.” 
  
 (c) When the aggregate amount of Excess
Proceeds exceeds $2,000,000, the Company or the Parent will be required to make an offer (an “Asset Sale Offer”) to all Holders of Securities to purchase on a pro rata basis the maximum principal amount of Securities that may be purchased
out of the Excess Proceeds. The offer price in any Asset Sale Offer will be equal to 100% of principal amount plus accrued and unpaid interest, if any, and Additional Amounts, if any, to the date of purchase (the “Asset Sale Payment”), and
will be payable in cash. If any Excess Proceeds remain after consummation of an Asset Sale Offer, the Parent and such Restricted Subsidiary may use such Excess Proceeds for any purpose not otherwise prohibited by this Indenture. If the aggregate
principal amount of Securities exceeds the amount of Excess Proceeds, the Trustee shall select the Securities to be purchased on a pro rata basis or such other basis as the Trustee determines is appropriate, on the basis of the aggregate principal
amounts tendered in denominations of $1,000 principal amount or multiples thereof. Upon completion of each Asset Sale Offer, the amount of Excess Proceeds shall be reset at zero. 
  
 (d) Within 30 days following the date when the Company or the Parent becomes obligated to make an Asset Sale Offer, the
Company or the Parent will deliver a notice to each Holder describing the transaction or transactions that constitute the Asset Sale and offering to repurchase Securities on the date (the “Asset Sale Payment Date”) specified in such
notice, which date will be no earlier than 30 days nor later than 60 days from the date such notice is delivered, pursuant to the procedures required by this Indenture and described in such notice. 
  
 (e) On the Asset Sale Payment Date, the Company or the Parent will, to the
extent lawful: 
  
 (1) accept for payment all
Securities or portions thereof properly tendered pursuant to the Asset Sale Offer, subject to the prorations of Excess Proceeds as provided for in clause (c) above of this Section 4.7; 
  
 (2) deposit with the Paying Agent an amount equal to the
amount of Excess Proceeds that is allocable to the Securities or portions thereof so tendered (or, if less, the aggregate Asset Sale Payment for all Securities validly tendered and not withdrawn); and 
  
 (3) deliver or cause to be delivered to the Trustee the
Securities so accepted together with an Officer’s Certificate stating the aggregate principal amount of Securities or portions thereof being purchased by the Company or the Parent. 
  
 (f) The Paying Agent will promptly deliver to each Holder of Securities so tendered and not withdrawn and accepted for
payment in accordance with this Section 4.7, the Asset Sale Payment for such tendered Securities, and the Trustee will promptly authenticate and deliver (or cause to be transferred by book entry) to each Holder a new Security equal in
principal amount to any unpurchased portion of the Securities surrendered, if any, by such Holder; provided that each such new Security will be in a principal amount of $1,000 or an integral multiple thereof. 
  
 (g) If the Asset Sale Offer Payment Date is on or after an interest payment
record date and on or before the related Interest Payment Date, any accrued and unpaid interest and 

  

 60 

 
Additional Amounts will be paid to the Person in whose name a Security is registered at the close of business on such record date, and no other interest or
Additional Amounts will be payable to Holders who tender Securities pursuant to the Asset Sale Offer. 
  
 (h) The Company or the Parent will comply with the requirements of Rule 14e-l under the Exchange Act and any other securities laws and regulations
thereunder to the extent such laws and regulations are applicable in connection with an Asset Sale Offer. To the extent that the provisions of any securities laws or regulations conflict with the provisions of this Section 4.7, the
Company or the Parent will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under this covenant by virtue of its compliance with such securities laws or regulations. 
  

	Section 4.8	Transactions With Affiliates 

  
 (a) The Parent will not, and will not permit any of its Restricted Subsidiaries to, make any payment to, or sell, lease, transfer or otherwise dispose of
any of its properties or assets to, or purchase any property or assets from, or enter into or make or amend any transaction, contract, agreement, understanding, loan, advance or guarantee with, or for the benefit of, any Affiliate (each, an
“Affiliate Transaction”), unless: 
  
 (1) such Affiliate Transaction is on terms that are no less favorable to the Parent or the relevant Restricted Subsidiary than those that would have been obtained at the time of such transaction in arm’s-length dealings by the Parent
or such Restricted Subsidiary with a Person who is not an Affiliate; and 
  
 (2) the Parent delivers to the Trustee: 
  
 (A) with respect to any Affiliate Transaction or series of related Affiliate Transactions involving aggregate consideration in excess of $2,000,000, a resolution of the Board of Directors set forth in an
Officer’s Certificate certifying that such Affiliate Transaction complies with this covenant and that such Affiliate Transaction has been approved by a majority of the disinterested members of the Board of Directors; and 
  
 (B) with respect to any Affiliate Transaction or series of
related Affiliate Transactions involving aggregate consideration in excess of $5,000,000, a written opinion that such Affiliate Transaction is fair, from a financial point of view, to the Parent and its Restricted Subsidiaries, taken as a whole,
issued by an accounting, appraisal or investment banking firm of national standing that is not an Affiliate of the Parent. 
  
 (b) The following items shall not be deemed to be Affiliate Transactions and, therefore, will not be subject to the provisions of
Section 4.8(a) hereof: 
  
 (1) any
employment agreement or other employee compensation plan or arrangement existing on the Issue Date or thereafter entered into by the Company or any of its Restricted Subsidiaries in the ordinary course of business of the Company or such Restricted
Subsidiary; 
  

 61 

 (2) transactions between or among (a) the Parent and one or more of its Wholly-Owned
Restricted Subsidiaries or (b) two or more Wholly-Owned Restricted Subsidiaries; 
  
 (3) Restricted Payments that are permitted by Section 4.4 hereof; 
  
 (4) indemnities of officers, directors and employees of the
Parent or any Restricted Subsidiary permitted by bylaw or statutory provisions; 
  
 (5) the payment of reasonable and customary regular fees consistent in all respects with prior practices to directors of the Parent or any
of its Restricted Subsidiaries who are not employees of the Company or any Subsidiary; 
  
 (6) issuances of Equity Interests (other than Disqualified Stock) of the Parent; and 
  
 (7) customary indemnification agreements or arrangements
with officers, directors or employees of the Parent or its Restricted Subsidiaries permitted or required by law or statutory provisions and approved by the Board of Directors. 
  

	Section 4.9	Additional Subsidiary Guarantees 

  
 If the Parent or any of its Restricted Subsidiaries acquires or creates another Restricted Subsidiary after the Issue Date, then the newly acquired or
created Restricted Subsidiary must become a Subsidiary Guarantor and execute a supplemental indenture substantially in the form of Exhibit E hereto within 10 Business Days of the date on which it was acquired or created. In accordance
with Section 4.40(b) of the Purchase Agreements, subsequent to the consummation of the Bramex Acquisition, each of Bramex and Caspi Neft will become a Subsidiary Guarantor and execute a supplemental indenture. 
  

	Section 4.10	Business Activities 

  
 The Parent will not, and will not permit any Restricted Subsidiary to, engage in any material respect in any business other than the Oil and Gas Business.

  

	Section 4.11	Change of Control/Material Adverse Change 

  
 (a) If a Change of Control/MAC occurs, unless the Company has exercised its right to redeem the Securities as provided in Section 3.7, each
Holder of Securities will have the right to require the Company to repurchase all or any part (equal to $1,000 or an integral multiple thereof) of that Holder’s Securities pursuant to the offer described below (the “Change of Control/MAC
Offer”). In the Change of Control/MAC Offer, the Company will offer a payment (the “Change of Control/MAC Payment”) in cash equal to 101% of the aggregate principal amount of Securities to be repurchased plus accrued and unpaid
interest thereon, if any, and Additional Amounts, if any, to the date of purchase. Within 30 days following any Change of Control/MAC, unless the Company has issued a notice of redemption pursuant to its right to redeem the Securities as provided
under Section 3.7, the Company will deliver a notice to each Holder describing the transaction or transactions that constitute the Change of Control/MAC and offering to repurchase Securities on the date (the “Change of Control/MAC
Payment Date”) specified in such notice, which date will be no earlier than 30 days nor later than 60 days from 

  

 62 

 
the date such notice is delivered, pursuant to the procedures required by this Indenture and described in such notice. The Company will comply with the
requirements of Rule 14e-l under the Exchange Act and any other securities laws and regulations thereunder to the extent such laws and regulations are applicable in connection with the repurchase of the Securities as a result of a Change of
Control/MAC. 
  
 (b) On the Change of Control/MAC Payment Date,
the Company will, to the extent lawful: 
  
 (1)
accept for payment all Securities or portions thereof properly tendered pursuant to the Change of Control/MAC Offer; 
  
 (2) deposit with the Paying Agent an amount equal to the Change of Control/MAC Payment in respect of all Securities or portions thereof so
tendered; and 
  
 (3) deliver or cause to be
delivered to the Trustee the Securities so accepted together with an Officer’s Certificate stating the aggregate principal amount of Securities or portions thereof being purchased by the Company. 
  
 (c) The Paying Agent will promptly deliver to each Holder of Securities so
tendered and not withdrawn the Change of Control/MAC Payment for such tendered Securities, and the Trustee will promptly authenticate and deliver (or cause to be transferred by book entry) to each Holder a new Security equal in principal amount to
any unpurchased portion of the Securities surrendered, if any, by such Holder; provided that each such new Security will be in a principal amount of $1,000 or an integral multiple thereof and any amounts less than $1,000 shall be returned to
the Holder in cash. The Trustee will notify the Registrar of the issuance of the new Security. 
  
 (d) If the Change of Control/MAC Payment Date is on or after an interest payment record date and on or before the related Interest Payment Date, any accrued and unpaid interest and Additional Amounts, if any, will be
paid to the Person in whose name a Security is registered at the close of business on such record date, and no other interest will be payable to Holders who tender pursuant to the Change of Control/MAC Offer. 
  
 (e) The Parent will publicly announce the results of the Change of
Control/MAC Offer on or as soon as practicable after the Change of Control/MAC Payment Date. 
  
 (f) The provisions described above that require the Company to make a Change of Control/MAC Offer following a Change of Control/MAC will be applicable regardless of whether or not any other provisions of this
Indenture are applicable. 
  
 (g) The Company will not be required
to make a Change of Control/MAC Offer upon a Change of Control/MAC if a third party makes the Change of Control/MAC Offer in the manner, at the times and otherwise in compliance with the requirements set forth in this Indenture applicable to a
Change of Control/MAC Offer made by the Company and purchases all Securities validly tendered and not withdrawn under such Change of Control/MAC Offer. 
  

 63 

	Section 4.12	Maintenance of Office or Agency for Registration of Transfer, Exchange and Payment of Securities 

  
 So long as any of the Securities shall remain outstanding, the Company will, in accordance with Section 2.3
hereof, maintain an office or agency (which may be an office of the Trustee or an affiliate of the Trustee, or the Registrar) in the Borough of Manhattan, The City of New York, State of New York, where the Securities may be surrendered for exchange
or registration of transfer as in this Indenture provided, and where notices and demands to or upon the Company in respect to the Securities may be served, and where the Securities may be presented or surrendered for payment. The Company may also
from time to time designate one or more other offices or agencies in the Borough of Manhattan, The City of New York, the State of New York, where Securities may be presented or surrendered for any and all such purposes and may from time to time
rescind such designations; provided, however, that no such designation or rescission shall in any manner relieve the Company of its obligation to maintain an office or agency in the Borough of Manhattan, The City of New York, State of New
York for such purposes. The Company will give to Trustee prompt written notice of the location of any such office or agency and of any change of location thereof. The Company initially appoints The Bank of New York, as initial Registrar and initial
Paying Agent for each of said purposes. In case the Company shall fail to maintain any such office or agency or shall fail to give such notice of the location or of any change in the location thereof, such surrenders, presentations and demands may
be made and notices may be served at the designated corporate trust office of the Trustee in the Borough of Manhattan, The City of New York, State of New York, and the Company hereby appoints the Trustee its agent to receive at the aforesaid office
all such surrenders, presentations, notices and demands. The Trustee will give the Company prompt notice of any change in location of the Trustee’s designated corporate trust office, but shall in all events maintain such an office in the
Borough of Manhattan, The City of New York, State of New York. 
  
 The Company hereby designates the office of The Bank of New York, 101 Barclay, Lobby Level, in the Borough of Manhattan, The City of New York, the State of New York as one such office in accordance with Section 2.3 and this
Section 4.12. 
  

	Section 4.13	Appointment to Fill a Vacancy in the Office of Trustee 

  
 The Company, whenever necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided in Section 7.8, a
Trustee, so that there shall at all times be a Trustee hereunder. 
  

	Section 4.14	Provision as to Paying Agent 

  
 (a) If the Company shall appoint a Paying Agent other than the initial Paying Agent or the Trustee, in accordance with the terms of this Indenture, it
will cause such Paying Agent to execute and deliver to the Trustee an instrument in which such agent shall undertake, subject to the provisions of this Section 4.14: 
  
 (1) that it will hold all sums held by it as such agent for the payment of the principal of, premium, if
any, or interest or Additional Amounts, if any, on the Securities 

  

 64 

 
(whether such sums have been paid to it by the Company or by any other obligor on the Securities) in trust for the benefit of the Holders of the Securities
and will notify the Trustee of the receipt of sums to be so held; 
  
 (2) that it will give the Trustee notice of any failure by the Company (or by any other obligor on the Securities) to make any payment of the principal of, premium, if any, interest or Additional Amounts, if any, on
the Securities when the same shall be due and payable; 
  
 (3) that it will at any time during the continuance of any Event of Default specified in Section 6.1 hereof, upon the written request of the Trustee, deliver to the Trustee all sums so held in trust by it; and 
  
 (4) that it will acknowledge, accept and agree to comply in
all aspects with the provisions of this Indenture relating to the duties, rights and liabilities of such Paying Agent. 
  
 (b) If the Company shall not act as its own Paying Agent, it will, by 11:00 a.m. on or prior to the Business Date immediately prior to the due date of the
principal of or premium, if any, interest or Additional Amounts, if any, on any Securities, deposit with such Paying Agent a sum in same day funds sufficient to pay the principal of, premium, if any, or interest so becoming due, such sum to be held
in trust for the benefit of the Holders of Securities entitled to such principal of or premium, if any, interest or Additional Amounts, if any, and (unless such Paying Agent is the Trustee) the Company will promptly notify the Trustee of its failure
so to act. 
  
 (c) If the Company shall act as its own Paying
Agent, it will, on or before each due date of the principal of or premium, if any, or interest on the Securities, set aside, segregate and hold in trust for the benefit of the Persons entitled thereto, a sum sufficient to pay such principal or
premium or interest or Additional Amounts so becoming due and will notify the Trustee of any failure to take such action. 
  
 (d) Anything in this Section 4.14 to the contrary notwithstanding, the Company may, at any time, for the purpose of obtaining a satisfaction
and discharge of this Indenture, or for any other reason, pay or cause to be paid to the Paying Agent for delivery to the Trustee all sums held in trust by it, as required by this Section 4.14, such sums to be delivered by the Paying
Agent to the Trustee to be held by the Trustee upon the trusts herein contained. 
  
 (e) Anything in this Section 4.14 to the contrary notwithstanding, the agreement to hold sums in trust as provided in this Section 4.14 is subject to the provisions of Section 8.4
and Section 8.6. 
  

	Section 4.15	Maintenance of Corporate Existence 

  
 So long as any of the Securities shall remain outstanding, the Parent and the Company will at all times (except as otherwise provided or permitted in this
Section 4.15, Article V or elsewhere in this Indenture) do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence and franchises and, subject to Article X hereof, the
corporate existence and franchises of each Restricted Subsidiary; provided that nothing herein shall require the Company to continue the corporate existence or franchises of any Subsidiary if 

  

 65 

 
in the judgment of the Company it shall be necessary, advisable or in the interest of the Company to discontinue the same. 
  

	Section 4.16	Compliance Certificate 

  
 (a) The Company shall deliver to the Trustee within 90 days after the end of each fiscal year of the Company ending after the Issue Date an Officer’s
Certificate stating that a review of the activities of the Company and its Restricted Subsidiaries during the preceding fiscal year has been made under the supervision of the signing Officer with a view to determining whether the Company has
performed its obligations under this Indenture, and further stating whether or not the signer knows of any Default or Event of Default that occurred during such period. If he or she does, the certificate shall describe such Default or Event of
Default, its status and what action the Company is taking or proposes to take with respect thereto. The Company also shall comply with Trust Indenture Act Section 314(a)(4). 
  
 (b) So long as not contrary to the then current recommendations of the American Institute of Certified Public Accountants,
the year-end financial statements delivered pursuant to Section 4.2 above shall be accompanied by a written statement of the Company’s independent public accountants that in making the examination necessary for certification of such
financial statements, nothing has come to their attention that would lead them to believe that the Company has violated any provisions of Article IV or Article V hereof or, if any such violation has occurred, specifying the nature and
period of existence thereof, it being understood that such accountants shall not be liable directly or indirectly to any Person for any failure to obtain knowledge of any such violation. 
  
 (c) So long as any of the Securities are outstanding, the Company will deliver to the Trustee, forthwith upon any Officer
becoming aware of any Default or Event of Default, an Officer’s Certificate specifying such Default or Event of Default and what action the Company is taking or proposes to take with respect thereto. 
  

	Section 4.17	Taxes 

  
 The Parent will pay, and will cause each of its Significant Subsidiaries to pay, prior to delinquency, all material taxes, assessments, and governmental
levies except such as are contested in good faith and by appropriate proceedings or where the failure to effect such payment would not have a material adverse effect on the Parent and its Restricted Subsidiaries, taken as a whole. 
  

	Section 4.18	Payment of Additional Amounts 

  
 (a) If any taxes, assessments or other governmental charges are imposed, or amounts representing such taxes, assessments or other charges are withheld, by
any jurisdiction where the Company, the Parent, a Subsidiary Guarantor or a successor of the foregoing (a “Payor”) is organized or otherwise considered by a taxing authority to be a resident for tax purposes, any jurisdiction from or
through which the Payor makes a payment on the Securities, or, in each case, any political organization or governmental authority thereof or therein having the power to tax (the “Relevant Tax Jurisdiction”) in respect of any payments under
the Securities, the Payor will pay to each Holder of a Security, to the extent it may lawfully do so, such additional amounts 

  

 66 

 
(“Additional Amounts”) as may be necessary in order that the net amounts paid to such Holder will be not less than the amount specified in such
Security to which such Holder is entitled; provided, however, the Payor will not be required to make any payment of Additional Amounts for or on account of: 
  
 (1) any tax, assessment or other governmental charge which would not have been imposed but for the existence
of any present or former connection between such Holder (or between a fiduciary, settlor, beneficiary, member or shareholder of, or possessor of a power over, such Holder, if such Holder is an estate, trust, partnership, limited liability company or
corporation) and the Relevant Tax Jurisdiction including, without limitation, such Holder (or such fiduciary, settlor, beneficiary, member, shareholder or possessor) being or having been a citizen or resident thereof or being or having been present
or engaged in trade or business therein or having or having had a permanent establishment therein; 
  
 (2) any estate, inheritance, gift, sales, transfer, personal property or similar tax, assessment or other governmental charge; 

 
 (3) any tax, assessment or other governmental charge that
is imposed or withheld by reason of the failure by the Holder or the beneficial owner of the Security to comply with a reasonable and timely request of the Payor addressed to the Holder to provide information, documents or other evidence concerning
the nationality, residence or identity of the Holder or such beneficial owner which is required by a statute, treaty, regulation or administrative practice of the taxing jurisdiction as a precondition to exemption from all or part of such tax,
assessment or other governmental charge; or 
  
 (4) any combination of the above; 
  
 nor will Additional Amounts be paid
with respect to any payment of the principal of, or any premium or interest on, any Security to any Holder who is a fiduciary or partnership or limited liability company or other than the sole beneficial owner of such payment to the extent (but only
to the extent) such payment would be required by the laws of the Relevant Tax Jurisdiction to be included in the income for tax purposes of a beneficiary or settlor with respect to such fiduciary or a member of such partnership, limited liability
company or beneficial owner who would not have been entitled to such Additional Amounts had it been the Holder of such Security. 
  
 (b) The Payor will provide the Trustee with the official acknowledgment of the Relevant Tax Authority (or, if such acknowledgment is not available, a
certified copy thereof) evidencing the payment of any withholding taxes by the Payor. Copies of such documentation will be made available to the Holders of the Securities or the Paying Agents, as applicable, upon request therefor. 
  
 (c) The Parent, the Company and the Subsidiary Guarantors will pay any
present or future stamp, court or documentary taxes, or any other excise or property taxes, charges or similar levies which arise in any jurisdiction from the execution, delivery or registration of the Securities or any other document or instrument
referred to in this Indenture (other than a transfer of the Securities), or the receipt of any payments with respect to the Securities, excluding any such taxes, charges or similar levies imposed by any jurisdiction outside the British Virgin

  

 67 

 
Islands or any other jurisdiction in which the Company, the Parent or any Subsidiary Guarantor is located or conducts business or any jurisdiction in which a
Paying Agent is located, other than those resulting from, or required to be paid in connection with, the enforcement of this Indenture or any other such document or instrument following the occurrence of any Event of Default. 
  
 (d) All references in this Indenture to principal of, premium, if any, and
interest on the Securities will include any Additional Amounts payable by the Payor in respect of such principal, such premium, if any, and such interest. 
  

	Section 4.19	Foreign Corrupt Practices Act 

  
 The Parent, the Company and each of the Subsidiary Guarantors covenant that they will not, and that they will use their reasonable best efforts to ensure
that each director, officer, agent or employee of the Parent, the Company or any Subsidiary Guarantor will not, make, directly or indirectly, any payment or promise to pay, or gift or promise to give or authorized such a promise or gift, of any
money or anything of value, directly or indirectly, to (a) any foreign official (as such term is defined in the United States Foreign Corrupt Practices Act of 1977 (as amended, the “FCPA”)) for the purpose of influencing any
official act or decision of such official or inducing him or her to use his or her influence to affect any act or decision of a governmental authority, or (b) any foreign political party or official thereof or candidate for foreign political
office for the purpose of influencing any official act or decision of such party, official or candidate or inducing such party, official or candidate to use his, her or its influence to affect any act or decision of a foreign governmental authority,
in the case of both (a) and (b) above in order to assist the Parent, the Company or any of the Subsidiary Guarantors to obtain or retain business for, or direct business to the Parent, the Company or any of the Subsidiary Guarantors, as
applicable, and under circumstances which would subject the Parent, the Company or any of the Subsidiary Guarantors to liability under the FCPA or any corresponding foreign laws. 
  
 ARTICLE V 
  
 SUCCESSOR COMPANY 
  

	Section 5.1	Merger, Consolidation or Sale of Assets 

  
 (a) Neither the Parent nor the Company may: (1) consolidate or merge with or into another Person; or (2) sell, assign, transfer, lease, convey
or otherwise dispose of all or substantially all of its properties or assets, in one or more related transactions, to another Person, unless: 
  
 (1) either: 
  
 (A) the Parent or the Company, as the case may be, is the surviving corporation; or 
  
 (B) the Person formed by or surviving any such consolidation
or merger (if other than the Parent or the Company, as the case may be) or to which such sale, assignment, transfer, lease, conveyance or other disposition shall have been made is a 

  

 68 

 
corporation organized or existing under the laws of (i) with respect to the Parent, the United States, any state thereof or the District of Columbia, or
(ii) with respect to the Company, the British Virgin Islands; 
  
 (2) the Person formed by or surviving any such consolidation or merger (if other than the Parent or the Company, as the case may be) or the Person to which such sale, assignment, transfer, lease, conveyance or other
disposition shall have been made assumes all the obligations of the Parent or Company, as the case may be, under the Security Documents, this Indenture, and the Registration Rights Agreement pursuant to a supplemental indenture or other agreements
reasonably satisfactory to the Trustee; 
  
 (3)
at the time of and immediately after such transaction no Default shall have occurred and be continuing; 
  
 (4) the Parent or the Person formed by or surviving any such consolidation or merger (if other than the Parent, the Company or a
Subsidiary Guarantor) will, on the date of such transaction after giving pro forma effect thereto and any related financing transactions as if the same had occurred at the beginning of the most recently ended four-quarter period, be permitted to
incur at least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in Section 4.3(a) hereof; and 
  
 (5) the Parent or the Company, as the case may be, shall have delivered to the Trustee an Officer’s Certificate and an Opinion of
Counsel, each stating that such consolidation, merger or transfer and any supplemental indenture related thereto comply with this Indenture and all Security Documents and that all necessary actions have been taken to preserve the priority and
perfection of the Liens created by all Security Documents in accordance with this Indenture. 
  
 (b) For purposes of this covenant, the sale, assignment, transfer, lease, conveyance or other disposition of all or substantially all of the properties or assets of one or more Subsidiaries of the Parent or the
Company, which properties or assets, if held by the Parent or the Company instead of such Subsidiaries, would constitute all or substantially all of the properties or assets of the Parent or the Company on a consolidated basis, shall be deemed to be
the transfer of all or substantially all of the properties or assets of the Parent or the Company. 
  
 (c) The foregoing does not affect the Company’s obligation to make a Change of Control/MAC Offer. 
  
 ARTICLE VI 
  
 DEFAULTS AND REMEDIES 
  

	Section 6.1	Events of Default 

  
 Each of the following is an “Event of Default”: 
  
 (1) default for 30 days in the payment when due of interest on the Securities; 
  

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 (2) default in the payment when due of the principal of, or premium, if any, on the
Securities; 
  
 (3) failure by the Parent or the
Company to comply with Section 5.1 hereof or; 
  
 (4) failure by the Parent or any of its Restricted Subsidiaries to comply for 30 days after receipt of written notice specified below with Sections 4.2, 4.3, 4.4, 4.5, 4.6,
4.7, 4.8, 4.9, 4.10 or 4.11 hereof; 
  
 (5) failure by the Parent or any of its Restricted Subsidiaries for 60 days after receipt of written notice specified below to comply with any of its other agreements contained in this Indenture; 
  
 (6) default under any mortgage, indenture or instrument
under which there may be issued or by which there may be secured or evidenced any Indebtedness for money borrowed by the Parent or any of its Restricted Subsidiaries (or the payment of which is guaranteed by the Parent or any of its Restricted
Subsidiaries), whether such Indebtedness or guarantee now exists, or is created after the date of this Indenture, if that default: 
  
 (A) is caused by a failure to pay principal of, or premium, if any, or interest on such Indebtedness prior to the expiration of the grace
period provided in such Indebtedness (a “Payment Default”); or 
  
 (B) results in the acceleration of such Indebtedness prior to its Stated Maturity; 
  
 and, in each case, the principal amount of any such Indebtedness, together with the principal
amount of any other such Indebtedness under which there has been a Payment Default or the maturity of which has been so accelerated, aggregates $5,000,000 or more and in the case of a Payment Default in respect of the Convertible Promissory Notes of
the Parent, dated as of August 30, 2005, if such default continues to exist as of the Deadline; 
  
 (7) failure by the Parent or any of its Restricted Subsidiaries to pay final judgments aggregating in excess of $5,000,000 (net of any
amounts that a reputable and creditworthy insurance company has acknowledged liability for in writing), which judgments are not paid, discharged or stayed for a period of 60 days; 
  
 (8) the Parent Guarantee or any Subsidiary Guarantee shall be held in any judicial proceeding to be
unenforceable or invalid or, except as permitted by this Indenture, shall cease for any reason to be in full force and effect or the Parent or any Subsidiary Guarantor, or any Person acting on behalf of the Parent or any Subsidiary Guarantor, shall
deny or disaffirm its obligations under the Parent or its Subsidiary Guarantee, as the case may be; and 
  
 (9) (A) the Parent, the Company or a Significant Subsidiary or a group of Restricted Subsidiaries that, taken together, would constitute a
Significant Subsidiary pursuant to or within the meaning of any Bankruptcy Law: 
  
 (i) commences a voluntary case or proceeding; 
  

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 (ii) consents to the entry of an order for relief against it in an involuntary case or
proceeding in which it is a debtor; 
  
 (iii)
consents to the appointment of a Custodian of it or for any substantial part of its property; 
  
 (iv) makes a general assignment for the benefit of its creditors; or 
  
 (v) consents to the institution of a bankruptcy or an insolvency proceeding against it; 
  
 or takes any comparable action under any foreign laws relating to
insolvency; or 
  
 (B) a court of competent
jurisdiction enters an order or decree under any Bankruptcy Law that: 
  
 (i) is for relief against the Parent, the Company or any Significant Subsidiary or a group of Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary in an involuntary case in which it
is a debtor; 
  
 (ii) appoints a Custodian of
the Parent, the Company or any Significant Subsidiary or a group of Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary or for any substantial part of its property; or 
  
 (iii) orders the winding up or liquidation of the Parent,
the Company or any Significant Subsidiary or a group of Restricted Subsidiaries that, taken together would constitute a Significant Subsidiary; 
  
 or any similar relief is granted under any foreign laws and the order, decree or relief remains unstayed and in effect for 60 consecutive days;

  
 (10) any Security Document or any Lien
purported to be created or granted thereby on any one or more items of Collateral is held in any judicial proceeding to be unenforceable or invalid, in whole or part, or ceases for any reason (other than pursuant to a release that is delivered or
becomes effective as set forth in this Indenture or any Security Documents) to be fully enforceable and perfected; and 
  
 (11) default by the Company under Section 3.8 hereof. 
  
 However, a default under clauses (4) and (5) of this Section 6.1 will not constitute an Event of
Default until the Trustee or the Holders of 25% in principal amount of the outstanding Securities notify the Company of the default and the Company does not cure such default within the time specified in clauses (4) and (5) of this
Section 6.1 after receipt of such notice. Such notice must specify the Default, demand that it be remedied and state that such notice is a “Notice of Default.” 
  

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	Section 6.2	Acceleration of Maturity; Rescission and Annulment 

  
 If an Event of Default (other than an Event of Default described in clause (9) or clause (11) of Section 6.1) occurs and is
continuing, the Trustee by notice to the Company, or the Holders of at least 25% in principal amount of the outstanding Securities by notice to the Company and the Trustee, may declare the principal of, premium, if any, and accrued and unpaid
interest and Additional Amounts, if any, on all the Securities to be due and payable. Upon such a declaration, such principal, premium, accrued and unpaid interest and Additional Amounts will be due and payable immediately. If an Event of Default
described in clause (9) or clause (11) of Section 6.1 above occurs and is continuing, the principal of, premium, if any, and accrued and unpaid interest and Additional Amounts, if any, on all the Securities will become and be
immediately due and payable without any further action or notice on the part of the Trustee or any Holders. The Holders of a majority in outstanding principal amount of the Securities by notice to the Trustee may on behalf of the Holders of all the
Securities rescind any such acceleration with respect to the Securities and its consequences if (1) rescission would not conflict with any judgment or decree of a court of competent jurisdiction and (2) all existing Events of Default,
other than the nonpayment of the principal of, premium, if any, and interest and Additional Amounts, if any, on the Securities that have become due solely by such declaration of acceleration, have been cured or waived. 
  

	Section 6.3	Other Remedies 

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

	Section 6.4	Waiver of Past Defaults 

  
 The Holders of a majority in outstanding principal amount of the Securities, by notice to the Trustee may on behalf of the Holders of all the Securities
waive an existing Default or Event of Default and its consequences hereunder except (i) a Default or Event of Default in the payment of the principal of, premium, if any, or interest on a Security or (ii) a Default or Event of Default in
respect of a provision that under Section 9.2 hereof cannot be amended without the consent of each Holder affected. When a Default or Event of Default is waived, it is deemed cured, but no such waiver shall extend to any subsequent or
other Default or Event of Default or impair any consequent right. 
  

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	Section 6.5	Control by Majority 

  
 The Holders of a majority in outstanding principal amount of the Securities have the right to direct the time, method and place of conducting any
proceeding for exercising any remedy available to the Trustee or of exercising any trust or power conferred on the Trustee. However, the Trustee may refuse to follow any direction that exposes it to liability, requires it to take any action outside
the United States or subjects it to the jurisdiction of a non-U.S. court, conflicts with law, this Indenture or the Security Documents or, subject to Section 7.1 hereof, that the Trustee determines is unduly prejudicial to the rights of
other Holders or would involve the Trustee in personal liability; provided, however, that the Trustee may take any other action deemed proper by the Trustee that is not inconsistent with such direction. Subject to Section 7.1,
prior to taking any action hereunder, the Trustee shall be entitled to indemnification reasonably satisfactory to it against all loss, liability and expense caused by taking or not taking such action. 
  

	Section 6.6	Limitation on Suits 

  
 Except to enforce the right to receive payment of principal, premium (if any) or interest when due, a Holder may not pursue any remedy with respect to
this Indenture, the Securities or the Guarantees unless: 
  
 (1) the Holder has previously given the Trustee written notice stating that an Event of Default is continuing; 
  
 (2) Holders of at least 25% in outstanding principal amount of the Securities have made a written request to the Trustee to pursue the
remedy; 
  
 (3) such Holder or Holders have
furnished the Trustee reasonable security or indemnity against any loss, liability or expense; 
  
 (4) the Trustee has not complied with the Holders’ request within 60 days after receipt of the request and the furnishing of security
or indemnity; and 
  
 (5) the Holders of a
majority in outstanding principal amount of the Securities have not given the Trustee a direction that, in the opinion of the Trustee, is inconsistent with the request during such 60-day period. 
  
 A Holder may not use this Indenture to prejudice the rights of another Holder
or to obtain a preference or priority over another Holder. 
  

	Section 6.7	Rights of Holders to Receive Payment 

  
 Notwithstanding any other provision of this Indenture, the right of any Holder to receive payment of principal of, premium, if any, and interest on the
Securities held by such Holder, on or after the respective due dates expressed in the Securities, or to bring suit for the enforcement of any such payment on or after such respective dates, shall not be impaired or affected without the consent of
such Holder, except that no Holder shall have the right to institute any suit, if and to the extent that the institution or prosecution thereof or the entry of judgment therein would 

  

 73 

 
under applicable law result in the surrender, impairment, waiver or loss of the Liens of the Security Documents upon any property or assets subject to the
Liens. 
  

	Section 6.8	Collection Suit by Trustee 

  
 If an Event of Default specified in Section 6.1(1) or Section 6.1(2) hereof occurs and is continuing, the Trustee may recover
judgment in its own name and as Trustee of an express trust against the Company for the whole amount then due and owing (together with interest on any unpaid interest to the extent lawful) and the amounts provided for in Section 7.7
hereof to cover the costs and expenses of collection, including the reasonable compensation, disbursement and advances of the Trustee, its agents and counsel. 
  

	Section 6.9	Trustee May File Proofs of Claim 

  
 The Trustee may file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Trustee and
the Holders allowed in any judicial proceedings relative to the Company or any Subsidiary Guarantor or their respective creditors or properties and, unless prohibited by law or applicable regulations, may vote on behalf of the Holders in any
election of a trustee in bankruptcy or other Person performing similar functions, and any Custodian in any such judicial proceeding is hereby authorized by each Holder to make payments to the Trustee and, in the event that the Trustee shall consent
to the making of such payments directly to the Holders, to pay to the Trustee any amount due it for the compensation, expenses, disbursements and advances of the Trustee, its agents and its counsel, and any other amounts due the Trustee under
Section 7.7 hereof. Nothing in this Indenture will be deemed to empower the Trustee to authorize or consent to, or accept or adopt on behalf of any Holder, any plan of reorganization, arrangement, adjustment or composition affecting the
Securities or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Holder in any proceeding. 
  

	Section 6.10	Priorities 

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

  
 First: costs and expenses of collection,
including all sums paid or advanced by the Trustee hereunder and the compensation, expenses and disbursements of the Trustee, its agents, and counsel and all other amounts due to the Trustee under Section 7.7 hereof; 
  
 Second: to Holders for amounts due and unpaid on the
Securities for principal and interest and premium, if any, ratably, without preference or priority of any kind, according to the amounts due and payable on the Securities for principal and interest and premium, if any, respectively; and 

 
 Third: to the Company or as a court of competent
jurisdiction may direct. 
  
 The Trustee may fix a record date and
payment date for any payment to Holders pursuant to this Section 6.10. At least 15 days before such record date, the Trustee shall deliver to each 

  

 74 

 
Holder and the Company a notice that states the record date, the payment date and amount to be paid. 
  

	Section 6.11	Restoration of Rights and Remedies 

  
 If the Trustee or any Holder has instituted a proceeding to enforce any right or remedy under this Indenture and the proceeding has been discontinued or
abandoned for any reason, or has been determined adversely to the Trustee or to the Holder, then, subject to any determination in the proceeding, the Company, the Guarantors, the Trustee and the Holders will be restored severally and respectively to
their former positions hereunder and thereafter all rights and remedies of the Company, the Guarantors, the Trustee and the Holders will continue as though no such proceeding had been instituted. 
  

	Section 6.12	Undertaking for Costs 

  
 In any suit for the enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any action taken or omitted by it as
Trustee, a court in its discretion may require the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’ fees,
against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant. This Section 6.12 does not apply to a suit by the Trustee, a suit by a Holder pursuant to
Section 6.7 hereof or a suit by Holders of more than 10% in outstanding principal amount of the Securities. 
  

	Section 6.13	Waiver of Stay, Extension or Usury Laws. 

  
 The Company and each Guarantor covenants, to the extent that it may lawfully do so, that it will not at any time insist upon, or plead, or in any manner
whatsoever claim or take the benefit or advance of, any stay or extension law or any usury law or other law that would prohibit or forgive the Company or the Guarantor from paying all or any portion of the principal of, or interest on the Securities
as contemplated herein, wherever enacted, nor or at any time hereafter in force, or that may affect the covenants or the performance of this Indenture. The Company and each Guarantor hereby expressly waives, to the extent that it may lawfully do so,
all benefit or advantage of any such law and covenants that it will not hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no law had been enacted.

  
 ARTICLE VII 
  
 TRUSTEE 
  

	Section 7.1	Duties of Trustee 

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

 75 

 (b) Except during the continuance of an Event of Default: (i) the Trustee undertakes to perform such
duties and only such duties as are specifically set forth in this Indenture and no implied covenants or obligations shall be read into this Indenture against the Trustee; and (ii) in the absence of bad faith on its part, the Trustee may
conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture. However, the Trustee shall
examine the certificates and opinions to determine whether or not they conform to the requirements of this Indenture. 
  
 (c) The Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act or its own willful misconduct, except
that: 
  
 (1) this paragraph does not limit the
effect of Section 7.1(b) hereof; 
  
 (2) the Trustee shall not be liable for any error of judgment made in good faith by a Trust Officer unless it is proved that the Trustee was negligent in ascertaining the pertinent facts; and 
  
 (3) the Trustee shall not be liable with respect to any
action it takes or omits to take in good faith in accordance with a direction received by it pursuant to Section 6.5 hereof. 
  
 (d) Every provision of this Indenture that in any way relates to the Trustee is subject to Sections 7.1(a), 7.1(b) and 7.1(c) hereof.

  
 (e) The Trustee shall not be liable for interest on any money
received by it except as the Trustee may agree in writing with the Company. 
  
 (f) Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law. 
  
 (g) Subject to Section 7.1(a) hereof, no provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise
incur financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers, if it shall have reasonable grounds to believe that repayment of such funds or adequate indemnity against such risk or
liability is not reasonably assured to it. 
  

	Section 7.2	Rights of Trustee. 

  
 (a) The Trustee may rely on any document believed by it to be genuine and to have been signed or presented by the proper Person. The Trustee need not
investigate any fact or matter stated in the document. 
  
 (b)
Before the Trustee acts or refrains from acting, it may require an Officer’s Certificate or an Opinion of Counsel. The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on the Officer’s
Certificate or Opinion of Counsel. 
  
 (c) The Trustee may act
through its attorneys and agents and shall not be responsible for the misconduct or negligence of any agent appointed with due care. 
  

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 (d) The Trustee shall not be liable for any action it takes or omits to take in good faith which it
believes to be authorized or within its rights or powers conferred upon it by this Indenture; provided, however, that the Trustee’s conduct does not constitute willful misconduct or negligence. 
  
 (e) The Trustee may consult with counsel, and the advice or opinion of
counsel with respect to legal matters relating to this Indenture and the Securities shall be full and complete authorization and protection from liability in respect to any action taken, omitted or suffered by it hereunder in good faith and in
accordance with the advice or opinion of such counsel. 
  
 (f)
Except for (i) a default under Section 6.1(1) or Section 6.1(2) hereof, or (ii) any other event of which a Trust Officer of the Trustee has received written notice which event, with the giving of notice or the
passage of time or both, would constitute an Event of Default under this Indenture, the Trustee shall not be deemed to have notice of any default or event unless specifically notified in writing of such event by the Company or any Holder of the
Securities. 
  
 (g) The Trustee shall at no time have any
responsibility or liability for or with respect to the legality, validity or enforceability of any Security Document or the perfection or priority of any security interest or Lien created in any of the Collateral or the maintenance of any such
perfection and priority, or for or with respect to the sufficiency or inspection of the Collateral for any purpose or for surveying the Collateral or confirming compliance of the Collateral with applicable laws and shall not be responsible for
filing any notice, document or other paper in any public office or offices at any time or times or for or with respect to any insurance on the Collateral or for assuring that such insurance has been purposely assigned to it. 
  

	Section 7.3	Individual Rights of Trustee 

  
 The Trustee in its individual or any other capacity may become the owner or pledgee of Securities and may otherwise deal with the Company or its
Affiliates with the same rights it would have if it were not Trustee. However, in the event that the Trustee acquires any conflicting interest, it must eliminate such conflict within 90 days, apply to the SEC for permission to continue as Trustee or
resign. Any Paying Agent, Registrar, co-registrar or co-paying agent may do the same with like rights. However, the Trustee must comply with Sections 7.10 and 7.11 hereof. 
  

	Section 7.4	Trustee’s Disclaimer 

  
 The Trustee shall not be responsible for and makes no representation as to the validity or adequacy of this Indenture, the Collateral, the Security
Documents or the Securities, it shall not be accountable for the Company’s use of the proceeds from the Securities, it shall not be responsible for the use or application of any money received by any Paying Agent (other than itself as Paying
Agent), and it shall not be responsible for any statement of the Company in this Indenture or in any document issued in connection with the sale of the Securities or in the Securities other than the Trustee’s certificate of authentication.

  

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	Section 7.5	Notice of Defaults 

  
 If a Default or Event of Default occurs and is continuing and if a Trust Officer has actual knowledge thereof, the Trustee shall deliver to each Holder
notice of the Default or Event of Default within 90 days after it occurs. Except in the case of a Default or Event of Default relating to payment of principal of, premium, if any, or interest on, any Security (including payments pursuant to the
optional redemption or required repurchase provisions of such Security, if any), the Trustee may withhold the notice if and so long as its board of directors, the Executive Committee of its board of directors or a committee of its Trust Officers in
good faith determines that withholding the notice is in the interests of Holders. Notice to Holders under this Section will be given in the manner and to the extent provided in Trust Indenture Act Section 313(c). 
  

	Section 7.6	Reports by Trustee to Holders 

  
 (a) Within 60 days after each May 15 beginning with the May 15 following the date of this Indenture, the Trustee shall deliver to each Holder a
brief report that complies with Trust Indenture Act Section 313(a) (but if no event described in Trust Indenture Act §313(a) has occurred within the 12 months preceding the reporting date, no report need be transmitted). The Trustee also
shall comply with Trust Indenture Act Section 313(b). The Trustee shall also deliver all reports required by Trust Indenture Act Section 313(c). 
  
 (b) A copy of each report at the time of its mailing to Holders shall be mailed to the Company and filed with the SEC and each stock exchange (if any) on
which the Securities are listed. The Company agrees to notify promptly the Trustee whenever the Securities become listed on any stock exchange and of any delisting thereof. 
  

	Section 7.7	Compensation and Indemnity 

  
 (a) The Company shall pay to the Trustee from time to time, and the Trustee shall be entitled to, reasonable compensation for its services as set forth in
a separate fee agreement between the Trustee and the Company. The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust. The Company shall reimburse the Trustee upon request for all reasonable
out-of-pocket expenses incurred or made by it, including costs of collection, costs of preparing and reviewing reports, certificates and other documents, costs of preparation and mailing of notices to Holders and reasonable costs of counsel retained
by the Trustee in connection with the review, negotiation, execution and delivery of this Indenture and related documentation, and any amendments or supplements thereto, or delivery of an Opinion of Counsel, or otherwise, in addition to the
compensation for its services. Such expenses shall include the reasonable compensation and expenses, disbursements and advances of the Trustee’s agents and counsel. The Company shall indemnify and hold harmless the Trustee (in its individual
and Trustee capacities) and its officers, employees, directors and agents against any and all loss, liability, claims, action, suit, cost or expense (including reasonable attorneys’ fees and expenses) of any kind and nature whatsoever incurred
by it in connection with the administration of this trust and the performance of its duties hereunder, including the costs and expenses of enforcing this Indenture (including this Section 7.7) and of defending itself against any claims
(whether asserted by any Holder, the Company or otherwise). The Trustee shall 

  

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notify the Company promptly of any claim for which it may seek indemnity. Failure by the Trustee to so notify the Company shall not relieve the Company of
its obligations hereunder. The Company shall defend the claim and the Trustee may have separate counsel and the Company shall pay the fees and expenses of such counsel. The Company is not required to reimburse any expense or indemnify against any
loss, liability claim, again, suit, cost or expense incurred by the Trustee through the Trustee’s own willful misconduct or negligence. 
  
 (b) To secure the Company’s payment obligations in this Section 7.7, the Trustee shall have a lien prior to the Securities on all money
or property held or collected by the Trustee other than money or property held in trust to pay principal of, premium (if any) and interest on particular Securities. 
  
 (c) The Company’s payment and indemnification obligations under Section 7.7(a) shall also extend to the Collateral
Agent, Paying Agent, Registrar, and Escrow Agent. The Company’s payment obligations pursuant to this Section 7.7 shall survive the discharge of this Indenture and the resignation or removal of the Trustee. When the Trustee incurs
expenses after the occurrence of a Default specified in Section 6.1(9) hereof with respect to the Company, the expenses are intended to constitute expenses of administration under any Bankruptcy Law. 
  
 (d) The Company agrees to pay by wire transfer no later than the Issue Date
the fees and expenses of the Trustee (including the fees and expenses of Trustee’s counsel) in connection with the review, execution and delivery of this Indenture and related documentation. 
  

	Section 7.8	Replacement of Trustee 

  
 (a) A resignation or removal of the Trustee and appointment of a successor Trustee will become effective only upon the successor Trustee’s acceptance
of appointment as provided in this Section 7.8. 
  
 (b) The Trustee may resign at any time by so notifying the Company. The Holders of a majority in outstanding principal amount of the Securities may remove the Trustee by so notifying the Trustee and the Company and may appoint a successor
Trustee. The Company may remove the Trustee if: (i) the Trustee fails to comply with Section 7.10 hereof; (ii) the Trustee is adjudged bankrupt or insolvent; (iii) a Custodian or other public officer takes charge of the
Trustee or its property; or (iv) the Trustee otherwise becomes incapable of acting. 
  
 (c) If the Trustee resigns or is removed by the Company or by the Holders of a majority in outstanding principal amount of the Securities and such Holders do not reasonably promptly appoint a successor Trustee, or if
a vacancy exists in the office of Trustee for any reason (the Trustee in such event being referred to herein as the retiring Trustee), the Company shall promptly appoint a successor Trustee. 
  
 (d) A successor Trustee shall deliver a written acceptance of its appointment
to the retiring Trustee and to the Company. Thereupon the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture. Upon request
of any successor Trustee, the Company and the Guarantors will execute any and all instruments for fully and vesting in and confirming to the successor Trustee all such rights, powers and trusts. The successor Trustee shall deliver a 

  

 79 

 
notice of its succession to the Holders and the address of its corporate trust office. The retiring Trustee shall promptly transfer all property held by it
as Trustee to the successor Trustee, subject to the Lien provided for in Section 7.7 hereof. 
  
 (e) If a successor Trustee does not take office within 60 days after the retiring Trustee resigns or is removed, the retiring Trustee or the Holders of
10% in outstanding principal amount of the Securities may petition any court of competent jurisdiction for the appointment of a successor Trustee. 
  
 (f) If the Trustee fails to comply with Section 7.10 hereof after written notice thereto, the Holders of at least 10% in principal amount of
the then outstanding securities may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee. 
  
 (g) Notwithstanding the replacement of the Trustee pursuant to this Section 7.8, the Company’s obligations under Section 7.7
hereof shall continue for the benefit of the retiring Trustee. 
  

	Section 7.9	Successor Trustee by Merger 

  
 (a) If the Trustee consolidates with, merges or converts into, or transfers all or substantially all its corporate trust business or assets to, another
corporation or banking association, the resulting, surviving or transferee corporation or banking association without any further act shall be the successor Trustee. 
  
 (b) If at the time such successor or successors by merger, conversion or consolidation to the Trustee shall succeed to the
trusts created by this Indenture, any of the Securities shall have been authenticated but not delivered, any such successor to the Trustee may adopt the certificate of authentication of any predecessor Trustee, and deliver such Securities so
authenticated; and if at that time any of the Securities shall not have been authenticated, any successor to the Trustee may authenticate such Securities either in the name of any predecessor hereunder or in the name of the successor to the Trustee;
and in all such cases such certificates shall have the full force which it is anywhere in the Securities or in this Indenture provided that the certificate of the Trustee shall have. 
  

	Section 7.10	Eligibility; Disqualification 

  
 The Trustee shall at all times satisfy the requirements of Trust Indenture Act Section 310(a). There shall at all times be a Trustee hereunder that
is a corporation organized and doing business under the laws of the United States of America or of any state thereof that is authorized under such laws to exercise corporate Trustee power, that is subject to supervision or examination by federal or
state authorities and that has a combined capital and surplus of at least $50 million as set forth in its most recent published annual report of condition. The Trustee shall comply with Trust Indenture Act Section 310(b); provided,
however, that there shall be excluded from the operation of Trust Indenture Act Section 310(b)(1) any indenture or indentures under which other securities or certificates of interest or participation in other securities of the Company are
outstanding if the requirements for such exclusion set forth in Trust Indenture Act Section 310(b)(1) are met. 
  

 80 

	Section 7.11	Preferential Collection of Claims Against Company 

  
 The Trustee shall comply with Trust Indenture Act Section 311(a), excluding any creditor relationship listed in Trust Indenture Act
Section 311(b). A Trustee who has resigned or been removed shall be subject to Trust Indenture Act Section 311(a) to the extent indicated. 
  
 ARTICLE VIII 
  
 DISCHARGE OF INDENTURE; DEFEASANCE 
  

	Section 8.1	Discharge of Liability on Securities; Defeasance 

  
 (a) Subject to Section 8.1(c) hereof, the Company’s obligations under the Securities, the Security Documents and this Indenture, and each
Guarantor’s obligations under its Guaranty and the Security Documents, will terminate when: 
  
 (1) either 
  
 (A) all Securities (except lost, stolen or destroyed Securities that have been replaced or paid and Securities for whose payment money has
theretofore been deposited in trust and thereafter repaid to the Company) have been delivered to the Trustee for cancellation, or 
  
 (B) all Securities that have not been delivered to the Trustee for cancellation have become due and payable by reason of the giving of a
notice of redemption or otherwise or will become due and payable within one year and the Company or any Guarantor has irrevocably deposited or caused to be irrevocably deposited with the Trustee as trust funds in trust solely for the benefit of the
Holders, cash in U.S. dollars, non-callable Government Securities, or a combination thereof, in such amounts as will be sufficient without consideration of any reinvestment of interest, to pay and discharge the entire indebtedness on the Securities
not delivered to the Trustee for cancellation for principal, premium, if any, and Additional Interest, if any, and accrued interest and Additional Amounts, if any, to the date of maturity or redemption; 
  
 (2) no Default or Event of Default shall have occurred and
be continuing on the date of such deposit or shall occur as a result of such deposit and such deposit will not result in a breach or violation of, or constitute a default under, any other instrument to which the Company, the Parent or any Restricted
Subsidiary is a party or by which the Company, the Parent or any Restricted Subsidiary is bound; 
  
 (3) the Parent, the Company or any Subsidiary Guarantor has paid or caused to be paid all other sums payable by it under this Indenture;
and 
  
 (4) the Company has delivered an
Officer’s Certificate and an Opinion of Counsel to the Trustee stating that all conditions precedent to satisfaction and discharge have been satisfied. 
  

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 Notwithstanding the foregoing, if a Holder of Securities is required under applicable law to return any payments made to
it under this Indenture, then the Company’s obligation to repay such Holder the amount so returned plus interest thereon shall be reinstated until repaid in full. 
  
 (b) Subject to Section 8.2 hereof, the Company at its option at any time may terminate (i) all its
obligations, subject to Section 8.1(c) hereof, under the Securities and this Indenture and the Security Documents and all obligations of the Guarantors with respect to their Guarantees and the Security Documents (“legal
defeasance option”), and after giving effect to such legal defeasance, any omission to comply with such obligations shall no longer constitute a Default or Event of Default or (ii) its obligations under Section 4.2,
Section 4.3, Section 4.4, Section 4.5, Section 4.6, Section 4.7, Section 4.8, Section 4.9, Section 4.10, Section 4.11 hereof and clause
(a)(4) of Section 5.1 hereof and the Company, the Parent and its Restricted Subsidiaries may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in any such covenant, whether directly
or indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any other provision herein or in any other document and such omission to comply with such covenants shall no longer
constitute a Default or an Event of Default under Section 6.1(3) (solely as it relates to clause (a)(4) of Section 5.1) and Section 6.1(4) hereof and the operation of Section 6.1(5),
Section 6.1(6), Section 6.1(7) and Section 6.1(8) hereof and, (with respect only to Significant Subsidiaries) Section 6.1(9) hereof, and the events specified in such Sections shall no longer constitute
an Event of Default (clause (ii) being referred to as the “covenant defeasance option”), but except as specified above, the remainder of this Indenture and the Securities shall be unaffected thereby. The Company may exercise
its legal defeasance option notwithstanding its prior exercise of its covenant defeasance option. If the Company exercises its legal defeasance option, each Guarantor shall be released from its obligations with respect to its Guarantee and the
Security Documents. 
  
 If the Company exercises its legal
defeasance option, payment of the Securities may not be accelerated because of an Event of Default with respect thereto unless notice of such acceleration is given prior to such exercise. If the Company exercises its covenant defeasance option,
payment of the Securities may not be accelerated because of an Event of Default specified in Section 6.1(4), Section 6.1(5), Section 6.1(6), Section 6.1(7), Section 6.1(8), and (with
respect only to Significant Subsidiaries) Section 6.1(9) hereof or the failure of the Company to comply with clause (a)(4) of Section 5.1 hereof, unless, in any such case, notice of such acceleration is given prior to such
exercise. 
  
 Upon satisfaction of the conditions set forth herein
and upon request of the Company, the Trustee shall acknowledge in writing the discharge of those obligations that the Company terminates. 
  
 (c) Notwithstanding the provisions of Section 8.1(a) and Section 8.1(b) hereof, the obligations of the Company in
Section 2.3, Section 2.4, Section 2.5, Section 2.6, Section 2.7, Section 2.9, Section 7.7, Section 7.8 hereof, in Article III and in this
Article VIII shall survive until the Securities have been paid in full. Thereafter, the obligations of the Company in Section 7.7, Section 8.4 and Section 8.5 hereof shall survive. 
  

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	Section 8.2	Conditions to Defeasance 

  
 The Company may exercise its legal defeasance option or its covenant defeasance option only if: 
  
 (1) the Company shall have irrevocably deposited with the
Trustee, in trust, for the benefit of the Holders of the Securities, cash in U.S. dollars, non-callable Government Securities, or a combination thereof, in such amounts as will be sufficient, in the opinion of a nationally recognized firm of
independent public accountants, to pay the principal of, premium, if any, interest and Additional Amounts, if any, on the outstanding Securities on the Stated Maturity or on the applicable Redemption Date, as the case may be, and the Company must
specify whether the Securities are being defeased to Stated Maturity or to a particular Redemption Date; 
  
 (2) in the case of the legal defeasance option, the Company shall have delivered to the Trustee an Opinion of Counsel reasonably
acceptable to the Trustee confirming that (a) the Company has received from, or there has been published by, the Internal Revenue Service a ruling or (b) since the Issue Date, there has been a change in the applicable federal income tax
law, in either case to the effect that, and based thereon such Opinion of Counsel shall confirm that, the Holders of the outstanding Securities will not recognize income, gain or loss for federal income tax purposes as a result of such legal
defeasance option and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such legal defeasance option had not occurred; 
  
 (3) in the case of the covenant defeasance option, the
Company shall have delivered to the Trustee an Opinion of Counsel reasonably acceptable to the Trustee confirming that the Holders of the outstanding Securities will not recognize income, gain or loss for federal income tax purposes as a result of
such covenant defeasance option and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such covenant defeasance option had not occurred; 
  
 (4) no Default or Event of Default shall have occurred and
be continuing on the date of such deposit (other than a Default or Event of Default resulting from the borrowing of funds to be applied to such deposit); 
  
 (5) such legal defeasance option or covenant defeasance option will not result in a breach or violation of, or constitute a default under
any material agreement or instrument (other than this Indenture or the Security Documents) to which the Parent or any of its Restricted Subsidiaries is a party or by which the Parent or any of its Restricted Subsidiaries is bound; 
  
 (6) the Company shall have delivered to the Trustee an
Officer’s Certificate stating that the deposit was not made by the Company with the intent of preferring the Holders of Securities over the other creditors of the Company with the intent of defeating, hindering, delaying or defrauding creditors
of the Company or others; 
  
 (7) the Company
shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, stating that all conditions precedent relating to the legal defeasance option or the covenant defeasance option have been complied with; and 
  

 83 

 (8) The Company shall have paid any other amounts to the Trustee and Collateral Agent
that are due and owing under this Indenture and the Security Documents. 
  

	Section 8.3	Delivery and Application of Trust Money 

  
 (a) Any money or Government Securities to be delivered to or deposited with the Trustee by the Company shall be delivered to or deposited with the Paying
Agent for further delivery to or deposit with the Trustee. 
  
 (b)
The Trustee shall hold in trust money or Government Securities deposited with it pursuant to this Article VIII. It shall apply the deposited money and the money from Government Securities through the Paying Agent and in accordance with this
Indenture to the payment of principal, premium, if any, of and interest and Additional Amounts, if any, on the Securities. 
  

	Section 8.4	Repayment to Company 

  
 Following payment to the Trustee and Collateral Agent of any amounts due and owing to them, the Trustee and the Paying Agent shall promptly turn over to
the Company upon request any excess money or securities held by them upon payment of all the obligations under this Indenture. 
  
 Subject to any applicable abandoned property law, the Trustee and the Paying Agent shall pay to the Company upon request any money held by them for the
payment of principal of, or premium, if any, or interest or Additional Amounts, if any, on the Securities that remains unclaimed for two years (or any such money then held by the Company or any Subsidiary shall be discharged from any trust
hereunder), and, thereafter, Holders entitled to the money must look to the Company for payment as unsecured general creditors; provided, however, that the Trustee or such Paying Agent, before being required to make any such repayment, may at
the expense of the Company cause to be published once, in The New York Times and The Wall Street Journal (national edition), notice that such money remains unclaimed and that, after a date specified therein, which will not be less than
30 days from the date of such notification or publication, any unclaimed balance of such money then remaining will be repaid to the Company. 
  

	Section 8.5	Indemnity for Government Securities 

  
 The Company shall pay and shall indemnify the Trustee against any tax, fee or other charge imposed on or assessed against deposited Government Securities
or the principal and interest received on such Government Securities. 
  

	Section 8.6	Reinstatement 

  
 If the Trustee or Paying Agent is unable to apply any money or Government Securities in accordance with this Article VIII by reason of any legal
proceeding or by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the obligations of the Company under this Indenture and the Securities shall be revived and
reinstated as though no deposit had occurred pursuant to this Article VIII until such time as the Trustee or Paying Agent is permitted to apply all such money or Government 

  

 84 

 
Securities in accordance with this Article VIII; provided, however, that, if the Company has made any payment of interest and Additional
Amounts on or principal of any Securities because of the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Securities to receive such payment from the money or Government Securities held by the
Trustee or Paying Agent. 
  
 ARTICLE IX 
  
 AMENDMENTS 
  

	Section 9.1	Without Consent of Holders 

  
 The Company, the Guarantors and the Trustee may amend or supplement this Indenture, the Securities or the Security Documents without notice to or consent
of any Holder: 
  
 (1) to cure any ambiguity,
defect or inconsistency; 
  
 (2) to provide for
uncertificated Securities in addition to or in place of certificated Securities; 
  
 (3) to provide for the assumption of the Company’s or a Guarantor’s obligations to Holders of the Securities in the case of a
merger or consolidation or sale of all or substantially all of the Company’s or a Guarantor’s properties or assets in compliance with this Indenture; 
  

(4) to add or release Guarantors in compliance with this Indenture; 
  
 (5) to add Collateral to secure the Securities or the Guarantees, or to release Collateral in accordance
with the express terms of this Indenture and the Security Documents; 
  
 (6) to make any change that would provide any additional rights or benefits to the Holders of the Securities or that does not adversely affect the legal rights hereunder of any Holder in any material respect; or

  
 (7) to comply with the requirements of the
SEC in order to effect or maintain the qualification of this Indenture under the Trust Indenture Act. 
  
 After an amendment or supplement under this Section 9.1 becomes effective, the Company shall deliver to each Holder a notice briefly
describing such amendment. The failure to give such notice to any or all Holders, or any defect therein, shall not impair or affect the validity of any such amendment or supplement under this Section 9.1. 
  

	Section 9.2	With Consent of Holders 

  
 The Company, the Guarantors and the Trustee may amend or supplement this Indenture, the Securities or the Security Documents with the written consent of
the Holders of at least a majority in outstanding principal amount of the Securities (including consents obtained in connection with the purchase of, or tender offer or exchange offer for, Securities). Subject to the following sentence, any existing
Default or compliance with any provision of this Indenture, the 

  

 85 

 
Securities or the Guarantees may be waived with the written consent of the Holders of at least a majority in outstanding principal amount of Securities
(including consents obtained in connection with a purchase of, or tender offer or exchange offer for, Securities). However, without the consent of each Holder, an amendment, supplement or waiver may not (with respect to any Securities held by a
non-consenting Holder): 
  
 (1) reduce the
principal amount of Securities whose Holders must consent to an amendment, supplement or waiver; 
  
 (2) reduce the principal of or change the Stated Maturity of any Security or alter the provisions with respect to the redemption or
repurchase of the Securities or change the time at which any Security may be redeemed or repurchased as described above under Sections 4.7 or 4.11 (whether through amendment or waiver of provisions in the covenants, definitions or
otherwise); 
  
 (3) reduce the rate of or change
the time for payment of interest on any Security; 
  
 (4) waive a Default or Event of Default in the payment of principal of or premium, if any, or interest on the Securities (except a rescission of acceleration of the Securities by the Holders of at least a majority in aggregate principal
amount of the Securities and a waiver of the payment default that resulted from such acceleration); 
  
 (5) make any Security payable in money other than that stated in the Securities; 
  
 (6) make any change in the provisions of this Indenture
relating to waivers of past Defaults or the rights of Holders of Securities to receive payments of principal of or premium, if any, or interest on the Securities; 
  
 (7) modify the Parent Guarantee or any Subsidiary Guarantee in any manner adverse to the Holders of the
Securities; 
  
 (8) make any change in the
ranking of the Securities or the Subsidiary Guarantees in a manner adverse to the Holders of the Securities or the Subsidiary Guarantees; 
  
 (9) except as expressly provided in this Indenture or any Security Document, release all or substantially all the Liens on the Collateral;
and 
  
 (10) make any change in the preceding
amendment, supplement and waiver provisions of this Section 9.2. 
  
 The consent of the Holders is not necessary under this Section 9.2 to approve the particular form of any proposed amendment or waiver. It is sufficient if the consent approves the substance of the proposed
amendment or waiver. 
  
 After an amendment, supplement or waiver
under this Section 9.2 becomes effective, the Company shall deliver to each Holder of Securities affected thereby a notice briefly describing such amendment. The failure to give such notice to any or all Holders, or any defect therein,

  

 86 

 
shall not impair or affect the validity of any amendment, supplement or waiver under this Section 9.2. 
  

	Section 9.3	Compliance with Trust Indenture Act 

  
 Every amendment to this Indenture, the Securities or the Security Documents shall comply with the Trust Indenture Act as then in effect. 
  

	Section 9.4	Revocation and Effect of Consents and Waivers 

  
 A consent to an amendment, supplement or waiver by a Holder of a Security shall bind the Holder and every subsequent Holder of that Security or portion of
the Security that evidences the same debt as the consenting Holder’s Security (or any Holder of a Security issued upon the registration of transfer or exchange thereof or in lieu thereof), even if notation of the amendment, supplement or waiver
is not made on the Security. However, any such Holder or subsequent Holder may revoke the consent as to such Holder’s Security or portion of the Security if the Trustee receives the written notice of revocation before the date the amendment,
supplement or waiver becomes effective. After an amendment, supplement or waiver becomes effective in accordance with its terms, it shall bind every Holder. 
  
 The Company may, but shall not be obligated to, fix a record date for the purpose of determining the Holders entitled to give their consent or take any
other action described above or required or permitted to be taken pursuant to this Indenture. If a record date is fixed, then notwithstanding the immediately preceding paragraph, those Persons who were Holders at the close of business on such record
date (or their duly designated proxies), and only those Persons, shall be entitled to give such consent or to revoke any consent previously given or to take any such action, whether or not such Persons continue to be Holders after such record date,
and for this purpose the Securities then outstanding shall be computed as of such record date. No such consent shall become valid or effective more than 120 days after such record date. 
  

	Section 9.5	Notation on or Exchange of Securities 

  
 If an amendment or supplement changes the terms of a Security, the Trustee may require the Holder of the Security to deliver it to the Trustee. The
Trustee may place an appropriate notation on the Security regarding the changed terms and return it to the Holder. Alternatively, if the Company or the Trustee so determines, the Company in exchange for the Security shall issue and the Trustee shall
authenticate a new Security that reflects the changed terms, but the failure to make the appropriate notation or to issue a new Security shall not affect the validity and effect of such amendment or supplement. 
  

	Section 9.6	Trustee To Sign Amendments 

  
 The Trustee shall sign any amendment or supplement authorized pursuant to this Article IX if the amendment or supplement does not adversely affect
the rights, duties, liabilities or immunities of the Trustee. If it does, the Trustee may but need not sign it. In signing such amendment or supplement the Trustee shall be entitled to receive, and (subject to Section 7.1 hereof) shall
be fully protected in relying upon, an Officer’s Certificate and an Opinion of 

  

 87 

 
Counsel stating that the execution of such amendment or supplement is authorized or permitted by this Indenture. 
  
 ARTICLE X 
  
 GUARANTEES 
  

	Section 10.1	Guarantees 

  
 Each Guarantor which is a party hereto or becomes a party hereto by executing and delivering a supplement to this Indenture pursuant to
Section 4.9 hereof, jointly and severally, unconditionally guarantees to each Holder and to the Trustee and its successors and assigns the full and punctual payment of principal of, premium (if any) and interest on the Securities when
due, whether at Stated Maturity, or upon optional redemption, required repurchase pursuant to Section 4.7 or Section 4.11 hereof, acceleration or otherwise, and all other monetary obligations owing by the Company under this
Indenture (including obligations owing to the Trustee) and the Securities (all the foregoing being hereinafter collectively called the “Obligations”). The Guarantors further agree that the Obligations may be extended or renewed, in whole
or in part, without notice or further assent from the Guarantors, and that the Guarantors will remain bound under this Article X notwithstanding any extension or renewal of any Obligation. 
  
 The Guarantors waive presentation to, demand of, payment from and protest to
the Company of any of the Obligations and also waive notice of protest for nonpayment. The Guarantors waive notice of any Default under the Securities or the Obligations. The obligations of the Guarantors hereunder shall not be affected by
(i) the failure of any Holder or the Trustee to assert any claim or demand or to enforce any right or remedy against the Company or any other Person under this Indenture, the Securities, the Security Documents or any other agreement or
otherwise; (ii) any extension or renewal of any Obligation; (iii) any rescission, waiver, amendment, modification or supplement of any of the terms or provisions of this Indenture (other than this Article X), the Securities, the
Security Documents or any other agreement; (iv) the release of security, if any, held by any Holder or the Trustee for the Obligations or any of them; (v) the failure of any Holder or the Trustee to exercise any right or remedy against any
other guarantor of the Obligations; (vi) any change in the ownership of the Company, or (vii) any other act or thing or omission or delay to do any other act or thing which may or might in any manner or to any extent vary the risk of the
Guarantors or would otherwise operate as a discharge of the Guarantors as a matter of law or equity. 
  
 The Guarantors, jointly and severally, further agree that their Guarantees herein constitute a guarantee of payment when due (and not a Guarantee of
collection) and waive any right to require that any resort be had by any Holder or the Trustee to security, if any, held for payment of the Obligations. 
  
 The obligations of the Guarantors hereunder shall not be subject to any reduction, limitation, impairment or termination for any reason (except to the
extent provided in Section 10.2 hereof), including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any defense, setoff, counterclaim, recoupment or termination whatsoever or by reason of the
invalidity, illegality or unenforceability of the Obligations or otherwise. 
  

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 The Guarantors, jointly and severally, further agree that their Guarantees herein shall continue to be
effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of any Obligation is rescinded or must otherwise be restored by any Holder or the Trustee upon the bankruptcy or reorganization of the Company or otherwise.

  
 In furtherance of the foregoing and not in limitation of any
other right which any Holder or the Trustee has at law or in equity against the Guarantors by virtue hereof, upon the failure of the Company to pay any Obligation when and as the same shall become due, whether at Stated Maturity, upon optional
redemption, required repurchase, acceleration, redemption or otherwise, the Guarantors hereby promise to and will, upon receipt of written demand by the Trustee, forthwith pay, or cause to be paid, in cash, to the Holders or the Trustee an amount
equal to the sum of (i) the unpaid principal amount of such Obligations, (ii) accrued and unpaid interest on such Obligations (but only to the extent not prohibited by law) and (iii) all other monetary Obligations of the Company to
the Holders and the Trustee. 
  
 The Guarantors, jointly and
severally, agree that, as between the Guarantors, on the one hand, and the Holders and the Trustee, on the other hand, (x) the maturity of the Obligations guaranteed hereby may be accelerated as provided in Article VI for the purposes of
the Guarantees herein, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the Obligations guaranteed hereby, and (y) in the event of any declaration of acceleration of such Obligations as
provided in Article VI, such Obligations (whether or not due and payable) shall forthwith become due and payable by the Guarantors for the purposes of this Section 10.1. 
  
 The Guarantors, jointly and severally, also agree to pay any and all costs
and expenses (including reasonable attorneys’ fees and expenses) incurred by the Trustee or any Holder in enforcing any rights under this Section 10.1. 
  

	Section 10.2	Limitation on Liability 

  
 Each Subsidiary Guarantor, and by its acceptance of Securities, each Holder, hereby confirms that it is the intention of all such parties that the
Subsidiary Guarantee of such Subsidiary Guarantor not constitute a fraudulent transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to
the extent applicable to any Subsidiary Guarantee. To effectuate the foregoing intention, the Trustee, the Holders and the Guarantors hereby irrevocably agree that the obligations of such Subsidiary Guarantor will be limited to the maximum amount
that will, after giving effect to such maximum amount and all other contingent and fixed liabilities of such Subsidiary Guarantor that are relevant under such laws, and after giving effect to any collections from, rights to receive contribution from
or payments made by or on behalf of any other Guarantor in respect of the obligations of such other Guarantor under this Article X, result in the obligations of such Subsidiary Guarantor under its Subsidiary Guarantee not constituting a
fraudulent transfer or conveyance. 
  

 89 

	Section 10.3	Execution and Delivery of Guarantees 

  
 To evidence its Guarantee set forth in Section 10.1, each Guarantor hereby agrees that a notation of such Guarantee substantially in the form
attached as Exhibit D hereto will be endorsed by manual or facsimile signature by an Officer of such Guarantor on each Security authenticated and delivered by the Trustee and that this Indenture will be executed on behalf of such Guarantor by
one of its Officers by execution of the signature page hereof or by execution of a supplemental indenture substantially in form of Exhibit E hereof. 
  
 Each Guarantor hereby agrees that its Guarantee set forth in Section 10.1 will remain in full force and effect notwithstanding any failure to
endorse on each Security a notation of such Guarantee. If an Officer whose signature is on this Indenture or on the Guarantee no longer holds that office at the time the Trustee authenticates the Security on which a Guarantee is endorsed, the
Subsidiary Guarantee will be valid nevertheless. 
  
 The delivery
of any Security by the Trustee, after the authentication thereof hereunder, will constitute due delivery of the Guarantee set forth in this Indenture on behalf of the Guarantors. 
  
 In the event that the Parent or any of its Restricted Subsidiaries acquires or creates another Restricted Subsidiary (other
than Foreign Subsidiaries) after the Issue Date, the Parent will comply with the provisions of Section 4.9 hereof. 
  

	Section 10.4	Successors and Assigns 

  
 Except as otherwise provided in Section 10.9 hereof, this Article X shall be binding upon the Guarantors and their successors and
assigns and shall inure to the benefit of the successors and assigns of the Trustee and the Holders and, in the event of any transfer or assignment of rights in accordance with the terms of this Indenture by any Holder or the Trustee, the rights and
privileges conferred upon that party in this Indenture and in the Securities shall automatically extend to and be vested in such transferee or assignee, all subject to the terms and conditions of this Indenture, the Securities, the Guarantees and
the Security Documents. 
  

	Section 10.5	No Waiver 

  
 Neither a failure nor a delay on the part of either the Trustee or the Holders in exercising any right, power or privilege under this Article X
shall operate as a waiver thereof, nor shall a single or partial exercise thereof preclude any other or further exercise of any right, power or privilege. The rights, remedies and benefits of the Trustee and the Holders herein expressly specified
are cumulative and not exclusive of any other rights, remedies or benefits which either may have under this Article X at law, in equity, by statute or otherwise. 
  

	Section 10.6	Right of Contribution 

  
 Each Guarantor hereby agrees that to the extent that a Guarantor shall have paid more than its proportionate share of any payment made hereunder, such
Guarantor shall be entitled to seek and receive contribution from and against any other Guarantor hereunder who has not paid its proportionate share of such payment. Each Guarantor’s right of contribution shall be subject 

  

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to the terms and conditions of this Article X. The provisions of this Section 10.6 shall in no respect limit the obligations and
liabilities of any Guarantor to the Trustee and the Holders and each Guarantor shall remain liable to the Trustee and the Holders for the full amount guaranteed by such Guarantor hereunder. 
  

	Section 10.7	No Subrogation 

  
 Notwithstanding any payment or payments made by any of the Guarantors hereunder, no Guarantor shall be entitled to exercise any rights of subrogation it
may have to any of the rights of the Trustee or any Holder against the Company or any other Guarantor or any collateral security or guarantee or right of offset held by the Trustee or any Holder for the payment of the Obligations, nor shall any
Guarantor seek or be entitled to seek any contribution or reimbursement from the Company or any other Guarantor in respect of payments made by such Guarantor hereunder, until all amounts owing to the Trustee and the Holders by the Company on account
of the Obligations are paid in full. If any amount shall be paid to any Guarantor on account of such subrogation rights at any time when all of the Obligations shall not have been paid in full, such amount shall be held by such Guarantor in trust
for the Trustee and the Holders, segregated from other funds of such Guarantor, and shall, forthwith upon receipt by such Guarantor, be turned over to the Trustee in the exact form received by such Guarantor (duly indorsed by such Guarantor to the
Trustee, if required), to be applied against the Obligations. 
  

	Section 10.8	Modification 

  
 No modification, amendment or waiver of any provision of this Article X, nor the consent to any departure by the Guarantors therefrom, shall in any
event be effective unless the same shall be made in accordance with Article IX hereof. No notice to or demand on the Guarantors in any case shall entitle the Guarantors to any other or further notice or demand in the same, similar or other
circumstances. 
  

	Section 10.9	Merger, Consolidation or Sale of Assets of a Guarantor; Release of a Subsidiary Guarantor 

  
 (a) The Company shall not permit a Subsidiary Guarantor to sell or otherwise dispose of all or substantially all of its
assets, or consolidate with or merge with or into (whether or not such Subsidiary Guarantor is the surviving Person), another Person (other than the Company or another Subsidiary Guarantor) unless: 
  
 (1) immediately after giving effect to that transaction, no
Default shall exist; and 
  
 (2) the Person
formed by or surviving any such consolidation or merger (if other than the Subsidiary Guarantor) assumes all the obligations of that Subsidiary Guarantor pursuant to a supplemental indenture satisfactory to the Trustee. 
  
 (b) The Subsidiary Guarantee of a Subsidiary Guarantor will be released in
accordance with Section 10.9(c) hereof: 
  
 (1) in connection with any sale or other disposition of all or substantially all of the assets of that Subsidiary Guarantor (including by way of merger or consolidation); or (b) in 

  

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connection with any sale of all of the Capital Stock of such Subsidiary Guarantor, in either case provided that (I) the Company otherwise complies with
the terms of this Indenture with respect to such transaction and (II) upon completion of such transaction, all obligations of such Subsidiary Guarantor with respect to guarantees of other Indebtedness of the Company and its Restricted Subsidiaries
terminate; or 
  
 (2) if the Parent designates
any Restricted Subsidiary that is a Guarantor as an Unrestricted Subsidiary in accordance with the provisions of this Indenture; or 
  
 (3) if the Company effects a legal defeasance option as described under Article VIII; 
  
 which release shall be evidenced by a supplemental indenture satisfactory to the Trustee and
the Company. 
  
 (c) In the case of either: (a) or
(b) above, the Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that such consolidation, merger or sale or other disposition (in the case of (a)) or release (in the case of (b)),
and any supplemental indenture, comply with this Indenture. 
  
 (d) Notwithstanding anything in this Section 10.9 to the contrary, a Subsidiary Guarantor may consolidate with or merge into the Company or another Subsidiary Guarantor, and may transfer, sell or dispose of all or substantially
all its assets to the Company or another Subsidiary Guarantor. 
  
 ARTICLE XI 
  
 COLLATERAL AND SECURITY

  

	Section 11.1	Collateral Documents. 

  
 The payment of the principal of and interest and premium, if any, and Additional Amounts on the Securities when due, whether on an Interest Payment Date,
at Stated Maturity, by acceleration, repurchase, redemption or otherwise and whether by the Company pursuant to the Securities or by any Guarantor pursuant to its Guarantee, the payment and performance of all other obligations of the Company and the
Guarantors under this Indenture, the Securities and the Security Documents, according to the terms hereunder and thereunder, are secured as provided in the Security Documents which the Company and the Guarantors have entered into prior to or
simultaneously with the execution of this Indenture (except for the pledges of the Capital Stock of Bramex and Transmeridian Kazakhstan and the Caspi Neft Security Agreements, the Security Documents for which will be entered into subsequent to the
closing of the Bramex Acquisition in accordance with Section 4.40(b) of the Purchase Agreements) and will be secured by the Collateral as required or permitted by this Indenture. 
  

 92 

	Section 11.2	Collateral Agent. 

  
 (a) The Trustee is authorized and empowered to appoint one or more collateral agents as it deems necessary or appropriate who shall be entitled to
exercise all rights of the Trustee with respect to the Collateral. 
  
 (b) In acting as Collateral Agent, the Collateral Agent may rely upon and enforce for its own benefit each and all of the rights, powers, immunities, indemnities and benefits of the Trustee under Article VII hereof, each of which
shall also be deemed to be for the benefit of the Collateral Agent. 
  
 (c) At all times when the Trustee is not itself the Collateral Agent, the Company will deliver to the Trustee copies of all Security Documents delivered to the Collateral Agent and copies of all documents delivered to the Collateral Agent
pursuant to the Security Documents. 
  

	Section 11.3	Recording and Opinions. 

  
 (a) Each of the Company and the Guarantors represent that it has caused or will promptly cause to be executed and delivered, registered, filed and
recorded, and covenants that it will promptly cause to be executed and delivered and registered, filed and recorded, all instruments and documents, and represents that it has done and will do or will cause to be done all such acts and other things,
at the Company’s or such Guarantor’s expense, as applicable, as are necessary to subject the applicable Collateral to valid Liens and to perfect those Liens, all to the fullest extent permitted by law. 
  
 (b) The Company shall furnish to the Trustee promptly after the execution and
delivery of this Indenture an Opinion of Counsel either (i) stating that in the opinion of such counsel all action has been taken with respect to the recording, registering and filing of this Indenture, financing statements or other instruments
or otherwise necessary to make effective the Liens intended to be created by the Security Documents and reciting the details of such action, or (ii) stating that, in the opinion of such counsel, no such action is necessary to make such Lien
effective. Such Opinion of Counsel shall cover the necessity for recordings, registrations and filings required in all relevant jurisdictions. 
  
 (c) The Company shall furnish to the Trustee within 3 months after each anniversary of the Issue Date, an Opinion of Counsel, dated as of such anniversary
date, stating either that (i) in the opinion of such counsel, all action has been taken with respect to the recording, registering, filing, re-recording, re-registering and refiling of all supplemental indentures, financing statements,
continuation statements or other instruments of further assurance or otherwise as is necessary to maintain the effectiveness of the Liens intended to be created by the Security Documents and reciting the details of such action or (ii) in the
opinion of such counsel, no such action is necessary to maintain the effectiveness of such Liens. Such opinion of counsel shall cover the necessity of recordings, registrations, filing, re-recordings, re-registrations and refilings in all relevant
jurisdictions. 
  
 (d) The Company shall otherwise comply with the
provisions of Section 314(b) and, as applicable Sections 314(c), (d) and (e) of the Trust Indenture Act. 
  

 93 

	Section 11.4	Certificates of the Company 

  
 The Company will furnish to the Trustee prior to each proposed release of Collateral pursuant to the Security Documents all documents required by
Section 314(d) of the Trust Indenture Act. The Trustee may, to the extent permitted by Article VII hereof, accept as conclusive evidence of compliance with the foregoing provisions the appropriate statements contained in such
instruments. Any certificate or opinion required by Section 314(d) of the Trust Indenture Act may be made by an Officer of the Company, as the case may be, except in cases where Section 314(d) of the Trust Indenture Act requires that such
certificate or opinion be made by an independent engineer, appraiser or other expert within the meaning of Section 314(d) of the Trust Indenture Act. 
  

	Section 11.5	Authorization of Actions to Be Taken 

  
 (a) Each Holder of Securities, by its acceptance thereof, consents and agrees to the terms of each Security Document, as originally in effect and as
amended, supplemented or replaced from time to time in accordance with its terms or the terms of this Indenture, authorizes and directs the Trustee to enter into the Security Documents to which it is a party, authorizes and empowers the Trustee to
bind the Holders of Securities as set forth in the Security Documents to which it is a party and to perform its obligations and exercise its rights and powers thereunder. Each of the Company and the Guarantors will do or cause to be done all such
acts and things as may be necessary or proper, or as may be required by the provisions of the Security Documents to which it is a party, to assure and confirm to the Collateral Agent and the Trustee the Liens in the Collateral contemplated hereby
and by the Security Documents to which it is a party, as from time to time constituted, so as to render the same available to the fullest extent permitted by law for the security and benefit of this Indenture and of the Securities, as applicable,
according to the intent and purposes herein and therein expressed. Each of the Company and the Guarantors shall to the fullest extent permitted by law, take upon request of the Trustee or the Collateral Agent, any and all actions reasonably required
to cause the Security Documents to which it is a party, to be valid and enforceable, perfected, except as expressly provided herein or therein, Liens. 
  
 (b) The Trustee is authorized and empowered to receive for the benefit of the Holders of Securities any funds collected or distributed under the Security
Documents to which the Trustee is a party and to make further distributions of such funds to the Holders of Securities according to the provisions of this Indenture. 
  
 (c) Subject to the provisions of Article VII, the Trustee may, in its sole discretion and without the consent of the
Holders of Securities, direct, on behalf of the Holders of Securities, the Collateral Agent to take all actions it deems necessary or appropriate in order to: 
  

(1) foreclose upon or otherwise enforce any or all of the Liens; 
  
 (2) enforce any of the terms of the Security Documents to which the Trustee is a party; or 
  
 (3) collect and receive payment of all obligations in
respect of the Securities, the Guarantees and this Indenture. 
  

 94 

 Subject to the provisions of Article VII, the Trustee is authorized and empowered to institute and maintain such
suits and proceedings as it may deem expedient to protect or enforce the Liens or the Security Documents to which the Trustee is a party or to prevent any impairment of Collateral by any acts that may be unlawful or in violation of the Security
Documents to which the Trustee is a party or this Indenture, and such suits and proceedings as the Trustee or the Collateral Agent may deem expedient to preserve or protect its interests and the interests of the Holders in the Collateral, including
the power to institute and maintain suits or proceedings to restrain the enforcement of or compliance with any legislative or other governmental enactment, rule or order that may be unconstitutional or otherwise invalid if the enforcement of, or
compliance with, such enactment, rule or order would impair the security interest hereunder or be prejudicial to the interests of Holders or the Trustee. 
  

	Section 11.6	Release of Note Liens. 

  
 (a) The Liens will be released, with respect to the Securities and the Guarantees: 
  
 (1) in whole, upon payment in full of the principal of, accrued and unpaid interest, Additional Amounts, if
any, and premium, if any, on the Securities and payment in full of all other Obligations in respect thereof that are due and payable at or prior to the time such principal, accrued and unpaid interest, Additional Amounts, if any, and premium, if
any, are paid, including amounts owing under Section 7.7; 
  
 (2) in whole, upon discharge or legal defeasance pursuant to Article VIII; and 
  
 (3) in whole or in part, in accordance with the Escrow Agreement. 
  
 (b) Upon delivery to the Trustee of an Officer’s Certificate requesting execution of an instrument confirming the
release of the Liens pursuant to Section 11.5(a), accompanied by: 
  
 (1) an Opinion of Counsel confirming that such release is permitted by Section 11.5(a); 
  
 (2) all instruments requested by the Company to effectuate or confirm such release; and 
  
 (3) such other certificates and documents as the Trustee may
reasonably request to confirm the matters set forth in Section 11.5(a), 
  
 the Trustee will, if such instruments and confirmation are reasonably satisfactory to the Trustee, promptly execute and deliver, such instruments. 
  
 (c) All instruments effectuating or confirming any release of any Liens will have the effect solely of releasing such Liens as to the Collateral described
therein, on customary terms and without any recourse, representation, warranty or liability whatsoever. 
  
 (d) The Company will bear and pay all costs and expenses associated with any release of Liens pursuant to this Section 11.6, including all
reasonable fees and disbursements of any attorneys or representatives acting for the Trustee or for the Collateral Agent. 
  

 95 

 (e) Notwithstanding any provision of Section 11.4 to the contrary, the releases of funds
contained in the Escrow Account pursuant to the terms thereof may be made without delivery to the Collateral Agent or the Trustee of certificates required by Section 314(d) of the TIA. However, in lieu of such certificates, the Company shall
deliver semi-annual Officer’s Certificates to the Trustee to the effect that all such dispositions have been made in the ordinary course of the Company’s or the Guarantors’ businesses, as applicable, and that the proceeds therefrom
have been applied in a manner permitted by this Indenture. The Trustee shall, in the absence of negligence or bad faith on its part, be entitled to rely on Officer’s Certificates and Opinions of Counsel with respect to the Company’s and
the Guarantors’ compliance with the provisions of this Section 11.6. 
  
 (f) At any time when an Event of Default shall have occurred and be continuing and the maturity of the Securities shall have been accelerated (whether by declaration or otherwise) and the Trustee shall have delivered
a notice of acceleration to the Company, no release of Collateral pursuant hereto shall be effective as against the Holders of Securities. 
  
 (g) The release of any Collateral from the terms of the Security Documents, or the release, in whole or in part, of the Liens created by the Security
Documents, will not be deemed to impair the security under this Indenture in contravention of the provisions hereof and of the Security Documents if and to the extent that the Collateral is released pursuant to this Indenture and the Security
Documents. In connection with the release of Collateral, the Trustee shall determine whether it has received all documentation required by Section 314(d) of the Trust Indenture Act. 
  

	Section 11.7	Determinations Relating to Collateral. 

  
 In the event (i) the Trustee shall receive any written request from the Company, a Guarantor or the Collateral Agent under any Security Document for
consent, approval or direction with respect to any matter or thing relating to any Collateral or the Company’s, a Guarantor’s or the Collateral Agent’s obligations with respect thereto, (ii) there shall be due to or from the
Trustee under the provisions of any Security Document any material performance or the delivery of any material instrument or (iii) the Trustee shall become aware of any material nonperformance by the Company or a Guarantor of any covenant or
any material breach of any representation or warranty of the Company or a Guarantor set forth in any Security Document, then, in each such event, the Trustee shall be entitled to hire, at the sole reasonable cost and expense of the Company, experts,
consultants, agents and attorneys to advise the Trustee on the manner in which the Trustee should respond, to such request or render any requested performance or response to such nonperformance or breach. The Trustee shall be fully protected in
accordance with Article VII hereof in the taking of any action recommended or approved by any such expert, consultant, agent or attorney and shall be entitled to indemnification provided in accordance with Section 7.7 hereof and
other sections of this Indenture if such action is agreed to by Holders of a majority in aggregate principal amount of the Securities pursuant to Section 6.5 and, the Trustee may, in its sole discretion, prior to taking such action if
such action could subject it to environmental liabilities or taxation, require (i) direction from the Holders of a majority in aggregate principal amount of the Securities in accordance with Section 6.5 hereof and
(ii) indemnification in accordance with Section 7.1(g) hereof. Notwithstanding anything herein to the contrary, except during the continuance of an Event of Default, the Trustee in 

  

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giving any consent, approval or direction referred to in clause (i) above or in rendering any performance or delivering any instrument referred to in
clause (ii) above may rely on an Officer’s Certificate and an Opinion of Counsel delivered to it by the Company to the effect that the action to be taken or not taken does not adversely affect the interests of the Holders of the Securities
or impair the security of the Holders of the Securities in contravention of the provisions of the Security Documents or this Indenture and the Trustee shall be fully protected in acting or not acting on the basis of such Officer’s Certificate
and Opinion of Counsel. 
  
 ARTICLE XII 
  
 MISCELLANEOUS 
  

	Section 12.1	Trust Indenture Act Controls 

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

	Section 12.2	Notices 

  
 Any notice or communication shall be in writing in the English language and delivered in person or mailed by first-class mail, telecopier or overnight air
courier guaranteeing next day delivery, addressed as follows (unless the Company and the Trustee agree to another method of delivery): 
  
 if to the Company or the Guarantors: 
  
 c/o Transmeridian Exploration Incorporated 
 397 N. Sam Houston Parkway East, Suite 300 
 Houston, Texas 77060 
 Attention: Earl W. McNeil 
 Fax:
(281) 999-9094 
  
 if to the Trustee: 
  
 The Bank of New York 
 101 Barclay Street, 21 West 
 New York, New
York 10286 
 Attention: Global Finance Americas 
 Fax (212) 815-5802/3 
  
 The
Company or the Guarantors, by notice to the Trustee, or the Trustee by notice to the Company and the Guarantors, may designate additional or different addresses for subsequent notices or communications. 
  
 Any notice or communication to a Holder shall be delivered to the Holder at
the Holder’s address as it appears on the registration books of the Registrar by first class mail, certified or 

  

 97 

 
registered, return receipt requested, or by overnight air courier guaranteeing next day delivery to its address shown on the register kept by the Registrar.

  
 All notices and communications shall be deemed to have been
duly given; at the time delivered by hand, if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if mailed; (other than those sent to Holders) when answered back, if telecopied; and the next Business Day
after timely delivery to the courier, if sent by overnight air courier guaranteeing next day delivery. 
  
 Failure to deliver a notice or communication to a Holder or any defect in it shall not affect its sufficiency with respect to other Holders. If a notice
or communication is delivered in the manner provided above, it is duly given, whether or not the addressee receives it. 
  
 Where this Indenture provides for notice, the notice may be waived in writing by the Person entitled to receive such notice, either before or after the
event, and the waiver will be the equivalent of the notice. Waivers of notice by Holders must be filed with the Trustee, but such filing is not a condition precedent to the validity of any action taken in reliance upon such waivers. 
  

	Section 12.3	Communication by Holders with other Holders 

  
 Holders may communicate pursuant to the Trust Indenture Act Section 312(b) with other Holders with respect to their rights under this Indenture or
the Securities. The Company, the Trustee, the Registrar and anyone else shall have the protection of the Trust Indenture Act Section 312(c). 
  

	Section 12.4	Certificate and Opinion as to Conditions Precedent 

  
 Upon any request or application by the Company to the Trustee to take or refrain from taking any action under this Indenture, the Company shall, if
requested, furnish to the Trustee: (i) an Officer’s Certificate in form and substance reasonably satisfactory to the Trustee stating that, in the opinion of the signer, all conditions precedent, if any; provided for in this Indenture
relating to the proposed action have been complied with; and (ii) an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee stating that, in the opinion of such counsel, all such conditions precedent have been complied
with. 
  
 In any case where several matters are required to be
certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they are so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one or more such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents. 
  
 Any Officer’s Certificate or opinion of an Officer of the Company or any
Guarantor may be based, insofar as it relate to legal matters, upon a certificate or opinion of, or representations by, counsel, unless such Officer knows, or in the exercise of reasonable care should know, that the certificate or opinion or
representations with respect to the matters upon which his certificate or opinion is based are erroneous. Any such certificate or Opinion of Counsel may be based, and 

  

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may state that it is so based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an Officer of the Company
or such Guarantor stating that the information with respect to such factual matters is in the possession of the Company or such Guarantor, unless such counsel knows, or in the exercise of reasonable care should know, that the certificate or opinion
or representations with respect to such matters are erroneous. 
  
 Where any Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions, or other instruments under this Indenture, they may, but need not, be consolidated and form one
instrument. 
  

	Section 12.5	Statements Required in Certificate or Opinion 

  
 Each certificate or opinion with respect to compliance with a covenant or condition provided for in this Indenture shall include: (i) a statement
that the individual making such certificate or opinion has read such covenant or condition; (ii) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such
certificate or opinion are based; (iii) a statement that, in the opinion of such individual, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or
condition has been complied with; and (iv) a statement as to whether or not, in the opinion of such individual, such covenant or condition has been complied with. 
  

	Section 12.6	When Securities Disregarded 

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

	Section 12.7	Legal Holidays 

  
 A “Legal Holiday” is a day that is not a Business Day. Notwithstanding any other provisions of this Indenture, the Securities, the Security
Documents or the Guarantees, if a payment date is a Legal Holiday, payment shall be made on the next succeeding day that is not a Legal Holiday, and no interest shall accrue for the intervening period. If a regular record date is a Legal Holiday,
the record date shall not be affected. 
  

	Section 12.8	Governing Law 

  
 THE LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE AND ENFORCE THIS INDENTURE, THE SECURITIES AND THE GUARANTEES. 
  

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	Section 12.9	No Personal Liability of Directors, Officers, Employees and Shareholders 

  
 No director, officer, employee or incorporator of the Parent, the Company or any Guarantor, and no stockholder of the
Parent, as such, shall have any liability for any obligations of the Parent, the Company or the Subsidiary Guarantors under the Securities, this Indenture, the Guarantees, the Security Documents or for any claim based on, in respect of or by reason
of such obligations or their creation. By accepting a Security, each Holder waives and releases all such liability. The waiver and release shall be part of the consideration for the issue of the Securities. 
  

	Section 12.10	Successors 

  
 All agreements of the Company and (except as otherwise provided in Section 10.9 hereof) the Guarantors in this Indenture and the Securities
and the Guarantees shall bind their respective successors. All agreements of the Trustee in this Indenture shall bind its successors. 
  

	Section 12.11	Multiple Originals; Counterparts 

  
 The parties may sign any number of copies of this Indenture. Each signed copy shall be an original, but all of them together represent the same agreement.
One signed copy is enough to prove this Indenture. This Indenture may be executed in multiple counterparts which, when taken together, shall constitute one instrument. 
  

	Section 12.12	Severability 

  
 In case any provision in this Indenture or in the Securities or the Guarantees is invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions will not in any way be affected or impaired thereby. 
  

	Section 12.13	Variable Provisions 

  
 The Company initially appoints The Bank of New York as Paying Agent and Registrar and Securities Custodian with respect to any Global Securities.

  

	Section 12.14	Table of Contents; Headings 

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

	Section 12.15	No Adverse Interpretation of Other Agreements 

  
 This Indenture may not be used to interpret any other indenture, loan or debt agreement of the Company or its Subsidiaries or of any other Person. Any
such indenture, loan or debt agreement may not be used to interpret this Indenture. 
  
 [Signatures on following page] 
  

 100 

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

			
	TRANSMERIDIAN EXPLORATION INC.
		
	 By:
	 	/s/    BRUCE A.
FALKENSTEIN        
	 Name:
	 	Bruce A. Falkenstein
	 Title:
	 	Vice President
	
	PARENT GUARANTOR:
	
	TRANSMERIDIAN EXPLORATION INCORPORATED
		
	 By:
	 	/s/    BRUCE A.
FALKENSTEIN        
	 Name:
	 	Bruce A. Falkenstein
	 Title:
	 	Vice President Exploration and Geology
	
	SUBSIDIARY GUARANTORS:
	
	TMEI OPERATING, INC.
		
	 By:
	 	/s/    BRUCE A.
FALKENSTEIN        
	 Name:
	 	Bruce A. Falkenstein
	 Title:
	 	Vice President
	
	TRANSMERIDIAN (KAZAKHSTAN) INCORPORATED
		
	 By:
	 	/s/    BRUCE A.
FALKENSTEIN        
	 Name:
	 	Bruce A. Falkenstein
	 Title:
	 	Vice President
	
	TRUSTEE:
	
	THE BANK OF NEW YORK, as Trustee
		
	 By:
	 	/s/    LUIS PEREZ        
	 Name:
	 	Luis Perez
	 Title:
	 	Assistant Vice President

  

 S-1 

  
 EXHIBIT A 

 
 FORM OF SECURITY 
  
 TRANSMERIDIAN EXPLORATION INC. 
  
 SENIOR SECURED NOTE DUE 2010 
  
 CUSIP NO. []1 
 ISIN NO. []2 
  

					
	 No.___
	 	 	 	Principal Amount $_______________

  
 TRANSMERIDIAN
EXPLORATION INC., a British Virgin Islands company, promises to pay to ___________, or registered assigns, the principal sum of _________________________________ U.S. Dollars [or such greater or lesser amount as may from time to time be
endorsed on the Schedule of Exchanges of Interest in the Global Security attached hereto]3 on December 15,
2010. 
  
 Interest Payment Dates:
March 15, June 15, September 15 and December 15, commencing March 15, 2006. 
  
 Record Dates: March 1, June 1, September 1 and December 1. 
  
 Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which will for all
purposes have the same effect as if set forth at this place. 
  
 Dated: _________
__, 20__ 
  

			
	TRANSMERIDIAN EXPLORATION INC.
		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 

  

			
	 THE BANK OF NEW YORK,
 as Trustee, certifies that this is one of the
 Securities referred to in the
Indenture.

		
	 By: 
	 	 
	 	 	 Authorized Signatory

	1	For Securities sold in reliance on Rule 144A. 

  

	2	For Securities sold in reliance on Regulation S. 

  

	3	For Global Securities only. 

  

 A-1 

  
 [BACK OF SECURITY]

  
 TRANSMERIDIAN EXPLORATION INC. 
  
 SENIOR SECURED NOTE DUE 2010 
  
 [Insert the Global Note Legend, if applicable pursuant to the provisions of
the Indenture] 
  
 [Insert the Private Placement Legend, if
applicable pursuant to the provisions of the Indenture] 
  
 Capitalized terms used herein have the meanings assigned to them in the Indenture referred to below unless otherwise indicated. 
  
 1. Interest. Transmeridian Exploration Inc., a British Virgin Islands company (the “Company”), promises to pay interest on the principal
amount of this Security at 12% per annum from December __, 2005 until maturity. The Company will pay interest quarterly in arrears on March 15, June 15, September 15 and December 15 of each year, or if any such day
is not a Business Day, on the next succeeding Business Day (each, an “Interest Payment Date”). Interest on the Securities will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from the date
of issuance; provided that if there is no existing Default in the payment of interest, and if this Security is authenticated between a record date referred to on the face hereof and the next succeeding Interest Payment Date, interest shall accrue
from such next succeeding Interest Payment Date; provided, further, that the first Interest Payment Date shall be March 15, 2006. The Company will pay, to the extent lawful, interest (including post-petition interest in any proceeding
under any Bankruptcy Law) on overdue principal and premium, if any, at the rate per annum of 1% in excess of 12%; it will pay, to the extent lawful, interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue
installments of interest and Additional Amounts, if any (without regard to any applicable grace periods), from time to time on demand at the same rate as on overdue principal. Interest will be computed on the basis of a 360-day year consisting of
twelve 30-day months. 
  
 2. Method of Payment. The Company
will pay interest on the Securities (except Defaulted Interest) to the Persons who are registered Holders of Securities at the close of business on the March 1, June 1, September 1 or December 1, as applicable, next
preceding the Interest Payment Date, even if such Securities are canceled after such record date and on or before such Interest Payment Date, except as provided in Section 2.11 of the Indenture with respect to Defaulted Interest. The
Securities will be payable as to principal, premium, if any, and interest and Additional Amounts, if any, at the office or agency of the Paying Agent maintained for such purpose within the Borough of Manhattan, The City and State of New York;
provided that payment by such Paying Agent by wire transfer of immediately available funds will be required with respect to principal of and interest and Additional Amounts, if any, and premium, if any, on all Global Securities and all other
Securities, the Holders of which hold at least $5,000,000 aggregate principal amount of the Securities and will have provided wire transfer instructions to the Company and the Paying Agent. Such payment will be in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public and private debts. 
  

 A-2 

 3. Paying Agent and Registrar. Initially, The Bank of New York will act as Paying Agent and
Registrar. The Company may appoint and change any Paying Agent or Registrar without notice to any Holder and the Company or any of its Subsidiaries may act as Paying Agent or Registrar, all in accordance with the Indenture. 
  
 4. Indenture. The Company issued the Securities under an Indenture,
dated as of December __, 2005 (the “Indenture”), among the Company, the Guarantors named on the signature pages thereto and the Trustee. The terms of the Securities include those stated in the Indenture and those made part of the Indenture
by reference to the Trust Indenture Act. The Securities are subject to all such terms, and Holders are referred to the Indenture and the Act for a statement of such terms. To the extent any provision of this Security conflicts with the express
provisions of the Indenture, the provisions of the Indenture shall govern and be controlling. The Securities are secured obligations of the Company as provided in the Indenture and the Security Documents. The Indenture limits the original aggregate
principal amount of the Securities to $250,000,000. This Security is guaranteed as set forth in the Indenture. 
  
 5. Optional Redemption. 
  
 (a) At any time and from time to time on or after December 15, 2008, the Company may redeem all or a part of the Securities upon not
less than 30 nor more than 60 days’ notice at the following Redemption Prices (expressed as percentages of the principal amount) plus accrued and unpaid interest and Additional Amounts, if any, on the Securities, to the applicable Redemption
Date (subject to the right of Holders of record on the relevant regular record date to receive interest and Additional Amounts, if any, due on an Interest Payment Date that is on or prior to the Redemption Date), if redeemed during the 12-month
period (or shorter period, as applicable) beginning on the dates indicated below: 
  

				
	 Year

	  	Redemption Price

	 
	 December 15, 2008
	  	106.00	%
	 December 15, 2009
	  	103.00	%
	 June 15, 2010
	  	100.00	%

  
 (b)
At any time prior to December 15, 2008, the Company may on one or more occasions redeem up to 35% of the Securities originally issued under the Indenture at a redemption price of (i) 106.00% of the principal amount thereof if the
redemption occurs prior to June 15, 2006, or (ii) 112.00% of the principal amount thereof if the redemption occurs on or after June 15, 2006 but prior to December 15, 2008, plus in each case accrued and unpaid interest and
Additional Amounts, if any, to the Redemption Date, with the Net Cash Proceeds of one or more Equity Offerings; provided that 
  
 (1) at least 65% of the Securities originally issued under the Indenture remains outstanding immediately after the occurrence of such
redemption (excluding Securities held by the Company and its Subsidiaries); and 
  
 (2) the redemption must occur within 90 days of the date of the closing of such Equity Offering. 
  

 A-3 

 6. Special Mandatory Redemption. Notwithstanding the foregoing, in the event that (i) the
closing of the Bramex Acquisition does not occur on or prior to the Deadline, or (ii) the Parent or the Company fails to timely comply, or fails to cause the timely compliance, with any of the covenants contained in Section 4.40(b) of the
Purchase Agreements (the occurrence of either of the events described in the foregoing clauses (i) or (ii) is referred to as a “Special Mandatory Redemption Event”), the Company shall promptly, but in any event within 3 Business
Days following the occurrence of a Special Mandatory Redemption Event (such redemption day, the “Special Mandatory Redemption Date”), redeem all of the Securities (the “Special Mandatory Redemption”) at a purchase price in cash
equal to 100% of the aggregate principal amount of the Securities plus accrued interest thereon to the Special Mandatory Redemption Date (the “Special Mandatory Redemption Price”). Upon the occurrence of a Special Mandatory Redemption
Event, notice of the Special Mandatory Redemption, specifying the Special Mandatory Redemption Date, will be delivered promptly, but in any event within one Business Day following the occurrence of such Special Mandatory Redemption Event, to each
holder of the Securities at its registered address and to the Trustee by facsimile or overnight mail. At or before 5:00 p.m. (New York City time), on the Special Mandatory Redemption Date, the Trustee will pay, or cause to be paid, to the extent
available funds have been received by it from the Company, to the Holder of the Securities the Special Mandatory Redemption Price for such Holder’s Securities. 
  
 7. Denominations, Transfer, Exchange. The Securities are in registered form without coupons in denominations of
$1,000 and integral multiples of $1,000. The transfer of Securities may be registered and Securities may be exchanged as provided in the Indenture. The Registrar or the Trustee may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents and the Company may require a Holder to pay any taxes and fees or similar governmental charges required by law or permitted by the Indenture. The Company need not exchange or register the transfer of any Security
or portion of a Security selected for redemption, except for the unredeemed portion of any Security being redeemed in part. Also, the Company need not exchange or register the transfer of any Securities for a period of 15 days before the day of any
selection of Securities to be redeemed or during the period between a record date and the corresponding Interest Payment Date. 
  
 If this is a Global Security, this Security represents the aggregate principal amount of outstanding Securities from time to time endorsed hereon, and the
aggregate principal amount of outstanding Securities represented by this Security may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions in accordance with the Indenture. 
  
 8. Additional Amounts. 
  
 If any taxes, assessments or other governmental charges are imposed, or
amounts representing such taxes, assessments or other charges are withheld, by any jurisdiction where the Company, the Parent, a Subsidiary Guarantor or a successor of the foregoing (a “Payor”) is organized or otherwise considered by a
taxing authority to be a resident for tax purposes, any jurisdiction from or through which the Payor makes a payment on the Securities, or, in each case, any political organization or governmental authority thereof or therein having the power to tax
(the “Relevant Tax Jurisdiction”) in respect of any payments under the Securities, the Payor will pay to each Holder of a Security, to the extent it may lawfully do so, such additional amounts 

  

 A-4 

 
(“Additional Amounts”) as may be necessary in order that the net amounts paid to such Holder will be not less than the amount specified in such
Security to which such Holder is entitled; provided, however, the Payor will not be required to make any payment of Additional Amounts for or on account of: 
  
 (a) any tax, assessment or other governmental charge which would not have been imposed but for the existence of any present or former
connection between such Holder (or between a fiduciary, settlor, beneficiary, member or shareholder of, or possessor of a power over, such Holder, if such Holder is an estate, trust, partnership, limited liability company or corporation) and the
Relevant Tax Jurisdiction including, without limitation, such Holder (or such fiduciary, settlor, beneficiary, member, shareholder or possessor) being or having been a citizen or resident thereof or being or having been present or engaged in trade
or business therein or having or having had a permanent establishment therein; 
  
 (b) any estate, inheritance, gift, sales, transfer, personal property or similar tax, assessment or other governmental charge; 

 
 (c) any tax, assessment or other governmental charge that
is imposed or withheld by reason of the failure by the Holder or the beneficial owner of the note to comply with a reasonable and timely request of the Payor addressed to the Holder to provide information, documents or other evidence concerning the
nationality, residence or identity of the Holder or such beneficial owner which is required by a statute, treaty, regulation or administrative practice of the taxing jurisdiction as a precondition to exemption from all or part of such tax,
assessment or other governmental charge; or 
  
 (d) any combination of the above; 
  
 nor will Additional Amounts be paid
with respect to any payment of the principal of, or any premium or interest on, any Security to any Holder who is a fiduciary or partnership or limited liability company or other than the sole beneficial owner of such payment to the extent (but only
to the extent) such payment would be required by the laws of the Relevant Tax Jurisdiction to be included in the income for tax purposes of a beneficiary or settlor with respect to such fiduciary or a member of such partnership, limited liability
company or beneficial owner who would not have been entitled to such Additional Amounts had it been the Holder of such Security. 
  
 9. Collateral. The Securities are secured by the Collateral as provided in the Indenture and the Security Documents. Each Holder, by accepting a
Security, agrees to be bound to all of the terms and provisions of the Security Documents as the same may be amended from time to time. The Liens created under the Security Documents shall be released upon the terms and subject to the conditions set
forth in the Indenture and the Security Documents. 
  
 10.
Persons Deemed Owners. The registered Holder of a Security may be treated as its owner for all purposes. 
  
 11. Amendment, Supplement and Waiver. Subject to certain exceptions, the Indenture and the Securities may be amended or supplemented with the
written consent of the Holders of at least a majority in outstanding principal amount of the Securities, and any existing Default or compliance with any provision of the Indenture or the Securities may be waived with the written 

  

 A-5 

 
consent of the Holders of at least a majority in outstanding principal amount of the Securities. Without the consent of any Holder of a Security, the
Indenture or the Securities may be amended or supplemented (i) to cure any ambiguity, defect or inconsistency, (ii) to provide for uncertificated Securities in addition to or in place of certificated Securities, (iii) to provide for
the assumption of the Company’s or a Guarantor’s obligations under the Indenture and the Securities, (iv) to add or release Guarantors in compliance with the Indenture, (v) to add collateral to secure the Securities or the
Guaranties, or to release Collateral in accordance with the express terms of the Indenture and the Security Documents, (vi) to make any change that would provide any additional rights or benefits to the Holders or that does not adversely affect
the legal rights of any Holder in any material respect, or (vii) to comply with any requirement of the SEC in connection with qualifying the Indenture under the Trust Indenture Act or maintaining such qualification. 
  
 12. Defaults. If an Event of Default shall occur and be continuing,
the principal of all the Securities may be declared due and payable in the manner and with the effect provided in the Indenture. 
  
 13. Defeasance. The Indenture contains provisions for defeasance of (i) the entire indebtedness of the Company on this Security and
(ii) certain restrictive covenants and the related Events of Default, subject to compliance by the Company with certain conditions set forth in the Indenture, which provisions apply to this Security. 
  
 14. Authentication. This Security will not be valid until
authenticated by the manual signature of the Trustee or an Authenticating Agent. 
  
 15. Abbreviations. Customary abbreviations may be used in the name of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right
of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act). 
  
 16. Additional Rights of Holders of Restricted Global Securities and Restricted Definitive Securities. In addition to the rights provided to
Holders of Securities under the Indenture, Holders of Restricted Global Securities and Restricted Definitive Securities will have all the rights set forth in the Registration Rights Agreement, dated as of December __, 2005, among the Company, the
Guarantors and the other parties named on the signature pages thereof.* 
  
 17. CUSIP and ISIN Numbers. Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused CUSIP or ISIN numbers to be printed on the Global Securities and the Trustee
may use CUSIP and ISIN numbers in notices of redemption as a convenience to Holders. No representation is made as to the accuracy of such numbers either as printed on the Global Securities or as contained in any notice of redemption and reliance may
be placed only on the other identification numbers placed thereon. 

	*	Delete for Exchange Security. 

  

 A-6 

 The Company will furnish to any Holder upon written request and without charge a copy of the Indenture
and/or the Registration Rights Agreement.* Requests may be made to: 
  
 Transmeridian Exploration Inc. 
 c/o Transmeridian Exploration Incorporated 
 397 N. Sam Houston Pkwy E., Suite 300 
 Houston, Texas 77060 
 Attention: Investor Relations 
 (281) 999-9091

  

 A-7 

  
 ASSIGNMENT FORM

  
 To assign this Security, fill in the form below:

  

			
	 (I) or (we) assign and transfer this Security to: 
	  	 
	 	  	(Insert assignee’s legal name)
	
	                                      
                                        
                                        
                                        
                                        
                                        
                   
	(Insert assignee’s soc. sec. or tax I.D. no.)

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

			
	 and irrevocably appoint 
	  	 

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

 
 Date: _______________ 
  

			
		
	 Your Signature:
	 	 
	 	 	 (Sign exactly as your name appears on the face
 of this Security)

  
 Signature Guarantee:* ________________________ 

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

  

 A-8 

 Option of Holder to Elect Purchase 
  
 If you want to elect to have this Security purchased by the Company pursuant to Section 4.7 or
Section 4.11 of the Indenture, check the appropriate box below: 
  

			
	 ̈ Section 4.7	 	 ̈ Section 4.11

  
 If you want to elect
to have only part of the Security purchased by the Company pursuant to Section 4.7 or Section 4.11 of the Indenture, state the amount you elect to have purchased: 
  
 $_______________ 
  
 Date: _____________ 
  

			
		
	 Your Signature:
	 	 
	 	 	(Sign exactly as your name appears on the face of this Security)

  

			
		
	 Tax Identification No.:
	 	 

  
 Signature Guarantee:* ________________________ 

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

  

 A-9 

 [TO BE ATTACHED TO GLOBAL SECURITIES] 
  
 SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL SECURITY 
  
 The following increases or decreases in this Global Security have been made:

  

									
	 Date of Exchange

	  	Amount of Decrease in
Principal Amount of this
Global Security

	  	Amount of Increase in
Principal Amount of this
Global Security

	  	Principal Amount of this
Global Security
Following such Decrease
or Increase

	  	Signature of Authorized
Officer of Trustee or
Securities Custodian

	 	  	 	  	 	  	 	  	 

  

 A-10 

  
 EXHIBIT B 

 
 FORM OF CERTIFICATE OF TRANSFER 
  
 The Bank of New York 
 __________________ 
 __________________ 
  

	 	Re:	Transmeridian Exploration Inc. Senior Secured Notes due 2010 

  
 (CUSIP []1 []2) 
 (ISIN[]2) 
  

Reference is hereby made to the Indenture, dated as of December ___, 2005 (the “Indenture”), among Transmeridian Exploration Inc., as
issuer (the “Company”), the Guarantors named on the signature pages thereto and The Bank of New York, as trustee. Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture. 
  
 ___________________, (the “Transferor”) owns and proposes to
transfer the Security[ies] or interest in such Security[ies] specified in Annex A hereto, in the principal amount of $___________ in such Security[ies] or interests (the “Transfer”), to ___________________________ (the
“Transferee”), as further specified in Annex A hereto. In connection with the Transfer, the Transferor hereby certifies that: 
  
 [CHECK ALL THAT APPLY] 
  
 1.  ̈ Check if Transferee will take delivery
of a beneficial interest in the 144A Global Security or a Restricted Definitive Security pursuant to Rule 144A. The Transfer is being effected pursuant to and in accordance with Rule 144A under the Securities Act of 1933, as amended (the
“Securities Act”), and, accordingly, the Transferor hereby further certifies that the beneficial interest or Definitive Security is being transferred to a Person that the Transferor reasonably believes is purchasing the beneficial
interest or Definitive Security for its own account, or for one or more accounts with respect to which such Person exercises sole investment discretion, and such Person and each such account is a “qualified institutional buyer” within the
meaning of Rule 144A in a transaction meeting the requirements of Rule 144A, and such Transfer is in compliance with any applicable blue sky securities laws of any state of the United States. Upon consummation of the proposed Transfer in accordance
with the terms of the Indenture, the transferred beneficial interest or Definitive Security will be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the 144A Global Security and/or the Restricted
Definitive Security and in the Indenture and the Securities Act. 
  
 2.  ̈ Check if Transferee will take delivery of a beneficial interest in the Regulation S Global Security or a Restricted
Definitive Security pursuant to Regulation S. The Transfer is being effected pursuant to and in accordance with Rule 903 or Rule 904 under the 

	1	For Securities sold in reliance on Rule 144A. 

  

	2	For Securities sold in reliance on Regulation S. 

  

 B-1 

 Securities Act and, accordingly, the Transferor hereby further certifies that (i) the Transfer is not being made to
a Person in the United States and (x) at the time the buy order was originated, the Transferee was outside the United States or such Transferor and any Person acting on its behalf reasonably believed and believes that the Transferee was outside
the United States or (y) the transaction was executed in, on or through the facilities of a designated offshore securities market and neither such Transferor nor any Person acting on its behalf knows that the transaction was prearranged with a
buyer in the United States, (ii) no directed selling efforts have been made in contravention of the requirements of Rule 903(b) or Rule 904(b) of Regulation S under the Securities Act, (iii) the transaction is not part of a plan or scheme
to evade the registration requirements of the Securities Act and (iv) if the proposed transfer is being made prior to the expiration of the Restricted Period, the transfer is not being made to a U.S. Person or for the account or benefit of a
U.S. Person (other than an Initial Purchaser). Upon consummation of the proposed transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Security will be subject to the restrictions on Transfer
enumerated in the Private Placement Legend printed on the Regulation S Global Security and/or the Restricted Definitive Security and in the Indenture and the Securities Act. 
  
 3.  ̈ Check
and complete if Transferee will take delivery of a beneficial interest in the IAI Global Security or a Restricted Definitive Security pursuant to any provision of the Securities Act other than Rule 144A or Regulation S. The Transfer is being
effected in compliance with the transfer restrictions applicable to beneficial interests in Restricted Global Securities and Restricted Definitive Securities and pursuant to and in accordance with the Securities Act and any applicable blue sky
securities laws of any state of the United States, and accordingly the Transferor hereby further certifies that (check one): 
  
 (a)  ̈ such Transfer is being
effected pursuant to and in accordance with Rule 144 under the Securities Act; 
  
 or 
  
 (b)
 ̈ such Transfer is being effected to the Company or a subsidiary thereof; 
  
 or 
  
 (c)  ̈ such Transfer is being
effected pursuant to an effective registration statement under the Securities Act and in compliance with the prospectus delivery requirements of the Securities Act; 
  
 or 
  
 (d)  ̈ such Transfer is being
effected to an accredited investor within the meaning of Rule (501)(a)(1), (2), (3) or (7) under the Securities Act (“Institutional Accredited Investor”) or pursuant to another exemption from the registration requirements of the
Securities Act other than Rule 144A, Rule 144 or Rule 904, and the Transferor hereby certifies that the Transfer complies with the transfer restrictions applicable to beneficial interests in a Restricted Global Security or Restricted Definitive
Security and the requirements of the exemption claimed, which certification is supported by, if the Transfer is to an Institutional Accredited Investor, a certificate executed by the Transferee in the form of Exhibit F to the Indenture. Upon
consummation of the proposed transfer in accordance with the terms of the Indenture, the 

  

 B-2 

 
transferred beneficial interest or Definitive Security will be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on
the IAI Global Security and/or the Definitive Security and in the Indenture and the Securities Act. 
  
 4.  ̈ Check if Transferee will take delivery
of a beneficial interest in an Unrestricted Global Security or of an Unrestricted Definitive Security. 
  
 (a)  ̈ Check if Transfer is pursuant to Rule
144. (i) The Transfer is being effected pursuant to and in accordance with Rule 144 under the Securities Act and in compliance with the transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any
state of the United States and (ii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act. Upon consummation of the proposed Transfer in
accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Security will no longer be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Securities,
on Restricted Definitive Securities and in the Indenture. 
  
 (b)
 ̈ Check if Transfer is Pursuant to Regulation S. (i) The Transfer is being effected pursuant to and in accordance with Rule 903 or
Rule 904 under the Securities Act and in compliance with the transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any state of the United States and (ii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act. Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or
Definitive Security will no longer be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Securities, on Restricted Definitive Securities and in the Indenture. 
  
 (c)  ̈ Check if Transfer is Pursuant to Other Exemption. (i) The Transfer is being effected pursuant to and in compliance with an exemption from the registration requirements of the Securities Act other than
Rule 144, Rule 903 or Rule 904 and in compliance with the transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any State of the United States and (ii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act. Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or
Definitive Security will not be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Securities or Restricted Definitive Securities and in the Indenture. 
  

 B-3 

 This certificate and the statements contained herein are made for your benefit and the benefit of the
Company. 
  

			
	
	 
	[Insert Name of Transferor]
		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 

  
 Dated: _______________________

  

 B-4 

  
 EXHIBIT C 

 
 FORM OF CERTIFICATE OF EXCHANGE 
  
 The Bank of New York 
 __________________ 
 __________________ 
  

	 	Re:	Transmeridian Exploration Inc. Senior Secured Notes due 2010 

  
 (CUSIP []1 []2) 
 (ISIN[]2) 
  

Reference is hereby made to the Indenture, dated as of December ___, 2005 (the “Indenture”), among Transmeridian Exploration Inc., as
issuer (the “Company”), the Guarantors named on the signature pages thereto and The Bank of New York, as trustee. Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture. 
  
 __________________________, (the “Owner”) owns and proposes
to exchange the Security[s] or interest in such Security[s] specified herein, in the principal amount of $____________ in such Security[s] or interests (the “Exchange”). In connection with the Exchange, the Owner hereby certifies
that: 
  
 1. Exchange of Restricted Definitive Securities or
Beneficial Interests in a Restricted Global Security for Unrestricted Definitive Securities or Beneficial Interests in an Unrestricted Global Security 
  

(a)  ̈ Check if Exchange is from beneficial
interest in a Restricted Global Security to beneficial interest in an Unrestricted Global Security. In connection with the Exchange of the Owner’s beneficial interest in a Restricted Global Security for a beneficial interest in an
Unrestricted Global Security in an equal principal amount, the Owner hereby certifies (i) the beneficial interest is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with
the transfer restrictions applicable to the Global Securities and pursuant to and in accordance with the Securities Act of 1933, as amended (the “Securities Act”), (iii) the restrictions on transfer contained in the Indenture
and the Private Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the beneficial interest in an Unrestricted Global Security is being acquired in compliance with any applicable blue sky
securities laws of any state of the United States. 
  
 (b)
 ̈ Check if Exchange is from beneficial interest in a Restricted Global Security to Unrestricted Definitive Security. In connection with
the Exchange of the Owner’s beneficial interest in a Restricted Global Security for an Unrestricted Definitive Security, the Owner hereby certifies (i) the Definitive Security is being acquired for the Owner’s own account

	1	For Securities sold in reliance on Rule 144A. 

  

	2	For Securities sold in reliance on Regulation S. 

  

 C-1 

 without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to
the Restricted Global Securities and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the
Securities Act and (iv) the Definitive Security is being acquired in compliance with any applicable blue sky securities laws of any state of the United States. 
  
 (c)  ̈ Check if
Exchange is from Restricted Definitive Security to beneficial interest in an Unrestricted Global Security. In connection with the Owner’s Exchange of a Restricted Definitive Security for a beneficial interest in an Unrestricted Global
Security, the Owner hereby certifies (i) the beneficial interest is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to
Restricted Definitive Securities and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the
Securities Act and (iv) the beneficial interest is being acquired in compliance with any applicable blue sky securities laws of any state of the United States. 
  
 (d)  ̈ Check if
Exchange is from Restricted Definitive Security to Unrestricted Definitive Security. In connection with the Owner’s Exchange of a Restricted Definitive Security for an Unrestricted Definitive Security, the Owner hereby certifies
(i) the Unrestricted Definitive Security is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to Restricted Definitive Securities
and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the
Unrestricted Definitive Security is being acquired in compliance with any applicable blue sky securities laws of any state of the United States. 
  
 2. Exchange of Restricted Definitive Securities or Beneficial Interests in Restricted Global Securities for Restricted Definitive Securities or
Beneficial Interests in Restricted Global Securities 
  
 (a)  ̈ Check if Exchange is from beneficial interest in a Restricted Global Security to Restricted Definitive Security. In
connection with the Exchange of the Owner’s beneficial interest in a Restricted Global Security for a Restricted Definitive Security with an equal principal amount, the Owner hereby certifies that the Restricted Definitive Security is being
acquired for the Owner’s own account without transfer. Upon consummation of the proposed Exchange in accordance with the terms of the Indenture, the Restricted Definitive Security issued will continue to be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted Definitive Security and in the Indenture and the Securities Act. 
  
 (b)  ̈ Check if Exchange is from Restricted
Definitive Security to beneficial interest in a Restricted Global Security. In connection with the Exchange of the Owner’s Restricted Definitive Security for a beneficial interest in the [CHECK ONE]  ̈144A Global Security,  ̈Regulation S Global Security with an equal principal
amount, the Owner hereby 

  

 C-2 

 
certifies (i) the beneficial interest is being acquired for the Owner’s own account without transfer and (ii) such Exchange has been effected
in compliance with the transfer restrictions applicable to the Restricted Global Securities and pursuant to and in accordance with the Securities Act, and in compliance with any applicable blue sky securities laws of any state of the United States.
Upon consummation of the proposed Exchange in accordance with the terms of the Indenture, the beneficial interest issued will be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the relevant Restricted
Global Security and in the Indenture and the Securities Act. 
  
 This certificate and the statements contained herein are made for your benefit and the benefit of the Company. 
  

			
	
	 
	 [Insert Name of Transferor]

		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 

  
 Dated:
______________________ 
  

 C-3 

  
 EXHIBIT D 

 
 FORM OF NOTATION OF GUARANTEE 
  
 For value received, each of the undersigned Guarantors (which term includes
any successor to such Guarantor under the Indenture) has, jointly and severally, with each other Guarantor, unconditionally guaranteed, to the extent set forth in the Indenture and subject to the provisions in the Indenture dated as of December ___,
2005 (the “Indenture”) among Transmeridian Exploration Inc (the “Company”), the Guarantors party thereto and The Bank of New York, as trustee (the “Trustee”), the full and punctual payment of the
principal of, premium if any, interest and Additional Amounts, if any, on the Securities (as defined in the Indenture) when due, whether at Stated Maturity, or upon optional redemption, required repurchase pursuant to Section 4.7 or
Section 4.11 of the Indenture, acceleration or otherwise, and all other monetary obligations owing by the Company under the Indenture (including obligations owing to the Trustee) and the Securities, all as more fully provided in
Article X of the Indenture. The obligations of the undersigned Guarantors to the Holders of Securities and to the Trustee pursuant to the Guarantees and the Indenture are expressly set forth in Article X of the Indenture and reference
is hereby made to the Indenture for the precise terms of the Guarantees. Each Holder of a Security, by accepting the same, (a) agrees to and shall be bound by such provisions and (b) appoints the Trustee attorney-in-fact of such Holder for
such purpose; provided, however, that this Guarantee shall be released upon any defeasance of this Security or otherwise in accordance with the provisions of the Indenture. 
  

			
	 [NAME OF GUARANTOR(S)]

		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 

  

 D-1 

  
 EXHIBIT E 

 
 FORM OF SUPPLEMENTAL INDENTURE 
 TO BE DELIVERED BY FUTURE GUARANTORS 
  
 SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of ________________, 20__, among [Name of
Future Guarantor(s)] (the “New Guarantor”), a subsidiary of Transmeridian Exploration Inc., a British Virgin Islands company (or its permitted successor) (the “Company”), the Company, the existing Guarantors (as
defined in the Indenture referred to herein) and The Bank of New York, as trustee under the Indenture referred to herein (the “Trustee”). The New Guarantor and the existing Guarantors are sometimes referred to collectively herein as
the “Guarantors”, or individually as a “Guarantor.” 
  
 WITNESSETH 
  
 WHEREAS, the Company has heretofore
executed and delivered to the Trustee an indenture (the “Indenture”), dated as of December ___, 2005, relating to the Senior Secured Notes due 2010 (the “Securities”) of the Company; 
  
 WHEREAS, Section 4.9 of the Indenture provides that if the Parent
or any of its Restricted Subsidiaries acquires or creates another Restricted Subsidiary after the Issue Date, then the Company shall cause newly acquired or created Restricted Subsidiary to become a Guarantor and execute a supplemental indenture
satisfactory to the Trustee; and 
  
 WHEREAS, pursuant to
Section 9.1 of the Indenture, the Company, the Guarantors and the Trustee are authorized to execute and deliver this Supplemental Indenture to amend or supplement the Indenture without the consent of any Holder. 
  
 NOW THEREFORE, to comply with the provisions of the Indenture and in
consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the New Guarantor, the other Guarantors, the Company and the Trustee mutually covenant and agree for the equal and ratable
benefit of the Holders of the Securities as follows: 
  
 1.
CAPITALIZED TERMS. Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture. 
  
 2. AGREEMENT TO GUARANTEE. The New Guarantor hereby agrees, jointly and severally, with all other Guarantors,
to unconditionally Guarantee to each Holder and to the Trustee the Obligations, to the extent set forth in the Indenture and subject to the provisions in the Indenture. The obligations of the Guarantors to the Holders of Securities and to the
Trustee pursuant to the Guarantees and the Indenture are expressly set forth in Article X of the Indenture and reference is hereby made to the Indenture for the precise terms of the Guarantees. 
  
 3. EXECUTION AND DELIVERY. Each
Guarantor agrees that the Guarantees shall remain in full force and effect notwithstanding any failure to endorse on each Security a notation of any such Guarantee of any Guarantor. 
  

 E-1 

 4. NEW YORK LAW TO GOVERN. THE LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE AND
ENFORCE THIS SUBSIDIARY GUARANTEE. 
  
 5.
COUNTERPARTS. The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. This Supplemental Indenture may be executed in
multiple counterparts which, when taken together, shall constitute one instrument. 
  
 6. EFFECT OF HEADINGS. The Section headings herein are for convenience only and shall not affect the construction hereof. 
  
 7. THE TRUSTEE. Except as otherwise expressly
provided herein, no duties, responsibilities or liabilities are assumed, or shall be construed to be assumed, by the Trustee by reason of this Supplemental Indenture. This Supplemental Indenture is executed and accepted by the Trustee subject to all
the terms and conditions set forth in the Indenture with the same force and effect as if those terms and conditions were repeated at length herein and made applicable to the Trustee with respect hereto. 
  

 E-2 

 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed, all
as of the date first above written. 
  
 Dated: _______________,
20__ 
  

			
	 [NEW GUARANTOR]

		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	 [OTHER GUARANTORS]

		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	 TRANSMERIDIAN EXPLORATION INC.

		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	 THE BANK OF NEW YORK, as Trustee

		
	By:	 	 
	 	 	 Authorized Signatory

  

 E-3 

  
 EXHIBIT F 

 
 FORM OF CERTIFICATE FROM ACQUIRING 
 INSTITUTIONAL ACCREDITED INVESTOR 
  
 Transmeridian Exploration Inc. 
 c/o Transmeridian Exploration Incorporated

 397 N. Sam Houston Pkwy E., Suite 300 
 Houston, Texas 77060

 Attention: Investor Relations 
  
 The Bank of New York 
 101 Barclay Street, 21 West 
 New York, New York 10286 
 Attention: Global Finance Americas 
 Fax (212) 815-5802/3 
  

	 	Re:	Transmeridian Exploration Inc. Senior Secured Notes due 2010 

  
 Reference is hereby made to the Indenture, dated as of December [8], 2005 (the “Indenture”), among Transmeridian Exploration Inc., as
issuer (the “Company”), the Guarantors party thereto and The Bank of New York, as trustee. Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture. 
  
 In connection with our proposed purchase of $______________ aggregate
principal amount of: 
  

	 	(a)	 ̈ a beneficial interest in a Global Security, or 

 

	 	(b)	 ̈ a Definitive Security, 

  
 we confirm that: 
  

	1.	we are an “accredited investor” within the meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act of 1933, as amended (the “Securities
Act”), or an entity in which all of the equity owners are accredited investors within the meaning of Rule (501)(a)(1), (2), (3) or (7) under the Securities Act (an “institutional accredited investor”);

  

	2.	(A) any purchase of the Securities by us will be for our own account or for the account of one or more other institutional accredited investors or as fiduciary for the account
of one or more trusts, each of which is an “accredited investor” within the meaning of Rule 501(a)(7) under the Securities Act and for each of which we exercise sole investment discretion or (B) we are a “bank,” within the
meaning of Section 3(a)(2) of the Securities Act, or a “savings and loan association” or other institution described in Section 3(a)(5)(A) of the Securities Act that is acquiring Securities as fiduciary for the account of one or
more institutions for which we exercise sole investment discretion; 

  

 F-1 

	3.	we have such knowledge and experience in financial and business matters that we are capable of evaluating the merits and risks of purchasing Securities; 

  

	4.	we are not acquiring the Securities with a view to any distribution thereof in a transaction that would violate the Securities Act or the securities laws of any State of the United
States or any other applicable jurisdictions, provided that the disposition of our property and the property of any accounts for which we are acting as fiduciary shall remain at all times within our control; 

  

	5.	we have received a copy of the Confidential Information Memorandum relating to the offering of the Securities and acknowledge that we have had access to such financial and other
information, and have been afforded the opportunity to ask such questions of representatives of the Company and receive answers thereto, as we deem necessary in connection with our decision to purchase the Securities; and 

 

	6.	(A) we are not an employee benefit plan or other arrangement that is subject to the Employee Retirement Income Security Act of 1974, as amended, or Section 4975 of the
Internal Revenue Code of 1986, as amended, or an entity whose underlying assets include assets of such a plan or arrangement (pursuant to 29 C.F.R. Section 2510.3-101 or otherwise), and we are not purchasing (and will not hold) the Securities
on behalf of, or with the assets of, any such plan, arrangement or entity; or (B) our purchase and holding of the Securities are completely covered by the full exemptive relief provided by U.S. Department of Labor Prohibited Transaction Class
Exemption 96-23, 95-60, 91-38, 90-1 or 84-14. 

  
 We
understand that the Securities were offered in a transaction not involving any public offering in the United States within the meaning of the Securities Act and that the Securities have not been registered under the Securities Act or any state
securities laws, and they were offered for resale in transactions not requiring registration under the Securities Act. We agree, on our own behalf, and on behalf of each account for which we acquire any Securities, that if in the future we decide to
offer, resell, pledge or otherwise transfer such Securities, such Securities may be offered, resold, pledged or otherwise transferred only (a) to the Company or a subsidiary thereof, (b) pursuant to an effective registration statement
under the Securities Act, (c) inside the United States to a person who is a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act) in a transaction meeting the requirements of Rule 144A, (d) inside the
United States, to an institutional accredited investor that, prior to such transfer, furnishes to the trustee, a signed letter similar to this letter containing certain representations relating to restrictions on transfer of the note evidenced
hereby, (e) pursuant to offers and sales to Non-U.S. Persons that occur outside the United States within the meaning of Regulation S under the Securities Act, or (f) pursuant to another available exemption from the registration
requirements of the Securities Act, and, in each case, in accordance with any applicable securities laws of any State or any other applicable jurisdiction and in accordance with the legends set forth on the Securities. We further agree to provide
any person purchasing any of the Securities other than pursuant to clause (b) above from us a notice advising such purchaser that resales of such securities are restricted as stated herein. We understand that the registrar and transfer agent
for the Securities will not be required to accept for registration of transfer any Securities, except upon presentation of evidence satisfactory to the Company that the foregoing restrictions on transfer have been 

  

 F-2 

 
complied with. We further understand that any Securities we receive will be in the form of definitive physical certificates and that such certificates will
bear a legend reflecting the substance of this paragraph. 
  
 THIS
LETTER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
  
 We acknowledge that you and the Company will rely upon the truth and accuracy of our acknowledgments, confirmations and agreements in this letter.
Further, we acknowledge and agree that you and the Company are irrevocably authorized to produce this letter or a copy hereof to any interested party in any administrative or legal proceedings or, official inquiry with respect to the matters covered
hereby. 
  

			
	 [Insert Name of Accredited Investor]

		
	By:	 	 
	 Name: 
	 	 
	 Title:
	 	 

  

	Dated:                                     
    	

  

 F-3Warrant Agreement

 Exhibit 4.2 
  
 Execution Version 
  
 WARRANT AGREEMENT 
  
 Dated as of December 12, 2005 
  
 Between 
  
 TRANSMERIDIAN
EXPLORATION INCORPORATED 
  
 and 
  
 THE BANK OF NEW YORK 
  
 as Warrant Agent 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 	  	 ARTICLE I
 ISSUANCE, FORM, EXECUTION, DELIVERY AND
 REGISTRATION OF WARRANT CERTIFICATES
	  	 
			
	 Section 1.01
	  	Issuance of Warrants	  	1
	 Section 1.02
	  	Form of Warrant Certificates	  	2
	 Section 1.03
	  	Execution of Warrant Certificates	  	2
	 Section 1.04
	  	Authentication and Delivery	  	2
	 Section 1.05
	  	Temporary Warrant Certificates	  	3
	 Section 1.06
	  	Separation of Warrants and Shares	  	3
	 Section 1.07
	  	Registration	  	4
	 Section 1.08
	  	Registration of Transfers and Exchanges	  	4
	 Section 1.09
	  	Obligations of the Warrant Agent	  	8
	 Section 1.10
	  	Lost, Stolen, Destroyed, Defaced or Mutilated Warrant Certificates	  	8
	 Section 1.11
	  	Office for Exercise, etc.	  	9
			
	 	  	 ARTICLE II
 DURATION, EXERCISE OF WARRANTS AND EXERCISE PRICE
	  	 
			
	 Section 2.01
	  	Duration of Warrants	  	9
	 Section 2.02
	  	Exercise, Exercise Price, Settlement and Delivery	  	10
	 Section 2.03
	  	Cancellation of Warrant Certificates	  	12
	 Section 2.04
	  	Special Mandatory Redemption; Cancellation and Termination	  	12
			
	 	  	 ARTICLE III
 OTHER PROVISIONS RELATING TO RIGHTS OF HOLDERS OF WARRANTS
	  	 
			
	 Section 3.01
	  	Enforcement of Rights	  	12
	 Section 3.02
	  	Notice of Certain Corporate Events; Accelerated Exercisability	  	12
	 Section 3.03
	  	Notice of Dividend Declarations; Accelerated Exercisability	  	13
			
	 	  	 ARTICLE IV
 CERTAIN COVENANTS OF THE COMPANY
	  	 
			
	 Section 4.01
	  	Payment of Taxes	  	13
	 Section 4.02
	  	Issuance and Reservation of Shares	  	13
	 Section 4.03
	  	Amendment to Series A Preferred Stock	  	13
			
	 	  	 ARTICLE V
 ADJUSTMENTS
	  	 
			
	 Section 5.01
	  	Adjustment of Exercise Price and Number of Shares Issuable	  	14
	 Section 5.02
	  	Fractional Interest	  	19

					
	 Section 5.03
	  	When Adjustment Not Required	  	19
	 Section 5.04
	  	Challenge to Good Faith Determination	  	19
	 Section 5.05
	  	Treasury Stock	  	19
	 Section 5.06
	  	Notices to Warrant Holders	  	20
	 Section 5.07
	  	Par Value of Shares of Common Stock	  	20
			
	 	  	 ARTICLE VI
 CONCERNING THE WARRANT AGENT
	  	 
			
	 Section 6.01
	  	Warrant Agent	  	20
	 Section 6.02
	  	Conditions of Warrant Agent’s Obligations	  	21
	 Section 6.03
	  	Resignation and Appointment of Successor	  	24
			
	 	  	 ARTICLE VII
 MISCELLANEOUS
	  	 
			
	 Section 7.01
	  	Amendment	  	26
	 Section 7.02
	  	Notices and Demands to the Company and Warrant Agent	  	26
	 Section 7.03
	  	Addresses for Notices to Parties and for Transmission of Documents	  	26
	 Section 7.04
	  	Notices to Holders	  	27
	 Section 7.05
	  	APPLICABLE LAW	  	27
	 Section 7.06
	  	Obtaining of Governmental Approvals	  	27
	 Section 7.07
	  	Persons Having Rights Under Agreement	  	27
	 Section 7.08
	  	Headings	  	27
	 Section 7.09
	  	Counterparts	  	27
	 Section 7.10
	  	Inspection of Agreement	  	28
	 Section 7.11
	  	Successors	  	28
		
	 EXHIBIT A -
	  	Form of Warrant Certificate
		
	 EXHIBIT B -
	  	Certificate To Be Delivered upon Exchange or Registration of Transfer of Warrants

  

 ii 

 INDEX OF DEFINED TERMS 
  

			
	 Defined Term

	  	Section

	 Act
	  	Recitals
	 Additional Shares of Common Stock
	  	5.01(e)
	 Agreement
	  	Recitals
	 Business Day
	  	2.01
	 Common Stock
	  	Recitals
	 Company
	  	Recitals
	 Convertible Securities
	  	5.01(e)
	 Current Market Value
	  	5.01(c)
	 Definitive Warrants
	  	1.02
	 Depositary
	  	1.02
	 Effective Date
	  	Recitals
	 Election to Exercise
	  	2.02(b)
	 Excluded Shares
	  	5.01(e)
	 Exercisability Date
	  	2.02(a)
	 Exercise Date
	  	2.02(d)
	 Exercise Price
	  	2.02(a)
	 Expiration Date
	  	2.01
	 Global Warrants
	  	1.02
	 Indenture
	  	Recitals
	 Issuance Date
	  	5.01(e)
	 Kornerstone
	  	5.01(l)
	 Majority Holders
	  	5.04
	 Notes
	  	Recitals
	 Officer’s Certificate
	  	1.08(f)(ii)
	 Options
	  	5.01(e)
	 Original Issue Date
	  	Recitals
	 Purchase Agreements
	  	Recitals
	 Purchasers
	  	Recitals
	 Registrar
	  	1.07
	 Related Parties
	  	6.02(e)
	 Resale, Restriction Termination Date
	  	1.08(a)
	 Securities Act
	  	1.08(g)
	 Series A Preferred Stock
	  	4.03
	 Shares
	  	1.01
	 Special Mandatory Redemption
	  	2.04
	 Special Mandatory Redemption Date
	  	2.04
	 TEI
	  	Recitals
	 Units
	  	Recitals
	 Warrant Agent
	  	Recitals
	 Warrant Agent Office
	  	1.11
	 Warrant Certificates
	  	Recitals
	 Warrant Exercise Office
	  	2.02(b)
	 Warrant Register
	  	1.07
	 Warrants
	  	Recitals

  

 iii 

 WARRANT AGREEMENT 
  
 This WARRANT AGREEMENT (this “Agreement”), dated as of December 12, 2005 (the “Effective Date”), is
by and between Transmeridian Exploration Incorporated, a Delaware corporation (together with any successor thereto, the “Company”), and The Bank of New York, as warrant agent (together with any successor thereto, the “Warrant
Agent”). 
  
 WHEREAS, the Company and Transmeridian
Exploration, Inc., a corporation organized under the laws of the British Virgin Islands (“TEI”), have entered into separate Purchase Agreements, each dated as of or about December 12, 2005 (the “Purchase Agreements”), with
the several purchasers parties thereto (together, the “Purchasers”) pursuant to which the Company and TEI have agreed, among other things, to sell to the Purchasers, in a direct private placement exempt from the registration requirements
of the Securities Act of 1933, as amended (the “Act”), (i) an aggregate $250,000,000 principal amount of Senior Secured Notes due 2010 of TEI (the “Notes”) pursuant to the Indenture, dated the date hereof, by and among TEI,
the Company, as a guarantor, and The Bank of New York, as trustee (as supplemented as contemplated by Section 4.40(b) of the Purchase Agreements and as otherwise supplemented or amended from time to time, the “Indenture”); and
(ii) warrants to purchase an aggregate of 17,263,500 shares of Common Stock, $0.0006 par value per share (“Common Stock”), of the Company (the “Warrants”, and the certificates evidencing the Warrants being hereinafter
referred to as the “Warrant Certificates”), subject to adjustment in accordance with the terms hereof; 
  
 WHEREAS, the Warrants and the Notes shall be issued in the form of units of $1,000 principal amount of Notes and 69.054 Warrants (the “Units”);

  
 WHEREAS, the Notes and the Warrants shall be separately
transferable immediately upon the date of original issuance (such date, the “Original Issue Date”); and 
  
 WHEREAS, the Company desires the Warrant Agent to assist the Company as warrant agent in connection with the issuance, exchange, cancellation, replacement
and exercise of the Warrants, and in this Agreement wishes to set forth, among other things, the terms and conditions on which the Warrants may be issued, exchanged, canceled, replaced and exercised; 
  
 NOW, THEREFORE, the parties hereto agree as follows: 
  
 ARTICLE I 
 ISSUANCE, FORM, EXECUTION, DELIVERY AND 
 REGISTRATION OF WARRANT CERTIFICATES

  
 Section 1.01 Issuance of Warrants. Each Warrant
Certificate shall evidence the number of Warrants specified therein, and each Warrant evidenced thereby shall represent the right, subject to the provisions contained herein and in the Warrant Certificate, to purchase from the Company (and the
Company shall issue and sell to such holder of the Warrant) one validly issued, fully paid and non-assessable shares of the Company’s Common Stock (the shares of Common Stock purchasable upon exercise of a Warrant, as adjusted from time to
time, being hereinafter referred to as the “Shares” and, where appropriate, such term shall also mean the other securities or property purchasable and deliverable upon exercise of a Warrant as provided 

 
in Article V) at the price specified herein and therein, in each case subject to adjustment as provided herein and in the Warrant Certificate. 
  
 Section 1.02 Form of Warrant Certificates. The Warrants will initially
be issued either in global form (the “Global Warrants”) or in registered form as definitive Warrant Certificates (the “Definitive Warrants”). The Warrant Certificates evidencing the Global Warrants or the Definitive Warrants (as
the case may be) to be delivered pursuant to this Agreement shall be substantially in the form set forth in Exhibit A attached 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.
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 any Global Warrants (the “Depositary”) until a successor shall be appointed by the Company. Upon written request, a Warrant holder may
transfer a Definitive Warrant for a beneficial interest in the Global Warrant as set forth in Section 1.08 hereof, subject to the rules and procedures of the Depositary. In addition, upon written request, a Warrant holder may receive from the
Warrant Agent Definitive Warrants as set forth in Section 1.08 hereof. 
  
 Section 1.03 Execution of Warrant Certificates. The Warrant Certificates shall be executed on behalf of the Company by its chief executive officer, its president or any vice president. Such signature may be the
manual or facsimile signature of the present or any future such officer. Typographical and other minor errors or defects in any reproduction of such signature shall not affect the validity or enforceability of any Warrant Certificate that has been
duly countersigned and delivered by the Warrant Agent. 
  
 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 Certificate so signed shall be countersigned and delivered by the Warrant Agent or disposed of by the Company, such
Warrant Certificate nevertheless may be countersigned and delivered or disposed of as though the person who signed such Warrant Certificate had not ceased to be such officer of the Company; and any Warrant Certificate may be signed on behalf of the
Company by a person as, at the actual date of the execution of such Warrant Certificate, shall be a proper officer of the Company, although at the date of the execution and delivery of this Agreement such person was not such an officer. 

 
 Section 1.04 Authentication and Delivery. Subject to the
immediately following paragraph, Warrant Certificates shall be authenticated by manual or facsimile signature and dated the date of authentication by the Warrant Agent and shall not be valid for any purpose unless so authenticated and dated. The
Warrant Certificates shall be numbered and shall be registered in the Warrant Register (as defined in Section 1.07 hereof). 
  
 Upon the receipt by the Warrant Agent of a written order of the Company, which order shall be signed by its chief executive officer, its president or any
vice president, and shall specify the amount of Warrants to be authenticated, whether the Warrants are to be Global Warrants or 

  

 2 

 
Definitive Warrants, the date of such Warrants and such other information as the Warrant Agent may reasonably request, without any further action by the
Company, the Warrant Agent is authorized, upon receipt from the Company at any time and from time to time of the Warrant Certificates, duly executed as provided in Section 1.03 hereof, to authenticate the Warrant Certificates and deliver them.
Such authentication shall be by a duly authorized signatory of the Warrant Agent (although it shall not be necessary for the same signatory to sign all Warrant Certificates). 
  
 In case any authorized signatory of the Warrant Agent who shall have authenticated any of the Warrant Certificates shall
cease to be such authorized signatory before the Warrant Certificate shall be disposed of by the Company, such Warrant Certificate nevertheless may be delivered or disposed of as though the person who authenticated such Warrant Certificate had not
ceased to be such authorized signatory of the Warrant Agent; and any Warrant Certificate may be authenticated on behalf of the Warrant Agent by such persons as, at the actual time of authentication of such Warrant Certificates, shall be the duly
authorized signatories of the Warrant Agent, although at the time of the execution and delivery of this Agreement any such person is not such an authorized signatory. 
  
 The Warrant Agent’s authentication on all Warrant Certificates shall be in substantially the form set forth in Exhibit
A hereto. 
  
 Section 1.05 Temporary Warrant Certificates.
Pending the preparation of definitive Warrant Certificates, the Company may execute, and, upon receipt of an authentication order in accordance with Section 1.04 hereof, the Warrant Agent shall authenticate and deliver, temporary Warrant
Certificates, which are printed, lithographed, typewritten or otherwise produced, substantially of the tenor of the definitive Warrant Certificates in lieu of which they are issued and with such appropriate insertions, omissions, substitutions and
other variations as the officer of the Company executing such Warrant Certificates may determine, as evidenced by his or her execution of such Warrant Certificates on behalf of the Company. 
  
 If temporary Warrant Certificates are issued, the Company will cause
definitive Warrant Certificates to be prepared without unreasonable delay. After the preparation of definitive Warrant Certificates, the temporary Warrant Certificates shall be exchangeable for definitive Warrant Certificates upon surrender of the
temporary Warrant Certificates at any office or agency maintained by the Company for that purpose pursuant to Section 1.11 hereof. Subject to the provisions of Section 4.01 hereof, such exchange shall be without charge to the holder. Upon
surrender for cancellation of any one or more temporary Warrant Certificates, the Company shall execute, and, upon receipt of an authentication order in accordance with Section 1.04 hereof, the Warrant Agent shall authenticate and deliver in
exchange therefor, one or more definitive Warrant Certificates representing in the aggregate a like number of Warrants. Until so exchanged, the holder of a temporary Warrant Certificate shall in all respects be entitled to the same benefits under
this Agreement as a holder of a definitive Warrant Certificate. 
  
 Section 1.06 Separation of Warrants and Shares. The Notes and Warrants will be separately transferable immediately upon the Original Issue Date. 
  

 3 

 Section 1.07 Registration. The Company will keep, at the office or agency maintained by the
Company for such purpose pursuant to Section 1.11, a register or registers (the “Warrant Register”) in which, subject to such reasonable regulations as it may prescribe, the Company shall provide for the registration of, and
registration of transfer and exchange of, Warrants as provided in this Article. Each person designated by the Company from time to time as a person authorized to register the transfer and exchange of the Warrants is hereinafter called, individually
and collectively, the “Registrar.” The Company hereby initially appoints the Warrant Agent as Registrar. Upon written notice to the Warrant Agent and any acting Registrar, the Company, in its sole discretion, may appoint a successor
Registrar for such purposes. 
  
 Section 1.08 Registration of
Transfers 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, 
  
 the Warrant Agent shall register the transfer or make the exchange as requested if the
requirements under this Agreement as set forth in this Section 1.08 hereof for such transactions 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 Company and the Warrant Agent, duly executed by the holder thereof or by his attorney, duly authorized in writing; and 
  
 (y) in the case of Warrants the offer and sale of which has not been registered under the Act and are
presented for transfer or exchange prior to (1) the date which is two years after the later of the Original Issue Date and the last date on which the Company or any affiliate of the Company was the owner of such Warrant, or any predecessor
thereto and (2) such later date, if any, as may be required by any subsequent change in applicable law (the “Resale Restriction Termination Date”), such Warrants shall be accompanied, in the sole discretion of the Company, by the
following additional information and documents, as applicable: 
  
 (A) if such 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 Warrant is
being transferred in reliance on an exemption from the registration requirements of the Act, a certification to that effect (in substantially the form of Exhibit B hereto) and an opinion 

  

 4 

 
of counsel reasonably acceptable to the Company to the effect that such transfer is in compliance with the Act. 
  
 (b) Restrictions on Transfer of a Definitive Warrant for
a Beneficial Interest in a Global Warrant. A Definitive Warrant may not be transferred for a beneficial interest in a Global Warrant unless such Definitive Warrant is no longer a “restricted security” within the meaning of such term
under Rule 144 under the Act and except upon satisfaction of the rules and requirements of the Depositary and 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 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 Warrants 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 authenticate a 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 Section 1.08 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, transfer such beneficial interest for a Definitive Warrant. Upon receipt by the Warrant Agent of written instructions or such other
form of customary instructions from the Depositary or its nominee on behalf of any person having a beneficial interest in a Global Warrant, 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 Officer’s Certificate
(as defined in Section 1.08(f) below), the Warrant Agent will authenticate and deliver to the transferee a Definitive Warrant. 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) may be required. 
  
 (ii) Definitive Warrants issued in exchange for a beneficial interest in a Global Warrant pursuant to this Section 1.08(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. The Warrant Agent shall deliver such
Definitive Warrants to the persons in whose names such Warrants are so registered. 
  
 (e) Restrictions on Transfer and Exchange of Global Warrants. Notwithstanding any other provisions of this Agreement (other than
the provisions set forth in 

  

 5 

 
subsection (h) of this Section 1.08), a Global Warrant may not be transferred in 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 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 Agreement, 
  
 then the Company will execute, and the Warrant Agent, upon receipt of an officer’s certificate signed by its chief executive officer, its president or any vice
president (an “Officer’s Certificate”) requesting the authentication and delivery of Definitive Warrants, will authenticate 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. Except to the extent 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 to the following effect: 
  
 THIS WARRANT (OR ITS PREDECESSOR) HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. ACCORDINGLY, THIS WARRANT MAY NOT BE OFFERED,
SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS, EXCEPT AS SET FORTH IN THE NEXT SENTENCE. BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE HOLDER AGREES THAT IT
WILL NOT RESELL OR OTHERWISE TRANSFER THIS WARRANT EXCEPT (A) TO THE ISSUER OR ANY OF ITS SUBSIDIARIES, (B) IN AN OFFSHORE TRANSACTION MEETING THE REQUIREMENTS OF REGULATION S UNDER THE SECURITIES ACT, (C) IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT, (D) IN ACCORDANCE WITH AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL ACCEPTABLE TO THE ISSUER), OR (E) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, AND, IN EACH CASE, IN ACCORDANCE WITH APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION, 

  

 6 

 
AND AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS WARRANT OR AN INTEREST HEREIN IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.

  
 To the extent a Warrant Certificate evidences a Global
Warrant, such Warrant Certificate shall also bear the legend with respect thereto substantially in the form set forth on Exhibit A hereto. 
  
 (ii) Upon any sale or transfer of a Warrant pursuant to Rule 144 under the Act in accordance with this Section 1.08 or an effective
registration statement under the Act: 
  
 (A) in
the case of any Warrant that is a Definitive Warrant, the Warrant Agent shall permit the holder thereof to exchange such Warrant for a Definitive Warrant that does not bear the legend set forth above 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 being subject only to the provisions of Section 1.08(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 first paragraph of the legend set forth above, which request is made in reliance upon Rule 144 under the Act, the holder
thereof shall certify in writing to the Warrant Agent that such request is being made pursuant to Rule 144 under the Act (such certification to be substantially in the form of Exhibit B hereto). 
  
 (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 cancelled 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 cancelled, 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, the
Company shall execute, at the Warrant Agent’s request, Definitive Warrants and Global Warrants. Furthermore, the Warrant Agent shall, upon receipt of an authentication order in accordance with Section 1.04 hereof, authenticate 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 Agreement as the Definitive
Warrants or Global Warrants surrendered upon the registration of transfer or exchange. 
  

 7 

 (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. 
  
 (j) Payment of Taxes. The Company will pay all
documentary stamp taxes attributable to the initial issuance of the 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 the 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 1.09 Obligations of the Warrant Agent. The
Warrant Agent shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Agreement or under applicable law with respect to any transfer of any interest in any Warrant
(including any transfers between or among beneficial owners of interests in any Global Warrant) other than to require delivery of such certificates and other documentation or evidence as are expressly required by this Agreement, and to do so if and
when expressly required by the terms of this Agreement and to examine the same to determine substantial compliance as to form with the express requirements hereof. 
  
 Section 1.10 Lost, Stolen, Destroyed, Defaced or Mutilated Warrant Certificates. Upon receipt by the Company and the
Warrant Agent (or any agent of the Company or the Warrant Agent, if requested by the Company) of evidence satisfactory to them of the loss, theft, destruction, defacement, or mutilation of any Warrant Certificate and of indemnity reasonably
satisfactory to them and, in the case of mutilation or defacement, upon surrender of such Warrant Certificate to the Warrant Agent for cancellation, then, in the absence of notice to the Company or the Warrant Agent that such Warrant Certificate has
been acquired by a bona fide purchaser or holder in due course, the Company shall execute, and, upon receipt of an authentication order in accordance with Section 1.04 hereof, an authorized signatory of the Warrant Agent shall manually
authenticate and deliver, in exchange for or in lieu of the lost, stolen, destroyed, defaced or mutilated Warrant Certificate, a new Warrant Certificate representing a like number of Warrants, bearing a number or other distinguishing symbol not
contemporaneously outstanding. Upon the issuance of any new Warrant Certificate under this Section 1.10, the Company may require the payment from the holder of such Warrant Certificate of a sum sufficient to cover any tax, stamp tax or other
governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Warrant Agent and the Registrar) in connection therewith. Every substitute Warrant Certificate executed and delivered pursuant
to this Section 1.10 in lieu of any lost, stolen or destroyed Warrant Certificate shall constitute an additional contractual obligation of the Company, whether or not the lost, stolen or destroyed Warrant Certificate shall be at any time
enforceable by anyone, and shall be entitled to the benefits of (but shall be subject to all the limitations of rights set forth in) this Agreement equally and proportionately with all other Warrant Certificates duly executed and delivered
hereunder. The provisions of this Section 1.10 are exclusive with respect to the 

  

 8 

 
replacement of lost, stolen, destroyed, defaced or mutilated Warrant Certificates and shall preclude (to the extent lawful) any and all other rights or
remedies notwithstanding any law or statute existing or hereafter enacted to the contrary with respect to the replacement of lost, stolen, destroyed, defaced or mutilated Warrant Certificates. 
  
 The Warrant Agent is hereby authorized to authenticate in accordance with the
provisions of this Agreement, and deliver the new Warrant Certificates required pursuant to the provisions of this Section 1.10. 
  
 Section 1.11 Office for Exercise, etc. So long as any of the Warrants remain outstanding, the Company will designate and maintain in New York City,
New York: (a) an office or agency where the Warrant Certificates may be presented for exercise, (b) an office or agency where the Warrant Certificates may be presented for registration of transfer and for exchange (including the exchange
of temporary Warrant Certificates for definitive Warrant Certificates pursuant to Section 1.05 hereof), and (c) an office or agency where notices and demands to or upon the Company in respect of the Warrants or this Agreement may be
served. The Company may from time to time change or rescind such designation, as it may deem desirable or expedient; provided, however, that an office or agency shall at all times be maintained in New York City, New York, as provided in the first
sentence of this Section 1.11. In addition to such office or offices or agency or agencies, the Company may from time to time designate and maintain one or more additional offices or agencies within or outside of New York, where Warrant
Certificates may be presented for exercise or for registration of transfer or for exchange, and the Company may from time to time change or rescind such designation, as it may deem desirable or expedient. The Company will give to the Warrant Agent
written notice of the location of any such office or agency and of any change of location thereof. The Company hereby designates the Warrant Agent’s office at 101 Barclay Street, New York, New York 10286 (the “Warrant Agent Office”),
as the initial agency maintained for each such purpose. 
  
 ARTICLE II 
 DURATION, EXERCISE OF WARRANTS AND EXERCISE PRICE 
  
 Section 2.01 Duration of Warrants. Subject to the terms and conditions
established herein, the Warrants shall expire at 5:00 p.m., New York City, New York time, on December 15, 2010 (the “Expiration Date”). Subject to the accelerated exercisability exceptions set forth in Sections 3.02 and 3.03 below,
each Warrant may be exercised on any Business Day (as defined below) on or after the Exercisability Date (as defined below) and on or prior to the Expiration Date. 
  
 The Company shall give written notice, by first-class mail, postage prepaid, of the Expiration Date not less than 90 days
nor more than 120 days prior to the Expiration Date to each of the registered holders of the Warrant Certificates at its address appearing on the Warrant Register. Any Warrant not exercised on or prior to the Expiration Date shall become void, and
all rights of the holder under the Warrant Certificate evidencing such Warrant and under this Agreement shall cease. 
  
 “Business Day” shall mean any day on which (i) banks in New York City, New York are open for business, (ii) the principal national
securities exchange or market on which the 

  

 9 

 
Common Stock is listed or admitted to trading is open for business and (iii) the principal national securities exchange or market, if any, on which the
Warrants are listed or admitted to trading is open for business. 
  
 Section 2.02 Exercise, Exercise Price, Settlement and Delivery. 
  
 (a) Subject to the provisions of this Agreement, a holder of a Warrant shall have the right to purchase from the Company, on or after the
earlier of (i) the first anniversary of the Effective Date and (ii) the date that a registration statement under the Act registering the issuance of Shares upon exercise of the Warrants and the resale of the Warrants and the Shares becomes
effective (the “Exercisability Date”) and on or prior to the Expiration Date, one fully paid and non-assessable Share at the purchase price of $4.31 for each Share purchased upon the exercise of the Warrant (the “Exercise
Price”), in each case subject to adjustment in accordance with Article V hereof. 
  
 (b) Warrants may be exercised on or after the Exercisability Date by (i) surrendering at any office or agency maintained for that
purpose by the Company pursuant to Section 1.11 (each a “Warrant Exercise Office”) the Warrant Certificate evidencing such Warrants with the form of election to purchase Shares set forth on the reverse side of the Warrant Certificate
(the “Election to Exercise”) duly completed and signed by the registered holder or holders thereof or by the duly appointed legal representative thereof or by a duly authorized attorney, and (ii) paying in full the Exercise Price for
each such Warrant exercised and any other amounts required to be paid pursuant to Section 1.08(j) hereof. Each Warrant may be exercised only in whole. 
  
 (c) Simultaneously with the exercise of each Warrant, payment in full of the Exercise Price shall be made in cash or by certified or
official bank check to be delivered to the office or agency where the Warrant Certificate is being surrendered. No payment or adjustment shall be made on account of any dividends on the Shares issued upon exercise of a Warrant. 
  
 (d) Upon such surrender of a Warrant Certificate and payment
and collection of the Exercise Price at any Warrant Exercise Office (other than any Warrant Exercise Office that also is an office of the Warrant Agent), such Warrant Certificate and payment shall be promptly delivered to the Warrant Agent. The
“Exercise Date” for a Warrant shall be the date when all of the items referred to in the first sentence of paragraphs (b) and (c) of this Section 2.02 are received by the Warrant Agent at or prior to 2:00 p.m., New York
City, New York time, on a Business Day and the exercise of the Warrants will be effective as of such Exercise Date. If any items referred to in the first sentence of paragraphs (b) and (c) are received after 2:00 p.m., New York City, New
York time, on a Business Day, the exercise of the Warrants to which such item relates will be effective on the next succeeding Business Day. Notwithstanding the foregoing, in the case of an exercise of Warrants on the Expiration Date (as defined in
Section 2.01), if all of the items referred to in the first sentence of paragraphs (b) and (c) are received by the Warrant Agent at or prior to 5:00 p.m., New York City, New York time, on such Expiration Date, the exercise of the
Warrants to which such items relate will be effective on the Expiration Date. If any of the items referred to in the first sentence of paragraphs (b) and (c) are received by the Warrant Agent after 5:00 p.m., New York City, New York time,
on such Expiration Date, the exercise of the Warrants to which such items relate will not be effective and shall be void, the 

  

 10 

 
Warrant shall become void, and all rights of the holder under the Warrant Certificate evidencing such Warrant and under this Agreement shall cease.

  
 (e) Upon the exercise of a Warrant in
accordance with the terms hereof, the receipt of a Warrant Certificate and payment of the Exercise Price, the Warrant Agent shall: (i) cause an amount equal to the Exercise Price to be paid to the Company by crediting the same to the account
designated by the Company in writing to the Warrant Agent for that purpose; (ii) advise the Company immediately by telephone of the amount so deposited to the Company’s account and promptly confirm such telephonic advice in writing and
(iii) as soon as practicable, advise the Company in writing of the number of Warrants exercised in accordance with the terms and conditions of this Agreement and such Warrant Certificate, the instructions of the exercising holder of the Warrant
Certificate with respect to delivery of the Shares to which such holder is entitled upon such exercise, and such other information as the Company shall reasonably request. 
  
 (f) Subject to Section 5.02 hereof, as soon as practicable after the exercise of any Warrant or
Warrants in accordance with the terms hereof, the Company shall issue or cause to be issued to, or upon the written order of, the registered holder of the Warrant Certificate evidencing such exercised Warrant or Warrants, a certificate or
certificates evidencing the Shares to which such holder is entitled, in fully registered form, registered in such name or names as may be directed by such holder pursuant to the Election to Exercise. The Warrant Agent shall have no obligation to
ascertain the number of Shares to be issued with respect to the exercised Warrant or Warrants. Such certificate or certificates evidencing the Shares shall be deemed to have been issued and any persons who are designated to be named therein shall be
deemed to have become the holder of record of such Shares as of the close of business on the Exercise Date. After such exercise of any Warrant or Warrants, the Company shall also issue or cause to be issued to, or upon the written order of, the
registered holder of such Warrant Certificate, a new Warrant Certificate, countersigned by the Warrant Agent pursuant to the Company’s written instruction, evidencing the number of Warrants, if any, remaining unexercised, unless such Warrants
shall have expired. 
  
 (g) In the event that at
the time an Election to Exercise is delivered to the Warrant Agent a registration statement covering the issuance of the Shares upon exercise of the Warrants and the resale of the Warrants and the Shares is not in effect, qualifications and/or
registrations under applicable state securities laws are not in effect for the issuance of the Shares upon exercise of the Warrants and the resale of the Warrants and the Shares, and the issuance of the Shares upon exercise of the Warrants and the
resale of the Warrants and the Shares are not exempt from the registration requirements of the Act and such applicable state registration and qualification requirements, then the Company shall, if requested by the Warrant holder giving the Election
to Exercise, exchange the Warrants being exercised for a number of shares of Common Stock equal to the whole number nearest to (a) the number of shares of Common Stock issuable upon exercises of such Warrants minus (b) the number of shares
of Common Stock equal to the quotient obtained by dividing (i) the product obtained by multiplying (A) the Exercise Price by (B) the number of shares of Common Stock issuable upon exercises of such Warrants by (ii) the Current
Market Value (as defined in Section 5.01(c)). It is intended and acknowledged that, subject to applicable law, the Shares issued in a cashless exercise transaction shall be deemed to have been acquired by the holder, and the holding period for
the Shares required by Rule 144 under the Act shall be deemed to have been commenced, on the Original Issue Date. 
  

 11 

 Section 2.03 Cancellation of Warrant Certificates. In the event the Company shall purchase or
otherwise acquire Warrants, the Warrant Certificates evidencing such Warrants may thereupon be delivered to the Warrant Agent, and if so delivered, shall be canceled by it and retired. The Warrant Agent shall cancel all Warrant Certificates properly
surrendered for exchange, substitution, transfer or exercise. 
  
 Section 2.04 Special Mandatory Redemption; Cancellation and Termination. In the event of a Special Mandatory Redemption (as defined in the Indenture), all Warrant Certificates shall be canceled, the Warrants evidenced by the Warrant
Certificates shall be void and of no further force or effect and this Agreement shall terminate, in each case effective as of the Special Mandatory Redemption Date (as defined in the Indenture) and without any further action on the part of the
Company, the Warrant Agent or the holders of the Warrant Certificates; provided, that the Company’s obligations to the Warrant Agent under Section 6.02(a) hereof shall survive the termination of this Agreement. 
  
 ARTICLE III 
 OTHER PROVISIONS RELATING TO 
 RIGHTS OF HOLDERS OF WARRANTS 
  
 Section 3.01 Enforcement of Rights. 
  
 (a) Notwithstanding any of the provisions of this Agreement,
any holder of a Warrant Certificate, without the consent of the Warrant Agent, may, in and for its own behalf, enforce, and may institute and maintain any suit, action or proceeding against the Company suitable to enforce, its right to exercise the
Warrant or Warrants evidenced by its Warrant Certificate in the manner provided in such Warrant Certificate and in this Agreement. 
  
 (b) Neither the Warrants nor any Warrant Certificate shall entitle the holders thereof to any of the rights of a holder of Shares,
including, without limitation, the right to vote or to receive any dividends or other payments or to consent or to receive notice as stockholders in respect of meetings of stockholders or for the election of directors of the Company or to share in
the assets of the Company in the event of the liquidation, dissolution or winding up of the Company’s affairs or any other matter, or any other rights whatsoever as stockholders of the Company. 
  
 Section 3.02 Notice of Certain Corporate Events; Accelerated
Exercisability. Upon the Company’s execution of a definitive agreement or other documentation contemplating any of the corporate events described in Section 5.01(d), and whether or not the Exercisability Date has occurred, (i) the
Company shall promptly, and in any event at least 15 Business Days prior to the effective date of such corporate event, provide written notice of such corporate event, which shall include the expected effective date of such corporate event, to the
Warrant Agent and to each of the registered holders of the Warrant Certificates at its address appearing on the Warrant Register by first-class mail, postage prepaid, and (ii) the Warrants shall become exercisable in full. 
  
 Section 3.03 Notice of Dividend Declarations; Accelerated
Exercisability. Upon the declaration by the Company’s Board of Directors of a dividend on the Company’s Common 

  

 12 

 
Stock, and whether or not the Exercisability Date has occurred, (i) the Company shall promptly, and in any event at least 15 Business Days prior to the
record date for such dividend, provide written notice of such dividend declaration, which shall include the expected payment date of such dividend, to the Warrant Agent and to each of the registered holders of the Warrant Certificates at its address
appearing on the Warrant Register by first-class mail, postage prepaid, and (ii) the Warrants shall become exercisable in full. 
  
 ARTICLE IV 
 CERTAIN COVENANTS OF THE
COMPANY 
  
 Section 4.01 Payment of Taxes. The Company
will pay all documentary stamp taxes attributable to the initial issuance of the Warrants and of the Shares upon the exercise of Warrants or to the separation of the Warrants and the Shares; provided, however, that the Company shall not be required
to pay any tax or other governmental charge which may be payable in respect of any transfer or exchange of any Warrant Certificates or any certificates for Shares in a name other than the registered holder of a Warrant Certificate surrendered upon
the exercise of a Warrant. In any such case, no transfer or exchange shall be made unless or until the person or persons requesting issuance thereof shall have paid to the Company the amount of such tax or other governmental charge or shall have
established to the satisfaction of the Company that such tax or other governmental charge has been paid or an exemption is available therefrom. 
  
 Section 4.02 Issuance and Reservation of Shares. The Company shall take all actions necessary to ensure that the Shares issuable upon exercise of
the Warrants shall be duly authorized and, when issued upon exercise or exchange of any Warrant in accordance with the terms hereof, shall be validly issued, fully paid and non-assessable, free and clear of all taxes, liens, charges and security
interests and free and clear of all preemptive or similar rights. There has been reserved, and the Company shall at all times keep reserved so long as the Warrants remain outstanding, out of its authorized Common Stock, such number of Shares as
shall be subject to purchase under the Warrants. On or before taking any action that would cause an adjustment pursuant to the terms of this Agreement resulting in an increase in the number of Shares deliverable upon such exercise or exchange above
the number thereof previously authorized, reserved and available therefor, the Company shall take all such action so required for compliance with this Section 4.02. 
  
 Section 4.03 Amendment to Series A Preferred Stock. From and after the Effective Date, the Company shall not, and
shall cause its officers to not, cause the terms and provisions of the Company’s outstanding Series A Cumulative Convertible Preferred Stock (the “Series A Preferred Stock”) to be amended. 
  
 ARTICLE V 
 ADJUSTMENTS 
  
 Section 5.01 Adjustment of Exercise Price and Number of Shares Issuable. The number and kind of Shares purchasable upon the exercise of Warrants and the Exercise Price shall be subject to adjustment from time to time upon the
happening of certain events, as follows: 
  
 (a)
Stock Splits, Combinations, etc. In case the Company after the date hereof shall (A) make or pay a dividend or other distribution in shares of Common Stock on its 

  

 13 

 
Common Stock, (B) subdivide its outstanding shares of Common Stock into a greater number of shares or (C) combine or reclassify its outstanding
shares of Common Stock into a smaller number of shares, the number of Shares purchasable upon exercise of the Warrants immediately prior to such action shall be adjusted so that the holder of a Warrant upon exercise of the Warrant shall be entitled
to receive the number of shares of Common Stock which such holder would have owned or would have been entitled to receive immediately following such action had the Warrant been exercised immediately prior thereto. An adjustment made pursuant to this
paragraph shall become effective on the day immediately after the record date, except as provided in Section 5.03 below, in the case of a dividend or distribution and shall become effective on the day immediately after the effective date in the
case of a subdivision, combination or reclassification. Whenever the number of Shares purchasable upon the exercise of a Warrant is adjusted as provided in this paragraph (a), the Exercise Price shall be adjusted by multiplying such Exercise Price
immediately prior to such adjustment by a fraction, of which the numerator shall be the number of Shares purchasable upon the exercise of the Warrant immediately prior to such adjustment, and of which the denominator shall be the number of Shares so
purchasable immediately thereafter. 
  
 (b) In
case the Company or any subsidiary of the Company after the date hereof shall distribute to all holders of Common Stock any of its assets, evidences of indebtedness, cash or securities (excluding any distributions referred to in paragraph
(a) and any dividend or distribution paid in cash out of earned surplus of the Company) then in each such case the Exercise Price shall be adjusted so that the same shall equal the price determined by multiplying the Exercise Price in effect
immediately prior to the record date of such distribution by a fraction of which the numerator shall be the then Current Market Value per share of the Common Stock (determined as provided in paragraph (c) below) on the record date mentioned
below less the then fair market value (as reasonably determined in good faith by the Board of Directors of the Company) of the portion of the assets, evidences of indebtedness, cash or securities so distributed applicable to one share of Common
Stock, and of which the denominator shall be such Current Market Value per share of the Common Stock. Such adjustment shall, except as provided in Section 5.03, become effective on the day immediately after the record date for the determination
of stockholders entitled to receive such distribution. 
  
 (c) For the purposes of this Agreement, the term “Current Market Value” per share of Common Stock or any other security at any date means, on any date of determination (a) the average of the daily closing sale prices for each
of the 15 Business Days immediately preceding such date (or such shorter number of days during which such security has been listed or traded), if the security has been listed on the New York Stock Exchange, the American Stock Exchange or other
national securities exchanges or the NASDAQ National Market for at least 10 Business Days prior to such date, (b) if such security is not so listed or traded, the average of the daily closing bid prices for each of the 15 Business Days
immediately preceding such date (or such shorter number of days during which such security had been quoted), if the security has been quoted on a national over-the-counter market for at least 10 Business Days, or (c) otherwise, the value of the
security as determined in good faith by the independent members of the Company’s Board of Directors. 
  
 (d) Reclassification, Combinations, Mergers, etc. In case of any subdivision, combination or reclassification of, or change in, the
outstanding shares of Common Stock (other than as set forth in Section 5.01(a) above and other than a change in par value, or from par value 

  

 14 

 
to no par value, or from no par value to par value) or in case of any consolidation or merger of the Company with or into another corporation (other than a
merger in which the Company is the continuing corporation and which does not result in any reclassification or change of the then outstanding shares of Common Stock or in case of any sale or conveyance to another corporation of all or substantially
all of the assets of the Company (computed on a consolidated basis), then, as a condition of such subdivision, combination, reclassification, change, consolidation, merger, sale or conveyance, the Company or such successor or purchasing corporation,
as the case may be, shall forthwith make lawful and adequate provision whereby the holders of the Warrants then outstanding shall have the right thereafter to receive on exercise of the Warrants the kind and amount of shares of stock and other
securities and property receivable upon such subdivision, combination, reclassification, change, consolidation, merger, sale or conveyance by a holder of the number of shares of Common Stock issuable upon exercise of such Warrant immediately prior
to such subdivision, combination, reclassification, change, consolidation, merger, sale or conveyance and enter into a supplemental warrant agreement so providing. Such supplemental warrant agreement shall include provision for adjustments which
shall be as nearly equivalent as may be practicable to the adjustments provided for in this Article V. If the issuer of securities deliverable upon exercise of the Warrants under the supplemental warrant agreement is an affiliate of the surviving or
transferee corporation, that issuer shall join in the supplemental warrant agreement. The above provisions of this paragraph (d) shall similarly apply to successive reclassifications and changes of shares of Common Stock and to successive
subdivisions, combinations, reclassifications, changes, consolidations, mergers, sales or conveyances. 
  
 In case of any such subdivision, combination, reclassification, change, consolidation, merger, sale or conveyance, the successor or acquiring corporation
(if other than the Company) shall expressly assume the due and punctual observance and performance of each and every covenant and condition of this Agreement to be performed and observed by the Company and all the obligations and liabilities
hereunder, subject to such modifications as may be deemed appropriate (as determined by resolution of the Board of Directors of the Company) in order to provide for adjustments of shares of the Common Stock for which the Warrants are exercisable
which shall be as nearly equivalent as practicable to the adjustments provided for in this Article V. The foregoing provisions of this Section 5.01(d) shall similarly apply to successive subdivisions, combinations, reclassifications, changes,
consolidations, mergers, sales or conveyances. 
  
 If, as a result
of an adjustment made pursuant to this paragraph, the holder of any Warrant thereafter exercised shall become entitled to receive shares of two or more classes of capital stock of the Company, the Board of Directors of the Company (whose
determination shall be made in good faith and be conclusive) shall determine the allocation of the adjusted Exercise Price between or among shares of such classes of capital stock. 
  
 (e) Issuance of Common Stock, Options or Convertible Securities. For the purposes of this Agreement,
“Additional Shares of Common Stock” shall mean all shares of Common Stock issued or deemed to be issued by the Company after the Effective Date, other than Excluded Shares (as defined below). 
  
 In the event the Company shall, at any time or from time to time after the
Effective Date, issue, sell, distribute or otherwise grant in any manner (including by assumption) shares of Common Stock or any rights to subscribe for or to purchase, or any warrants or options 

  

 15 

 
exercisable for the purchase of, Common Stock or any stock or securities convertible into or exchangeable for Common Stock (any such rights, warrants or
options being herein called “Options” and any such convertible or exchangeable stock or securities being herein called “Convertible Securities”), whether or not such Options or the rights to convert or exchange such Convertible
Securities are immediately exercisable, then the maximum number of shares of Common Stock (as set forth in the instrument relating thereto without regard to any provision contained therein for a subsequent adjustment of such number) issuable upon
the exercise and/or conversion of such Options or Convertible Securities, shall be deemed to be Additional Shares of Common Stock. 
  
 For purposes of this Agreement, the term “Issuance Date” shall mean (i) with respect to Additional Shares of Common Stock deemed to have
been issued in connection with the issuance of an Option or Convertible Security, the date such Option or Convertible Security is issued and (ii) in all other cases, the actual date Additional Shares of Common Stock are issued. 
  
 For the purposes of this Agreement, “Excluded Shares” shall mean:
(i) shares for which the consideration per share as determined pursuant to paragraph (f) below would be equal to or more than the Current Market Value determined on the day prior to the Issuance Date; (ii) in the case of Options or
Convertible Securities, shares for which the consideration per share as determined pursuant to (f) below is equal to or greater than the initial exercise, conversion or exchange price (appropriately adjusted to reflect stock splits or
combinations, stock dividends, reorganizations, consolidations and similar changes); (iii) shares of Common Stock issuable upon the exercise of Options or conversion or exchange of Convertible Securities existing as of the Effective Date;
(iv) shares of Common Stock (appropriately adjusted to reflect stock splits or combinations, stock dividends, reorganizations, consolidations and similar changes) issued pursuant to (A) any stock incentive plan existing as of the Effective
Date or (B) any amendment thereto or any additional stock incentive plan approved by the Board of Directors of the Company after the Effective Date; (v) shares issued pursuant to the adjustment provisions of this Section 5.01; and
(vi) the Shares issuable upon the exercise of the Warrants. The issuance of Excluded Shares shall not be an issuance of Additional Shares of Common Stock, and shall not give rise to an adjustment or a right to purchase the securities pursuant
to paragraph (f) below. 
  
 In any such case in which
Additional Shares of Common Stock are deemed to be issued, no adjustment or right to purchase securities under Section 5.01(f) below will accrue upon the subsequent issue of shares of Common Stock upon the exercise and/or conversion or exchange
of such Option or Convertible Security unless such Option or Convertible Security shall have been amended or modified prior to exercise or conversion or exchange so as to increase the number of Additional Shares of Common Stock deemed to have been
issued thereunder or decrease the exercise and/or conversion or exchange price payable thereunder to an amount less than Current Market Value as of the Issuance Date thereof. 
  
 (i) If the price per share at which Common Stock is issued after the Effective Date or Common Stock is
issuable upon the exercise of Options or upon the conversion or exchange of Convertible Securities issued after the Effective Date, in either case other than Excluded Shares (determined by dividing (i) the aggregate amount, if any, received or
receivable by the Company as consideration for the issuance, sale, distribution or granting of such Common Stock or Options or such Convertible Securities, plus the minimum aggregate amount of 

  

 16 

 
additional consideration, if any, payable to the Company upon the issuance of Common Stock or the exercise of all such Options or upon conversion or exchange
of all such Convertible Securities, plus, in the case of Options to acquire Convertible Securities, the minimum aggregate amount of additional consideration, if any, payable upon the conversion or exchange of all such Convertible Securities, by
(ii) the total maximum number of shares of Common Stock to be issued, sold, distributed or granted or issuable upon the exercise of all such Options or upon the conversion or exchange of all such Convertible Securities or upon the conversion or
exchange of all Convertible Securities issuable upon the exercise of all Options (as set forth in the instrument relating thereto without regard to any provision contained therein for a subsequent adjustment of such number)) shall be less than the
Current Market Value per share of Common Stock (determined pursuant to Section 5.01(c)) on the Issuance Date of such Common Stock, Options or Convertible Securities, then the Exercise Price shall be reduced to an amount equal to the product
obtained by multiplying (A) the Exercise Price in effect immediately prior to such issuance or sale times (B) a fraction, (I) the numerator of which shall be the sum of (x) the product of (1) the number of shares of Common
Stock outstanding immediately prior to such issuance or sale times (2) the Current Market Value per share as of the date of such issuance or sale plus (y) the consideration, if any, received or receivable by the Company upon such issuance,
sale, exercise, conversion or exchange calculated in accordance with the procedures set forth above pursuant to this paragraph (f), and (II) the denominator of which shall be the product of (x) the number of shares of Common Stock
outstanding (or that would be outstanding, in the case of Options and Convertible Securities issued after the Effective Date) immediately after such issuance, sale, exercise, conversion or exchange times (y) such Current Market Value per share.

  
 (f) Consideration Received. If any
shares of Common Stock, Options or Convertible Securities shall be issued, sold or distributed for a consideration other than cash, the amount of the consideration other than cash received by the Company in respect thereof shall be deemed to be the
then fair market value of such consideration (as determined in good faith by the Board of Directors of the Company). If any Options shall be issued in connection with the issuance and sale of other securities of the Company, together comprising one
integral transaction in which no specific consideration is allocated to such Options by the parties thereto, such Options shall be deemed to have been issued without consideration; provided, however, that if such Options have an exercise price equal
to or greater than the Current Market Value of the Common Stock on the date of issuance of such Options, then such Options shall be deemed to have been issued for consideration equal to such exercise price. For purposes of determining the price per
share of Additional Shares of Common Stock in the event that shares of Common Stock, Options and Convertible Securities are issued in a single transaction or series of related transactions, the price per share shall be determined on the basis of the
aggregate consideration received and shares issued or deemed to be issued in such transaction or series of related transactions. 
  
 (g) Changes in Options and Convertible Securities. If the exercise price provided for in any Options referred to in
Section 5.01(f) above, the additional consideration, if any, payable upon the conversion or exchange of any Convertible Securities referred to in Section 5.01(f) above, or the rate at which any Convertible Securities referred to in
Section 5.01(f) above are convertible into or exchangeable for Common Stock shall change at any time 

  

 17 

 
to a price which is less than the Current Market Value thereof as of the Issuance Date, then the adjustment provisions of Section 5.01(f) above would be
applicable. 
  
 (h) Statement of Warrants.
Irrespective of any adjustment in the number or kind of Shares issuable upon the exercise of the Warrants, Warrants theretofore or thereafter issued shall continue to express the same number and kind of Shares as are stated in the Warrants initially
issuable pursuant to this Agreement. 
  
 (i)
Expiration of Rights, Warrants or Options. Upon the expiration of any Options or Convertible Securities, to the extent the Warrants shall not have been exercised, the Exercise Price and the number of Shares issuable pursuant to the Warrants
shall be adjusted to such amount and to such number of Shares as would have been received by a Warrant holder had the adjustment in such Exercise Price and number of Shares made upon the distribution of such Options or Convertible Securities been
made upon the basis of the distribution of only such number of Options or Convertible Securities as were actually exercised or converted. 
  
 (j) No Nominal Adjustment. No adjustment in the number of Shares purchasable pursuant to the Warrants or in the Exercise Price
shall be required unless such adjustment would require an increase or decrease of at least 1.0% of the number of Shares then purchasable upon exercise of the Warrants or in the Exercise Price; provided, however, that any adjustments which by reason
of this subsection (k) are not required to be made immediately shall be carried forward and taken into account in any subsequent adjustment. All calculations under this Section 5.01 shall be made to the nearest cent or to the nearest
one-hundredth of a share, as the case may be. 
  
 (k) Conversion of Series A Preferred Stock. Upon the conversion of any shares of the Series A Preferred Stock outstanding as of the Effective Date into shares of the Company’s Common Stock in accordance with the terms of the
Series A Preferred Stock, the Exercise Price then in effect shall be reduced by an amount (rounded to the nearest cent) equal to the product obtained by multiplying (I) $0.94 (as appropriately adjusted to reflect stock splits or combinations,
stock dividends, reorganizations, consolidations and similar events) times (II) a fraction, (i) the numerator of which shall be the aggregate number of shares of the Series A Preferred Stock being converted and (ii) the denominator of
which shall be the number of shares of the Series A Preferred Stock outstanding as of the Effective Date; provided, that in no event shall the aggregate reductions in the Exercise Price pursuant to this Section 5.01(k) exceed $0.94 (as
appropriately adjusted to reflect stock splits or combinations, stock dividends, reorganizations, consolidations and similar events). 
  
 (l) Issuance of Kornerstone Common Stock. Upon the Company’s issuance of 1,600,000 shares of the Common Stock to Kornerstone
Investment Group, Ltd. (“Kornerstone”) in connection with the Company’s acquisition of Kornerstone’s carried working interest in the South Alibek Field, the Exercise Price then in effect shall be reduced by $0.07 (as
appropriately adjusted to reflect stock splits or combinations, stock dividends, reorganizations, consolidations and similar events); provided, that in the event the aggregate number of shares issued to Kornerstone in connection with such
acquisition is more or less than 1,600,000, the adjustment to the Exercise Price contemplated by this Section 5.01(l) shall be adjusted proportionately. 
  

 18 

 Section 5.02 Fractional Interest. The Company shall not be required to issue fractional shares of
Common Stock 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 shares of Common Stock which shall be issuable upon such exercise shall be computed on
the basis of the aggregate number of shares of Common Stock acquirable on exercise of the Warrants so presented. If any fraction of a share of Common Stock would, except for the provisions of this Section 5.02, be issuable on the exercise of
any Warrant (or specified portion thereof), the Company shall direct the transfer agent for the Common Stock to pay an amount in cash calculated to equal the then Current Market Value per share (determined pursuant to Section 5.01(c))
multiplied by such fraction computed to the nearest whole cent. Holders of Warrants, by their acceptances of the Warrant Certificates, expressly waive any and all rights to receive any fraction of a share of Common Stock or a stock certificate
representing a fraction of a share of Common Stock. 
  
 Section
5.03 When Adjustment Not Required. If the Company shall take a record of the holders of its Common Stock for the purpose of entitling them to receive a dividend or distribution or subscription or purchase rights and shall, thereafter and
before such distribution, legally abandon its plan to pay or deliver such dividend, distribution, subscription or purchase rights, then thereafter no adjustment shall be required by reason of the taking of such record and any such adjustment
previously made in respect thereof shall be rescinded and annulled. 
  
 Section 5.04 Challenge to Good Faith Determination. Whenever the Board of Directors of the Company shall be required to make a determination in good faith of the fair value of any item under this Article V, such determination may be
challenged in good faith by holders holding in the aggregate a majority of the then outstanding Warrants without regard to any Warrants then held by the Company or its affiliates (the “Majority Holders”), and any dispute shall be resolved
by an investment banking firm of national standing selected by the Company. The fee of such investment banking firm shall be paid by the Company, unless such fair market value as determined by the investment banking firm is more than 95% of the fair
market value determined by the Board of Directors of the Company, in which case the challenging holders shall be jointly and severally liable for such fee. 
  
 Section 5.05 Treasury Stock. The sale or other disposition of any issued shares of Common Stock owned or held by or for the account of the Company
shall be deemed an issuance thereof and a repurchase thereof and designation of such shares as treasury stock shall be deemed to be a redemption thereof for the purposes of this Agreement. 
  
 Section 5.06 Notices to Warrant Holders. In connection with any
adjustment pursuant to this Article V, the Company shall (i) promptly after such adjustment, cause to be filed with the Warrant Agent an Officer’s Certificate setting forth the number of Shares (or portion thereof) issuable upon exercise
of a Warrant after such adjustment and the Exercise Price after such adjustment, which certificate shall be conclusive evidence of the correctness of the matters set forth therein, and (ii) promptly after such adjustment cause to be given to
each of the registered holders of the Warrant Certificates at its address appearing on the Warrant Register written notice of such adjustments by first-class mail, postage prepaid. The Warrant Agent shall be entitled to conclusively rely on the
above-referenced Officer’s Certificate and shall be under no duty or responsibility with respect to any such certificate, except to exhibit the same from time to 

  

 19 

 
time to any holder desiring an inspection thereof during normal business hours upon reasonable notice. The Warrant Agent shall not at any time be under any
duty or responsibility to any holder to determine whether any facts exist that may require any adjustment of the number of Shares issuable on exercise of the Warrants or the Exercise Price, or with respect to the nature or extent of any such
adjustment when made, or with respect to the method employed in making such adjustment or the validity or value (or the kind or amount) of any Shares which may be issuable on exercise of the Warrants. The Warrant Agent shall not be responsible for
any failure of the Company to make any cash payment or to issue, transfer or deliver any shares of Common Stock or stock certificates or other securities or property upon the exercise of any Warrant. 
  
 The Company shall, in addition, promptly notify the holders of the Warrants
of any determination of its Board of Directors that any actions affecting its Common Stock will not require an adjustment to the number of Shares for which a Warrant is exercisable, and shall specify in such notice the reasons for such
determination. In the event that the Majority Holders shall challenge any of the calculations set forth in such notice within 20 days after the Company’s delivery thereof, the Company shall retain a firm of independent certified public
accountants or law firm of national standing selected by the Company to prepare and execute a certificate verifying that no adjustment is required. The Company shall promptly cause a signed copy of any certificate prepared pursuant to this
Section 5.06 to be delivered to each holder at his address appearing in the Warrant Register. The Company shall keep at its office or agency designated pursuant to Section 1.11 copies of all such certificates and cause the same to be
available for inspection at said office during normal business hours upon reasonable notice by any holder or any prospective purchaser of a Warrant designated by a holder thereof. 
  
 Section 5.07 Par Value of Shares of Common Stock. Before taking any action which would cause an adjustment
effectively reducing the portion of the Exercise Price allocable to each Share below the then par value per share of the Common Stock issuable upon exercise of the Warrants, the Company will take any corporate action which may, in the opinion of its
counsel, be necessary in order that the Company may validly and legally issue fully paid and nonassessable Shares upon exercise of the Warrants. 
  
 ARTICLE VI 
 CONCERNING THE WARRANT
AGENT 
  
 Section 6.01 Warrant Agent. The Company
hereby appoints The Bank of New York as warrant agent (the “Warrant Agent”) of the Company in respect of the Warrants and the Warrant Certificates upon the terms and subject to the conditions herein and in the Warrant Certificates; and The
Bank of New York hereby accepts such appointment. The Warrant Agent shall have the powers and authority specifically granted to and conferred upon it in the Warrant Certificates and in this Agreement and such further powers and authority to act on
behalf of the Company as the Company may hereafter grant to or confer upon it and it shall accept in writing. All of the terms and provisions with respect to such powers and authority contained in the Warrant Certificates are subject to and governed
by the terms and provisions of this Agreement. 
  
 Section 6.02
Conditions of Warrant Agent’s Obligations. The Warrant Agent accepts its obligations under this Agreement upon the terms and conditions hereof and in the Warrant 

  

 20 

 
Certificates, including the following, to all of which the Company agrees and to all of which the rights hereunder of the holders from time to time of the
Warrant Certificates shall be subject: 
  
 (a)
The Warrant Agent shall be entitled to compensation to be agreed upon with the Company in writing for all services rendered by it and the Company agrees promptly to pay such compensation and to reimburse the Warrant Agent for its reasonable
out-of-pocket expenses (including reasonable fees and expenses of counsel) incurred without gross negligence or willful misconduct on its part in connection with the services rendered by it hereunder. The Company also agrees to indemnify the Warrant
Agent, each successor Warrant Agent, and their respective directors, officers, affiliates, agents and employees for, and to hold it and its directors, officers, affiliates, agents and employees harmless against, any loss, liability or expense of any
nature whatsoever (including, without limitation, fees and expenses of counsel) incurred without gross negligence or willful misconduct on the part of the Warrant Agent or successor Warrant Agent, arising out of or in connection with its acting as
Warrant Agent hereunder and its exercise of its rights and performance of its obligations hereunder. The obligations of the Company under this Section 6.02(a) shall survive the exercise of the Warrants, the expiration of the Warrant
Certificates and the resignation and removal of the Warrant Agent. 
  
 (b) In acting under this Agreement and in connection with the Warrant Certificates, the Warrant Agent is acting solely as agent of the Company and does not assume any obligation or relationship of agency or trust for
or with any of the owners or holders of the Warrant Certificates. 
  
 (c) The Warrant Agent may consult with counsel and any advice or written opinion of such counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it
hereunder in good faith and in accordance with such advice or opinion. 
  
 (d) The Warrant Agent shall be fully protected and shall incur no liability for or in respect of any action taken or omitted to be taken or damage suffered by it in reliance upon any Warrant Certificate, notice,
direction, consent, certificate, affidavit, opinion of counsel, instruction, statement or other paper or document reasonably believed by it, in the absence of bad faith, to be genuine and to have been presented or signed by the proper parties.
Nothing herein shall require the Warrant Agent to perform any calculations with respect to the Warrants and it shall be entitled to rely on calculations delivered to it by the Company, members of its Board of Directors or its authorized officers.

  
 (e) The Warrant Agent, and its officers,
directors, affiliates and employees (collectively, the “Related Parties”), may become the owners of, or acquire any interest in, Warrant Certificates, Shares or other obligations of the Company with the same rights that it or they would
have it if were not the Warrant Agent hereunder and, to the extent permitted by applicable law, it or they may engage or be interested in any financial or other transaction with the Company and may act on, or as depositary, trustee or agent for, any
committee or body of holders of shares or other obligations of the Company as freely as if it were not the Warrant Agent hereunder. Nothing in this Agreement shall be deemed to prevent the Warrant Agent or the Related Parties from acting in any
other capacity for the Company. 
  

 21 

 (f) The Warrant Agent shall not be under any liability for interest on, and shall not be
required to invest, any monies at any time received by it pursuant to any of the provisions of this Agreement or of the Warrant Certificates. 
  
 (g) The Warrant Agent shall not be under any responsibility in respect of the validity of this Agreement (or any term or provision hereof)
or the execution and delivery hereof (except the due execution and delivery hereof by the Warrant Agent) or in respect of the validity or execution of any Warrant Certificate (except its authentication thereof). 
  
 (h) The recitals and other statements contained herein and
in the Warrant Certificates (except as to the Warrant Agent’s authentication thereon) shall be taken as the statements of the Company and the Warrant Agent assumes no responsibility for the correctness of same. The Warrant Agent does not make
any representation as to the validity or sufficiency of this Agreement or the Warrant Certificates, except for its due execution and delivery of this Agreement; provided, however, that the Warrant Agent shall not be relieved of its duty to
authenticate the Warrant Certificates as authorized by this Agreement. The Warrant Agent shall not be accountable for the use or application by the Company of the proceeds of the exercise of any Warrant. 
  
 (i) Before the Warrant Agent acts or refrains from acting
with respect to any matter contemplated by this Agreement, it may require: 
  
 (1) an Officer’s Certificate stating that, in the opinion of the signer, all conditions precedent, if any, provided for in this Agreement relating to the proposed action have been complied with; and 

 
 (2) if reasonably necessary in the sole judgment of the
Warrant Agent, an opinion of counsel for the Company stating that, in the opinion of such counsel, all such conditions precedent have been complied with. 
  
 Each Officer’s Certificate or, if requested, an opinion of counsel with respect to compliance with a condition or covenant provided for in this
Agreement shall include: 
  
 (1) a statement that
the person making such certificate or opinion has read such covenant or condition; 
  
 (2) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in
such certificate or opinion are based; 
  
 (3) a
statement that, in the opinion of such person, he or she has made such examination or investigation as is necessary to enable him or her to express an informed opinion as to whether or not such covenant or condition has been complied with; and

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

 22 

 (j) The Warrant Agent shall be obligated to perform such duties as are herein and in the
Warrant Certificates specifically set forth and no implied duties or obligations shall be read into this Agreement or the Warrant Certificates against the Warrant Agent. The Warrant Agent shall not be accountable or under any duty or responsibility
for the use by the Company of any of the Warrant Certificates authenticated by the Warrant Agent and delivered by it to the Company pursuant to this Agreement. The Warrant Agent shall have no duty or responsibility in case of any default by the
Company in the performance of its covenants or agreements contained in the Warrant Certificates or in the case of the receipt of any written demand from a holder of a Warrant Certificate with respect to such default, including, without limiting the
generality of the foregoing, any duty or responsibility to initiate or attempt to initiate any proceedings at law or otherwise or, except as provided in Section 7.02 hereof, to make any demand upon the Company. The Warrant Agent shall not be
obligated to perform any duty to the extent prohibited by law. 
  
 (k) Unless otherwise specifically provided herein, any order, certificate, notice, request, direction or other communication from the Company made or given under any provision of this Agreement shall be sufficient if
signed by its chief executive officer, its president, its treasurer, its controller, any vice president or its secretary or any assistant secretary. 
  
 (l) The Warrant Agent shall have no responsibility in respect of any adjustment pursuant to Article V hereof. 
  
 (m) The Company agrees that it will perform, execute,
acknowledge and deliver, or cause to be performed, executed, acknowledged and delivered, all such further and other acts, instruments and assurances as may reasonably be required by the Warrant Agent for the carrying out or performing by the Warrant
Agent of the provisions of this Agreement. 
  
 (n) The Warrant Agent is hereby authorized and directed to accept written instructions with respect to the performance of its duties hereunder from any one of the chief executive officer, the president, the treasurer, the controller, any
vice president or the secretary or an assistant secretary of the Company or any other officer or official of the Company reasonably believed to be authorized to give such instructions and to apply to such officers or officials for advice or
instructions in connection with its duties, and it shall not be liable for any action taken or suffered to be taken by it in good faith in accordance with instructions with respect to any matter arising in connection with the Warrant Agent’s
duties and obligations arising under this Agreement. Such application by the Warrant Agent for written instructions from the Company may, at the option of the Warrant Agent, set forth in writing any action proposed to be taken or omitted by the
Warrant Agent with respect to its duties or obligations under this Agreement and the date on or after which such action shall be taken and the Warrant Agent shall not be liable for any action taken or omitted in accordance with a proposal included
in any such application on or after the date specified therein (which date shall be not less than 10 Business Days after the Company receives such application unless the Company consents to a shorter period), provided that (i) such application
includes a statement to the effect that it is being made pursuant to this paragraph (n) and that unless objected to prior to such date specified in the application, the Warrant Agent will not be liable for any such action or omission to the
extent set forth in such application and (ii) prior to taking or omitting any such action, the Warrant Agent has not received written instructions objecting to such proposed action or omission. 
  

 23 

 (o) 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 other evidence in respect thereof be herein specifically prescribed)
may be deemed to be conclusively proved and established by a certificate signed by any one of the chief executive officer, the president, the treasurer, the controller, any vice president or the secretary or an assistant secretary of the Company or
any other officer or official of the Company reasonably believed to be authorized to give such instructions 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. 
  
 (p) The Warrant Agent shall not be required to risk or expend its own funds in the performance of its obligations and duties hereunder, or
take any action for which it is not fully indemnified to its sole satisfaction. 
  
 Section 6.03 Resignation and Appointment of Successor. 
  
 (a) The Company agrees, for the benefit of the holders from time to time of the Warrant Certificates, that there shall at all times be a
Warrant Agent hereunder. 
  
 (b) The Warrant
Agent may at any time resign as Warrant Agent by giving written notice to the Company of such intention on its part, specifying the date on which its desired resignation shall become effective, provided that such date shall be at least 30 days after
the date on which such notice is given unless the Company agrees to accept less notice. Upon receiving such notice of resignation, the Company shall promptly appoint a successor Warrant Agent, qualified as provided in Section 6.03(d) hereof, by
written instrument in duplicate signed on behalf of the Company, one copy of which shall be delivered to the resigning Warrant Agent and one copy to the successor Warrant Agent. As provided in Section 6.03(d) hereof, such resignation shall
become effective upon the earlier of (x) the acceptance of the appointment by the successor Warrant Agent or (y) 30 days after receipt by the Company of notice of such resignation. The Company may, at any time and for any reason, and
shall, upon any event set forth in the next succeeding sentence, remove the Warrant Agent and appoint a successor Warrant Agent by written instrument in duplicate, specifying such removal and the date on which it is intended to become effective,
signed on behalf of the Company, one copy of which shall be delivered to the Warrant Agent being removed and one copy to the successor Warrant Agent. The Warrant Agent shall be removed as aforesaid if it shall become incapable of acting, or shall be
adjudged as bankrupt or insolvent, or a receiver of the Warrant Agent or of its property shall be appointed, or any public officer shall take charge or control of it or of its property or affairs for the purpose of rehabilitation, conservation or
liquidation. Any removal of the Warrant Agent and any appointment of a successor Warrant Agent shall become effective upon acceptance of appointment by the successor Warrant Agent as provided in Section 6.03(d). As soon as practicable after
appointment of the successor Warrant Agent, the Company shall cause written notice of the change in the Warrant Agent to be given to each of the registered holders of the Warrants in the manner provided for in Section 7.04 hereof 
  
 (c) Upon resignation or removal of the Warrant Agent, if the
Company shall fail to appoint a successor Warrant Agent within a period of 30 days after receipt of such notice of resignation or removal, then the holder of any Warrant Certificate or the resigned or removed 

  

 24 

 
Warrant Agent may apply to a court of competent jurisdiction for the appointment of a successor to such Warrant Agent. Pending appointment of a successor to
the Warrant Agent, either by the Company or by such a court, the duties of the Warrant Agent shall be carried out by the Company. 
  
 (d) Any successor Warrant Agent, whether appointed by the Company or by a court, shall be a bank or trust company in good standing,
incorporated under the laws of the United States of America or any State thereof and having, at the time of its appointment, a combined capital surplus of at least $50 million. Such successor Warrant Agent shall execute and deliver to its
predecessor and to the Company an instrument accepting such appointment hereunder and all the provisions of this Agreement, and thereupon such successor Warrant Agent, without any further act, deed or conveyance, shall become vested with all the
rights, powers, duties and obligations of its predecessor hereunder, with like effect as if originally named as Warrant Agent hereunder, and such predecessor shall thereupon become obligated to (i) transfer and deliver, and such successor
Warrant Agent shall be entitled to receive, all securities, records or other property on deposit with or held by such predecessor as Warrant Agent hereunder and (ii) upon payment of the amounts then due it pursuant to Section 6.02(a)
hereof, pay over, and such successor Warrant Agent shall be entitled to receive, all monies deposited with or held by any predecessor Warrant Agent hereunder. 
  

(e) Any corporation or bank into which the Warrant Agent hereunder may be merged or converted, or any corporation or bank with which
the Warrant Agent may be consolidated, or any corporation or bank resulting from any merger, conversion or consolidation to which the Warrant Agent shall be a party, or any corporation or bank to which the Warrant Agent shall sell or otherwise
transfer all or substantially all of its corporate trust business, shall be the successor to the Warrant Agent under this Agreement (provided that such corporation or bank shall be qualified as aforesaid) without the execution or filing of any
document or any further act on the part of any of the parties hereto. 
  
 (f) No Warrant Agent under this Agreement shall be personally liable for any action or omission of any successor Warrant Agent or of the Company. 
  
 ARTICLE VII 
 MISCELLANEOUS 
  
 Section 7.01 Amendment.
This Agreement and the terms of the Warrants may be amended by the Company and the Warrant Agent, without the consent of the holder of any Warrant Certificate, for the purpose of curing any ambiguity, or of curing, correcting or supplementing any
defective or inconsistent provision contained herein or therein or, subject to the provisions of the second paragraph of this Section 7.01, in any other manner which the Company may deem necessary or desirable and which shall not adversely
affect in any material respect the interests of the holders of the Warrant Certificates. 
  
 The Company and the Warrant Agent may modify this Agreement and the terms of the Warrants with the consent of the Majority Holders for the purpose of adding any provision to or changing in any manner or eliminating
any of the provisions of this Agreement or modifying in any manner the rights of the holders of the outstanding Warrants; provided, however, that no such modification that increases or decreases the Exercise Price, decreases the number of Shares

  

 25 

 
to be received upon exercise of the Warrants, reduces the period of time during which the Warrants are exercisable hereunder, otherwise materially and
adversely affects the exercise rights of the holders of the Warrants, reduces the percentage required for amendment or modification of this Agreement, or effects any change to this Section 7.01 may be made with respect to an outstanding Warrant
without the consent of the holder of such Warrant. 
  
 Any
modification or amendment made in accordance with this Agreement will be conclusive and binding on all present and future holders of Warrant Certificates whether or not they have consented to such modification or amendment and whether or not
notation of such modification or amendment is made upon such Warrant Certificates. Any instrument given by or on behalf of any holder of a Warrant Certificate in connection with any consent to any modification or amendment will be conclusive and
binding on all subsequent holders of such Warrant Certificate. 
  
 Section 7.02 Notices and Demands to the Company and Warrant Agent. If the Warrant Agent shall receive any notice or demand addressed to the Company by the holder of a Warrant Certificate pursuant to the provisions hereof or of the
Warrant Certificates, the Warrant Agent shall promptly forward such notice or demand to the Company. 
  
 Section 7.03 Addresses for Notices to Parties and for Transmission of Documents. All notices hereunder to the parties hereto shall be in writing in
the English language and shall be deemed to have been given when sent by certified or registered mail, postage prepaid, or by telecopy, confirmed by first class mail, postage prepaid, addressed to any party hereto as follows: 
  

					
	To the Company:	  	Transmeridian Exploration Incorporated
	 	  	397 N. Sam Houston Parkway East, Suite 300
	 	  	Houston, Texas 77060
	 	  	Attn: Chief Financial Officer
		
	 	  	Fax: (281) 999-9094
		
	To the Warrant Agent:	  	The Bank of New York
	 	  	101 Barclay Street – 21 West
	 	  	New York, New York 10286
	 	  	Attention:	  	Corporate Trust Department
	 	  	 	  	Global Finance Americas
		
	 	  	Fax: (212) 815-5802 or (212) 815-5803

  
 or at any other address of which
either of the foregoing shall have notified the other in writing. 
  
 Section 7.04 Notices to Holders. Notices to holders of Warrants shall be mailed to such holders at the addresses of such holders as they appear in the Warrant Register. Any such notice shall be sufficiently given if sent by
first-class mail, postage prepaid. 
  
 Section 7.05 APPLICABLE
LAW. THE VALIDITY, INTERPRETATION AND PERFORMANCE OF THIS AGREEMENT AND EACH WARRANT CERTIFICATE ISSUED 

  

 26 

 
HEREUNDER AND OF THE RESPECTIVE TERMS AND PROVISIONS THEREOF SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CONFLICT OF
LAWS PROVISIONS THEREOF. 
  
 Section 7.06 Obtaining of
Governmental Approvals. The Company will from time to time take all action required to be taken by it which may be necessary to obtain and keep effective any and all permits, consents and approvals of governmental agencies and authorities and
securities acts filings under United States Federal and State laws, and the rules and regulations of all stock exchanges on which the Warrants or Shares are listed which may be or become requisite in connection with the issuance, sale, transfer, and
delivery of the Warrant Certificates, the exercise of the Warrants or the issuance, sale, transfer and delivery of the Shares issued upon exercise of the Warrants. 
  
 Section 7.07 Persons Having Rights Under Agreement. Nothing in this Agreement expressed or implied and nothing that
may be inferred from any of the provisions hereof is intended, or shall be construed, to confer upon, or give to, any person or corporation other than the Company, the Warrant Agent and the holders of the Warrant Certificates any right, remedy or
claim under or by reason of this Agreement or of any covenant, condition, stipulation, promise or agreement hereof; and all covenants, conditions, stipulations, promises and agreements in this Agreement contained shall be for the sole and exclusive
benefit of the Company and the Warrant Agent and their successors and of the holders of the Warrant Certificates. 
  
 Section 7.08 Headings. The descriptive headings of the Articles and Sections of this Agreement are inserted for convenience only and shall not
control or affect the meaning or construction of any of the provisions hereof. 
  
 Section 7.09 Counterparts. This Agreement may be executed in counterparts, each of which so executed shall be deemed to be an original; but such counterparts shall together constitute but one and the same
instrument. 
  
 Section 7.10 Inspection of Agreement. A
copy of this Agreement shall be available at all reasonable times at the principal corporate trust office of the Warrant Agent, for inspection by the holder of any Warrant Certificate. The Warrant Agent may require such holder to submit his Warrant
Certificate for inspection by it. 
  
 Section 7.11
Successors. All the covenants and provisions of this Agreement by or for the benefit of the Company or the Warrant Agent shall bind and inure to the benefit of their respective successors and assigns hereunder. 
  
 [Signature Page Follows] 
  

 27 

 IN WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto as of the day and year
first above written. 
  

			
	TRANSMERIDIAN EXPLORATION INCORPORATED
		
	By:	 	/s/    BRUCE A.
FALKENSTEIN        
	 Name:
	 	Bruce A. Falkenstein
	 Title:
	 	Vice President Exploration and Geology
	
	THE BANK OF NEW YORK,
as Warrant Agent
		
	By:	 	/s/    LUIS PEREZ        
	 Name:
	 	Luis Perez
	 Title:
	 	Assistant Vice President

  

 S-1 

 EXHIBIT A 
  
 [FORM OF WARRANT CERTIFICATE] 
  
 [FACE] 
  
 [Unless and until it is exchanged in whole or in part for Warrants in certificated form, this Warrant may not be transferred except in 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 or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary. Unless
this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the issuer or its agent for registration of transfer, exchange or payment, and any certificate issued is
registered in the name of Cede & Co. or such other name as 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.1] 
  
 [THIS WARRANT (OR ITS PREDECESSOR) HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. ACCORDINGLY, THIS WARRANT MAY NOT BE
OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS, EXCEPT AS SET FORTH IN THE NEXT SENTENCE. BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE HOLDER AGREES
THAT IT WILL NOT RESELL OR OTHERWISE TRANSFER THIS WARRANT EXCEPT (A) TO THE ISSUER OR ANY OF ITS SUBSIDIARIES, (B) IN AN OFFSHORE TRANSACTION MEETING THE REQUIREMENTS OF REGULATION S UNDER THE SECURITIES ACT, (C) IN A TRANSACTION
MEETING THE REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT, (D) IN ACCORDANCE WITH AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL ACCEPTABLE TO THE ISSUER), OR (E) PURSUANT TO
AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, AND, IN EACH CASE, IN ACCORDANCE WITH APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION, AND AGREES THAT IT WILL DELIVER TO EACH PERSON TO
WHOM THIS WARRANT OR AN INTEREST HEREIN IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.] 

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

  

 A-1 

 [CUSIP#[ ]]2 
  

			
	No. [ ]	  	[ ] Warrants

  
 WARRANT CERTIFICATE

  
 TRANSMERIDIAN EXPLORATION INCORPORATED 
  
 This Warrant Certificate certifies that
[            ], or registered assigns, is the registered holder of [ ] Warrants (the “Warrants”) to purchase shares of Common Stock, par value $.0006 per share (the “Common
Stock”), of Transmeridian Exploration Corporation, a Delaware corporation (the “Company”). Each Warrant entitles the holder to purchase from the Company at any time on or after (subject to the accelerated exercisability exceptions set
forth in Sections 3.02 and 3.03 of the Warrant Agreement) the earlier of (i) December __, 2006, or (ii) the date on which a registration statement registering the issuance of the Common Stock issuable upon the exercise hereof and the
resale of the Warrants and the Common Stock issuable upon the exercise hereof (the “Exercisability Date”), until 5:00 p.m., New York City, New York time, on December 15, 2010 (the “Expiration Date”), one validly issued,
fully paid and non-assessable share of Common Stock (a “Share”, or, if adjusted, the “Shares”, which may also include any other securities or property purchasable upon exercise of a Warrant, such adjustment and inclusion each as
provided in the Warrant Agreement) at the exercise price (the “Exercise Price”) of $4.31 per Share upon surrender of this Warrant Certificate and payment of the Exercise Price at any office or agency maintained for that purpose by the
Company (the “Warrant Agent Office”), subject to the conditions set forth herein and in the Warrant Agreement. 
  
 The Exercise Price shall be payable by cash, certified check or official bank check or by such other means as is acceptable to the Company in the lawful
currency of the United States of America which as of the time of payment is legal tender for payment of public or private debts. The Company has initially designated its agent’s office in New York City, New York, as the initial Warrant Agent
Office. The Exercise Price and the number of Shares issuable upon exercise of the Warrants (“Exercise Rate”) is subject to adjustment upon the occurrence of certain events set forth in the Warrant Agreement. 
  
 Any Warrants not exercised on or prior to 5:00 p.m., New York City, New York
time, on December 15, 2010 shall thereafter be void. 
  
 Reference is hereby made to the further provisions on the reverse hereof which provisions shall for all purposes have the same effect as though fully set forth at this place. Capitalized terms used in this Warrant Certificate but not
defined herein shall have the meanings ascribed thereto in the Warrant Agreement. 
  
 This Warrant Certificate shall not be valid unless authenticated by the Warrant Agent, as such term is used in the Warrant Agreement. 

	2	Include if Warrant is in global form 

  

 A-2 

 THIS WARRANT CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT
GIVING EFFECT TO THE CONFLICT OF LAWS PROVISIONS THEREOF. 
  
 This
Warrant Certificate has been duly executed on behalf of the Company by its duly authorized officer. 
  

									
	 Dated:
                            
	 	 	 	 TRANSMERIDIAN EXPLORATION INCORPORATED

				
	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 Title:
	 	 

  
 Certificate of Authentication:

  
 This is one of the Warrants referred to in the within mentioned Warrant
Agreement: 
  

			
		
	 	 	 
	 	 	as Warrant Agent
		
	By:	 	 
	 	 	Authorized Signatory

  

 A-3 

 [FORM OF WARRANT CERTIFICATE] 
  
 [REVERSE] 
  
 TRANSMERIDIAN EXPLORATION INCORPORATED 
  
 The Warrants evidenced by this Warrant Certificate are part of a duly authorized issue of Warrants, each of which represents the right to purchase at any
time on or after the Exercisability Date (subject to the accelerated exercisability exceptions set forth in Sections 3.02 and 3.03 of the Warrant Agreement), until 5:00 p.m., New York City, New York time, on December 15, 2010, ____ shares of
Common Stock of the Company, subject to adjustment as set forth in the Warrant Agreement. The Warrants are issued pursuant to a Warrant Agreement, dated as of December __, 2005 (the “Warrant Agreement”), by and between the Company and The
Bank of New York, 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. Warrants may be exercised by
(1) surrendering at any Warrant Agent Office this Warrant Certificate with the form of Election to Exercise set forth hereon duly completed and executed and (ii) paying in full the Exercise Price for each such Warrant exercised and any
other amounts required to be paid pursuant to the Warrant Agreement. 
  
 If all of the items referred to in the last sentence of the preceding paragraph are received by the Warrant Agent at or prior to 2:00 p.m., New York City, New York time, on a Business Day, the exercise of the Warrant to which such items
relate will be effective on such Business Day. If any items referred to in the last sentence of the preceding paragraph are received after 2:00 p.m., New York City, New York time, on a Business Day, the exercise of the Warrants to which such item
relates will be deemed to be effective on the next succeeding Business Day. Notwithstanding the foregoing, in the case of an exercise of Warrants on the Expiration Date, if all of the items referred to in the last sentence of the preceding paragraph
are received by the Warrant Agent at or prior to 5:00 p.m., New York City, New York time, on such Expiration Date, the exercise of the Warrants to which such items relate will be effective on the Expiration Date. If any of the items referred to in
the last sentence of the preceding paragraph are received by the Warrant Agent after 5:00 p.m., New York City, New York time, on such Expiration Date, the exercise of the Warrants to which such items relate will not be effective and shall be void,
the Warrant shall become void, and all rights of the holder under this Warrant Certificate and under the Warrant Agreement shall cease 
  
 Subject to the terms of the Warrant Agreement, as soon as practicable after the exercise of any Warrant or Warrants, the Company shall issue or cause to
be issued to or upon the written order of the registered holder of this Warrant Certificate pursuant to the Election to Exercise, as set forth on the reverse of this Warrant Certificate, a certificate or certificates evidencing the Share or Shares.
Such certificate or certificates evidencing the Share or Shares shall be deemed to have been issued and any persons who are designated to be named therein shall be deemed to 

  

 A-4 

 
have become the holder of record of such Share or Shares as of the close of business on the date upon which the exercise of this Warrant was deemed to be
effective as provided in the preceding paragraph. 
  
 The Company
will not be required to issue fractional shares of Common Stock upon exercise of the Warrants or distribute Share certificates that evidence fractional shares of Common Stock. In lieu of fractional shares of Common Stock, there shall be paid to the
registered holder of this Warrant Certificate, at the time such Warrant Certificate is exercised, an amount in cash equal to the same fraction of the Current Market Value per share as determined in accordance with the Warrant Agreement. 

 
 Warrant Certificates, when surrendered at any office or agency maintained
by the Company for that purpose by the registered holder thereof in person or by legal representative or attorney duly authorized in writing, may be exchanged for a new Warrant Certificate or new Warrant Certificates evidencing in the aggregate a
like number of Warrants, in the manner and subject to the limitations provided in the Warrant Agreement, without charge except for any tax or other governmental charge imposed in connection therewith. 
  
 Upon due presentment for registration of transfer of this Warrant Certificate
at any office or agency maintained by the Company for that purpose, a new Warrant Certificate evidencing in the aggregate a like number of Warrants shall be issued to the transferee 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 hereof as the absolute owner of this Warrant Certificate (notwithstanding any
notation of ownership or other writing hereon made by anyone) for the purpose of any exercise hereof and for all other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary. 
  
 The term “Business Day” shall mean any day on which (i) banks
in New York City, New York are open for business, (ii) the principal national securities exchange or market on which the Common Stock is listed or admitted to trading is open for business and (iii) the principal national securities
exchange or market, if any, on which the Warrants are listed or admitted to trading is open for business. 
  

 A-5 

 FORM OF ELECTION TO EXERCISE 
  
 (To be executed upon exercise of Warrants on the Exercise Date) 
  
 The undersigned hereby irrevocably elects to exercise _______ of the Warrants represented by this Warrant Certificate and
purchase the whole number of Shares issuable upon the exercise of such Warrants and herewith tenders payment for such Shares in the amount of $__________ in cash or by certified or official bank check, in accordance with the terms hereof The
undersigned requests that a certificate representing such Shares be registered in the name of _______________________________ whose address is _____________________ and that such certificate be delivered to _______________________________, whose
address is _________________________________. Any cash payments to be paid in lieu of a fractional Share should be made to ____________________________, whose address is _______________________, and the check representing payment thereof should be
delivered to _______________________, whose address is ____________________. 
  
 Dated: ___________________ 
  

			
	 Name of holder of Warrant Certificate:
	    	 ________________________________

	 	    	 (Please Print)

		
	 Tax Identification or Social Security Number:
	    	 ________________________________

		
	 Address:
	    	 ________________________________

		
	 	    	 ________________________________

		
	 Signature:
	    	 ________________________________

  
 Note: The above signature must
correspond with the name as written upon the face of this Warrant Certificate in every particular, without alteration or enlargement or any change whatever. 
  
 Dated: ___________________ 
  
 SIGNATURE GUARANTEE 
  
 Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Warrant Agent, which requirements include membership or participation in the Security Transfer Agent Medallion Program
(“STAMP”) or such other “signature guarantee program” as may be determined by the Warrant Agent in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. 
  

 A-6 

 FORM OF ASSIGNMENT 
  
 For value received, ___________________________ hereby sells, assigns and transfers unto ____________________________ the within Warrant
Certificate, together with all right, title and interest therein, and does hereby irrevocably constitute and appoint attorney, to transfer said Warrant Certificate on the books of the within-named Company, with full power of substitution in the
premises. 
  
 Dated: ______________________ 
  
 Signature: ______________________ 
  
 Note: The above signature must correspond with the name as written upon the face of this
Warrant Certificate in every particular, without alteration or enlargement or any change whatever. 
  
 SIGNATURE GUARANTEE 
  
 Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Warrant Agent, which requirements include membership or participation in the Security Transfer Agent Medallion Program
(“STAMP”) or such other “signature guarantee program” as may be determined by the Warrant Agent in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. 
  

 A-7 

 SCHEDULE OF EXCHANGES OF CERTIFICATED WARRANTS3 
  
 The following exchanges of a part of this Global Warrant for certificated Warrants have been made: 
  

									
	 Date of Exchange

	  	Amount of decrease in
Number of Warrants of
this Global Warrant

	  	Amount of increase
in Number of
Warrants of this
Global Warrant

	  	Number of Warrants
of this Global
Warrant following
such decrease
(or increase)

	  	Signature of
authorized officer of
Warrant Agent

  

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

  

 A-8 

 EXHIBIT B 
  
 CERTIFICATE TO BE DELIVERED UPON EXCHANGE 
 OR
REGISTRATION OF TRANSFER OF WARRANTS 
  

	Re:	Warrants to Purchase Common Stock (the “Warrants”) of Transmeridian Exploration Incorporated. 

  
 This Certificate relates to _________ Warrants held in* 
  

	 	 ̈	book-entry or 

  

	 	 ̈	certificated form 

  
 by _____________________________ (the “Transferor”). 
  

The Transferor: * 
  

	 	 ̈	has requested the Warrant Agent by written order to deliver in exchange for its beneficial interest in the Global Warrant held by the Depositary a Warrant or Warrants in definitive,
registered form of authorized denominations and an aggregate number equal to its beneficial interest in such Global Warrant (or the portion thereof indicated above); or 

  

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

  
 In connection with such request and in respect of each such Warrant, the
Transferor does hereby certify that the Transferor is familiar with the Warrant Agreement relating to the above captioned Warrants and the restrictions on transfers thereof as provided in such Warrant Agreement, and that the transfer of this Warrant
does not require registration under the Securities Act of 1933, as amended (the “Act”) because:* 
  

	 	 ̈	Such Warrant is being acquired for the Transferor’s own account, without transfer (in satisfaction of Section 1.08 of the Warrant Agreement). 

  

	 	 ̈	Such Warrant is being transferred in accordance with Regulation S under the Act. 

  

	 	 ̈	Such Warrant is being transferred in accordance with Rule 144 under the Act. 

  

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

  

									
	 	 	 	 	 [INSERT NAME OF TRANSFEROR]

				
	Date:	 	 	 	By:	 	 

  

	*	Check applicable box. 

  

 B-1 

 SIGNATURE GUARANTEE 
  
 Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Warrant Agent, which
requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Warrant Agent in addition to, or in substitution
for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. 
  

 B-2

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