Document:

<PAGE>
'                                                                    EXHIBIT 4.2

                           BELDEN & BLAKE CORPORATION

                     AND EACH OF THE GUARANTORS PARTY HERETO

                       8.75% SENIOR SECURED NOTES DUE 2012

                                    INDENTURE

                            Dated as of July 7, 2004

                            BNY MIDWEST TRUST COMPANY

                                   as Trustee
<PAGE>

                             CROSS-REFERENCE TABLE*

<TABLE>
<CAPTION>
Trust Indenture
Act Section                                                                      Indenture Section
<S>                                                                              <C>
310(a)(1)...................................................................             7.10
   (a)(2)...................................................................             7.10
   (a)(3)...................................................................             N.A.
   (a)(4)...................................................................             N.A.
   (a)(5)...................................................................             7.10
   (b)......................................................................             7.10
   (c)......................................................................             N.A.
311(a)......................................................................             7.11
   (b)......................................................................             7.11
   (c)......................................................................             N.A.
312(a)......................................................................             2.05
   (b)......................................................................            12.03
   (c)......................................................................            12.03
313(a)......................................................................             7.06
   (b)(1)...................................................................             N.A.
   (b)(2)...................................................................          7.06; 7.07
   (c)......................................................................         7.06; 12.02
   (d)......................................................................             7.06
314(a)......................................................................      4.03;12.02; 12.05
   (b)......................................................................             N.A.
   (c)(1)...................................................................            12.04
   (c)(2)...................................................................            12.04
   (c)(3)...................................................................             N.A.
   (d)......................................................................             N.A.
   (e)......................................................................            12.05
   (f)......................................................................             N.A.
315(a)......................................................................             7.01
   (b)......................................................................         7.05; 12.02
   (c)......................................................................             7.01
   (d)......................................................................             7.01
   (e)......................................................................             6.11
316(a) (last sentence)......................................................             2.09
   (a)(1)(A)................................................................             6.05
   (a)(1)(B)................................................................             6.04
   (a)(2)...................................................................             N.A.
   (b)......................................................................             6.07
   (c)......................................................................             2.12
317(a)(1)...................................................................             6.08
   (a)(2)...................................................................             6.09
   (b)......................................................................             2.04
318(a)......................................................................            12.01
   (b)......................................................................             N.A.
   (c)......................................................................            12.01
</TABLE>

N.A. means not applicable.
* This Cross Reference Table is not part of the Indenture.

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                              Page
<S>                                                                                                           <C>
                                                         ARTICLE 1
                                               DEFINITIONS AND INCORPORATION
                                                        BY REFERENCE

Section 1.01       Definitions...........................................................................       1
Section 1.02       Other Definitions.....................................................................      33
Section 1.03       Incorporation by Reference of Trust Indenture Act.....................................      33
Section 1.04       Rules of Construction.................................................................      33

                                                         ARTICLE 2
                                                         THE NOTES

Section 2.01       Form and Dating.......................................................................      34
Section 2.02       Execution and Authentication..........................................................      34
Section 2.03       Registrar and Paying Agent............................................................      35
Section 2.04       Paying Agent to Hold Money in Trust...................................................      35
Section 2.05       Holder Lists..........................................................................      36
Section 2.06       Transfer and Exchange.................................................................      36
Section 2.07       Replacement Notes.....................................................................      47
Section 2.08       Outstanding Notes.....................................................................      47
Section 2.09       Treasury Notes........................................................................      47
Section 2.10       Temporary Notes.......................................................................      47
Section 2.11       Cancellation..........................................................................      48
Section 2.12       Defaulted Interest....................................................................      48

                                                         ARTICLE 3
                                                 REDEMPTION AND PREPAYMENT

Section 3.01       Notices to Trustee....................................................................      48
Section 3.02       Selection of Notes to Be Redeemed or Purchased........................................      48
Section 3.03       Notice of Redemption..................................................................      49
Section 3.04       Effect of Notice of Redemption........................................................      49
Section 3.05       Deposit of Redemption or Purchase Price...............................................      50
Section 3.06       Notes Redeemed or Purchased in Part...................................................      50
Section 3.07       Optional Redemption...................................................................      50
Section 3.08       Mandatory Redemption..................................................................      51
Section 3.09       Offer to Purchase by Application of Excess Proceeds...................................      51

                                                         ARTICLE 4
                                                         COVENANTS

Section 4.01       Payment of Notes......................................................................      53
Section 4.02       Maintenance of Office or Agency.......................................................      53
Section 4.03       Reports...............................................................................      53
Section 4.04       Compliance Certificate................................................................      54
Section 4.05       Taxes.................................................................................      55
Section 4.06       Stay, Extension and Usury Laws........................................................      55
Section 4.07       Restricted Payments...................................................................      55
Section 4.08       Dividend and Other Payment Restrictions Affecting Subsidiaries........................      58
Section 4.09       Incurrence of Indebtedness and Issuance of Preferred Stock............................      59
Section 4.10       Asset Sales...........................................................................      63
</TABLE>

                                       i

<PAGE>

<TABLE>
<S>                                                                                                            <C>
Section 4.11       Transactions with Affiliates..........................................................      64
Section 4.12       Liens.................................................................................      65
Section 4.13       Business Activities...................................................................      66
Section 4.14       Corporate Existence...................................................................      66
Section 4.15       Offer to Repurchase Upon Change of Control............................................      66
Section 4.16       Payments for Consent..................................................................      68
Section 4.17       Additional Note Guarantees............................................................      68
Section 4.18       Designation of Restricted and Unrestricted Subsidiaries...............................      68
Section 4.19       Termination of Hedge Agreement........................................................      69
Section 4.20       Changes in Covenants When Notes Rated Investment Grade................................      69

                                                         ARTICLE 5
                                                         SUCCESSORS

Section 5.01       Merger, Consolidation, or Sale of Assets..............................................      69
Section 5.02       Successor Corporation Substituted.....................................................      70

                                                         ARTICLE 6
                                                   DEFAULTS AND REMEDIES

Section 6.01       Events of Default.....................................................................      70
Section 6.02       Acceleration..........................................................................      72
Section 6.03       Other Remedies........................................................................      73
Section 6.04       Waiver of Past Defaults...............................................................      73
Section 6.05       Control by Majority...................................................................      73
Section 6.06       Limitation on Suits...................................................................      73
Section 6.07       Rights of Holders of Notes to Receive Payment.........................................      74
Section 6.08       Collection Suit by Trustee............................................................      74
Section 6.09       Trustee May File Proofs of Claim......................................................      74
Section 6.10       Priorities............................................................................      75
Section 6.11       Undertaking for Costs.................................................................      75

                                                         ARTICLE 7
                                                          TRUSTEE

Section 7.01       Duties of Trustee.....................................................................      75
Section 7.02       Rights of Trustee.....................................................................      76
Section 7.03       Individual Rights of Trustee..........................................................      77
Section 7.04       Trustee's Disclaimer..................................................................      77
Section 7.05       Notice of Defaults....................................................................      77
Section 7.06       Reports by Trustee to Holders of the Notes............................................      78
Section 7.07       Compensation and Indemnity............................................................      78
Section 7.08       Replacement of Trustee................................................................      79
Section 7.09       Successor Trustee by Merger, etc......................................................      80
Section 7.10       Eligibility; Disqualification.........................................................      80
Section 7.11       Preferential Collection of Claims Against Company.....................................      80

                                                         ARTICLE 8
                                          LEGAL DEFEASANCE AND COVENANT DEFEASANCE

Section 8.01       Option to Effect Legal Defeasance or Covenant Defeasance..............................      80
Section 8.02       Legal Defeasance and Discharge........................................................      80
Section 8.03       Covenant Defeasance...................................................................      81
Section 8.04       Conditions to Legal or Covenant Defeasance............................................      81
</TABLE>

                                       ii

<PAGE>

<TABLE>
<S>                                                                                                            <C>
Section 8.05       Deposited Money and Government Securities to be Held in Trust; Other Miscellaneous
Provisions...............................................................................................      82
Section 8.06       Repayment to Company..................................................................      83
Section 8.07       Reinstatement.........................................................................      83

                                                         ARTICLE 9
                                              AMENDMENT, SUPPLEMENT AND WAIVER

Section 9.01       Without Consent of Holders of Notes...................................................      83
Section 9.02       With Consent of Holders of Notes......................................................      84
Section 9.03       Compliance with Trust Indenture Act...................................................      86
Section 9.04       Revocation and Effect of Consents.....................................................      86
Section 9.05       Notation on or Exchange of Notes......................................................      86
Section 9.06       Trustee to Sign Amendments, etc.......................................................      86

                                                         ARTICLE 10
                                                  COLLATERAL AND SECURITY

Section 10.01      Equal and Ratable Sharing of Collateral by Holders of Parity Lien Debt................      87
Section 10.02      Ranking of Parity Liens...............................................................      87
Section 10.03      Release of Liens in Respect of Notes..................................................      88
Section 10.04      Relative Rights.......................................................................      88
Section 10.05      Compliance with Trust Indenture Act...................................................      88
Section 10.06      Further Assurances; Insurance.........................................................      89

                                                         ARTICLE 11
                                                      NOTE GUARANTEES

Section 11.01      Guarantee.............................................................................      90
Section 11.02      Limitation on Guarantor Liability.....................................................      91
Section 11.03      Execution and Delivery of Note Guarantee..............................................      91
Section 11.04      Guarantors May Consolidate, etc., on Certain Terms....................................      91
Section 11.05      Releases..............................................................................      92

                                                         ARTICLE 12
                                                 SATISFACTION AND DISCHARGE

Section 12.01      Satisfaction and Discharge............................................................      93
Section 12.02      Application of Trust Money............................................................      94

                                                         ARTICLE 13
                                                       MISCELLANEOUS

Section 13.01      Trust Indenture Act Controls..........................................................      94
Section 13.02      Notices...............................................................................      94
Section 13.03      Communication by Holders of Notes with Other Holders of Notes.........................      96
Section 13.04      Certificate and Opinion as to Conditions Precedent....................................      96
Section 13.05      Statements Required in Certificate or Opinion.........................................      96
Section 13.06      Rules by Trustee and Agents...........................................................      96
Section 13.07      No Personal Liability of Directors, Officers, Employees and Stockholders..............      96
Section 13.08      Governing Law.........................................................................      97
Section 13.09      No Adverse Interpretation of Other Agreements.........................................      97
Section 13.10      Successors............................................................................      97
Section 13.11      Severability..........................................................................      97
Section 13.12      Counterpart Originals.................................................................      97
Section 13.13      Table of Contents, Headings, etc......................................................      97
</TABLE>

                                      iii

<PAGE>

                             EXHIBITS AND SCHEDULES

Exhibit A         FORM OF NOTE
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

Schedule 1        GUARANTORS

                                       iv

<PAGE>

      INDENTURE dated as of July 7, 2004 among Belden & Blake Corporation, an
Ohio corporation, the Guarantors (as defined) and BNY Midwest Trust Company, as
trustee.

      The Company, the Guarantors and the Trustee agree as follows for the
benefit of each other and for the equal and ratable benefit of the Holders (as
defined) of the 8.75% Senior Secured Notes due 2012 (the "Notes"):

                                   ARTICLE 1
                          DEFINITIONS AND INCORPORATION
                                  BY REFERENCE

Section 1.01 Definitions.

      "144A Global Note" means a Global Note substantially in the form of
Exhibit A hereto bearing the Global Note 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 Notes sold in reliance on Rule 144A.

      "ACNTA" means (without duplication), as of the date of determination:

            (1) the sum of:

                  (A) discounted future net revenue from proved crude oil and
            natural gas reserves of the Company and its Restricted Subsidiaries
            calculated in accordance with SEC guidelines before any state or
            federal income taxes, as estimated in a reserve report prepared as
            of the end of the Company's most recently completed fiscal year,
            which reserve report is prepared or reviewed by independent
            petroleum engineers, as increased by, as of the date of
            determination, the discounted future net revenue of

                        (i) estimated proved crude oil and natural gas reserves
                  of the Company and its Restricted Subsidiaries attributable to
                  acquisitions consummated since the date of such year-end
                  reserve report, and

                        (ii) estimated crude oil and natural gas reserves of the
                  Company and its Restricted Subsidiaries attributable to
                  extensions, discoveries and other additions and upward
                  determinations of estimates of proved crude oil and natural
                  gas reserves (including previously estimated development costs
                  incurred during the period and the accretion of discount since
                  the prior year end) due to exploration, development or
                  exploitation, production or other activities which reserves
                  were not reflected in such year-end reserve report,

                  in each case calculated in accordance with SEC guidelines
                  (utilizing the prices utilized in such year-end reserve
                  report), and decreased by, as of the date of determination,
                  the discounted future net revenue attributable to

                        (iii) estimated proved crude oil and natural gas
                  reserves of the Company and its Restricted Subsidiaries
                  reflected in such year-end reserve report produced or disposed
                  of since the date of such year-end reserve report and

                        (iv) reductions in the estimated oil and gas reserves of
                  the Company and its Restricted Subsidiaries reflected in such
                  year-end reserve report since the

                                       1
<PAGE>

                  date of such year-end reserve report attributable to downward
                  determinations of estimates of proved crude oil and natural
                  gas reserves due to exploration, development or exploitation,
                  production or other activities conducted or otherwise
                  occurring since the date of such year-end reserve report,

                  in each case, calculated in accordance with SEC guidelines
                  (utilizing the prices utilized in such year-end reserve
                  report); provided, however, that, in the case of each of the
                  determinations made pursuant to clauses (1)(A)(i) through (iv)
                  of this definition, such increases and decreases shall be as
                  estimated by the Company's engineers, except that if as a
                  result of such acquisitions, dispositions, discoveries,
                  extensions or revisions, there is a Material Change which is
                  an increase, then such increases and decreases in the
                  discounted future net revenue shall be confirmed in writing by
                  an independent petroleum engineer;

                  (B) the capitalized costs that are attributable to crude oil
            and natural gas properties of the Company and its Restricted
            Subsidiaries to which no proved crude oil and natural gas reserves
            are attributed, based on the Company's books and records as of a
            date no earlier than the date of the Company's latest annual or
            quarterly financial statements;

                  (C) the Net Working Capital on a date no earlier than the date
            of the Company's latest annual or quarterly financial statements;
            and

                  (D) the greater of (i) the net book value on a date no earlier
            than the date of the Company's latest annual or quarterly financial
            statements; and (ii) the appraised value, as estimated by
            independent appraisers, of other tangible assets of the Company and
            its Restricted Subsidiaries as of a date no earlier than the date of
            the Company's latest audited financial statements (provided that the
            Company shall not be required to obtain such an appraisal of such
            assets if no such appraisal has been performed); minus

            (2) to the extent not otherwise taken into account in the
      immediately preceding clause (1), the sum of:

                  (A) minority interests;

                  (B) any net gas balancing liabilities of the Company and its
            Restricted Subsidiaries reflected in the Company's latest audited
            financial statements;

                  (C) the discounted future net revenue, calculated in
            accordance with SEC guidelines (utilizing the same prices utilized
            in the Company's year-end reserve report), attributable to reserves
            subject to participation interests, overriding royalty interests or
            other interests of third parties, pursuant to participation,
            partnership, vendor financing or other agreements then in effect, or
            which otherwise are required to be delivered to third parties;

                  (D) the discounted future net revenue, calculated in
            accordance with SEC guidelines (utilizing the same prices utilized
            in the Company's year-end reserve report), attributable to reserves
            that are required to be delivered to third parties to fully satisfy
            the obligations of the Company and its Restricted Subsidiaries with
            respect to volumetric Production Payments on the schedules specified
            with respect thereto; and

                                       2
<PAGE>

                  (E) the discounted future net revenue, calculated in
            accordance with SEC guidelines, attributable to reserves subject to
            dollar-denominated Production Payments that, based on the estimates
            of production included in determining the discounted future net
            revenue specified in paragraph (1)(A)(i) of this definition
            (utilizing the same prices utilized in the Company's year-end
            reserve report), would be necessary to satisfy fully the obligations
            of the Company and its Restricted Subsidiaries with respect to
            dollar-denominated Production Payments on the schedules specified
            with respect thereto.

      "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 Restricted Subsidiary of, such specified Person; and

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

      "Act of Required Creditors" means, as to any matter at any time:

            (1) prior to the Discharge of Priority Lien Obligations, a direction
      in writing delivered to the Collateral Trustee by or with the written
      consent of the Required Priority Creditors; and

            (2) after the Discharge of Priority Lien Obligations, a direction in
      writing delivered to the Collateral Trustee by or with the written consent
      of the Required Parity Creditors.

      For purposes of this definition, (a) Secured Debt registered in the name
of, or beneficially owned by, the Company or any Affiliate of the Company will
be deemed not to be outstanding, and (b) votes will be determined in accordance
with the Collateral Trust Agreement.

      "Additional Notes" means additional Notes (other than the Initial Notes)
issued under this Indenture in accordance with Sections 2.02 and 4.09 hereof, as
part of the same series as the Initial Notes.

      "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, means 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; provided that beneficial ownership of 10% or more of the
Voting Stock of a Person will be deemed to be control. For purposes of this
definition, the terms "controlling," "controlled by" and "under common control
with" have correlative meanings.

      "Agent" means any Registrar, co-registrar, Paying Agent or additional
paying agent.

      "Applicable Premium" means, with respect to any Note on any redemption
date, the greater of:

            (1) 1.0% of the principal amount of the Note; or

            (2) the excess of:

                  (A) the present value at the redemption date of (i) the
            redemption price of the Note at July 15, 2008 (such redemption price
            being set forth in the table appearing in

                                       3
<PAGE>

            Section 3.07 hereof) plus (ii) all required interest payments due on
            the Note through July 15, 2008, (excluding accrued but unpaid
            interest to the applicable redemption date), computed using a
            discount rate equal to the Treasury Rate as of such redemption date
            plus 75 basis points; over

                  (B) the principal amount of the Note, if greater.

      "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 and Clearstream that apply to such transfer or exchange.

      "Asset Sale" means:

            (1) the sale, lease, conveyance or other disposition of any assets
      or rights (including, without limitation, any sale of hydrocarbons or
      other mineral products as a result of the creation of Production Payments
      and Reserve Sales); provided that the sale, lease, conveyance or other
      disposition of all or substantially all of the assets of the Company and
      its Restricted Subsidiaries taken as a whole shall be governed by Section
      4.15 and/or Section 5.01 and not by Section 4.10; and

            (2) the issuance of Equity Interests in any of the Company's
      Restricted Subsidiaries or the sale of Equity Interests in any of its
      Restricted Subsidiaries.

      Notwithstanding the preceding, none of the following items will be deemed
      to be an Asset Sale:

            (1) any single transaction or series of related transactions that
      involves assets having a Fair Market Value of less than $1.0 million;

            (2) a transfer of assets between or among the Company and its
      Restricted Subsidiaries;

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

            (4) the sale or lease of products, services or accounts receivable
      in the ordinary course of business and any sale or other disposition of
      damaged, worn-out or obsolete assets in the ordinary course of business;

            (5) the sale or other disposition of cash or Cash Equivalents;

            (6) a Restricted Payment that does not violate Section 4.07 hereof
      or a Permitted Investment;

            (7) a disposition of oil, natural gas or other hydrocarbons or other
      mineral products in the ordinary course of business of the oil and gas
      production operations of the Company and its Subsidiaries;

            (8) any abandonment, relinquishment, farm-in, farm-out, lease and
      sublease of developed and/or undeveloped properties made or entered into
      in the ordinary course of business, but excluding any disposition as a
      result of the creation of a Production Payment and Reserve Sale; and

                                       4
<PAGE>

            (9) the trade or exchange by the Company or any Restricted
      Subsidiary of the Company of any oil and gas property or interest therein
      owned or held by the Company or such Restricted Subsidiary for any oil and
      gas property or interest therein owned or held by another Person,
      including any cash or Cash Equivalents necessary in order to achieve an
      exchange of equivalent value; provided that any such cash or Cash
      Equivalents received by the Company or such Restricted Subsidiary shall be
      subject to Section 4.10, which the Board of Directors determines in good
      faith to be of approximately equivalent value.

      "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; provided,
however, that if such sale and leaseback transaction results in a Capital Lease
Obligation, the amount of Indebtedness represented thereby shall be determined
in accordance with the definition of "Capital Lease Obligation."

      "Bankruptcy Law" means Title 11, U.S. Code or any similar federal or state
law for the relief of debtors.

      "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 that term is used in Section 13(d)(3)
of the Exchange Act), such "person" will be deemed to have beneficial ownership
of all securities that such "person" has the right to acquire by conversion or
exercise of other securities, whether such right is currently exercisable or is
exercisable only after the passage of time. The terms "Beneficially Owns" and
"Beneficially Owned" have a corresponding meaning.

      "Board of Directors" means:

            (1) with respect to a corporation, the board of directors of the
      corporation or any committee thereof duly authorized to act on behalf of
      such board;

            (2) with respect to a partnership, the Board of Directors of the
      general partner of the partnership;

            (3) with respect to a limited liability company, the managing member
      or members or any controlling committee of managing members thereof; and

            (4) with respect to any other Person, the board or committee of such
      Person serving a similar function.

      "Broker-Dealer" has the meaning set forth in the Registration Rights
Agreement.

      "Business Day" means any day other than a Legal Holiday.

      "Capital Lease Obligation" means, at the time any determination is to be
made, the amount of the liability in respect of a capital lease that would at
that time be required to be capitalized on a balance sheet prepared in
accordance with GAAP, and the Stated Maturity thereof shall be the date of the
last payment of rent or any other amount due under such lease prior to the first
date upon which such lease may be prepaid by the lessee without payment of a
penalty.

                                       5
<PAGE>

      "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 interests (whether general or limited) or membership
      interests; and

            (4) any other interest or participation that confers on a Person the
      right to receive a share of the profits and losses of, or distributions of
      assets of, the issuing Person, but excluding from all of the foregoing any
      debt securities convertible into Capital Stock, whether or not such debt
      securities include any right of participation with Capital Stock.

      "Cash Equivalents" means:

            (1) United States dollars;

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

            (3) 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 lender party to the Credit Agreement or
      with any domestic commercial bank having capital and surplus in excess of
      $500.0 million and a Thomson Bank Watch Rating of "B" or better;

            (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 one of the two highest ratings
      obtainable from Moody's Investors Service, Inc. or Standard & Poor's
      Rating Services and, in each case, maturing within six months after the
      date of acquisition; and

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

      "Casualty Event" means any taking under power of eminent domain or similar
proceeding and any insured loss, in each case relating to property or other
assets that constituted Collateral.

      "Change of Control" means the occurrence of any of the following:

            (1) the direct or indirect 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
      properties or assets of the Company and its Subsidiaries taken as a whole
      to any "person" (as that term is used in Section 13(d) of the Exchange
      Act) other than a Principal or a Related Party of a Principal;

                                       6
<PAGE>

            (2) the adoption of a plan relating to the liquidation or
      dissolution of the Company;

            (3) the consummation of any transaction (including, without
      limitation, any merger or consolidation), the result of which is that any
      "person" (as defined above), other than the Principals and their Related
      Parties, becomes the Beneficial Owner, directly or indirectly, of more
      than 50% of the Voting Stock of the Company, measured by voting power
      rather than number of shares;

            (4) the Company consolidates with, or merges with or into, any
      Person, or any Person consolidates with, or merges with or into, the
      Company, in any such event pursuant to a transaction in which any of the
      outstanding Voting Stock of the Company or such other Person is converted
      into or exchanged for cash, securities or other property, other than any
      such transaction where the Voting Stock of 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

            (5) after an initial public offering of the Company or any direct or
      indirect parent of the Company, the first day on which a majority of the
      members of the Board of Directors of the Company are not Continuing
      Directors.

      "Class" means (1) in the case of Parity Lien Debt, every Series of Parity
Lien Debt, taken together, and (2) in the case of Priority Lien Debt, every
Series of Priority Lien Debt, taken together.

      "Clearstream" means Clearstream Banking, S.A.

      "Collateral" means certain properties and assets at any time owned or
acquired by the Company or any of the other Pledgors, including a substantial
majority of the aggregate value of our proved producing reserves on a PV-10
basis, the capital stock of the Company and the Domestic Subsidiaries, except:

            (1) Excluded Assets;

            (2) any properties and assets in which the Collateral Trustee is
      required to release its Liens pursuant to the Collateral Trust Agreement;
      and

            (3) any properties and assets that no longer secure the Notes or any
      Obligations in respect thereof pursuant to the Collateral Trust Agreement,

      provided that, in the case of clauses (2) and (3), if such Liens are
required to be released as a result of the sale, transfer or other disposition
of any properties or assets of the Company or any other Pledgor, such assets or
properties will cease to be excluded from the Collateral if the Company or any
other Pledgor thereafter acquires or reacquires such assets or properties.

      "Collateral Trust Agreement" means the collateral trust agreement, dated
as of the date of this Indenture, among the Collateral Trustee, the
Administrative Agent under the Credit Agreement, the Hedge Counterparty and the
Trustee, as such agreement may be amended, modified or supplemented from time to
time.

                                       7
<PAGE>

      "Collateral Trustee" means Wells Fargo Bank, N.A. (as successor by merger
to Wells Fargo Bank Minnesota, N.A.), in its capacity as collateral trustee
under the Collateral Trust Agreement, together with its successors in such
capacity.

      "Company" means Belden & Blake Corporation, and any and all successors
thereto.

      "Consolidated Cash Flow" means, with respect to any specified Person for
any period, the Consolidated Net Income of such Person for such period plus,
without duplication:

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

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

            (3) the Fixed Charges of such Person and its Restricted Subsidiaries
      for such period, to the extent that such Fixed Charges were deducted in
      computing such Consolidated Net Income; plus

            (4) depreciation, depletion, amortization (including amortization of
      intangibles but excluding amortization of prepaid cash expenses that were
      paid in a prior period) 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 depreciation,
      depletion, amortization and other non-cash expenses were deducted in
      computing such Consolidated Net Income; minus

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

      Notwithstanding the preceding, the provision for taxes based on the income
or profits of, and the depreciation, depletion and amortization and other
non-cash expenses of, a Restricted Subsidiary of the Company will be added to
Consolidated Net Income to compute Consolidated Cash Flow of the Company only to
the extent that a corresponding amount would be permitted at the date of
determination to be dividended to the Company by such Restricted Subsidiary
without prior governmental approval (that has not been obtained), and without
direct or indirect restriction pursuant to the terms of its charter and all
agreements, instruments, judgments, decrees, orders, statutes, rules and
governmental regulations applicable to that Restricted Subsidiary or its
stockholders.

      "Consolidated Net Income" means, with respect to any specified Person for
any period, the aggregate of the Net Income of such Person and its Restricted
Subsidiaries for such period, on a consolidated basis, determined in accordance
with GAAP; provided that:

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

                                       8
<PAGE>

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

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

            (4) any write-downs of non-current assets will be excluded;
      provided, however, that, to the extent they may become applicable, ceiling
      limitation write-downs in accordance with generally accepted accounting
      principles shall be treated as capitalized costs, as if such write-down
      had not occurred; and

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

      "Continuing Directors" means, as of any date of determination, any member
of the Board of Directors of the Company who:

            (1) was a member of such Board of Directors on the date of this
      Indenture; 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 of Directors at the time of such nomination or
      election.

      "Corporate Trust Office of the Trustee" means the principal office of the
Trustee at which at any time its corporate trust business shall be administered,
which office at the date hereof is located at BNY Midwest Trust Company, c/o The
Bank of New York, 101 Barclay Street, New York, New York 10286, Attention:
Corporate Trust Department, or such other address as the Trustee may designate
from time to time by notice to the Holders and the Company, or the principal
corporate trust office of any successor Trustee (or such other address as such
successor Trustee may designate from time to time by notice to the Holders and
the Company).

      "Credit Agreement" means that certain Credit and Guaranty Agreement, to be
dated as of the date of this Indenture, by and among the Company, Goldman Sachs
Credit Partners L.P. and other parties named therein, providing for up to $170.0
million aggregate principal amount of borrowings and the issuance of letters of
credit, including any related notes, Guarantees, collateral documents,
instruments and agreements executed in connection therewith, and, in each case,
as amended, restated, modified, renewed, refunded, replaced (whether upon or
after termination or otherwise) or refinanced (including by means of sales of
debt securities to institutional investors) in whole or in part from time to
time.

      "Credit Agreement Agent" means, at any time, the Person serving at such
time as the "Agent" or "Administrative Agent" under the Credit Agreement or any
other representative then most recently designated in accordance with the
applicable provisions of the Credit Agreement, together with its successors in
such capacity.

      "Credit Facilities" means one or more debt facilities (including, without
limitation, the Credit Agreement) or commercial paper facilities, in each case
with banks or other institutional lenders providing for revolving credit loans,
term loans, receivables financing (including through the sale of receivables to
such lenders or to special purpose entities formed to borrow from such lenders
against such

                                       9
<PAGE>

receivables) or letters of credit, in each case, as amended, restated, modified,
renewed, refunded, replaced (whether upon or after termination or otherwise) or
refinanced (including by means of sales of debt securities to institutional
investors) in whole or in part from time to time.

      "Custodian" means the Trustee, as custodian with respect to the Notes in
global form, or any successor entity thereto.

      "Default" means any event that is, or with the passage of time or the
giving of notice or both would be, an Event of Default.

      "Definitive Note" means a certificated Note registered in the name of the
Holder thereof and issued in accordance with Section 2.06 hereof, substantially
in the form of Exhibit A hereto except that such Note shall not bear the Global
Note Legend and shall not have the "Schedule of Exchanges of Interests in the
Global Note" attached thereto.

      "Depositary" means, with respect to the Notes issuable or issued in whole
or in part in global form, the Person specified in Section 2.03 hereof as the
Depositary with respect to the Notes, and any and all successors thereto
appointed as depositary hereunder and having become such pursuant to the
applicable provision of this Indenture.

      "Discharge of Priority Lien Obligations" means the occurrence of all of
the following:

            (1) termination or expiration of all commitments to extend credit
      that would constitute Priority Lien Debt;

            (2) payment in full in cash of the principal of, interest and
      premium (if any) on, and fees with respect to, all Priority Lien Debt
      (other than any undrawn letters of credit);

            (3) discharge or cash collateralization (at the lower of (1) 105% of
      the aggregate undrawn amount and (2) the percentage of the aggregate
      undrawn amount required for release of liens under the terms of the
      applicable Priority Lien Document) of all outstanding letters of credit
      constituting Priority Lien Debt; and

            (4) payment in full in cash of all other Priority Lien Obligations
      that are outstanding and unpaid at the time the Priority Lien Debt is paid
      in full in cash (other than any obligations for taxes, costs,
      indemnifications, reimbursements, damages and other liabilities in respect
      of which no claim or demand for payment has been made at such time).

      "Disqualified Stock" means any Capital Stock that, by its terms (or by the
terms of any security into which it is convertible, or for which it is
exchangeable, in each case at the option of the holder of the Capital Stock), or
upon the happening of any event, matures or is mandatorily redeemable, pursuant
to a sinking fund obligation or otherwise, or redeemable at the option of the
holder of the Capital Stock, in whole or in part, on or prior to the date that
is 91 days after the date on which the Notes mature. Notwithstanding the
preceding sentence, any Capital Stock that would constitute Disqualified Stock
solely because the holders of the Capital Stock have the right to require the
Company to repurchase such Capital Stock upon the occurrence of a change of
control or an asset sale will not constitute Disqualified Stock if the terms of
such Capital Stock provide that the Company may not repurchase or redeem any
such Capital Stock pursuant to such provisions unless such repurchase or
redemption complies with Section 4.07 hereof. The amount of Disqualified Stock
deemed to be outstanding at any time for purposes of this Indenture will be the
maximum amount that the Company and its Restricted Subsidiaries

                                       10
<PAGE>

may become obligated to pay upon the maturity of, or pursuant to any mandatory
redemption provisions of, such Disqualified Stock, exclusive of accrued
dividends.

      "Dollar Denominated Production Payments" means production payment
obligations recorded as liabilities in accordance with GAAP, together with all
undertakings and obligations in connection therewith.

      "Domestic Subsidiary" means any Restricted Subsidiary of the Company that
was formed under the laws of the United States or any state of the United States
or the District of Columbia or that guarantees or otherwise provides direct
credit support for any Indebtedness of the Company.

      "equally and ratably" means, in reference to sharing of Liens or proceeds
thereof as between holders of Secured Obligations within the same Class, that
such Liens or proceeds:

            (1) will be allocated and distributed first to the Secured Debt
      Representative for each outstanding Series of Secured Debt within that
      Class, for the account of the holders of such Series of Secured Debt,
      ratably in proportion to the principal of, and interest and premium (if
      any) and reimbursement obligations (contingent or otherwise) with respect
      to letters of credit, if any, outstanding (whether or not drawings have
      been made under such letters of credit) on each outstanding Series of
      Secured Debt within that Class when the allocation or distribution is
      made, and thereafter

            (2) will be allocated and distributed (if any remain after payment
      in full of all of the principal of, and interest and premium (if any) and
      reimbursement obligations (contingent or otherwise) with respect to
      letters of credit, if any, outstanding (whether or not drawings have been
      made on such letters of credit) on all outstanding Secured Obligations
      within that Class) to the Secured Debt Representative for each outstanding
      Series of Secured Obligations within that Class, for the account of the
      holders of any remaining Secured Obligations within that Class, ratably in
      proportion to the aggregate unpaid amount of such remaining Secured
      Obligations within that Class due and demanded (with written notice to the
      applicable Secured Debt Representative and the Collateral Trustee) prior
      to the date such distribution is made.

      "Equity Interests" means Capital Stock and all warrants, options or other
rights to acquire Capital Stock (but excluding any debt security that is
convertible into, or exchangeable for, Capital Stock).

      "Equity Offering" means a public or private offer and sale of Capital
Stock (other than Disqualified Stock) of the Company.

      "Euroclear" means Euroclear Bank, S.A./N.V., as operator of the Euroclear
system.

      "Exchange Act" means the Securities Exchange Act of 1934, as amended.

      "Exchange Notes" means the Notes issued in the Exchange Offer pursuant to
Section 2.06(f) hereof.

      "Exchange Offer" has the meaning set forth in the Registration Rights
Agreement.

      "Exchange Registration Statement" has the meaning set forth in the
Registration Rights Agreement.

      "Excluded Assets" means each of the following:

                                       11
<PAGE>

            (1) any lease, license, contract, general intangible, property right
      or agreement to which the Company or any other Pledgor is a party or any
      of its rights or interests thereunder if and only for so long as the grant
      of a Lien under the Security Documents will constitute or result in a
      breach, termination or default under any such lease, license, contract,
      property right or agreement (other than to the extent that any such term
      would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or
      9-409 of the Uniform Commercial Code of any relevant jurisdiction or any
      other applicable law or principles of equity); provided that such lease,
      license, contract, general intangible, property right or agreement will be
      an Excluded Asset only to the extent and for so long as the consequences
      specified above will result and will cease to be an Excluded Asset and
      will become subject to the Lien granted under the Security Documents,
      immediately and automatically, at such time as such consequences will no
      longer result;

            (2) real property (other than Hydrocarbon Properties, pipelines and
      gathering systems) owned or leased by the Company or any other Pledgor to
      the extent that the lenders under the Credit Agreement and the Hedge
      Counterparty under the Hedge Agreement do not require such assets to be
      subject to Liens to secure the Credit Agreement and the Hedge Agreement,
      respectively;

            (3) all "securities" of any of the Company's "affiliates" (as the
      terms "securities" and "affiliates" are used in Rule 3-16 of Regulation
      S-X under the Securities Act);

            (4) any other property or assets in which a Lien cannot be perfected
      by the filing of a financing statement under the Uniform Commercial Code
      of the relevant jurisdiction, so long as the aggregate Fair Market Value
      of all such property and assets does not at any one time exceed $10.0
      million; and

            (5) with respect to all Secured Debt other than Parity Lien Debt
      consisting of Indebtedness under the Hedge Agreement, the Hedge Letter of
      Credit issued to or for the benefit of the creditors in respect of
      Indebtedness under the Hedge Agreement and other hedging transactions.

      "Existing Indebtedness" means Indebtedness of the Company and its
Subsidiaries (other than Indebtedness under the Credit Agreement and the Hedge
Agreement) in existence on the date of this Indenture, until such amounts are
repaid

      "Fair Market Value" means the value that would be paid by a willing buyer
to an unaffiliated willing seller in a transaction not involving distress or
necessity of either party, determined in good faith by the Board of Directors of
the Company (unless otherwise provided in this Indenture).

      "Fixed Charge Coverage Ratio" means with respect to any specified Person
for any period, the ratio of the Consolidated Cash Flow of such Person for such
period to the Fixed Charges of such Person for such period. In the event that
the specified Person or any of its Restricted Subsidiaries incurs, assumes,
guarantees, repays, repurchases, redeems, defeases or otherwise discharges any
Indebtedness (other than ordinary working capital borrowings) or issues,
repurchases or redeems preferred stock subsequent to the commencement of the
period for which the Fixed Charge Coverage Ratio is being calculated and on or
prior to the date on which the event for which the calculation of the Fixed
Charge Coverage Ratio is made (the "Calculation Date"), then the Fixed Charge
Coverage Ratio will be calculated giving pro forma effect to such incurrence,
assumption, Guarantee, repayment, repurchase, redemption, defeasance or other
discharge of Indebtedness, or such issuance, repurchase or redemption of
preferred stock, and the use of the proceeds therefrom, as if the same had
occurred at the beginning of the

                                       12
<PAGE>

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, or any Person or any of its Restricted Subsidiaries
      acquired by the specified Person or any of its Restricted Subsidiaries,
      and including any related financing transactions and including increases
      in ownership of Restricted Subsidiaries, during the four-quarter reference
      period or subsequent to such reference period and on or prior to the
      Calculation Date will be given pro forma effect (in accordance with
      Regulation S-X under the Securities Act) as if they had 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 (and ownership interests therein) disposed of prior to the
      Calculation Date, will be excluded;

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

            (4) any Person that is a Restricted Subsidiary on the Calculation
      Date will be deemed to have been a Restricted Subsidiary at all times
      during such four-quarter period;

            (5) any Person that is not a Restricted Subsidiary on the
      Calculation Date will be deemed not to have been a Restricted Subsidiary
      at any time during such four-quarter period; and

            (6) if any Indebtedness bears a floating rate of interest, the
      interest expense on such Indebtedness will be calculated as if the rate in
      effect on the Calculation Date had been the applicable rate for the entire
      period (taking into account any Hedging Obligation applicable to such
      Indebtedness if such Hedging Obligation has a remaining term as at the
      Calculation Date in excess of 12 months).

      "Fixed Charges" means, with respect to any specified Person for any
period, the sum, without duplication, of:

            (1) the consolidated interest expense of such Person and its
      Restricted Subsidiaries for such period, whether paid or accrued,
      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 of the effect of all payments made or received
      pursuant to Hedging Obligations in respect of interest rates; plus

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

                                       13
<PAGE>

            (3) any interest 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 dividends, whether paid or accrued and
      whether or not in cash, on any series of preferred stock of such Person or
      any of its Restricted Subsidiaries, other than dividends on Equity
      Interests payable solely in Equity Interests of the Company (other than
      Disqualified Stock) or to the Company or a Restricted Subsidiary of the
      Company, times (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, determined on a consolidated basis in accordance with GAAP;

provided, however, that there shall be excluded from Fixed Charges any non-cash
amortization or write-off of fees and expenses incurred in connection with the
Merger.

      "GAAP" means generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such
other entity as have been approved by a significant segment of the accounting
profession, which are in effect from time to time.

      "Global Note Legend" means the legend set forth in Section 2.06(g)(2)
hereof, which is required to be placed on all Global Notes issued under this
Indenture.

      "Global Notes" means, individually and collectively, each of the
Restricted Global Notes and the Unrestricted Global Notes deposited with or on
behalf of and registered in the name of the Depository or its nominee,
substantially in the form of Exhibit A hereto and that bears the Global Note
Legend and that has the "Schedule of Exchanges of Interests in the Global Note"
attached thereto, issued in accordance with Section 2.01, 2.06(b)(3),
2.06(b)(4), 2.06(d)(2) or 2.06(f) hereof.

      "Government Securities" means direct obligations of, or obligations
guaranteed by, the United States of America, and the payment for which the
United States pledges its full faith and credit.

      "Guarantee" means a guarantee other than by endorsement of negotiable
instruments for collection in the ordinary course of business, direct or
indirect, in any manner including, without limitation, by way of a pledge of
assets or through letters of credit or reimbursement agreements in respect
thereof, of all or any part of any Indebtedness (whether arising by virtue of
partnership arrangements, or by agreements to keep-well, to purchase assets,
goods, securities or services, to take or pay or to maintain financial statement
conditions or otherwise).

      "Guarantors" means each of:

            (1) The Canton Oil & Gas Company and Ward Lake Drilling, Inc.; and

            (2) any other Subsidiary of the Company that executes a Note
      Guarantee in accordance with the provisions of this Indenture,

and their respective successors and assigns, in each case, until the Note
Guarantee of such Person has been released in accordance with the provisions of
this Indenture.

                                       14
<PAGE>

      "Hedge Agreement" means the ISDA Master Agreement, dated June 30, 2004,
with J. Aron & Company that the Company will be a party to effective as of the
date of the Merger (including the schedule and credit annex thereto and the
confirmations thereunder), pursuant to which the parties thereto have entered
into certain gas price swaps, as such agreement may be amended or assigned from
time to time.

      "Hedge Counterparty" means J. Aron & Company or any successor under the
Hedge Agreement.

      "Hedge Letter of Credit" means, collectively, the $40.0 million of letters
of credit issued pursuant to the letter credit facility under the Credit
Agreement or cash collateral in lieu thereof to support the Hedge Agreement and
$15.0 million of letters of credit issued pursuant to the revolving credit
facility under the Credit Agreement; provided that each such hedge letter of
credit shall be used by the Company solely to secure the Company's obligations
under the Hedge Agreement and other hedging transactions.

      "Hedging Obligations" means, with respect to any specified Person, the
obligations of such Person under:

            (1) interest rate swap agreements (whether from fixed to floating or
      from floating to fixed), interest rate cap agreements and interest rate
      collar agreements;

            (2) other agreements or arrangements designed to manage interest
      rates or interest rate risk; and

            (3) other agreements or arrangements designed to protect such Person
      against fluctuations in currency exchange rates or commodity prices
      including, without limitation, the Hedge Agreement.

      "Hedge Outstanding Amount" means, in the case of Parity Lien Obligations
arising under hedge agreements, the amount that would be payable in the
reasonable judgment of the counterparty under the applicable hedge agreement if
such hedge agreement were terminated as the result of an event of default with
respect to the Company under such hedge agreement on the Business Day prior to
the date of such determination or, if any hedge agreement was previously
terminated, the termination amount which remains unpaid as of the Business Day
preceding such date and, in the case of the Hedge Agreement, only to the extent
that the Hedge Letter of Credit is not sufficient to pay such amount.

      "Holder" means a Person in whose name a Note is registered.

      "Hydrocarbon Properties" means all rights, titles, interests and estates
now owned or hereafter acquired in and to oil and gas leases, oil, gas and
mineral leases, or other liquid or gaseous hydrocarbon leases, mineral fee or
lease interests farm-ins, farm-outs, overriding royalty and royalty interests,
net profit interests, oil payments, production payment interests and similar
mineral interests, including any reserved or residual interest of whatever
nature.

      "Hydrocarbons" means oil, gas, casinghead gas, condensate, distillate,
liquid hydrocarbons, coal bed methane and other gaseous hydrocarbons, all
products refined, separated, settled and dehydrated therefrom, including,
without limitation, kerosene, liquefied petroleum gas, refined lubricating oils,
diesel fuel, drip gasoline, natural gasoline, helium, sulfur and all other
minerals.

      "Immaterial Subsidiary" means, as of any date, any Restricted Subsidiary
whose total assets, as of that date, are less than $100,000 and whose total
revenues for the most recent 12-month period do not exceed $100,000; provided
that a Restricted Subsidiary will not be considered to be an Immaterial

                                       15
<PAGE>

Subsidiary if it, directly or indirectly, guarantees or otherwise provides
direct credit support for any Indebtedness of the Company.

      "Indebtedness" means with respect to any specified Person, any
indebtedness of such Person (excluding accrued expenses and trade payables),
whether or not contingent:

            (1) in respect of borrowed money;

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

            (3) in respect of banker's acceptances;

            (4) representing Capital Lease Obligations or Attributable Debt in
      respect of sale and leaseback transactions;

            (5) representing the balance deferred and unpaid of the purchase
      price of any property or services due more than six months after such
      property is acquired or such services are completed; or

            (6) representing any Hedging Obligations,

if and to the extent any of the preceding items (other than letters of credit,
Attributable Debt and Hedging Obligations) would appear as a liability upon a
balance sheet of the specified Person prepared in accordance with GAAP. In
addition, the term "Indebtedness" includes (i) all Indebtedness of others
secured by a Lien on any asset of the specified Person (whether or not such
Indebtedness is assumed by the specified Person) and, to the extent not
otherwise included, the Guarantee by the specified Person of any Indebtedness of
any other Person and (ii) any warranties or guarantees of production or payment
by such Person with respect to any Production Payment or Reserve Sale, but
excludes other contractual obligations of such Person with respect to such
Production Payment and Reserve Sale.

      "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 Note through a Participant.

      "Initial Notes" means the first $192,500,000 aggregate principal amount of
Notes issued under this Indenture on the date hereof.

      "Insolvency or Liquidation Proceeding" means:

            (1) any case commenced by or against the Company or any other
      Pledgor under Title 11, U.S. Code or any similar federal or state law for
      the relief of debtors, any other proceeding for the reorganization,
      recapitalization or adjustment or marshalling of the assets or liabilities
      of the Company or any other Pledgor, any receivership or assignment for
      the benefit of creditors relating to the Company or any other Pledgor or
      any similar case or proceeding relative to the Company or any other
      Pledgor or its creditors, as such, in each case whether or not voluntary;

            (2) any liquidation, dissolution, marshalling of assets or
      liabilities or other winding up of or relating to the Company or any other
      Pledgor, in each case whether or not voluntary and whether or not
      involving bankruptcy or insolvency; or

                                       16
<PAGE>

            (3) any other proceeding of any type or nature in which
      substantially all claims of creditors of the Company or any other Pledgor
      are determined and any payment or distribution is or may be made on
      account of such claims.

      "Investments" means, with respect to any Person, all direct or indirect
investments by such Person in other Persons (including Affiliates) in the forms
of loans (including Guarantees or other obligations), advances or capital
contributions (excluding 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 Company
or any Subsidiary of the Company sells or otherwise disposes of any Equity
Interests of any direct or indirect Subsidiary of the Company such that, after
giving effect to any such sale or disposition, such Person is no longer a
Subsidiary of the Company, the Company will be deemed to have made an Investment
on the date of any such sale or disposition equal to the Fair Market Value of
the Company's Investments in such Subsidiary that were not sold or disposed of
in an amount determined under Section 4.07. The acquisition by the Company or
any Subsidiary of the Company of a Person that holds an Investment in a third
Person will be deemed to be an Investment by the Company or such Subsidiary in
such third Person in an amount equal to the Fair Market Value of the Investments
held by the acquired Person in such third Person in an amount determined under
Section 4.07(b). Except as otherwise provided in this Indenture, the amount of
an Investment will be determined at the time the Investment is made and without
giving effect to subsequent changes in value.

      "Investment Grade Rating" means a rating of "BBB-" or higher from Standard
& Poor's Ratings Group (or any successor thereto) and a rating of "Baa3" or
higher from Moody's Investors Service, Inc. (or any successor thereto), as the
case may be.

      "Legal Holiday" means a Saturday, a Sunday or a day on which banking
institutions in the City of New York or at a place of payment are authorized by
law, regulation or executive order to remain closed. If a payment date is a
Legal Holiday at a place of payment, payment may be made at that place on the
next succeeding day that is not a Legal Holiday, and no interest shall accrue on
such payment for the intervening period.

      "Letter of Transmittal" means the letter of transmittal to be prepared by
the Company and sent to all Holders of the Notes for use by such Holders in
connection with the Exchange Offer.

      "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 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.

      "Lien Sharing and Priority Confirmation" means:

            (1) as to any Series of Parity Lien Debt, the written agreement of
      the holders of such Series of Parity Lien Debt, as set forth in the
      indenture, credit agreement, hedge agreement or other agreement governing
      such Series of Parity Lien Debt, for the enforceable benefit of all
      holders of each existing and future Series of Priority Lien Debt, each
      existing and future Priority Lien Representative and each existing and
      future holder of Permitted Prior Liens:

                                       17
<PAGE>

                  (A) that all Parity Lien Obligations will be and are secured
            equally and ratably by all Parity Liens at any time granted by the
            Company or any other Pledgor to secure any Obligations in respect of
            such Series of Parity Lien Debt, whether or not upon property
            otherwise constituting collateral for such Series of Parity Lien
            Debt, and that all such Parity Liens will be enforceable by the
            Collateral Trustee for the benefit of all holders of Parity Lien
            Obligations equally and ratably;

                  (B) that the holders of Obligations in respect of such Series
            of Parity Lien Debt are bound by the provisions of the Collateral
            Trust Agreement, including the provisions relating to the ranking of
            Parity Liens and the order of application of proceeds from the
            enforcement of Parity Liens; and

                  (C) consenting to and directing the Collateral Trustee to
            perform its obligations under the Collateral Trust Agreement and the
            other Security Documents; and

            (2) as to any Series of Priority Lien Debt, the written agreement of
      the holders of such Series of Priority Lien Debt, as set forth in the
      credit agreement or other agreement governing such Series of Priority Lien
      Debt, for the enforceable benefit of all holders of each existing and
      future Series of Parity Lien Debt, each existing and future Parity Lien
      Representative and each existing and future holder of Permitted Prior
      Liens:

                  (A) that all Priority Lien Obligations will be and are secured
            equally and ratably by all Priority Liens at any time granted by the
            Company or any other Pledgor to secure any Obligations in respect of
            such Series of Priority Lien Debt, whether or not upon property
            otherwise constituting collateral for such Series of Priority Lien
            Debt, and that all such Priority Liens will be enforceable by the
            Collateral Trustee for the benefit of all holders of Priority Lien
            Obligations equally and ratably;

                  (B) that the holders of Obligations in respect of such Series
            of Priority Lien Debt are bound by the provisions of the Collateral
            Trust Agreement, including the provisions relating to the ranking of
            Priority Liens and the order of application of proceeds from
            enforcement of Priority Liens; and

                  (C) consenting to and directing the Collateral Trustee to
            perform its obligations under the Collateral Trust Agreement and the
            other Security Documents.

      "Management Agreement" means that certain management services agreement,
dated as of the date of this Indenture, between the Company and the Parent.

      "Material Change" means an increase or decrease (excluding changes that
result solely from changes in prices and changes resulting from the incurrence
of previously estimated future development costs) of more than 25% during a
fiscal quarter in the discounted future net revenues from proved crude oil and
natural gas reserves of the Company and its Restricted Subsidiaries, calculated
in accordance with clause (1)(A) of the definition of ACNTA; provided, however,
that the following will be excluded from the calculation of Material Change:

            (1) any acquisitions during the fiscal quarter of oil and gas
      reserves that have been estimated by independent petroleum engineers and
      with respect to which a report or reports of such engineers exist; and

                                       18
<PAGE>

            (2) any disposition of properties existing at the beginning of such
      fiscal quarter that have been disposed of in compliance with Section 4.10.

      "Net Income" means, with respect to any specified Person, the net income
(loss) of such Person, determined in accordance with GAAP and before any
reduction in respect of preferred stock dividends, excluding, however:

            (1) any gain (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).

      "Net Proceeds" means the aggregate cash proceeds received by the Company
or any of its Restricted Subsidiaries in respect of any Asset Sale (including,
without limitation, any cash received upon the sale or other disposition of any
non-cash consideration received in any Asset Sale), net of the direct costs
relating to such Asset Sale, including, without limitation, legal, accounting
and investment banking fees, and sales commissions, and any relocation expenses
incurred as a result of the Asset Sale, taxes paid or payable as a result of the
Asset Sale, in each case, after taking into account any available tax credits or
deductions and any tax sharing arrangements, and amounts required to be applied
to the repayment of Indebtedness, other than Indebtedness under a Credit
Facility, secured by a Lien on the asset or assets that were the subject of such
Asset Sale and any reserve for adjustment in respect of the sale price of such
asset or assets established in accordance with GAAP.

      "Net Working Capital" means:

            (1) all current assets of the Company and its Restricted
      Subsidiaries; minus

            (2) all current liabilities of the Company and its Restricted
      Subsidiaries, except current liabilities included in Indebtedness;

      determined in accordance with GAAP.

      "Non-Recourse Debt" means Indebtedness:

            (1) as to which neither the Company 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;

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

                                       19
<PAGE>

            (3) as to which the lenders have been notified in writing that they
      will not have any recourse to the stock or assets of the Company or any of
      its Restricted Subsidiaries.

      "Non-U.S. Person" means a Person who is not a U.S. Person.

      "Note Documents" means this Indenture, the Notes and the Security
Documents.

      "Note Guarantee" means the Guarantee by each Guarantor of the Company's
obligations under this Indenture and the Notes, executed pursuant to the
provisions of this Indenture.

      "Notes" has the meaning assigned to it in the preamble to this Indenture.
The Initial Notes and the Additional Notes shall be treated as a single class
for all purposes under this Indenture, and unless the context otherwise
requires, all references to the Notes shall include the Initial Notes and any
Additional Notes.

      "Obligations" means any principal (including reimbursement obligations
with respect to letters of credit whether or not drawn), interest (including all
interest accrued thereon after the commencement of any Insolvency or Liquidation
Proceeding at the rate, including any applicable post-default rate, specified in
the Priority Lien Documents, even if such interest is not enforceable, allowable
or allowed as a claim in such proceeding), premium (if any), fees,
indemnifications, reimbursements, expenses and other liabilities payable under
the documentation governing any Indebtedness.

      "Officer" means, with respect to any Person, the Chairman of the Board,
the Chief Executive Officer, the President, the Chief Operating Officer, the
Chief Financial Officer, the Treasurer, any Assistant Treasurer, the Controller,
the Secretary or any Vice-President of such Person.

      "Officers' Certificate" means a certificate signed on behalf of the
Company by two Officers of the Company, one of whom must be the principal
executive officer, the principal financial officer, the treasurer or the
principal accounting officer of the Company, that meets the requirements of
Section 13.05 hereof.

      "Oil and Gas Business" means:

            (1) the acquisition, exploration, development, operation and
      disposition of interests in oil, gas and other hydrocarbon properties;

            (2) the gathering, marketing, distribution, treating, processing,
      storage, selling and transporting of any production from such interests or
      properties and the marketing of oil and gas obtained from unrelated
      Persons;

            (3) any business relating to exploration for or development,
      production, treatment, processing, storage, transportation, gathering or
      marketing of oil, gas and other minerals and products produced in
      association therewith;

            (4) any business relating to oilfield sales and service; and

            (5) any activity that is ancillary to or necessary or appropriate
      for the activities described in clauses (1) through (5) of this
      definition.

                                       20
<PAGE>

      "Opinion of Counsel" means an opinion from legal counsel who is reasonably
acceptable to the Trustee, that meets the requirements of Section 13.05 hereof.
The counsel may be an employee of or counsel to the Company, any Subsidiary of
the Company or the Trustee.

      "Parent" means Capital C Energy Operations, LP.

      "Parity Lien" means a Lien granted by a security document to the
Collateral Trustee, at any time, upon any property of the Company or any other
Pledgor to secure Parity Lien Obligations.

      "Parity Lien Debt" means:

            (1) the Notes issued on the date of this Indenture (including any
      related Exchange Notes);

            (2) Indebtedness under the Hedge Agreement that was permitted to be
      incurred and secured under each applicable Secured Debt Document (or as to
      which the counterparties under the Hedge Agreement obtained an Officers'
      Certificate at the time of incurrence to the effect that such Indebtedness
      was permitted to be incurred and secured by all applicable Secured Debt
      Documents);

            (3) Hedging Obligations incurred in the ordinary course of business
      to hedge or manage fluctuations in commodity prices (other than pursuant
      to the Hedge Agreement) that is secured equally and ratably with Parity
      Lien Debt by a Parity Lien that was permitted to be incurred and so
      secured under each applicable Secured Debt Document;

            (4) any other Indebtedness (including Additional Notes) that is
      secured equally and ratably with the Parity Lien Debt by a Parity Lien
      that was permitted to be incurred and so secured under each applicable
      Secured Debt Document; provided that:

                  (A) the net proceeds are used to refund, refinance, replace,
            defease, discharge or otherwise acquire or retire Priority Lien Debt
            or other Parity Lien Debt; or

                  (B) on the date of incurrence of such Indebtedness, after
            giving pro forma effect to the incurrence thereof and the
            application of the proceeds therefrom, the Secured Leverage Ratio
            would not be greater than 2.75 to 1.0;

      provided, in the case of any Indebtedness referred to in clause (3) or (4)
      above, that:

                  (i)   on or before the date on which such Indebtedness is
            incurred by the Company or the applicable Restricted Subsidiary,
            such Indebtedness is designated by the Company, in an Officers'
            Certificate delivered to each Parity Lien Representative and the
            Collateral Trustee, as "Parity Lien Debt" for the purposes of the
            Secured Debt Documents; provided that no Series of Secured Debt may
            be designated as both Parity Lien Debt and Priority Lien Debt;

                  (ii)  such Indebtedness is governed by an indenture, credit
            agreement or other agreement that includes a Lien Sharing and
            Priority Confirmation; and

                  (iii) all requirements set forth in the Collateral Trust
            Agreement as to the confirmation, grant or perfection of the
            Collateral Trustee's Liens to secure such Indebtedness or
            Obligations in respect thereof are satisfied (and the satisfaction
            of such requirements and the other provisions of this clause (C)
            will be conclusively established

                                       21
<PAGE>

            if the Company delivers to the Collateral Trustee an Officers'
            Certificate stating that such requirements and other provisions have
            been satisfied and that such Indebtedness is "Parity Lien Debt").

      "Parity Lien Documents" means, collectively, the Hedge Agreement, the Note
Documents, this Indenture, credit agreement or other agreement governing each
other Series of Parity Lien Debt and the Security Documents (other than any
Security Documents that do not secure Parity Lien Obligations).

      "Parity Lien Obligations" means Parity Lien Debt and all other Obligations
in respect thereof.

      "Parity Lien Representative" means:

            (1) in the case of the Notes, the Trustee;

            (2) in the case of the Hedge Agreement, the Hedge Counterparty; or

            (3) in the case of any other Series of Parity Debt, the trustee,
      agent or representative of the holders of such Series of Parity Lien Debt
      who maintains the transfer register for such Series of Parity Lien Debt;
      and

                  (A) is appointed as a Parity Lien Representative (for purposes
            related to the administration of the Security Documents) pursuant to
            this Indenture, credit agreement or other agreement governing such
            Series of Parity Lien Debt, together with its successors in such
            capacity; and

                  (B) has become a party to the Collateral Trust Agreement by
            executing a joinder in the form required under the Collateral Trust
            Agreement.

      "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 DTC, shall include Euroclear and
Clearstream).

      "Permitted Investments" means:

            (1) any Investment in the Company or in a Restricted Subsidiary of
      the Company;

            (2) any Investment in Cash Equivalents;

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

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

            (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 4.10;

                                       22
<PAGE>

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

            (6) any Investments received in compromise or resolution of (A)
      obligations of trade creditors or customers that were incurred in the
      ordinary course of business of the Company or any of its Restricted
      Subsidiaries, including pursuant to any plan of reorganization or similar
      arrangement upon the bankruptcy or insolvency of any trade creditor or
      customer; or (B) litigation, arbitration or other disputes with Persons
      who are not Affiliates;

            (7) Investments represented by Hedging Obligations;

            (8) loans or advances to employees made in the ordinary course of
      business of the Company or the Restricted Subsidiary of the Company in an
      aggregate principal amount not to exceed $1.0 million at any one time
      outstanding;

            (9) repurchases of the Notes;

            (10) entry into operating agreements, joint ventures, partnership
      agreements, limited liability company agreements, working interests,
      royalty interests, mineral leases, processing agreements, farm-in
      agreements, farm-out agreements, development agreements, contracts for the
      sale, transportation or exchange of oil and natural gas, unitization
      agreements, pooling arrangements, joint bidding agreements, area of mutual
      interest agreements, production sharing agreements or other similar or
      customary agreements, transactions, properties, interests or arrangements,
      and Investments and expenditures in connection therewith or pursuant
      thereto, in each case made or entered into in the ordinary course of the
      Oil and Gas Business, excluding however, Investments in corporations other
      than any Investment received pursuant to Section 4.10; and

            (11) other Investments in any Person other than an Affiliate of the
      Company having an aggregate Fair Market Value (measured on the date each
      such Investment was made and without giving effect to subsequent changes
      in value), when taken together with all other Investments made pursuant to
      this clause (11) that are at the time outstanding, not to exceed $15.0
      million.

      "Permitted Liens" means:

            (1) Liens held by the Collateral Trustee securing Priority Lien Debt
      in an aggregate principal amount not exceeding the Priority Lien Cap and
      all related Priority Lien Obligations;

            (2) Liens held by the Collateral Trustee equally and ratably
      securing the Notes to be issued on the date of this Indenture, the Notes
      Guarantees, Indebtedness under the Hedge Agreement and all future Parity
      Lien Debt and other Parity Lien Obligations;

            (3) Liens in favor of the Company or the Guarantors;

            (4) Liens on property of a Person existing at the time such Person
      is merged with or into or consolidated with the Company or any Subsidiary
      of the Company; provided that such Liens were in existence prior to the
      contemplation of such merger or consolidation and do not extend to any
      assets other than those of the Person merged into or consolidated with the
      Company or the Subsidiary;

                                       23
<PAGE>

            (5) Liens on property (including Capital Stock) existing at the time
      of acquisition of the property by the Company or any Subsidiary of the
      Company; provided that such Liens were in existence prior to, such
      acquisition, and not incurred in contemplation of, such acquisition;

            (6) Liens to secure the performance of statutory obligations, surety
      or appeal bonds, performance bonds or other obligations of a like nature
      incurred in the ordinary course of business;

            (7) Liens existing on the date of this Indenture;

            (8) Liens for taxes, assessments or governmental charges or claims
      that are not yet delinquent or that are being contested in good faith by
      appropriate proceedings promptly instituted and diligently concluded;
      provided that any reserve or other appropriate provision as is required in
      conformity with GAAP has been made therefor;

            (9) Liens imposed by law, such as carriers', warehousemen's,
      landlord's and mechanics' Liens, in each case, incurred in the ordinary
      course of business;

            (10) survey exceptions, easements or reservations of, or rights of
      others for, licenses, rights-of-way, sewers, electric lines, telegraph and
      telephone lines and other similar purposes, or zoning or other
      restrictions as to the use of real property that were not incurred in
      connection with Indebtedness and that 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;

            (11) Liens to secure any Permitted Refinancing Indebtedness
      permitted to be incurred under this Indenture; provided, however, that:

                  (A) the new Lien shall be limited to all or part of the same
            property and assets that secured or, under the written agreements
            pursuant to which the original Lien arose, could secure the original
            Lien (plus improvements and accessions to, such property or proceeds
            or distributions thereof); and

                  (B) the Indebtedness secured by the new Lien is not increased
            to any amount greater than the sum of (x) the outstanding principal
            amount, or, if greater, committed amount, of the Permitted
            Refinancing Indebtedness and (y) an amount necessary to pay any fees
            and expenses, including premiums, related to such renewal,
            refunding, refinancing, replacement, defeasance or discharge;

            (12) Liens on, or related to, properties or assets to secure all or
      part of the costs incurred in the ordinary course of the Oil and Gas
      Business for the exploration, drilling, development, production,
      processing, transportation, marketing, storage or operation thereof;

            (13) Liens on pipeline or pipeline facilities that arise under
      operation of law;

            (14) Liens arising under operating agreements, joint venture
      agreements, partnership agreements, mineral leases, processing agreements,
      oil and gas leases, farm-in agreements, farm-out agreements, division
      orders, contracts for the sale, transportation or exchange of oil or
      natural gas, unitization and pooling declarations and agreements, area of
      mutual interest agreements, gas balancing and other agreements that are
      customary in the Oil and Gas Business;

                                       24
<PAGE>

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

            (16) Liens securing Production Payments and Reserve Sales; provided
      that such Liens are limited to the property that is subject to such
      Production Payments and Reserve Sales and are incurred after the date of
      this Indenture;

            (17) Liens securing Indebtedness incurred to finance the
      construction, purchase or lease of, or repairs, improvements or additions
      to, property, plant or equipment of such Person; provided, however, that
      the Lien may not extend to any other property owned by such Person or any
      of its Restricted Subsidiaries at the time the Lien is incurred (other
      than assets and property affixed or appurtenant thereto), and such
      Indebtedness (other than any interest thereon) secured by the Lien may not
      be incurred more than 180 days after the later of the acquisition,
      completion of construction, repair, improvement, addition or commencement
      of full operation of the property subject to the Lien, and such
      Indebtedness is incurred pursuant to Section 4.09;

            (18) Liens on cash or cash equivalents securing the Hedge Agreement
      or other hedging transactions to the extent that the sum of such cash or
      cash equivalents constitutes the proceeds of any draw on any letter of
      credit issued to secure the Hedge Agreement or such hedging transactions;
      and

            (19) Liens incurred in the ordinary course of business of the
      Company or any Subsidiary of the Company with respect to obligations that
      do not exceed $5.0 million at any one time outstanding.

"Permitted Payments to Parent" means, without duplication as to amounts:

            (1) payments to the Parent in payment of fees not in excess of $1.0
      million per annum pursuant to the Management Agreement in accordance with
      Section 4.11;

            (2) payments to the Parent to permit the Parent to pay reasonable
      accounting, legal and administrative expenses of the Parent when due, in
      an aggregate amount not to exceed $500,000 per annum; and

            (3) for so long as the Company is a member of a group filing a
      consolidated or combined tax return with the Parent, payments to the
      Parent in respect of an allocable portion of the tax liabilities of such
      group that is attributable to the Company and its Subsidiaries ("Tax
      Payments"). The Tax Payments shall not exceed the lesser of (i) the amount
      of the relevant tax (including any penalties and interest) that the
      Company would owe if the Company were filing a separate tax return (or a
      separate consolidated or combined return with its Subsidiaries that are
      members of the consolidated or combined group), taking into account any
      carryovers and carrybacks of tax attributes (such as net operating losses)
      of the Company and such Subsidiaries from other taxable years and (ii) the
      net amount of the relevant tax that the Parent actually owes to the
      appropriate taxing authority. Any Tax Payments received from the Company
      shall be paid over to the appropriate taxing authority within 30 days of
      the Parent's receipt of such Tax Payments or refunded to the Company.

      "Permitted Prior Liens" means:

            (1) Liens described in clause (1) of the definition of "Permitted
      Liens;"

                                       25
<PAGE>

            (2) Liens described in clauses (4), (5), (7), (10), (14), (15) or
      (16) of the definition of "Permitted Liens;" and

            (3) Permitted Liens that arise by operation of law and are not
      voluntarily granted, to the extent entitled by law to priority over the
      Liens created by the Security Documents.

      "Permitted Refinancing Indebtedness" means any Indebtedness of the Company
or any of its Restricted Subsidiaries issued in exchange for, or the net
proceeds of which are used to renew, refund, refinance, replace, defease or
discharge other Indebtedness of the Company 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
      (or accreted value, if applicable) of the Indebtedness renewed, refunded,
      refinanced, replaced, defeased or discharged (plus all accrued interest on
      the Indebtedness and the amount of all fees and expenses, including
      premiums, incurred in connection therewith);

            (2) such Permitted Refinancing Indebtedness has a final maturity
      date later than the final maturity date of, and has a Weighted Average
      Life to Maturity equal to or greater than the Weighted Average Life to
      Maturity of, the Indebtedness being renewed, refunded, refinanced,
      replaced, defeased or discharged;

            (3) if the Indebtedness being renewed, refunded, refinanced,
      replaced, defeased or discharged is subordinated in right of payment to
      the Notes, such Permitted Refinancing Indebtedness has a final maturity
      date later than the final maturity date of, and is subordinated in right
      of payment to, the Notes on terms at least as favorable to the Holders of
      Notes as those contained in the documentation governing the Indebtedness
      being renewed, refunded, refinanced, replaced, defeased or discharged; and

            (4) such Indebtedness is incurred either by the Company or by the
      Restricted Subsidiary who is the obligor on the Indebtedness being
      renewed, refunded, refinanced, replaced, defeased or discharged.

      "Person" means any individual, corporation, partnership, joint venture,
association, joint-stock company, trust, unincorporated organization, limited
liability company or government or other entity.

      "Pledgors" means the Company, the Guarantors and any other Person (if any)
that provides collateral security for any Secured Obligations.

      "Principals" means Parent and Carlyle/Riverstone Global Energy and Power
Fund II, L.P.

      "Priority Lien" means a Lien granted by a security document to the
Collateral Trustee, at any time, upon any property of the Company or any other
Pledgor to secure Priority Lien Obligations.

      "Priority Lien Cap" means, as of any date, the principal amount
outstanding under the Credit Agreement and/or the Indebtedness outstanding under
any other Credit Facility, in an aggregate principal amount not to exceed the
sum of the amount provided by clause (1) of the definition of Permitted Debt, as
of any date, plus the amount provided by clause (14) of the definition of
Permitted Debt, less the amount of Parity Lien Debt incurred after the date of
the indenture the net proceeds of which are used to repay Priority Lien Debt.
For purposes of this definition, all letters of credit will be valued at the
face amount thereof, whether or not drawn and all Hedging Obligations will be
valued at zero.

                                       26
<PAGE>

      "Priority Lien Debt" means:

            (1) Indebtedness under the Credit Agreement that was permitted to be
      incurred and secured under each applicable Secured Debt Document (or as to
      which the lenders under the Credit Agreement obtained an Officers'
      Certificate at the time of incurrence to the effect that such Indebtedness
      was permitted to be incurred and secured by all applicable Secured Debt
      Documents);

            (2) Indebtedness under any other Credit Facility that is secured
      equally and ratably with the Credit Agreement by a Priority Lien that was
      permitted to be incurred and so secured under each applicable Secured Debt
      Document; provided, in the case of any Indebtedness referred to in this
      clause (2), that:

                  (A) on or before the date on which such Indebtedness is
            incurred by the Company or the applicable Restricted Subsidiary,
            such Indebtedness is designated by the Company, in an Officers'
            Certificate delivered to each Priority Lien Representative and the
            Collateral Trustee, as "Priority Lien Debt" for the purposes of the
            Secured Debt Documents; provided that no Series of Secured Debt may
            be designated as both Priority Lien Debt and Parity Lien Debt;

                  (B) such Indebtedness is governed by a credit agreement or
            other agreement that includes a Lien Sharing and Priority
            Confirmation; and

                  (C) all requirements set forth in the Collateral Trust
            Agreement as to the confirmation, grant or perfection of the
            Collateral Trustee's Lien to secure such Indebtedness or Obligations
            in respect thereof are satisfied (and the satisfaction of such
            requirements and the other provisions of this clause (C) will be
            conclusively established if the Company delivers to the Collateral
            Trustee an Officers' Certificate stating that such requirements and
            other provisions have been satisfied and that such Indebtedness is
            "Priority Lien Debt"); and

            (3) Hedging Obligations incurred to hedge or manage interest rate
      risk with respect to Priority Lien Debt; provided that:

                  (A) such Hedging Obligations are secured by a Priority Lien on
            all of the assets and properties that secure Indebtedness under the
            Credit Facility in respect of which such Hedging Obligations are
            incurred; and

                  (B) such Priority Lien is senior to or on a parity with the
            Priority Liens securing Indebtedness under the Credit Facility in
            respect of which such Hedging Obligations are incurred.

      "Priority Lien Documents" means the Credit Agreement and any other Credit
Facility pursuant to which any Priority Lien Debt is incurred and the Security
Documents (other than any Security Documents that do not secure Priority Lien
Obligations).

      "Priority Lien Obligations" means Priority Lien Debt and all other
Obligations in respect of Priority Lien Debt.

      "Priority Lien Representative" means (1) the Credit Agreement Agent or (2)
in the case of any

                                       27
<PAGE>

other Series of Priority Lien Debt, the trustee, agent or representative of the
holders of such Series of Priority Lien Debt who maintains the transfer register
for such Series of Priority Lien Debt and is appointed as a representative of
the Priority Lien Debt (for purposes related to the administration of the
Security Documents) pursuant to the credit agreement or other agreement
governing such Series of Priority Lien Debt.

      "Private Placement Legend" means the legend set forth in Section
2.06(g)(1) hereof to be placed on all Notes issued under this Indenture except
where otherwise permitted by the provisions of this Indenture.

      "Production Payment" means Dollar-Denominated Production Payments and
Volumetric Production Payments, collectively.

      "Production Payment and Reserve Sales" means the grant or transfer by the
Company or a Restricted Subsidiary of the Company to any Person of a royalty,
overriding royalty, net profits interest or Production Payment in oil and
natural gas properties, reserves or the right to receive all or a portion of the
production or the proceeds from the sale of production attributable to such
properties where, in the case of each of the foregoing, the holder of such
interest has recourse solely to such production or proceeds of production,
subject to the obligation of the grantor or transferor to operate and maintain,
or cause the subject interests to be operated and maintained, in a reasonably
prudent manner or other customary standard or subject to the obligation of the
grantor or transferor to indemnify for environmental, title or other matters
customary in connection with the transfer of such interests.

      "QIB" means a "qualified institutional buyer" as defined in Rule 144A.

      "Registration Rights Agreement" means the Registration Rights Agreement,
dated as of the date of this Indenture, among the Company, the Guarantors and
the other parties named on the signature pages thereof, as such agreement may be
amended, modified or supplemented from time to time and, with respect to any
Additional Notes, one or more registration rights agreements among the Company,
the Guarantors and the other parties thereto, as such agreement(s) may be
amended, modified or supplemented from time to time, relating to rights given by
the Company to the purchasers of Additional Notes to register such Additional
Notes under the Securities Act.

      "Regulation S" means Regulation S promulgated under the Securities Act.

      "Regulation S Global Note" means a Global Note substantially in the form
of Exhibit A hereto bearing the Global Note 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 Notes sold in reliance on Rule 903 of Regulation S.

      "Related Party" means:

            (1) any controlling stockholder, 80% (or more) owned Subsidiary, or
      immediate family member (in the case of an individual) of any Principal;
      or

            (2) any trust, corporation, partnership, limited liability company
      or other entity, the beneficiaries, stockholders, partners, members,
      owners or Persons beneficially holding an 80% or more controlling interest
      of which consist of any one or more Principals and/or such other Persons
      referred to in clause (1) of this definition.

      "Required Parity Creditors" means, at any time, the holders of more than
50% of the sum of:

                                       28
<PAGE>

            (1) the aggregate outstanding principal amount of Parity Lien Debt
      (including outstanding letters of credit whether or not then available or
      drawn);

            (2) other than in connection with the exercise of remedies, the
      aggregate unfunded commitments to extend credit which, when funded, would
      constitute Parity Lien Debt; and

            (3) in the case of Parity Lien Obligations arising under hedge
      agreements, the Hedge Outstanding Amount;

      For purposes of this definition, (A) Parity Lien Debt registered in the
name of, or beneficially owned by, the Company or any Affiliate of the Company
will be deemed not to be outstanding, and (B) votes will be determined in
accordance with the Collateral Trust Agreement.

      "Required Priority Creditors" means, at any time, the holders of more than
50% of the sum of:

            (1) the aggregate outstanding principal amount of Priority Lien Debt
      (including outstanding letters of credit whether or not then available or
      drawn); and

            (2) other than in connection with the exercise of remedies, the
      aggregate unfunded commitments to extend credit which, when funded, would
      constitute Priority Lien Debt.

      For purposes of this definition, (A) Priority Lien Debt registered in the
name of, or beneficially owned by, the Company or any Affiliate of the Company
will be deemed not to be outstanding, and (B) votes will be determined in
accordance with the Collateral Trust Agreement.

      "Responsible Officer," when used with respect to the Trustee, means any
officer within the Corporate Trust Administration of the Trustee (or any
successor group of the Trustee) or any other officer of the Trustee customarily
performing functions similar to those performed by any of the above designated
officers and also means, with respect to a particular corporate trust matter,
any other officer to whom such matter is referred because of his knowledge of
and familiarity with the particular subject.

      "Restricted Definitive Note" means a Definitive Note bearing the Private
Placement Legend.

      "Restricted Global Note" means a Global Note bearing the Private Placement
Legend.

      "Restricted Investment" means an Investment other than a Permitted
Investment.

      "Restricted Subsidiary" of a Person means any Subsidiary of the referent
Person that is not an Unrestricted Subsidiary.

      "Rule 144" means Rule 144 promulgated under the Securities Act.

      "Rule 144A" means Rule 144A promulgated under the Securities Act.

      "Rule 903" means Rule 903 promulgated under the Securities Act.

      "Rule 904" means Rule 904 promulgated under the Securities Act.

      "Sale of Collateral" means any Asset Sale involving a sale or other
disposition of Collateral.

      "SEC" means the Securities and Exchange Commission.

                                       29
<PAGE>

      "Secured Debt" means Parity Lien Debt and Priority Lien Debt.

      "Secured Debt Documents" means the Parity Lien Documents and the Priority
Lien Documents.

      "Secured Debt Representative" means each Parity Lien Representative and
each Priority Lien Representative.

      "Secured Leverage Ratio" means, on any date, the ratio of:

            (1) the aggregate principal amount of Secured Debt outstanding on
      such date (including, without limitation, the Hedge Outstanding Amount
      under hedge agreements constituting Parity Lien Debt) plus all
      Indebtedness of Restricted Subsidiaries of the Company that are not
      Guarantors outstanding on such date (and, for this purpose, letters of
      credit will be deemed to have a principal amount equal to the face amount
      thereof, whether or not drawn), to:

            (2) the aggregate amount of the Company's Consolidated Cash Flow for
      the most recent four-quarter period for which financial information is
      available.

      In addition, for purposes of calculating the Secured Leverage Ratio:

            (1) acquisitions that have been made by the specified Person or any
      of its Restricted Subsidiaries, including through mergers or
      consolidations or acquisitions of assets, or any Person or any of its
      Restricted Subsidiaries acquired by merger, consolidation or the
      acquisition of all or substantially all of its assets by the specified
      Person or any of its Restricted Subsidiaries, and including any related
      financing transactions and including increases in ownership of Restricted
      Subsidiaries, during the four-quarter reference period or subsequent to
      such reference period and on or prior to the date on which the event for
      which the calculation of the Secured Leverage Ratio is made (the "Leverage
      Calculation Date") will be given pro forma effect in accordance with
      Regulation S-X under the Securities Act) as if they had 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 (and ownership interests therein) disposed of prior to the
      Leverage Calculation Date will be excluded;

            (3) any Person that is a Restricted Subsidiary on the Leverage
      Calculation Date will be deemed to have been a Restricted Subsidiary at
      all times during such four-quarter period; and

            (4) any Person that is not a Restricted Subsidiary on the Leverage
      Calculation Date will be deemed not to have been a Restricted Subsidiary
      at any time during such four-quarter period.

      "Secured Obligations" means Parity Lien Obligations and Priority Lien
Obligations.

      "Security Documents" means the Collateral Trust Agreement, each Lien
Sharing and Priority Confirmation, and all security agreements, pledge
agreements, collateral assignments, mortgages, deeds of trust, collateral agency
agreements, control agreements or other grants or transfers for security
executed and delivered by the Company or any other Pledgor creating (or
purporting to create) a Lien upon Collateral in favor of the Collateral Trustee,
in each case, as amended, modified, renewed, restated or replaced, in whole or
in part, from time to time, in accordance with its terms and the Collateral
Trust Agreement.

                                       30
<PAGE>

      "Securities Act" means the Securities Act of 1933, as amended.

      "Series of Parity Lien Debt" means, severally, the Notes, the Indebtedness
under the Hedge Agreement and each other issue or series of Parity Lien Debt for
which a single transfer register is maintained.

      "Series of Priority Lien Debt" means, severally, the Indebtedness
outstanding under the Credit Agreement and any other Credit Facility that
constitutes Priority Lien Debt.

      "Series of Secured Debt" means each Series of Parity Lien Debt and each
Series of Priority Lien Debt.

      "Shelf Registration Statement" means the Shelf Registration Statement as
defined 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 Securities Act, as such Regulation is in effect on the date of
this Indenture.

      "Special Interest" has the meaning set forth in the Registration Rights
Agreement.

      "Stated Maturity" means, with respect to any installment of interest or
principal on any series of Indebtedness, the date on which the payment of
interest or principal was scheduled to be paid in the documentation governing
such Indebtedness as of the date of this Indenture, and will not include any
contingent obligations to repay, redeem or repurchase any such interest or
principal prior to the date originally scheduled for the payment thereof.

      "Subsidiary" means, with respect to any specified Person:

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

            (2) any partnership (A) the sole general partner or the managing
      general partner of which is such Person or a Subsidiary of such Person or
      (B) the only general partners of which are that Person or one or more
      Subsidiaries of that Person (or any combination thereof).

      "TIA" means the Trust Indenture Act of 1939, as amended (15
U.S.C. Sections 77aaa-77bbbb).

      "Treasury Rate" means, as of any redemption date, the yield to maturity as
of such redemption date of United States Treasury securities with a constant
maturity (as compiled and published in the most recent Federal Reserve
Statistical Release H.15 (519) that has become publicly available at least two
Business Days prior to the redemption date (or, if such Statistical Release is
no longer published, any publicly available source of similar market data)) most
nearly equal to the period from the redemption date to July 15, 2008; provided,
however, that if the period from the redemption date to July 15, 2008 is less
than one year, the weekly average yield on actually traded United States
Treasury securities adjusted to a constant maturity of one year will be used.

                                       31
<PAGE>

      "Trustee" means BNY Midwest Trust Company until a successor replaces it in
accordance with the applicable provisions of this Indenture and thereafter means
the successor serving hereunder.

      "Unrestricted Definitive Note" means a Definitive Note that does not bear
and is not required to bear the Private Placement Legend.

      "Unrestricted Global Note" means a Global Note that does not bear and is
not required to bear the Private Placement Legend.

      "Unrestricted Subsidiary" means any Subsidiary of the Company that is
designated by the Board of Directors of the Company as an Unrestricted
Subsidiary pursuant to a resolution of the Board of Directors, but only to the
extent that such Subsidiary:

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

            (2) except as permitted by Section 4.11 hereof, is not party to any
      agreement, contract, arrangement or understanding with the Company or any
      Restricted Subsidiary of the Company unless the terms of any such
      agreement, contract, arrangement or understanding are no less favorable to
      the Company or such Restricted Subsidiary than those that might be
      obtained at the time from Persons who are not Affiliates of the Company;

            (3) is a Person with respect to which neither the Company nor any of
      its Restricted Subsidiaries has any direct or indirect obligation (A) to
      subscribe for additional Equity Interests or (B) to maintain or preserve
      such Person's financial condition or to cause such Person to achieve any
      specified levels of operating results; and

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

      "U.S. Person" means a U.S. Person as defined in Rule 902(k) promulgated
under the Securities Act.

      "Volumetric Production Payments" means production payment obligations
recorded as deferred revenue in accordance with GAAP, together with all
undertakings and obligations in connection therewith.

      "Voting Stock" of any specified Person as of any date means the Capital
Stock of such Person that is at the time entitled to vote in the election of the
Board of Directors of such Person.

      "Weighted Average Life to Maturity" means, when applied to any
Indebtedness at any date, the number of years obtained by dividing:

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

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

                                       32
<PAGE>

Section 1.02 Other Definitions.

<TABLE>
<CAPTION>
                                                              Defined in
                        Term                                   Section
                        ----                                   -------
<S>                                                           <C>
"Affiliate Transaction"...................................       4.11
"Asset Sale Offer"........................................       3.09
"Authentication Order"....................................       2.02
"Change of Control Offer".................................       4.15
"Change of Control Payment"...............................       4.15
"Change of Control Payment Date"..........................       4.15
"Covenant Defeasance".....................................       8.03
"DTC".....................................................       2.03
"Event of Default"........................................       6.01
"Excess Proceeds".........................................       4.10
"incur"...................................................       4.09
"Legal Defeasance"........................................       8.02
"Offer Amount"............................................       3.09
"Offer Period"............................................       3.09
"Paying Agent"............................................       2.03
"Permitted Debt"..........................................       4.09
"Payment Default" ........................................       6.01
"Purchase Date"...........................................       3.09
"Registrar"...............................................       2.03
"Restricted Payments".....................................       4.07
</TABLE>

Section 1.03 Incorporation by Reference of Trust Indenture Act.

      Whenever this Indenture refers to a provision of the TIA, the provision is
incorporated by reference in and made a part of this Indenture.

      The following TIA terms used in this Indenture have the following
meanings:

      "indenture securities" means the Notes;

      "indenture security Holder" means a Holder of a Note;

      "indenture to be qualified" means this Indenture;

      "indenture trustee" or "institutional trustee" means the Trustee; and

      "obligor" on the Notes and the Note Guarantees means the Company and the
Guarantors, respectively, and any successor obligor upon the Notes and the Note
Guarantees, respectively.

      All other terms used in this Indenture that are defined by the TIA,
defined by TIA reference to another statute or defined by SEC rule under the TIA
have the meanings so assigned to them.

Section 1.04 Rules of Construction.

      Unless the context otherwise requires:

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

                                       33
<PAGE>

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

      (c) "or" is not exclusive;

      (d) words in the singular include the plural, and in the plural include
the singular;

      (e) "will" shall be interpreted to express a command;

      (f) provisions apply to successive events and transactions; and

      (g) references to sections of or rules under the Securities Act will be
deemed to include substitute, replacement of successor sections or rules adopted
by the SEC from time to time.

                                    ARTICLE 2
                                    THE NOTES

Section 2.01 Form and Dating.

      (a) General. The Notes and the Trustee's certificate of authentication
shall be substantially in the form of Exhibit A hereto. The Notes may have
notations, legends or endorsements required by law, stock exchange rule or
usage. Each Note shall be dated the date of its authentication. The Notes shall
be in denominations of $2,000 and integral multiples of $1,000.

      The terms and provisions contained in the Notes 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 Note conflicts with the express provisions of this
Indenture, the provisions of this Indenture shall govern and be controlling.

      (b) Global Notes. Notes issued in global form shall be substantially in
the form of Exhibit A attached hereto (including the Global Note Legend thereon
and the "Schedule of Exchanges of Interests in the Global Note" attached
thereto). Notes issued in definitive form shall be substantially in the form of
Exhibit A attached hereto (but without the Global Note Legend thereon and
without the "Schedule of Exchanges of Interests in the Global Note" attached
thereto). Each Global Note shall represent such of the outstanding Notes as
shall be specified therein and each shall provide that it shall represent the
aggregate principal amount of outstanding Notes from time to time endorsed
thereon and that the aggregate principal amount of outstanding Notes represented
thereby may from time to time be reduced or increased, as appropriate, to
reflect exchanges and redemptions. Any endorsement of a Global Note to reflect
the amount of any increase or decrease in the aggregate principal amount of
outstanding Notes represented thereby shall be made by the Trustee or the
Custodian, at the direction of the Trustee, in accordance with instructions
given by the Holder thereof as required by Section 2.06 hereof.

      (c) 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 Notes that are held by
Participants through Euroclear or Clearstream.

Section 2.02 Execution and Authentication.

                                       34
<PAGE>

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

      If an Officer whose signature is on a Note no longer holds that office at
the time a Note is authenticated, the Note shall nevertheless be valid.

      A Note shall not be valid until authenticated by the manual signature of
the Trustee. The signature shall be conclusive evidence that the Note has been
authenticated under this Indenture.

      The Trustee shall, upon receipt of a written order of the Company signed
by one Officer (an "Authentication Order"), authenticate Notes for original
issue that may be validly issued under this Indenture, including any Additional
Notes. The aggregate principal amount of Notes outstanding at any time may not
exceed the aggregate principal amount of Notes authorized for issuance by the
Company pursuant to one or more Authentication Orders, except as provided in
Section 2.07 hereof.

      The Trustee may appoint an authenticating agent acceptable to the Company
to authenticate Notes. An authenticating agent may authenticate Notes whenever
the Trustee may do so. Each reference in this Indenture to authentication by the
Trustee includes authentication by such agent. An authenticating agent has the
same rights as an Agent to deal with Holders or an Affiliate of the Company.

Section 2.03 Registrar and Paying Agent.

      The Company shall maintain an office or agency where Notes may be
presented for registration of transfer or for exchange ("Registrar") and an
office or agency where Notes may be presented for payment ("Paying Agent"),
which shall be located in the Borough of Manhattan, the City of New York. The
Registrar shall keep a register of the Notes and of their transfer and exchange.
The Company may appoint one or more co-registrars and one or more additional
paying agents. The term "Registrar" includes any co-registrar and the term
"Paying Agent" includes any additional paying agent. The Company may change any
Paying Agent or Registrar without notice to any Holder. The Company shall notify
the Trustee in writing of the name and address of any Agent not a party to this
Indenture. If the Company fails to appoint or maintain another entity as
Registrar or Paying Agent, the Trustee shall act as such. The Company or any of
its Subsidiaries may act as Paying Agent or Registrar.

      The Company initially appoints The Depository Trust Company ("DTC") to act
as Depositary with respect to the Global Notes.

      The Company initially appoints the Trustee to act as the Registrar and
Paying Agent and to act as Custodian with respect to the Global Notes.

Section 2.04 Paying Agent to Hold Money in Trust.

      The Company shall require each Paying Agent other than the Trustee to
agree in writing that the Paying Agent will hold in trust for the benefit of
Holders or the Trustee all money held by the Paying Agent for the payment of
principal, premium or Special Interest, if any, or interest on the Notes, and
will notify the Trustee of any default by the Company in making any such
payment. While any such default continues, the Trustee may require a Paying
Agent to pay all money held by it to the Trustee. The Company at any time may
require a Paying Agent to pay all money held by it to the Trustee. Upon payment
over to the Trustee, the Paying Agent (if other than the Company or a
Subsidiary) shall have no further liability for the money. If the Company or a
Subsidiary acts as Paying Agent, it shall segregate and hold in a separate trust
fund for the benefit of the Holders all money held by it as Paying Agent. Upon
any bankruptcy or reorganization proceedings relating to the Company, the
Trustee shall serve as Paying Agent for the Notes.

                                       35
<PAGE>

Section 2.05 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
all Holders and shall otherwise comply with TIA Section 312(a). If the Trustee
is not the Registrar, the Company shall furnish to the Trustee at least seven
Business Days before each interest payment date and at such other times as the
Trustee may request in writing, a list in such form and as of such date as the
Trustee may reasonably require of the names and addresses of the Holders of
Notes and the Company shall otherwise comply with TIA Section 312(a).

Section 2.06 Transfer and Exchange.

      (a) Transfer and Exchange of Global Notes. A Global Note may not be
transferred except as a whole 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. All Global Notes shall be exchanged
by the Company for Definitive Notes if:

            (1) the Company delivers to the Trustee 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
      120 days after the date of such notice from the Depositary;

            (2) the Company in its sole discretion determines that the Global
      Notes (in whole but not in part) should be exchanged for Definitive Notes
      and delivers a written notice to such effect to the Trustee; or

            (3) there has occurred and is continuing a Default or Event of
      Default with respect to the Notes.

      Upon the occurrence of either of the preceding events in (1) or (2) above,
Definitive Notes shall be issued in such names as the Depositary shall instruct
the Trustee. Global Notes also may be exchanged or replaced, in whole or in
part, as provided in Sections 2.07 and 2.10 hereof. Every Note authenticated and
delivered in exchange for, or in lieu of, a Global Note or any portion thereof,
pursuant to this Section 2.06 or Section 2.07 or 2.10 hereof, shall be
authenticated and delivered in the form of, and shall be, a Global Note. A
Global Note may not be exchanged for another Note other than as provided in this
Section 2.06(a), however, beneficial interests in a Global Note may be
transferred and exchanged as provided in Section 2.06(b), (c) or (f) hereof.

      (b) Transfer and Exchange of Beneficial Interests in the Global Notes. The
transfer and exchange of beneficial interests in the Global Notes shall be
effected through the Depositary, in accordance with the provisions of this
Indenture and the Applicable Procedures. Beneficial interests in the Restricted
Global Notes shall be subject to restrictions on transfer comparable to those
set forth herein to the extent required by the Securities Act. Transfers of
beneficial interests in the Global Notes 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 Note.
      Beneficial interests in any Restricted Global Note may be transferred to
      Persons who take delivery thereof in the form of a beneficial interest in
      the same Restricted Global Note in accordance with the transfer
      restrictions set forth in the Private Placement Legend. Beneficial
      interests in any Unrestricted Global Note may be transferred to Persons
      who take delivery thereof in the form of a beneficial interest in an

                                       36
<PAGE>

      Unrestricted Global Note. No written orders or instructions shall be
      required to be delivered to the Registrar to effect the transfers
      described in this Section 2.06(b)(1).

            (2) All Other Transfers and Exchanges of Beneficial Interests in
      Global Notes. In connection with all transfers and exchanges of beneficial
      interests that are not subject to Section 2.06(b)(1) above, the transferor
      of such beneficial interest must deliver to the Registrar either:

                  (A) both:

                        (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
                  Note 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) both:

                        (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 Note 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 Note shall be registered to effect the
                  transfer or exchange referred to in (1) above;

            Upon consummation of an Exchange Offer by the Company in accordance
      with Section 2.06(f) hereof, the requirements of this Section 2.06(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 Notes. Upon
      satisfaction of all of the requirements for transfer or exchange of
      beneficial interests in Global Notes contained in this Indenture and the
      Notes or otherwise applicable under the Securities Act, the Trustee shall
      adjust the principal amount of the relevant Global Note(s) pursuant to
      Section 2.06(h) hereof.

            (3) Transfer of Beneficial Interests to Another Restricted Global
      Note. A beneficial interest in any Restricted Global Note may be
      transferred to a Person who takes delivery thereof in the form of a
      beneficial interest in another Restricted Global Note if the transfer
      complies with the requirements of Section 2.06(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 Note, then the transferor
            must deliver a certificate in the form of Exhibit B hereto,
            including the certifications in item (1) thereof; and

                  (B) if the transferee will take delivery in the form of a
            beneficial interest in the Regulation S Global Note, then the
            transferor must deliver a certificate in the form of Exhibit B
            hereto, including the certifications in item (2) thereof.

                                       37
<PAGE>

            (4) Transfer and Exchange of Beneficial Interests in a Restricted
      Global Note for Beneficial Interests in an Unrestricted Global Note. A
      beneficial interest in any Restricted Global Note may be exchanged by any
      holder thereof for a beneficial interest in an Unrestricted Global Note or
      transferred to a Person who takes delivery thereof in the form of a
      beneficial interest in an Unrestricted Global Note if the exchange or
      transfer complies with the requirements of Section 2.06(b)(2) above and:

                  (A) such exchange or transfer is effected pursuant to the
            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 that it is not (i)
            a Broker-Dealer, (ii) a Person participating in the distribution of
            the Exchange Notes 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 a Broker-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 Note proposes to exchange such beneficial
                  interest for a beneficial interest in an Unrestricted Global
                  Note, 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 Note 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 Note,
                  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 to the effect that such exchange or transfer is in
            compliance with the Securities Act 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 Note has not yet
            been issued, the Company shall issue and, upon receipt of an
            Authentication Order in accordance with Section 2.02 hereof, the
            Trustee shall authenticate one or more Unrestricted Global Notes 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 Note cannot be
            exchanged for, or transferred to Persons who take delivery thereof
            in the form of, a beneficial interest in a Restricted Global Note.

                                       38
<PAGE>

      (c) Transfer or Exchange of Beneficial Interests for Definitive Notes.

            (1) Beneficial Interests in Restricted Global Notes to Restricted
      Definitive Notes. If any holder of a beneficial interest in a Restricted
      Global Note proposes to exchange such beneficial interest for a Restricted
      Definitive Note or to transfer such beneficial interest to a Person who
      takes delivery thereof in the form of a Restricted Definitive Note, then,
      upon receipt by the Registrar of the following documentation:

                  (A) if the holder of such beneficial interest in a Restricted
            Global Note proposes to exchange such beneficial interest for a
            Restricted Definitive Note, 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, 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, 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, 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 Trustee shall cause the aggregate principal amount of the applicable Global
Note to be reduced accordingly pursuant to Section 2.06(h) hereof, and the
Company shall execute and the Trustee shall authenticate and deliver to the
Person designated in the instructions a Definitive Note in the appropriate
principal amount. Any Definitive Note issued in exchange for a beneficial
interest in a Restricted Global Note pursuant to this Section 2.06(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 Notes to the
Persons in whose names such Notes are so registered. Any Definitive Note issued
in exchange for a beneficial interest in a Restricted Global Note pursuant to
this Section 2.06(c)(1) shall bear the Private Placement Legend and shall be
subject to all restrictions on transfer contained therein.

            (2) Beneficial Interests in Restricted Global Notes to Unrestricted
      Definitive Notes. A holder of a beneficial interest in a Restricted Global
      Note may exchange such beneficial interest for an Unrestricted Definitive
      Note or may transfer such beneficial interest to a Person who takes
      delivery thereof in the form of an Unrestricted Definitive Note only if:

                                       39
<PAGE>

                  (A) such exchange or transfer is effected pursuant to the
            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 Notes 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 a Broker-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 Note proposes to exchange such beneficial
                  interest for an Unrestricted Definitive Note, 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 Note proposes to transfer such beneficial
                  interest to a Person who shall take delivery thereof in the
                  form of an Unrestricted Definitive Note, 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 to
            the effect that such exchange or transfer is in compliance with the
            Securities Act 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 Notes to
      Unrestricted Definitive Notes. If any holder of a beneficial interest in
      an Unrestricted Global Note proposes to exchange such beneficial interest
      for a Definitive Note or to transfer such beneficial interest to a Person
      who takes delivery thereof in the form of a Definitive Note, then, upon
      satisfaction of the conditions set forth in Section 2.06(b)(2) hereof, the
      Trustee shall cause the aggregate principal amount of the applicable
      Global Note to be reduced accordingly pursuant to Section 2.06(h) hereof,
      and the Company shall execute and the Trustee shall authenticate and
      deliver to the Person designated in the instructions a Definitive Note in
      the appropriate principal amount. Any Definitive Note issued in exchange
      for a beneficial interest pursuant to this Section 2.06(c)(3) shall be
      registered in such name or names and in such authorized denomination or
      denominations as the holder of such beneficial interest requests through
      instructions to the Registrar from or through the Depositary and the
      Participant or Indirect Participant. The Trustee shall deliver such
      Definitive Notes to the Persons in whose names such Notes are so
      registered. Any Definitive Note issued in exchange for a beneficial
      interest pursuant to this Section 2.06(c)(3) shall not bear the Private
      Placement Legend.

      (d) Transfer and Exchange of Definitive Notes for Beneficial Interests.

                                       40
<PAGE>

            (1) Restricted Definitive Notes to Beneficial Interests in
      Restricted Global Notes. If any Holder of a Restricted Definitive Note
      proposes to exchange such Note for a beneficial interest in a Restricted
      Global Note or to transfer such Restricted Definitive Notes to a Person
      who takes delivery thereof in the form of a beneficial interest in a
      Restricted Global Note, then, upon receipt by the Registrar of the
      following documentation:

                  (A) if the Holder of such Restricted Definitive Note proposes
            to exchange such Note for a beneficial interest in a Restricted
            Global Note, 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 Note is being transferred to
            a QIB in accordance with Rule 144A, a certificate to the effect set
            forth in Exhibit B hereto, including the certifications in item (1)
            thereof;

                  (C) if such Restricted Definitive Note is being transferred to
            a Non-U.S. Person in an offshore transaction in accordance with Rule
            903 or Rule 904, a certificate to the effect set forth in Exhibit B
            hereto, including the certifications in item (2) thereof;

                  (D) if such Restricted Definitive Note is being transferred
            pursuant to an exemption from the registration requirements of the
            Securities Act in accordance with Rule 144, a certificate to the
            effect set forth in Exhibit B hereto, including the certifications
            in item (3)(a) thereof;

                  (E) if such Restricted Definitive Note 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 Restricted Definitive Note 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 Trustee shall cancel the Restricted Definitive Note, increase or
            cause to be increased the aggregate principal amount of, in the case
            of clause (A) above, the appropriate Restricted Global Note, in the
            case of clause (B) above, the 144A Global Note, and in the case of
            clause (C) above, the Regulation S Global Note.

            (2) Restricted Definitive Notes to Beneficial Interests in
      Unrestricted Global Notes. A Holder of a Restricted Definitive Note may
      exchange such Note for a beneficial interest in an Unrestricted Global
      Note or transfer such Restricted Definitive Note to a Person who takes
      delivery thereof in the form of a beneficial interest in an Unrestricted
      Global Note 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 (i) a Broker-Dealer, (ii) a Person
            participating in the distribution of the Exchange Notes 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;

                                       41
<PAGE>

                  (C) such transfer is effected by a Broker-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 Notes proposes to
                  exchange such Notes for a beneficial interest in the
                  Unrestricted Global Note, 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 Notes proposes to
                  transfer such Notes to a Person who shall take delivery
                  thereof in the form of a beneficial interest in the
                  Unrestricted Global Note, 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 to
            the effect that such exchange or transfer is in compliance with the
            Securities Act 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 2.06(d)(2), the Trustee shall cancel the Definitive Notes and
      increase or cause to be increased the aggregate principal amount of the
      Unrestricted Global Note.

            (3) Unrestricted Definitive Notes to Beneficial Interests in
      Unrestricted Global Notes. A Holder of an Unrestricted Definitive Note may
      exchange such Note for a beneficial interest in an Unrestricted Global
      Note or transfer such Definitive Notes to a Person who takes delivery
      thereof in the form of a beneficial interest in an Unrestricted Global
      Note at any time. Upon receipt of a request for such an exchange or
      transfer, the Trustee shall cancel the applicable Unrestricted Definitive
      Note and increase or cause to be increased the aggregate principal amount
      of one of the Unrestricted Global Notes.

            If any such exchange or transfer from a Definitive Note to a
      beneficial interest is effected pursuant to subparagraphs (2)(B), (2)(D)
      or (3) above at a time when an Unrestricted Global Note has not yet been
      issued, the Company shall issue and, upon receipt of an Authentication
      Order in accordance with Section 2.02 hereof, the Trustee shall
      authenticate one or more Unrestricted Global Notes in an aggregate
      principal amount equal to the principal amount of Definitive Notes so
      transferred.

      (e) Transfer and Exchange of Definitive Notes for Definitive Notes. Upon
request by a Holder of Definitive Notes and such Holder's compliance with the
provisions of this Section 2.06(e), the Registrar shall register the transfer or
exchange of Definitive Notes. Prior to such registration of transfer or
exchange, the requesting Holder shall present or surrender to the Registrar the
Definitive Notes duly endorsed or accompanied by a written instruction of
transfer in form satisfactory to the Registrar duly executed by such Holder or
by its 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
2.06(e).

                                       42
<PAGE>

            (1) Restricted Definitive Notes to Restricted Definitive Notes. Any
      Restricted Definitive Note may be transferred to and registered in the
      name of Persons who take delivery thereof in the form of a Restricted
      Definitive Note if the Registrar receives the following:

                  (A) if the transfer will be made pursuant to Rule 144A, 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 Notes to Unrestricted Definitive Notes.
      Any Restricted Definitive Note may be exchanged by the Holder thereof for
      an Unrestricted Definitive Note or transferred to a Person or Persons who
      take delivery thereof in the form of an Unrestricted Definitive Note 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 (i) a Broker-Dealer, (ii) a Person
            participating in the distribution of the Exchange Notes or (iii) a
            Person who is an affiliate (as defined in Rule 144) of the Company;

                  (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 a Broker-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 Notes
                  proposes to exchange such Notes for an Unrestricted Definitive
                  Note, 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 Notes
                  proposes to transfer such Notes to a Person who shall take
                  delivery thereof in the form of an Unrestricted Definitive
                  Note, 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 to the effect that such exchange or
            transfer is in compliance with the Securities Act and that the
            restrictions on

                                       43
<PAGE>

            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 Notes to Unrestricted Definitive Notes.
      A Holder of Unrestricted Definitive Notes may transfer such Notes to a
      Person who takes delivery thereof in the form of an Unrestricted
      Definitive Note. Upon receipt of a request to register such a transfer,
      the Registrar shall register the Unrestricted Definitive Notes pursuant to
      the instructions from the Holder thereof.

      (f) Exchange Offer. Upon the occurrence of the Exchange Offer in
accordance with the Registration Rights Agreement, the Company shall issue and,
upon receipt of an Authentication Order in accordance with Section 2.02 hereof,
the Trustee shall authenticate:

            (1) one or more Unrestricted Global Notes in an aggregate principal
      amount equal to the principal amount of the beneficial interests in the
      Restricted Global Notes accepted for exchange in the Exchange Offer by
      Persons that certify in the applicable Letters of Transmittal that (A)
      they are not Broker-Dealers, (B) they are not participating in a
      distribution of the Exchange Notes and (C) they are not affiliates (as
      defined in Rule 144) of the Company; and

            (2) Unrestricted Definitive Notes in an aggregate principal amount
      equal to the principal amount of the Restricted Definitive Notes accepted
      for exchange in the Exchange Offer by Persons that certify in the
      applicable Letters of Transmittal that (A) they are not Broker-Dealers,
      (B) they are not participating in a distribution of the Exchange Notes and
      (C) they are not affiliates (as defined in Rule 144) of the Company.

      Concurrently with the issuance of such Notes, the Trustee shall cause the
aggregate principal amount of the applicable Restricted Global Notes 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
Notes so accepted Unrestricted Definitive Notes in the appropriate principal
amount.

      (g) Legends. The following legends shall appear on the face of all Global
Notes and Definitive Notes 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
            Note and each Definitive Note (and all Notes issued in exchange
            therefor or substitution thereof) shall bear the legend in
            substantially the following form:

"THE NOTE EVIDENCED HEREBY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT
OF 1933 (THE "SECURITIES ACT") AND MAY NOT BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED EXCEPT (A)(1) TO A PERSON WHO THE SELLER REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A
UNDER THE SECURITIES ACT PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
144A, (2) IN AN OFFSHORE TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 OF
REGULATION S UNDER THE SECURITIES ACT, (3) PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF
AVAILABLE), (4) TO AN INSTITUTIONAL ACCREDITED INVESTOR IN A TRANSACTION EXEMPT
FROM THE REGISTRATION

                                       44
<PAGE>

REQUIREMENTS OF THE SECURITIES ACT OR (5) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT AND (B) IN ACCORDANCE WITH ALL APPLICABLE
SECURITIES LAWS OF THE STATES OF THE UNITED STATES AND OTHER JURISDICTIONS."

                  (B) Notwithstanding the foregoing, any Global Note or
            Definitive Note issued pursuant to subparagraphs (b)(4), (c)(2),
            (c)(3), (d)(2), (d)(3), (e)(2), (e)(3) or (f) of this Section 2.06
            (and all Notes issued in exchange therefor or substitution thereof)
            shall not bear the Private Placement Legend.

            (2) Global Note Legend. Each Global Note shall bear a legend in
      substantially the following form:

"THIS GLOBAL NOTE 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 (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED
PURSUANT TO SECTION 2.06 OF THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED
IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (3) THIS
GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION
2.11 OF THE INDENTURE AND (4) THIS GLOBAL NOTE 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 NOTES IN DEFINITIVE
FORM, THIS NOTE 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 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 Notes. At such time as all
beneficial interests in a particular Global Note have been exchanged for
Definitive Notes or a particular Global Note has been redeemed, repurchased or
canceled in whole and not in part, each such Global Note shall be returned to or
retained and canceled by the Trustee in accordance with Section 2.11 hereof. At
any time prior to such cancellation, if any beneficial interest in a Global Note
is exchanged for or transferred to a Person who shall take delivery thereof in
the form of a beneficial interest in another Global Note or for Definitive
Notes, the principal amount of Notes represented by such Global Note shall be
reduced accordingly and an endorsement shall be made on such Global Note by the
Trustee or by the Depositary at the direction of the Trustee 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 Note, such

                                       45
<PAGE>

other Global Note shall be increased accordingly and an endorsement shall be
made on such Global Note by the Trustee or by the Depositary at the direction of
the Trustee 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 Notes and
      Definitive Notes upon receipt of an Authentication Order in accordance
      with Section 2.02 hereof or at the Registrar's request.

            (2) No service charge shall be made to a Holder of a beneficial
      interest in a Global Note or to a Holder of a Definitive Note 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 payable in connection therewith (other than any such transfer taxes
      or similar governmental charge payable upon exchange or transfer pursuant
      to Sections 2.10, 3.06, 3.09, 4.10, 4.15 and 9.05 hereof).

            (3) The Registrar shall not be required to register the transfer of
      or exchange of any Note selected for redemption in whole or in part,
      except the unredeemed portion of any Note being redeemed in part.

            (4) All Global Notes and Definitive Notes issued upon any
      registration of transfer or exchange of Global Notes or Definitive Notes
      shall be the valid obligations of the Company, evidencing the same debt,
      and entitled to the same benefits under this Indenture, as the Global
      Notes or Definitive Notes surrendered upon such registration of transfer
      or exchange.

            (5) Neither the Registrar nor the Company shall be required:

                  (A) to issue, to register the transfer of or to exchange any
            Notes during a period beginning at the opening of business 15 days
            before the day of any selection of Notes for redemption under
            Section 3.02 hereof and ending at the close of business on the day
            of selection;

                  (B) to register the transfer of or to exchange any Note
            selected for redemption in whole or in part, except the unredeemed
            portion of any Note being redeemed in part; or

                  (C) to register the transfer of or to exchange a Note between
            a record date and the next succeeding interest payment date.

            (6) Prior to due presentment for the registration of a transfer of
      any Note, the Trustee, any Agent and the Company may deem and treat the
      Person in whose name any Note is registered as the absolute owner of such
      Note for the purpose of receiving payment of principal of and interest on
      such Notes and for all other purposes, and none of the Trustee, any Agent
      or the Company shall be affected by notice to the contrary.

            (7) The Trustee shall authenticate Global Notes and Definitive Notes
      in accordance with the provisions of Section 2.02 hereof.

            (8) All certifications, certificates and Opinions of Counsel
      required to be submitted to the Registrar pursuant to this Section 2.06 to
      effect a registration of transfer or exchange may be submitted by
      facsimile.

                                       46
<PAGE>

Section 2.07 Replacement Notes.

      If any mutilated Note is surrendered to the Trustee or the Company and the
Trustee receives evidence to its satisfaction of the destruction, loss or theft
of any Note, the Company shall issue and the Trustee, upon receipt of an
Authentication Order, shall authenticate a replacement Note if the Trustee's
requirements are met. If required by the Trustee or the Company, an indemnity
bond must be supplied by the Holder that is sufficient in the judgment of the
Trustee and the Company to protect the Company, the Trustee, any Agent and any
authenticating agent from any loss that any of them may suffer if a Note is
replaced. The Company may charge for its expenses in replacing a Note.

      Every replacement Note is an additional obligation of the Company and
shall be entitled to all of the benefits of this Indenture equally and
proportionately with all other Notes duly issued hereunder.

Section 2.08 Outstanding Notes.

      The Notes outstanding at any time are all the Notes authenticated by the
Trustee except for those canceled by it, those delivered to it for cancellation,
those reductions in the interest in a Global Note effected by the Trustee in
accordance with the provisions hereof, and those described in this Section 2.08
as not outstanding. Except as set forth in Section 2.09 hereof, a Note does not
cease to be outstanding because the Company or an Affiliate of the Company holds
the Note; however, Notes held by the Company or a Subsidiary of the Company
shall not be deemed to be outstanding for purposes of Section 3.07(a) hereof.

      If a Note is replaced pursuant to Section 2.07 hereof, it ceases to be
outstanding unless the Trustee receives proof satisfactory to it that the
replaced Note is held by a protected purchaser.

      If the principal amount of any Note is considered paid under Section 4.01
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 Notes payable on that date, then on and after that date such Notes shall
be deemed to be no longer outstanding and shall cease to accrue interest.

Section 2.09 Treasury Notes.

      In determining whether the Holders of the required principal amount of
Notes have concurred in any direction, waiver or consent, Notes owned by the
Company or any Guarantor, or by any Person directly or indirectly controlling or
controlled by or under direct or indirect common control with the Company or any
Guarantor, shall be considered as though not outstanding, except that for the
purposes of determining whether the Trustee shall be protected in relying on any
such direction, waiver or consent, only Notes that the Trustee knows are so
owned shall be so disregarded.

Section 2.10 Temporary Notes.

      Until certificates representing Notes are ready for delivery, the Company
may prepare and the Trustee, upon receipt of an Authentication Order, shall
authenticate temporary Notes. Temporary Notes shall be substantially in the form
of certificated Notes but may have variations that the Company considers
appropriate for temporary Notes and as shall be reasonably acceptable to the
Trustee. Without unreasonable delay, the Company shall prepare and the Trustee
shall authenticate definitive Notes in exchange for temporary Notes.

                                       47
<PAGE>

      Holders of temporary Notes shall be entitled to all of the benefits of
this Indenture.

Section 2.11 Cancellation.

      The Company at any time may deliver Notes to the Trustee for cancellation.
The Registrar and Paying Agent shall forward to the Trustee any Notes
surrendered to them for registration of transfer, exchange or payment. The
Trustee and no one else shall cancel all Notes surrendered for registration of
transfer, exchange, payment, replacement or cancellation and will dispose of
canceled Notes in accordance with its customary procedure (subject to the record
retention requirement of the Exchange Act). Upon written request, certification
of the disposition of all canceled Notes shall be delivered to the Company. The
Company may not issue new Notes to replace Notes that it has paid or that have
been delivered to the Trustee for cancellation.

Section 2.12 Defaulted Interest.

      If the Company defaults in a payment of interest on the Notes, it shall
pay the defaulted interest in any lawful manner plus, to the extent lawful,
interest payable on the defaulted interest, to the Persons who are Holders on a
subsequent special record date, in each case at the rate provided in the Notes
and in Section 4.01 hereof. The Company shall notify the Trustee in writing of
the amount of defaulted interest proposed to be paid on each Note and the date
of the proposed payment. The Company shall fix or cause to be fixed each such
special record date and payment date; provided that no such special record date
may be less than 10 days prior to the related payment date for such defaulted
interest. At least 15 days before the special record date, the Company (or, upon
the written request of the Company, the Trustee in the name and at the expense
of the Company) shall mail or cause to be mailed to Holders a notice that states
the special record date, the related payment date and the amount of such
interest to be paid.

                                   ARTICLE 3
                            REDEMPTION AND PREPAYMENT

Section 3.01 Notices to Trustee.

      If the Company elects to redeem Notes pursuant to the optional redemption
provisions of Section 3.07 hereof, it shall furnish to the Trustee, at least 45
days but not more than 60 days before a redemption date, an Officers'
Certificate setting forth:

      (a) the clause of this Indenture pursuant to which the redemption shall
occur;

      (b) the redemption date;

      (c) the principal amount of Notes to be redeemed; and

      (d) the redemption price.

Section 3.02 Selection of Notes to Be Redeemed or Purchased.

      If less than all of the Notes are to be redeemed or purchased in an offer
to purchase at any time, the Trustee shall select Notes for redemption or
purchase on a pro rata basis except:

      (a) if the Notes are listed on any national securities exchange, in
compliance with the requirements of the principal national securities exchange
on which the Notes are listed; or

                                       48
<PAGE>

      (b) if otherwise required by law.

      The Trustee shall promptly notify the Company in writing of the Notes
selected for redemption or purchase and, in the case of any Note selected for
partial redemption or purchase, the principal amount thereof to be redeemed or
purchased. Notes and portions of Notes selected shall be in amounts of $1,000 or
whole multiples of $1,000; except that if all of the Notes of a Holder are to be
redeemed or purchased, the entire outstanding amount of Notes held by such
Holder, even if not a multiple of $1,000, shall be redeemed or purchased. Except
as provided in the preceding sentence, provisions of this Indenture that apply
to Notes called for redemption or purchase also apply to portions of Notes
called for redemption or purchase.

Section 3.03 Notice of Redemption.

      Subject to the provisions of Section 3.09 hereof, at least 30 days but not
more than 60 days before a redemption date, the Company shall mail or cause to
be mailed, by first class mail, a notice of redemption to each Holder whose
Notes are to be redeemed at its registered address, except that redemption
notices may be mailed more than 60 days prior to a redemption date if the notice
is issued in connection with a defeasance of the Notes or a satisfaction and
discharge of this Indenture pursuant to Articles 8 or 12 hereof.

      The notice shall identify the Notes to be redeemed (including the CUSIP
numbers) and shall state:

      (a) the redemption date;

      (b) the redemption price;

      (c) if any Note is being redeemed in part, the portion of the principal
amount of such Note to be redeemed and that, after the redemption date upon
surrender of such Note, a new Note or Notes in principal amount equal to the
unredeemed portion shall be issued upon cancellation of the original Note;

      (d) the name and address of the Paying Agent;

      (e) that Notes called for redemption must be surrendered to the Paying
Agent to collect the redemption price;

      (f) that, unless the Company defaults in making such redemption payment,
interest on Notes called for redemption ceases to accrue on and after the
redemption date;

      (g) the paragraph of the Notes and/or Section of this Indenture pursuant
to which the Notes called for redemption are being redeemed; and

      (h) that no representation is made as to the correctness or accuracy of
the CUSIP number, if any, listed in such notice or printed on the Notes.

      At the Company's request, the Trustee shall give the notice of redemption
in the Company's name and at its expense; provided, however, that the Company
shall have delivered to the Trustee, at least 45 days prior to the redemption
date, an Officers' Certificate requesting that the Trustee give such notice and
setting forth the information to be stated in such notice as provided in the
preceding paragraph.

Section 3.04 Effect of Notice of Redemption.

                                       49
<PAGE>

      Once notice of redemption is mailed in accordance with Section 3.03
hereof, Notes called for redemption become irrevocably due and payable on the
redemption date at the redemption price. A notice of redemption may not be
conditional.

Section 3.05 Deposit of Redemption or Purchase Price.

      Prior to 11:00 a.m. Eastern Time on the redemption or purchase date, the
Company shall deposit with the Trustee or with the Paying Agent money sufficient
to pay the redemption or purchase price of and accrued interest and Special
Interest, if any, on all Notes to be redeemed or purchased on that date. The
Trustee or the Paying Agent shall promptly return to the Company any money
deposited with the Trustee or the Paying Agent by the Company in excess of the
amounts necessary to pay the redemption or purchase price of, and accrued
interest and Special Interest, if any, on, all Notes to be redeemed or
purchased.

      If the Company complies with the provisions of the preceding paragraph, on
and after the redemption or purchase date, interest shall cease to accrue on the
Notes or the portions of Notes called for redemption or purchase. If a Note is
redeemed or purchased on or after an interest record date but on or prior to the
related interest payment date, then any accrued and unpaid interest shall be
paid to the Person in whose name such Note was registered at the close of
business on such record date. If any Note called for redemption or purchase is
not so paid upon surrender for redemption or purchase because of the failure of
the Company to comply with the preceding paragraph, interest shall be paid on
the unpaid principal, from the redemption or purchase date until such principal
is paid, and to the extent lawful on any interest not paid on such unpaid
principal, in each case at the rate provided in the Notes and in Section 4.01
hereof.

Section 3.06 Notes Redeemed or Purchased in Part.

      Upon surrender of a Note that is redeemed or purchased in part, the
Company shall issue and, upon receipt of an Authentication Order, the Trustee
shall authenticate for the Holder at the expense of the Company a new Note equal
in principal amount to the unredeemed or unpurchased portion of the Note
surrendered.

Section 3.07 Optional Redemption.

      (a) At any time prior to July 15, 2007, the Company may on any one or more
occasions redeem up to 35% of the aggregate principal amount of Notes (including
any Additional Notes) issued under this Indenture at a redemption price of
108.750% of the principal amount thereof, plus accrued and unpaid interest and
Special Interest, if any, to the redemption date, with the net cash proceeds of
one or more Equity Offerings or a contribution to the Company's common equity
capital made with the net cash proceeds of a concurrent offering of common stock
of the Company's direct parent; provided that:

            (1) at least 65% of the aggregate principal amount of Notes
      (including any Additional Notes) issued under this Indenture (excluding
      Notes held by the Company and its Subsidiaries) remains outstanding
      immediately after the occurrence of such redemption; and

            (2) the redemption occurs within 60 days of the date of the closing
      of such Equity Offering or such contribution to the Company's common
      equity capital, as applicable.

      (b) At any time prior to July 15, 2008, the Company may also redeem all or
a part of the Notes, upon not less than 30 nor more than 60 days' prior notice
mailed by first-class mail to each Holder's registered address, at a redemption
price equal to 100% of the principal amount of Notes redeemed plus

                                       50
<PAGE>

the Applicable Premium as of, and accrued and unpaid interest and Special
Interest, if any, to the date of redemption, subject to the rights of Holders of
Notes on the relevant record date to receive interest due on the relevant
interest payment date.

      (c) Except pursuant to Sections 3.07(a) and (b) hereof, the Notes shall
not be redeemable at the Company's option prior to July 15, 2008.

      (d) On or after July 15, 2008, the Company may redeem all or a part of the
Notes upon not less than 30 nor more than 60 days' notice, at the redemption
prices (expressed as percentages of principal amount) set forth below plus
accrued and unpaid interest and Special Interest, if any, on the Notes redeemed
to the applicable redemption date, if redeemed during the twelve-month period
beginning on July 15 of the years indicated below, subject to the rights of
Holders on the relevant record date to receive interest on the relevant interest
payment date:

<TABLE>
<CAPTION>
             Year                       Percentage
             ----                       ----------
<S>                                     <C>
2008...........................          104.375%
2009...........................          102.188%
2010 and thereafter............          100.000%
</TABLE>

      Unless the Company defaults in the payment of the redemption price,
interest shall cease to accrue on the Notes or portions thereof called for
redemption on the applicable redemption date.

      (e) Any redemption pursuant to this Section 3.07 shall be made pursuant to
the provisions of Sections 3.01 through 3.06 hereof.

Section 3.08 Mandatory Redemption.

      The Company is not required to make mandatory redemption or sinking fund
payments with respect to the Notes.

Section 3.09 Offer to Purchase by Application of Excess Proceeds.

      In the event that, pursuant to Section 4.10 hereof, the Company shall be
required to commence an offer to all Holders to purchase Notes (an "Asset Sale
Offer"), it shall follow the procedures specified below.

      The Asset Sale Offer shall be made to all Holders and all holders of other
Indebtedness that is pari passu with the Notes containing provisions similar to
those set forth in this Indenture with respect to offers to purchase or redeem
with the proceeds of sales of assets. The Asset Sale Offer shall remain open for
a period of at least 20 Business Days following its commencement and not more
than 30 Business Days, except to the extent that a longer period is required by
applicable law (the "Offer Period"). No later than three Business Days after the
termination of the Offer Period (the "Purchase Date"), the Company shall apply
all Excess Proceeds (the "Offer Amount") to the purchase of Notes and such other
pari passu Indebtedness (on a pro rata basis, if applicable) or, if less than
the Offer Amount has been tendered, all Notes and other Indebtedness tendered in
response to the Asset Sale Offer. Payment for any Notes so purchased shall be
made in the same manner as interest payments are made.

      If the Purchase Date is on or after an interest record date and on or
before the related interest payment date, any accrued and unpaid interest and
Special Interest, if any, shall be paid to the Person in whose name a Note is
registered at the close of business on such record date, and no additional
interest shall be payable to Holders who tender Notes pursuant to the Asset Sale
Offer.

                                       51
<PAGE>

      Upon the commencement of an Asset Sale Offer, the Company shall send, by
first class mail, a notice to the Trustee and each of the Holders, with a copy
to the Trustee. The notice shall contain all instructions and materials
necessary to enable such Holders to tender Notes pursuant to the Asset Sale
Offer. The notice, which shall govern the terms of the Asset Sale Offer, shall
state:

      (a) that the Asset Sale Offer is being made pursuant to this Section 3.09
and Section 4.10 hereof and the length of time the Asset Sale Offer will remain
open;

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

      (c) that any Note not tendered or accepted for payment will continue to
accrue interest;

      (d) that, unless the Company defaults in making such payment, any Note
accepted for payment pursuant to the Asset Sale Offer will cease to accrue
interest after the Purchase Date;

      (e) that Holders electing to have a Note purchased pursuant to an Asset
Sale Offer may elect to have Notes purchased in integral multiples of $1,000
only;

      (f) that Holders electing to have Notes purchased pursuant to any Asset
Sale Offer will be required to surrender the Note, with the form entitled
"Option of Holder to Elect Purchase" attached to the Notes completed, or
transfer by book-entry transfer, to the Company, a Depositary, if appointed by
the Company, or a Paying Agent at the address specified in the notice at least
three days before the Purchase Date;

      (g) that Holders will be entitled to withdraw their election if the
Company, the Depositary or the Paying Agent, as the case may be, receives, not
later than the expiration of the Offer Period, a telegram, telex, facsimile
transmission or letter setting forth the name of the Holder, the principal
amount of the Note the Holder delivered for purchase and a statement that such
Holder is withdrawing his election to have such Note purchased;

      (h) that, if the aggregate principal amount of Notes and other pari passu
Indebtedness surrendered by holders thereof exceeds the Offer Amount, the
Company shall select the Notes and other pari passu Indebtedness to be purchased
on a pro rata basis based on the principal amount of Notes and such other pari
passu Indebtedness surrendered (with such adjustments as may be deemed
appropriate by the Company so that only Notes in denominations of $2,000, or
integral multiples of $1,000, will be purchased); and

      (i) that Holders whose Notes were purchased only in part will be issued
new Notes equal in principal amount to the unpurchased portion of the Notes
surrendered (or transferred by book-entry transfer).

      On or before the Purchase Date, the Company shall, to the extent lawful,
accept for payment, on a pro rata basis to the extent necessary, the Offer
Amount of Notes or portions thereof tendered pursuant to the Asset Sale Offer,
or if less than the Offer Amount has been tendered, all Notes tendered, and
shall deliver or cause to be delivered to the Trustee the Notes properly
accepted together with an Officers' Certificate stating that such Notes or
portions thereof were accepted for payment by the Company in accordance with the
terms of this Section 3.09. The Company, the Depositary or the Paying Agent, as
the case may be, shall promptly (but in any case not later than five days after
the Purchase Date) mail or deliver to each tendering Holder an amount equal to
the purchase price of the Notes tendered by such Holder and accepted by the
Company for purchase, and the Company shall promptly issue a new Note, and the
Trustee, upon written request from the Company, shall authenticate and mail or
deliver (or cause

                                       52
<PAGE>

to be transferred by book entry) such new Note to such Holder, in a principal
amount equal to any unpurchased portion of the Note surrendered. Any Note not so
accepted shall be promptly mailed or delivered by the Company to the Holder
thereof. The Company shall publicly announce the results of the Asset Sale Offer
on the Purchase Date.

      Other than as specifically provided in this Section 3.09, any purchase
pursuant to this Section 3.09 shall be made pursuant to the provisions of
Sections 3.01 through 3.06 hereof.

                                    ARTICLE 4
                                    COVENANTS

Section 4.01 Payment of Notes.

      The Company shall pay or cause to be paid the principal of, premium, if
any, and interest and Special Interest, if any, on, the Notes on the dates and
in the manner provided in the Notes. Principal, premium, if any, and interest
and Special Interest, if any will be considered paid on the date due if the
Paying Agent, if other than the Company or a Subsidiary thereof, holds as of
11:00 a.m. Eastern Time on the due date money deposited by the Company in
immediately available funds and designated for and sufficient to pay all
principal, premium, if any, and interest then due. The Company shall pay all
Special Interest, if any, in the same manner on the dates and in the amounts set
forth in the Registration Rights Agreement.

      The Company shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue principal at the rate equal to
1% per annum in excess of the then applicable interest rate on the Notes to the
extent lawful; it shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue installments of interest and
Special Interest (without regard to any applicable grace period) at the same
rate to the extent lawful.

Section 4.02 Maintenance of Office or Agency.

      The Company shall maintain in the Borough of Manhattan, the City of New
York, an office or agency (which may be an office of the Trustee or an Affiliate
of the Trustee, Registrar or co-registrar) where Notes may be surrendered for
registration of transfer or for exchange, where Notes may be presented for
payment and where notices and demands to or upon the Company in respect of the
Notes and this Indenture may be served. The Company shall give prompt written
notice to the Trustee of the location, and any change in the location, of such
office or agency. If at any time the Company shall fail to maintain any such
required office or agency or shall fail to furnish the Trustee with the address
thereof, such presentations, surrenders, notices and demands may be made or
served at the Corporate Trust Office of the Trustee.

      The Company may also from time to time designate one or more other offices
or agencies where the Notes may be presented or surrendered for any or 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 for such purposes. The Company shall give prompt written
notice to the Trustee of any such designation or rescission and of any change in
the location of any such other office or agency.

      The Company hereby designates the Corporate Office of the Trustee as one
such office or agency of the Company in accordance with Section 2.03 hereof.

Section 4.03 Reports.

                                       53
<PAGE>

      (a) Whether or not required by the rules and regulations of the SEC, so
long as any Notes are outstanding, the Company shall furnish to the Holders of
Notes or cause the Trustee to furnish to the Holders of Notes, within the time
periods specified in the SEC's rules and regulations:

            (1) all quarterly and annual reports that would be required to be
      filed with the SEC on Forms 10-Q and 10-K if the Company were required to
      file reports; and

            (2) all current reports that would be required to be filed with the
      SEC on Form 8-K if the Company were required to file such reports.

      All such reports shall be prepared in all material respects in accordance
with all of the rules and regulations applicable to such reports. Each annual
report on Form 10-K shall include a report on the Company's consolidated
financial statements by the Company's certified independent accountants. In
addition, the Company shall file a copy of each of the reports referred to in
clauses (1) and (2) above with the SEC for public availability within the time
periods specified in the rules and regulations applicable to such reports
(unless the SEC will not accept such a filing) and shall post the reports on its
website within those time periods.

      If, at any time, the Company is no longer subject to the periodic
reporting requirements of the Exchange Act for any reason, the Company shall
nevertheless continue filing the reports specified in the preceding paragraph
with the SEC within the time periods specified above unless the SEC will not
accept such a filing. The Company shall not take any action for the purpose of
causing the SEC not to accept any such filings. If, notwithstanding the
foregoing, the SEC will not accept the Company's filings for any reason, the
Company shall post the reports referred to in the preceding paragraph on its
website within the time periods that would apply if the Company were required to
file those reports with the SEC.

      (b) If the Company has designated any of its Subsidiaries as Unrestricted
Subsidiaries, then the quarterly and annual financial information required by
paragraph (a) of this Section 4.03 shall include a reasonably detailed
presentation, either on the face of the financial statements or in the footnotes
thereto, and in Management's Discussion and Analysis of Financial Condition and
Results of Operations, of the financial condition and results of operations of
the Company and its Restricted Subsidiaries separate from the financial
condition and results of operations of the Unrestricted Subsidiaries of the
Company.

      (c) For so long as any Notes remain outstanding, if at any time they are
not required to file with the SEC the reports required by paragraphs (a) and (b)
of this Section 4.03, the Company and the Guarantors shall furnish to the
Holders and to securities analysts and prospective investors, upon their
request, the information required to be delivered pursuant to Rule 144A(d)(4)
under the Securities Act.

      (d) Delivery of such reports, information and documents to the Trustee is
for informational purposes only and the Trustee's receipt of such shall not
constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Company's
compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officers' Certificates).

Section 4.04 Compliance Certificate.

      (a) The Company and each Guarantor (to the extent that such Guarantor is
so required under the TIA) shall deliver to the Trustee, within 90 days after
the end of each fiscal year, an Officers' Certificate, one of the signers of
which shall be the Chief Executive Officer, Chief Financial Officer or Chief
Accounting Officer, stating that a review of the activities of the Company and
its Subsidiaries during the preceding fiscal year has been made under the
supervision of the signing Officers with a view to

                                       54
<PAGE>

determining whether the Company has kept, observed, performed and fulfilled its
obligations under this Indenture and the Security Documents, and further
stating, as to each such Officer signing such certificate, that to the best of
his or her knowledge the Company has kept, observed, performed and fulfilled
each and every covenant contained in this Indenture the Security Documents and
is not in default in the performance or observance of any of the terms,
provisions and conditions of this Indenture the Security Documents (or, if a
Default or Event of Default has occurred, describing all such Defaults or Events
of Default of which he or she may have knowledge and what action the Company is
taking or proposes to take with respect thereto) and that to the best of his or
her knowledge no event has occurred and remains in existence by reason of which
payments on account of the principal of or interest, if any, on the Notes is
prohibited or if such event has occurred, a description of the event and what
action the Company is taking or proposes to take with respect thereto.

      (b) So long as any of the Notes are outstanding, the Company shall deliver
to the Trustee, forthwith upon any Officer becoming aware of any Default or
Event of Default, an Officers' Certificate specifying such Default or Event of
Default and what action the Company is taking or proposes to take with respect
thereto.

Section 4.05 Taxes.

      The Company will pay, and will cause each of its 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 is not adverse in any material respect
to the Holders of the Notes.

Section 4.06 Stay, Extension and Usury Laws.

      The Company and each of the Guarantors covenants (to the extent that it
may lawfully do so) that it shall not at any time insist upon, plead, or in any
manner whatsoever claim or take the benefit or advantage of, any stay, extension
or usury law wherever enacted, now or at any time hereafter in force, that may
affect the covenants or the performance of this Indenture; and the Company and
each of the Guarantors (to the extent that it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law, and covenants that it
shall not, by resort to any such law, hinder, delay or impede the execution of
any power herein granted to the Trustee, but shall suffer and permit the
execution of every such power as though no such law has been enacted.

Section 4.07 Restricted Payments.

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

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

            (2) purchase, redeem or otherwise acquire or retire for value any
      Equity Interests of the Company or any direct or indirect parent of the
      Company;

                                       55
<PAGE>

            (3) make any payment on or with respect to, or purchase, redeem,
      defease or otherwise acquire or retire for value any Indebtedness of the
      Company or any Guarantor that is contractually subordinated to the Notes
      or to any Note Guarantee (excluding any intercompany Indebtedness between
      or among the Company and any of its Restricted Subsidiaries), except a
      payment of interest or principal at the Stated Maturity thereof; or

            (4) make any Restricted Investment

      (all such payments and other actions set forth in these clauses (1)
through (4) above being collectively referred to as "Restricted Payments"),

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

            (1) no Default or Event of Default has occurred and is continuing or
      would occur as a consequence of such Restricted Payment;

            (2) the Company would, at the time of such Restricted Payment and
      after giving pro forma effect thereto as if such Restricted Payment had
      been made at the beginning of the applicable four-quarter period, have
      been permitted to incur at least $1.00 of additional Indebtedness pursuant
      to the Fixed Charge Coverage Ratio test set forth in Section 4.09(a)
      hereof; and

            (3) such Restricted Payment, together with the aggregate amount of
      all other Restricted Payments made by the Company and its Restricted
      Subsidiaries since the date of this Indenture (excluding Restricted
      Payments permitted by clauses (2), (3), (4), (5), (7) and (9) of paragraph
      (b) of this Section 4.07), is less than the sum, without duplication, of:

                  (A) 50% of the Consolidated Net Income of the Company for the
            period (taken as one accounting period) from the beginning of the
            first fiscal quarter commencing after the date of this Indenture to
            the end of the Company's most recently ended fiscal quarter for
            which internal financial statements are available at the time of
            such Restricted Payment (or, if such Consolidated Net Income for
            such period is a deficit, less 100% of such deficit); plus

                  (B) 100% of the aggregate net proceeds received by the Company
            since the date of this Indenture as a contribution to its common
            equity capital or from the issue or sale of Equity Interests of the
            Company (other than Disqualified Stock) or from the issue or sale of
            convertible or exchangeable Disqualified Stock or convertible or
            exchangeable debt securities of the Company that have been converted
            into or exchanged for such Equity Interests (other than Equity
            Interests (or Disqualified Stock or debt securities) sold to a
            Subsidiary of the Company); plus

                  (C) to the extent that any Restricted Investment that was made
            after the date of this Indenture is sold for cash or otherwise
            liquidated or repaid for cash, the lesser of (i) the cash return of
            capital with respect to such Restricted Investment (less the cost of
            disposition, if any) and (ii) the initial amount of such Restricted
            Investment; plus

                  (D) to the extent that any Unrestricted Subsidiary of the
            Company designated as such after the date of this Indenture is
            redesignated as a Restricted Subsidiary after the date of this
            Indenture, the lesser of (i) the Fair Market Value of the Company's
            Investment in such Subsidiary as of the date of such redesignation
            and (ii) such Fair

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<PAGE>

            Market Value as of the date on which such Subsidiary was originally
            designated as an Unrestricted Subsidiary after the date of this
            Indenture; plus

                  (E) 100% of any dividends received by the Company or a
            Restricted Subsidiary of the Company after the date of this
            Indenture from an Unrestricted Subsidiary of the Company, to the
            extent that such dividends were not otherwise included in the
            Consolidated Net Income of the Company for such period.

      (b) The provisions of Section 4.07(a) hereof shall not prohibit:

            (1) the payment of any dividend or the consummation of any
      irrevocable redemption within 60 days after the date of declaration of the
      dividend or giving of the redemption notice, as the case may be, if at the
      date of declaration or notice, the dividend or redemption payment would
      have complied with the provisions of this Indenture;

            (2) the making of any Restricted Payment in exchange for, or out of
      the net cash proceeds of the substantially concurrent sale (other than to
      a Subsidiary of the Company) of, Equity Interests of the Company (other
      than Disqualified Stock) or from the substantially concurrent contribution
      of common equity capital to the Company; provided that the amount of any
      such net cash proceeds that are utilized for any such Restricted Payment
      shall be excluded from clause (3)(B) of Section 4.07(a) hereof;

            (3) the repurchase, redemption, defeasance or other acquisition or
      retirement for value of the Company's 9-7/8% Senior Subordinated Notes due
      2007 with the net proceeds of this offer of the Notes and Indebtedness
      under the Credit Facilities;

            (4) the repurchase, redemption, defeasance or other acquisition or
      retirement for value of any Indebtedness of the Company or any Guarantor
      that is contractually subordinated to the Notes or to any Note Guarantee
      (in addition to that referred to in clause (3) above) with the net cash
      proceeds from a substantially concurrent incurrence of Permitted
      Refinancing Indebtedness;

            (5) so long as no Default has occurred and is continuing or would be
      caused thereby, the payment of any dividend (or, in the case of any
      partnership or limited liability company, any similar distribution) by a
      Restricted Subsidiary of the Company to the holders of its Equity
      Interests on a pro rata basis;

            (6) so long as no Default has occurred and is continuing or would be
      caused thereby, the repurchase, redemption or other acquisition or
      retirement for value of any Equity Interests of the Company or any
      Restricted Subsidiary of the Company held by any current or former
      officer, director or employee of the Company or any of its Restricted
      Subsidiaries pursuant to any equity subscription agreement, stock option
      agreement, shareholders' agreement or similar agreement; provided that the
      aggregate price paid for all such repurchased, redeemed, acquired or
      retired Equity Interests may not exceed $2.0 million in any twelve-month
      period;

            (7) so long as no Default has occurred and is continuing or would be
      caused thereby, the repurchase of Equity Interests deemed to occur upon
      the exercise of stock options to the extent such Equity Interests
      represent a portion of the exercise price of those stock options;

            (8) so long as no Default has occurred and is continuing or would be
      caused thereby, the declaration and payment of regularly scheduled or
      accrued dividends to holders of any class or series of Disqualified Stock
      of the Company or any Restricted Subsidiary of the Company issued

                                       57
<PAGE>

      on or after the date of this Indenture in accordance with the Fixed Charge
      Coverage Ratio test described in Section 4.09 hereof;

            (9) Permitted Payments to Parent; and

            (10) so long as no Default has occurred and is continuing or would
      be caused thereby, other Restricted Payments in an aggregate amount not to
      exceed $15.0 million since the date of this Indenture.

      The amount of all Restricted Payments (other than cash) will 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 Company 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
Section 4.07 will be determined by the Board of Directors of the Company whose
resolution with respect thereto will be delivered to the Trustee. The Board of
Directors' determination must be based upon an opinion or appraisal issued by an
accounting, appraisal or investment banking firm of national standing if the
Fair Market Value exceeds $25.0 million.

Section 4.08 Dividend and Other Payment Restrictions Affecting Subsidiaries.

      (a) The Company shall not, and shall not permit any of its Restricted
Subsidiaries to, directly or indirectly, create or permit to exist or become
effective any consensual encumbrance or restriction on the ability of any
Restricted Subsidiary to:

            (1) pay dividends or make any other distributions on its Capital
      Stock to the Company or any of its Restricted Subsidiaries, or with
      respect to any other interest or participation in, or measured by, its
      profits, or pay any indebtedness owed to the Company or any of its
      Restricted Subsidiaries;

            (2) make loans or advances to the Company or any of its Restricted
      Subsidiaries; or

            (3) sell, lease or transfer any of its properties or assets to the
      Company or any of its Restricted Subsidiaries.

      (b) The restrictions in Section 4.08(a) hereof shall not apply to
encumbrances or restrictions existing under or by reason of:

            (1) agreements governing Existing Indebtedness, the Credit
      Facilities and the Hedging Agreement as in effect on the date of this
      Indenture and any amendments, restatements, modifications, renewals,
      supplements, refundings, replacements or refinancings of those agreements;
      provided that the amendments, restatements, modifications, renewals,
      supplements, refundings, replacements or refinancings are not materially
      more restrictive, taken as a whole, with respect to such dividend and
      other payment restrictions than those contained in those agreements on the
      date of this Indenture;

            (2) this Indenture, the Notes and the Note Guarantees;

            (3) applicable law, rule, regulation or order;

            (4) any instrument governing Indebtedness or Capital Stock of a
      Person acquired by the Company or any of its Restricted Subsidiaries as in
      effect at the time of such acquisition (except

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<PAGE>

      to the extent such Indebtedness or Capital Stock was incurred in
      connection with or in contemplation of such acquisition), which
      encumbrance or restriction is not applicable to any Person, or the
      properties or assets of any Person, other than the Person, or the property
      or assets of the Person, so acquired; provided that, in the case of
      Indebtedness, such Indebtedness was permitted by the terms of this
      Indenture to be incurred;

            (5) customary non-assignment provisions in contracts and licenses
      entered into in the ordinary course of business;

            (6) purchase money obligations for property acquired in the ordinary
      course of business and Capital Lease Obligations that impose restrictions
      on the property purchased or leased of the nature described in clause (3)
      of Section 4.08(a) hereof;

            (7) any agreement for the sale or other disposition of a Restricted
      Subsidiary that restricts distributions by that Restricted Subsidiary
      pending the sale or other disposition;

            (8) Permitted Refinancing Indebtedness; provided that the
      restrictions contained in the agreements governing such Permitted
      Refinancing Indebtedness are not materially more restrictive, taken as a
      whole, than those contained in the agreements governing the Indebtedness
      being refinanced;

            (9) Liens permitted to be incurred under the provisions of Section
      4.12 hereof that limit the right of the debtor to dispose of the assets
      subject to such Liens;

            (10) provisions limiting the disposition or distribution of assets
      or property in joint venture agreements, asset sale agreements,
      sale-leaseback agreements, stock sale agreements and other similar
      agreements entered into with the approval of the Company's Board of
      Directors, which limitation is applicable only to the assets that are the
      subject of such agreements;

            (11) restrictions on cash or other deposits or net worth imposed by
      customers under contracts entered into in the ordinary course of business;

            (12) restrictions on cash or other deposits by parties under
      agreements entered into in the ordinary course of the Oil and Gas Business
      of the types described in the definition of Permitted Investments; and

            (13) customary restrictions on the disposition or distribution of
      assets or property in agreements entered into the ordinary course of
      business of the Oil and Gas Business of the types described in the
      definition of Permitted Investments.

Section 4.09 Incurrence of Indebtedness and Issuance of Preferred Stock.

      (a) The Company shall not, and shall 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), and the Company shall not issue any Disqualified Stock and shall not
permit any of its Restricted Subsidiaries to issue any shares of preferred
stock; provided, however, that the Company may incur Indebtedness (including
Acquired Debt) or issue Disqualified Stock, and the Guarantors may incur
Indebtedness (including Acquired Debt) or issue preferred stock, if the Fixed
Charge Coverage Ratio for the Company's most recently ended four full fiscal
quarters for which internal financial statements are available immediately
preceding the date on which such additional Indebtedness is incurred or such

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<PAGE>

Disqualified Stock or such preferred stock is issued, as the case may be, 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 or the Disqualified Stock or the preferred stock
had been issued, as the case may be, at the beginning of such four-quarter
period.

      (b) The provisions of Section 4.09(a) hereof shall not prohibit the
incurrence of any of the following items of Indebtedness (collectively,
"Permitted Debt"):

            (1) the incurrence by the Company and any Guarantor of additional
      Indebtedness and letters of credit under Credit Facilities in an aggregate
      principal amount at any one time outstanding under this clause (1) (with
      letters of credit being deemed to have a principal amount equal to the
      maximum potential liability of the Company and its Restricted Subsidiaries
      thereunder) not to exceed:

                  (A) prior to July 7, 2008, the greater of (i) $170.0 million
            less the aggregate amount of all Net Proceeds of Asset Sales applied
            by the Company or any of its Restricted Subsidiaries since the date
            of this Indenture to repay any term Indebtedness under a Credit
            Facility or to repay any revolving credit Indebtedness under a
            Credit Facility and effect a corresponding commitment reduction
            thereunder pursuant to Section 4.10 hereof less any amount that is
            released by the Hedge Counterparty under the Hedge Letter of Credit
            and (ii) 30% of ACNTA as of the date of such incurrence; and

                  (B) on or after July 7, 2008, the greater of (i) $130.0
            million less the aggregate amount of all Net Proceeds of Asset Sales
            applied by the Company or any of its Restricted Subsidiaries since
            the date of this Indenture to repay any term Indebtedness under a
            Credit Facility or to repay any revolving credit Indebtedness under
            a Credit Facility and effect a corresponding commitment reduction
            thereunder pursuant to Section 4.10 hereof less any amount that is
            released by the Hedge Counterparty under the Hedge Letter of Credit
            and (ii) 30% of ACNTA as of the date of such incurrence less $40.0
            million; provided that such amounts in the foregoing clauses (i) and
            (ii) of this paragraph shall be reduced by an additional $10.0
            million on each of the fifth, sixth and seventh anniversaries of the
            date of this Indenture;

            (2) the incurrence by the Company and any Guarantor of Indebtedness
      under the Hedge Agreement;

            (3) the incurrence by the Company and its Restricted Subsidiaries of
      the Existing Indebtedness;

            (4) the incurrence by the Company and the Guarantors of Indebtedness
      represented by the Notes and the related Note Guarantees to be issued on
      the date of this Indenture and the Exchange Notes and the related Note
      Guarantees to be issued pursuant to the Registration Rights Agreement;

            (5) the incurrence by the Company or any of its Restricted
      Subsidiaries of Permitted Refinancing Indebtedness in exchange for, or the
      net proceeds of which are used to renew, refund, refinance, replace,
      defease or discharge any Indebtedness (other than intercompany
      Indebtedness) that was permitted by this Indenture to be incurred under
      Section 4.09(a) hereof or clauses (3), (4), (5) or (14) of this Section
      4.09(b);

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<PAGE>

            (6) the incurrence by the Company or any of its Restricted
      Subsidiaries of intercompany Indebtedness between or among the Company and
      any of its Restricted Subsidiaries; provided, however, that:

                  (A) if the Company or any Guarantor is the obligor on such
            Indebtedness and the payee is not the Company or a Guarantor, such
            Indebtedness must be expressly subordinated to the prior payment in
            full in cash of all Obligations then due with respect to the Notes,
            in the case of the Company, or the Note Guarantee, in the case of a
            Guarantor; 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 Company or a Restricted Subsidiary of the
            Company and (ii) any sale or other transfer of any such Indebtedness
            to a Person that is not either the Company or a Restricted
            Subsidiary of the Company, will be deemed, in each case, to
            constitute an incurrence of such Indebtedness by the Company or such
            Restricted Subsidiary, as the case may be, that was not permitted by
            this clause (6);

            (7) the issuance by any of the Company's Restricted Subsidiaries to
      the Company or to any of its Restricted Subsidiaries of shares of
      preferred stock; provided, however, that:

                  (A) any subsequent issuance or transfer of Equity Interests
            that results in any such preferred stock being held by a Person
            other than the Company or a Restricted Subsidiary of the Company;
            and

                  (B) any sale or other transfer of any such preferred stock to
            a Person that is not either the Company or a Restricted Subsidiary
            of the Company,

            shall be deemed, in each case, to constitute an issuance of such
      preferred stock by such Restricted Subsidiary that was not permitted by
      this clause (7);

            (8) the incurrence by the Company or any of its Restricted
      Subsidiaries of Hedging Obligations in the ordinary course of business
      (other than pursuant to the Hedge Agreement);

            (9) the guarantee by the Company or any of the Guarantors of
      Indebtedness of the Company or a Restricted Subsidiary of the Company that
      was permitted to be incurred by another provision of this Section 4.09;
      provided that if the Indebtedness being guaranteed is subordinated to or
      pari passu with the Notes, then the Guarantee shall be subordinated or
      pari passu, as applicable, to the same extent as the Indebtedness
      guaranteed;

            (10) in-kind obligations relating to net oil and natural gas
      balancing positions arising in the ordinary course of business;

            (11) any obligation arising from agreements of the Company or a
      Restricted Subsidiary of the Company providing for indemnification,
      guarantee, adjustment of purchase price, holdback, contingency payment
      obligations based on the performance of the acquired or disposed asset or
      similar obligations, in each case, incurred or assumed in connection with
      the acquisition or disposition of any business, asset or Capital Stock of
      a Restricted Subsidiary of the Company;

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<PAGE>

            (12) the incurrence by the Company or any of the Guarantors of
      Indebtedness in respect of workers' compensation claims, self-insurance
      obligations, bankers' acceptances, performance and surety bonds in the
      ordinary course of business;

            (13) the incurrence by the Company or any of the Guarantors of
      Indebtedness arising from the honoring by a bank or other financial
      institution of a check, draft or similar instrument inadvertently drawn
      against insufficient funds, so long as such Indebtedness is covered within
      five Business Days; and

            (14) the incurrence by the Company or any of the Guarantors of
      additional Indebtedness in an aggregate principal amount (or accreted
      value, as applicable) at any time outstanding, including all Permitted
      Refinancing Indebtedness incurred to renew, refund, refinance, replace,
      defease or discharge any Indebtedness incurred pursuant to this clause
      (14), not to exceed $25.0 million.

      The Company shall not incur, and shall not permit any Guarantor to incur,
any Indebtedness (including Permitted Debt) that is contractually subordinated
in right of payment to any other Indebtedness of the Company or such Guarantor
unless such Indebtedness is also contractually subordinated in right of payment
to the Notes and the applicable Note Guarantee on substantially identical terms;
provided, however, that no Indebtedness will be deemed to be contractually
subordinated in right of payment to any other Indebtedness of the Company solely
by virtue of being unsecured or by virtue of being secured on a first or junior
Lien basis.

      For purposes of determining compliance with this Section 4.09, in the
event that an item of proposed Indebtedness meets the criteria of more than one
of the categories of Permitted Debt described in clauses (1) through (14) above,
or is entitled to be incurred pursuant to Section 4.09(a) hereof, the Company
shall be permitted to classify such item of Indebtedness on the date of its
incurrence, or later reclassify all or a portion of such item of Indebtedness,
in any manner that complies with this Section 4.09. Indebtedness under Credit
Facilities outstanding on the date on which Notes are first issued and
authenticated under this Indenture will initially be deemed to have been
incurred on such date in reliance on the exception provided by clause (1) of the
definition of Permitted Debt. The accrual of interest, the accretion or
amortization of original issue discount, the payment of interest on any
Indebtedness in the form of additional Indebtedness with the same terms, the
reclassification of preferred stock as Indebtedness due to a change in
accounting principles, and the payment of dividends on Disqualified Stock in the
form of additional shares of the same class of Disqualified Stock shall not be
deemed to be an incurrence of Indebtedness or an issuance of Disqualified Stock
for purposes of this Section 4.09; provided, in each such case, that the amount
of any such accrual, accretion or payment is included in Fixed Charges of the
Company as accrued. The amount of any premium payable on Indebtedness upon the
prepayment, redemption or other retirement for value of such Indebtedness shall
be disregarded in determining the amount of such Indebtedness. Notwithstanding
any other provision of this Section 4.09, the maximum amount of Indebtedness
that the Company or any Restricted Subsidiary may incur pursuant to this Section
4.09 shall not be deemed to be exceeded solely as a result of fluctuations in
exchange rates or currency values.

      The amount of any Indebtedness outstanding as of any date shall be:

            (1) the accreted value of the Indebtedness, in the case of any
      Indebtedness issued with original issue discount;

            (2) the principal amount of the Indebtedness, in the case of any
      other Indebtedness; and

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<PAGE>

            (3) in respect of Indebtedness of another Person secured by a Lien
      on the assets of the specified Person, the lesser of:

                  (A) the Fair Market Value of such assets at the date of
            determination; and

                  (B) the amount of the Indebtedness of the other Person.

Section 4.10 Asset Sales.

      (a) The Company shall not, and shall not permit any of its Restricted
Subsidiaries to, consummate an Asset Sale unless:

            (1) the Company (or the Restricted Subsidiary, as the case may be)
      receives consideration at the time of the Asset Sale at least equal to the
      Fair Market Value of the assets or Equity Interests issued or sold or
      otherwise disposed of; and

            (2) at least 75% of the consideration received in the Asset Sale by
      the Company or such Restricted Subsidiary is in the form of cash. For
      purposes of this provision, each of the following shall be deemed to be
      cash:

                  (A) any liabilities, as shown on the Company's most recent
            consolidated balance sheet, of the Company or any Restricted
            Subsidiary (other than contingent liabilities and liabilities that
            are by their terms subordinated to the Notes or any Note Guarantee)
            that are assumed by the transferee of any such assets pursuant to a
            customary novation agreement that releases the Company or such
            Restricted Subsidiary from further liability;

                  (B) any securities, Notes or other obligations received by the
            Company or any such Restricted Subsidiary from such transferee that
            are, within 90 days by the Company or such Restricted Subsidiary,
            converted by the Company or such Restricted Subsidiary into cash, to
            the extent of the cash received in that conversion; and

                  (C) any stock or assets of the kind referred to in Section
            4.10(b)(2) or (4) hereof.

      (b) Within 360 days after the receipt of any Net Proceeds from an Asset
Sale, other than a Sale of Collateral, the Company (or the applicable Restricted
Subsidiary, as the case may be) may apply such Net Proceeds at its option:

            (1) to repay Priority Lien Debt and, if such Priority Lien Debt is
      revolving credit Indebtedness, to correspondingly reduce commitments with
      respect thereto;

            (2) to acquire all or substantially all of the assets of, or any
      Capital Stock of, another Oil and Gas Business, if, after giving effect to
      any such acquisition of Capital Stock, the Oil and Gas Business is or
      becomes a Restricted Subsidiary of the Company;

            (3) to make a capital expenditure; or

            (4) to acquire other assets that are not classified as current
      assets under GAAP and that are used or useful in an Oil and Gas Business.

      (c) Within 360 days after the receipt of any Net Proceeds from an Asset
Sale that constitutes a Sale of Collateral or from a Casualty Event, the Company
(or the Restricted Subsidiary that owned those

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<PAGE>

assets, as the case may be) may apply those Net Proceeds to purchase other
long-term assets that would constitute Collateral or to repay Priority Lien Debt
and, if such Priority Lien Debt is revolving credit Indebtedness, to
correspondingly reduce commitments with respect thereto.

      (d) Any Net Proceeds from Asset Sales or Casualty Events that are not
applied or invested as provided in Section 4.10(b) or (c) hereof shall
constitute "Excess Proceeds." If following such application or investment, the
percentage of the Company's expected production volumes hedged exceeds a range
to be agreed between the Hedge Counterparty and the Company at the time each
hedge transaction is consummated, then the Company shall terminate that portion
of the hedges necessary in order to have the volumes hedged be within such
range, and shall apply Excess Proceeds to effect such termination. When the
aggregate amount of Excess Proceeds not so applied exceeds $15.0 million, within
ten days thereof, the Company shall make an Asset Sale Offer to all Holders of
Notes and all holders of other Parity Lien Debt containing provisions similar to
those set forth in this Indenture with respect to offers to purchase or redeem
with the proceeds of sales of assets in accordance with Section 3.09 hereof to
purchase the maximum principal amount of Notes and such other Parity Lien Debt
that may be purchased out of the Excess Proceeds. The offer price in any Asset
Sale Offer shall be equal to 100% of the principal amount plus accrued and
unpaid interest and Special Interest, if any, to the date of purchase and shall
be payable in cash. If any Excess Proceeds remain after consummation of an Asset
Sale Offer, the Company may use those Excess Proceeds for any purpose not
otherwise prohibited by this Indenture. If the aggregate principal amount of
Notes and other Parity Lien Debt tendered pursuant to such Asset Sale Offer
exceeds the amount of Excess Proceeds, the Trustee shall select the Notes and
such other Parity Lien Debt to be purchased on a pro rata basis. Upon completion
of each Asset Sale Offer, the amount of Excess Proceeds will be reset at zero.

      (e) The Company shall comply with the requirements of Rule 14e-1 under the
Exchange Act and any other securities laws and regulations thereunder to the
extent those laws and regulations are applicable in connection with each
repurchase of Notes pursuant to an Asset Sale Offer. To the extent that the
provisions of any securities laws or regulations conflict with the Asset Sale
provisions of this Indenture, the Company shall comply with the applicable
securities laws and regulations and shall not be deemed to have breached its
obligations under the Asset Sale provisions of this Indenture by virtue of such
compliance.

Section 4.11 Transactions with Affiliates.

      (a) The Company shall not, and shall not permit any of its Restricted
Subsidiaries to, make any payment to, or sell, lease, transfer or otherwise
dispose of any of its properties or assets to, or purchase any property or
assets from, or enter into or make or amend any transaction, contract,
agreement, understanding, loan, advance or guarantee with, or for the benefit
of, any Affiliate of the Company (each, an "Affiliate Transaction"), unless:

            (1) the Affiliate Transaction is on terms that are no less favorable
      to the Company or the relevant Restricted Subsidiary than those that would
      have been obtained in a comparable transaction by the Company or such
      Restricted Subsidiary with an unrelated Person; and

            (2) the Company delivers to the Trustee:

                  (A) with respect to any Affiliate Transaction or series of
            related Affiliate Transactions involving aggregate consideration in
            excess of $5.0 million, a resolution of the Board of Directors of
            the Company set forth in an Officers' Certificate certifying that
            such Affiliate Transaction complies with this Section 4.11 and that
            such Affiliate

                                       64
<PAGE>

            Transaction has been approved by a majority of the disinterested
            members of the Board of Directors, if any, of the Company; and

                  (B) with respect to any Affiliate Transaction or series of
            related Affiliate Transactions involving aggregate consideration in
            excess of $15.0 million, an opinion as to the fairness to the
            Company or such Subsidiary of such Affiliate Transaction from a
            financial point of view issued by an accounting, appraisal or
            investment banking firm of national standing.

      (b) The following items shall not be deemed to be Affiliate Transactions
and, therefore, shall not be subject to the provisions of Section 4.11(a)
hereof:

            (1) any employment agreement, employee benefit plan, officer or
      director indemnification agreement or any similar arrangement entered into
      by the Company or any of its Restricted Subsidiaries in the ordinary
      course of business and payments pursuant thereto;

            (2) transactions between or among the Company and/or its Restricted
      Subsidiaries;

            (3) transactions with a Person (other than an Unrestricted
      Subsidiary of the Company) that is an Affiliate of the Company solely
      because the Company owns, directly or through a Restricted Subsidiary, an
      Equity Interest in, or controls, such Person;

            (4) payment of reasonable directors' fees to Persons who are not
      otherwise Affiliates of the Company;

            (5) any issuance of Equity Interests (other than Disqualified Stock)
      of the Company to Affiliates of the Company;

            (6) Restricted Payments or Permitted Investments that do not violate
      Section 4.07 hereof;

            (7) payment of fees not in excess of $1.0 million per annum pursuant
      to the Management Agreement as in effect on the date of this Indenture,
      including any amendment or replacement agreement that is no more
      disadvantageous to the Holders of the Notes in any material respect than
      the original Management Agreement; provided that the amount of the fee
      shall not exceed $1.0 million per annum at any time;

            (8) payment of fees of $1,415,105, payable to Parent, upon the
      consummation of the Merger;

            (9) payment of fees not in excess of $5.9 million, payable to TPG
      Partners II L.P., upon the consummation of the Merger, pursuant to the
      Transaction Advisory Agreement as in effect on the date of this Indenture;

            (10) loans or advances to employees in the ordinary course of
      business not to exceed $1.0 million in the aggregate at any one time
      outstanding; and

            (11) Permitted Payments to Parent (without duplication of amounts
      permitted pursuant to clause (7) above).

Section 4.12 Liens.

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<PAGE>

      The Company shall not and shall not permit any of its Restricted
Subsidiaries to, create, incur, assume or otherwise cause or suffer to exist or
become effective any Lien of any kind (other than Permitted Liens) securing
Indebtedness, Attributable Debt or trade payables upon any of their property or
assets, now owned or hereafter acquired, unless all payments due under this
Indenture and the Notes are secured on an equal and ratable basis with the
obligations so secured until such time as such obligations are no longer secured
by a Lien.

Section 4.13 Business Activities.

      The Company shall not, and shall not permit any of its Restricted
Subsidiaries to, engage in any business other than Oil and Gas Businesses,
except to such extent as would not be material to the Company and its Restricted
Subsidiaries taken as a whole.

Section 4.14 Corporate Existence.

      Subject to Article 5 hereof, the Company shall do or cause to be done all
things necessary to preserve and keep in full force and effect:

      (a) its corporate existence, and the corporate, partnership or other
existence of each of its Subsidiaries, in accordance with the respective
organizational documents (as the same may be amended from time to time) of the
Company or any such Subsidiary; and

      (b) the rights (charter and statutory), licenses and franchises of the
Company and its Subsidiaries; provided, however, that the Company shall not be
required to preserve any such right, license or franchise, or the corporate,
partnership or other existence of any of its Subsidiaries, if the Board of
Directors shall determine that the preservation thereof is no longer desirable
in the conduct of the business of the Company and its Subsidiaries, taken as a
whole, and that the loss thereof is not adverse in any material respect to the
Holders of the Notes.

Section 4.15 Offer to Repurchase Upon Change of Control.

      (a) Upon the occurrence of a Change of Control, the Company will make an
offer (a "Change of Control Offer") to each Holder to repurchase all or any part
(equal to $1,000 or an integral multiple of $1,000) of that Holder's Notes at a
purchase price in cash equal to 101% of the aggregate principal amount of Notes
repurchased plus accrued and unpaid interest and Special Interest, if any, on
the Notes repurchased to the date of purchase, subject to the rights of Holders
on the relevant record date to receive interest due on the relevant interest
payment date (the "Change of Control Payment"). Within ten days following any
Change of Control, the Company will mail a notice to each Holder describing the
transaction or transactions that constitute the Change of Control and stating:

            (1) that the Change of Control Offer is being made pursuant to this
      Section 4.15 and that all Notes tendered will be accepted for payment;

            (2) the purchase price and the purchase date, which shall be no
      earlier than 30 days and no later than 60 days from the date such notice
      is mailed (the "Change of Control Payment Date");

            (3) that any Note not tendered will continue to accrue interest;

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            (4) that, unless the Company defaults in the payment of the Change
      of Control Payment, all Notes accepted for payment pursuant to the Change
      of Control Offer will cease to accrue interest after the Change of Control
      Payment Date;

            (5) that Holders electing to have any Notes purchased pursuant to a
      Change of Control Offer will be required to surrender the Notes, with the
      form entitled "Option of Holder to Elect Purchase" attached to the Notes
      completed, or transfer by book-entry transfer, to the Paying Agent at the
      address specified in the notice prior to the close of business on the
      third Business Day preceding the Change of Control Payment Date;

            (6) that Holders will be entitled to withdraw their election if the
      Paying Agent receives, not later than the close of business on the second
      Business Day preceding the Change of Control Payment Date, a telegram,
      telex, facsimile transmission or letter setting forth the name of the
      Holder, the principal amount of Notes delivered for purchase, and a
      statement that such Holder is withdrawing his election to have the Notes
      purchased; and

            (7) that Holders whose Notes are being purchased only in part will
      be issued new Notes equal in principal amount to the unpurchased portion
      of the Notes surrendered, which unpurchased portion must be equal to
      $1,000 in principal amount or an integral multiple thereof.

      The Company will comply with the requirements of Rule 14e-1 under the
Exchange Act and any other securities laws and regulations thereunder to the
extent those laws and regulations are applicable in connection with the
repurchase of the Notes as a result of a Change in Control. To the extent that
the provisions of any securities laws or regulations conflict with the
provisions of Sections 3.09 or 4.15 hereof, the Company will comply with the
applicable securities laws and regulations and will not be deemed to have
breached its obligations under Section 3.09 hereof or this Section 4.15 by
virtue of such compliance.

      (b) On the Change of Control Payment Date, the Company will, to the extent
lawful:

            (1) accept for payment all Notes or portions of Notes properly
      tendered pursuant to the Change of Control Offer;

            (2) deposit with the Paying Agent an amount equal to the Change of
      Control Payment in respect of all Notes or portions of Notes properly
      tendered; and

            (3) deliver or cause to be delivered to the Trustee the Notes
      properly accepted together with an Officers' Certificate stating the
      aggregate principal amount of Notes or portions of Notes being purchased
      by the Company.

      The Paying Agent will promptly mail (but in any case not later than five
days after the Change of Control Payment Date) to each Holder of Notes properly
tendered the Change of Control Payment for such Notes, and the Trustee will
promptly authenticate and mail (or cause to be transferred by book entry) to
each Holder a new Note equal in principal amount to any unpurchased portion of
the Notes surrendered, if any. The Company will publicly announce the results of
the Change of Control Offer on or as soon as practicable after the Change of
Control Payment Date.

      (c) Notwithstanding anything to the contrary in this Section 4.15, the
Company will not be required to make a Change of Control Offer upon a Change of
Control if (1) a third party makes the Change of Control Offer in the manner, at
the times and otherwise in compliance with the requirements set forth in this
Section 4.15 and Section 3.09 hereof and purchases all Notes properly tendered
and not

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withdrawn under the Change of Control Offer, or (2) notice of redemption has
been given pursuant to Section 3.07 hereof, unless and until there is a default
in payment of the applicable redemption price.

Section 4.16 Payments for Consent.

      The Company shall not, and shall not permit any of its Restricted
Subsidiaries to, directly or indirectly, pay or cause to be paid any
consideration to or for the benefit of any Holder of Notes for or as an
inducement to any consent, waiver or amendment of any of the terms or provisions
of this Indenture or the Notes unless such consideration is offered to be paid
and is paid to all Holders of the Notes that consent, waive or agree to amend in
the time frame set forth in the solicitation documents relating to such consent,
waiver or agreement.

Section 4.17 Additional Note Guarantees.

      If the Company or any of its Restricted Subsidiaries acquires or creates
another Domestic Subsidiary after the date of this Indenture, which Domestic
Subsidiary guarantees any Priority Lien Debt, then that newly acquired or
created Domestic Subsidiary shall become a Guarantor and execute a supplemental
indenture and deliver an Opinion of Counsel satisfactory to the Trustee and
deliver an Opinion of Counsel to the Trustee within 10 Business Days of the date
on which it was acquired or created to the effect that such supplemental
indenture has been duly authorized, executed and delivered by that Domestic
Subsidiary and constitutes a valid and binding agreement of that Domestic
Subsidiary, enforceable in accordance with its terms (subject to customary
exceptions); provided that any Domestic Subsidiary that constitutes an
Immaterial Subsidiary need not become a Guarantor until such time as it ceases
to be an Immaterial Subsidiary. The form of such Note Guarantee is attached as
Exhibit D hereto.

Section 4.18 Designation of Restricted and Unrestricted Subsidiaries.

      The Board of Directors of the Company may designate any Restricted
Subsidiary to be an Unrestricted Subsidiary if that designation would not cause
a Default. If a Restricted Subsidiary is designated as an Unrestricted
Subsidiary, the aggregate Fair Market Value of all outstanding Investments owned
by the Company and its Restricted Subsidiaries in the Subsidiary designated as
Unrestricted shall be deemed to be an Investment made as of the time of the
designation and shall reduce the amount available for Restricted Payments under
Section 4.07 hereof or under one or more clauses of the definition of Permitted
Investments, as determined by the Company. That designation shall only be
permitted if the Investment would be permitted at that time and if the
Restricted Subsidiary otherwise meets the definition of an Unrestricted
Subsidiary. The Board of Directors of the Company may redesignate any
Unrestricted Subsidiary to be a Restricted Subsidiary if that redesignation
would not cause a Default.

      Any designation of a Subsidiary of the Company as an Unrestricted
Subsidiary shall be evidenced to the Trustee by filing with the Trustee a
certified copy of a resolution of the Board of Directors giving effect to such
designation and an Officers' Certificate certifying that such designation
complied with the preceding conditions and was permitted by Section 4.07. 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
Company as of such date and, if such Indebtedness is not permitted to be
incurred as of such date under Section 4.09, the Company shall be in default of
such covenant. The Board of Directors of the Company may at any time designate
any Unrestricted Subsidiary to be a Restricted Subsidiary of the Company;
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

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(1) such Indebtedness is permitted under Section 4.09 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 or Event of Default would be in existence
following such designation.

Section 4.19 Termination of Hedge Agreement.

      The Company shall not, and shall not permit any of the Guarantors to,
terminate the Hedge Agreement or the obligations thereunder during the term of
the Notes other than in connection with a partial termination in connection with
an Asset Sale or Casualty Event.

Section 4.20 Changes in Covenants When Notes Rated Investment Grade.

      (a) If on any date following the date of this Indenture:

            (1) the Notes have an Investment Grade Rating; and

            (2) no Default or Event of Default shall have occurred and be
      continuing,

then, beginning on that day and subject to the provisions of the following
paragraph, the covenants under Sections 4.07, 4.08, 4.09, 4.10, 4.11 and
5.01(a)(4) shall be suspended.

      (b) Notwithstanding the foregoing, if the rating assigned by either such
rating agency should subsequently decline to below the Investment Grade Rating,
the foregoing covenants shall be reinstituted as of and from the date of such
rating decline. Calculations under the reinstated Section 4.07 shall be made as
if Section 4.07 had been in effect since the date of this Indenture except that
no default shall be deemed to have occurred solely by reason of a Restricted
Payment made while Section 4.07 was suspended.

                                    ARTICLE 5
                                   SUCCESSORS

Section 5.01 Merger, Consolidation, or Sale of Assets.

      (a) The Company shall not, directly or indirectly: consolidate or merge
with or into another Person (whether or not the Company is the surviving
Person); or sell, assign, transfer, convey or otherwise dispose of all or
substantially all of the properties or assets of the Company and its Restricted
Subsidiaries taken as a whole, in one or more related transactions, to another
Person, unless:

            (1) either: (A) the Company is the surviving Person; or (B) the
      Person formed by or surviving any such consolidation or merger (if other
      than the Company) or to which such sale, assignment, transfer, conveyance
      or other disposition has been made is either (i) a corporation organized
      or existing under the laws of the United States, any state of the United
      States or the District of Columbia, or (ii) a partnership or limited
      liability company organized or existing under the laws of the United
      States, any state thereof or the District of Columbia that has at least
      one Restricted Subsidiary that is a corporation organized or existing
      under the laws of the United States, any state thereof or the District of
      Columbia, which corporation becomes a co-issuer of the Notes pursuant to a
      supplemental indenture duly and validly executed by the Trustee;

            (2) the Person formed by or surviving any such consolidation or
      merger (if other than the Company) or the Person to which such sale,
      assignment, transfer, conveyance or other disposition

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<PAGE>

      has been made assumes all the obligations of the Company under the Notes,
      this Indenture and the Registration Rights Agreement pursuant to
      agreements reasonably satisfactory to the Trustee;

            (3) immediately after such transaction, no Default or Event of
      Default exists;

            (4) the Company or the Person formed by or surviving any such
      consolidation or merger (if other than the Company), or to which such
      sale, assignment, transfer, conveyance or other disposition has been made
      would, on the date of such transaction after giving pro forma effect
      thereto and any related financing transactions as if the same had occurred
      at the beginning of the applicable four-quarter period, be permitted to
      incur at least $1.00 of additional Indebtedness pursuant to the Fixed
      Charge Coverage Ratio test set forth in Section 4.09(a) hereof, and

            (5) the Trustee shall have received an opinion of counsel
      satisfactory to the Trustee stating that the Parity Lien granted under the
      Security Documents on the Collateral to secure the Notes shall be an
      enforceable and perfected second-priority Lien after giving effect to such
      consolidation, merger, sale, assignment, transfer, conveyance or other
      disposition.

      In addition, the Company shall not, directly or indirectly, lease all or
substantially all of the properties and assets of it and its Restricted
Subsidiaries taken as a whole, in one or more related transactions, to any other
Person.

      (b) Section 5.01(a) shall not apply to:

            (1) a merger of the Company with an Affiliate solely for the purpose
      of reincorporating the Company in another jurisdiction; or

            (2) any consolidation or merger, or any sale, assignment, transfer,
      conveyance, lease or other disposition of assets between or among the
      Company and its Restricted Subsidiaries.

Section 5.02 Successor Corporation Substituted.

      Upon any consolidation or merger, or any sale, assignment, transfer,
lease, conveyance or other disposition of all or substantially all of the
properties or assets of the Company in a transaction that is subject to, and
that complies with the provisions of, Section 5.01 hereof, the successor Person
formed by such consolidation or into or with which the Company is merged or to
which such sale, assignment, transfer, lease, conveyance or other disposition is
made shall succeed to, and be substituted for (so that from and after the date
of such consolidation, merger, sale, assignment, transfer, lease, conveyance or
other disposition, the provisions of this Indenture referring to the "Company"
shall refer instead to the successor Person and not to the Company), and may
exercise every right and power of the Company under this Indenture with the same
effect as if such successor Person had been named as the Company herein;
provided, however, that the predecessor Company shall not be relieved from the
obligation to pay the principal of and interest on the Notes except in the case
of a sale of all of the Company's assets in a transaction that is subject to,
and that complies with the provisions of, Section 5.01 hereof.

                                    ARTICLE 6
                              DEFAULTS AND REMEDIES

Section 6.01 Events of Default.

      Each of the following is an "Event of Default":

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      (a) default for 30 days in the payment when due of interest on, or Special
Interest, if any, with respect to, the Notes;

      (b) default in the payment when due (at maturity, upon redemption or
otherwise) of the principal of, or premium, if any, on, the Notes;

      (c) failure by the Company or any of its Restricted Subsidiaries to comply
with Sections 4.07, 4.09, 4.10, 4.15 or 5.01 hereof;

      (d) failure by the Company or any of its Restricted Subsidiaries for 60
days after notice to the Company by the Trustee or the Holders of at least 25%
in aggregate principal amount of the Notes then outstanding voting as a single
class to comply with any of the other agreements in this Indenture or the
Security Documents;

      (e) default under any mortgage, indenture or instrument under which there
may be issued or by which there may be secured or evidenced any Indebtedness for
money borrowed by the Company or any of its Restricted Subsidiaries (or the
payment of which is guaranteed by the Company or any of its Restricted
Subsidiaries), including, without limitation, the Hedge Agreement, whether such
Indebtedness or Guarantee now exists, or is created after the date of this
Indenture, if that default:

            (1) is caused by a failure to pay principal of, or interest or
      premium, if any, on, such Indebtedness prior to the expiration of the
      grace period provided in such Indebtedness on the date of such default (a
      "Payment Default"); or

            (2) results in the acceleration of such Indebtedness prior to its
      express 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 $10.0 million or more;

      (f) failure by the Company or any of its Restricted Subsidiaries to pay
final judgments entered by a court or courts of competent jurisdiction
aggregating in excess of $10.0 million, which judgments are not paid, discharged
or stayed for a period of 60 days;

      (g) the occurrence of any of the following:

            (1) except as permitted by this Indenture, any security document
      ceases for any reason to be fully enforceable; provided, that it will not
      be an Event of Default under this clause (g)(1) if the sole result of the
      failure of one or more Security Documents to be fully enforceable is that
      any Parity Lien purported to be granted under such Security Documents on
      Collateral, individually or in the aggregate, having a Fair Market Value
      of not more than $10.0 million ceases to be an enforceable and perfected
      third-priority Lien, subject only to Permitted Prior Liens;

            (2) any Parity Lien purported to be granted under any security
      document on Collateral, individually or in the aggregate, having a Fair
      Market Value in excess of $10.0 million ceases to be an enforceable and
      perfected second-priority Lien, subject only to Permitted Prior Liens; or

            (3) the Company or any other Pledgor, or any Person acting on behalf
      of any of them, denies or disaffirms, in writing, any obligation of the
      Company or any other Pledgor set forth in or arising under any security
      document;

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      (h) except as permitted by this Indenture, any Note Guarantee is held in
any judicial proceeding to be unenforceable or invalid or ceases for any reason
to be in full force and effect, or any Guarantor, or any Person acting on behalf
of any Guarantor, denies or disaffirms its obligations under its Note Guarantee;

      (i) the Company or any of its Restricted Subsidiaries that is a
Significant Subsidiary or any group of Restricted Subsidiaries of the Company
that, taken together, would constitute a Significant Subsidiary pursuant to or
within the meaning of Bankruptcy Law:

            (1) commences a voluntary case;

            (2) consents to the entry of an order for relief against it in an
      involuntary case;

            (3) consents to the appointment of a custodian of it or for all or
      substantially all of its property;

            (4) makes a general assignment for the benefit of its creditors; or

            (5) generally is not paying its debts as they become due; and

      (j) a court of competent jurisdiction enters an order or decree under any
Bankruptcy Law that:

            (1) is for relief against the Company or any of its Restricted
      Subsidiaries that is a Significant Subsidiary or any group of Restricted
      Subsidiaries of the Company that, taken together, would constitute a
      Significant Subsidiary in an involuntary case;

            (2) appoints a custodian of the Company or any of its Restricted
      Subsidiaries that is a Significant Subsidiary or any group of Restricted
      Subsidiaries of the Company that, taken together, would constitute a
      Significant Subsidiary or for all or substantially all of the property of
      the Company or any of its Restricted Subsidiaries that is a Significant
      Subsidiary or any group of Restricted Subsidiaries of the Company that,
      taken together, would constitute a Significant Subsidiary; or

            (3) orders the liquidation of the Company or any of its Restricted
      Subsidiaries that is a Significant Subsidiary or any group of Restricted
      Subsidiaries of the Company that, taken together, would constitute a
      Significant Subsidiary;

      and the order or decree remains unstayed and in effect for 60 consecutive
      days.

Section 6.02 Acceleration.

      In the case of an Event of Default specified in clause (h) or (i) of
Section 6.01 hereof, with respect to the Company, any Restricted Subsidiary of
the Company that is a Significant Subsidiary or any group of Restricted
Subsidiaries of the Company that, taken together, would constitute a Significant
Subsidiary, all outstanding Notes shall become due and payable immediately
without further action or notice. If any other Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in aggregate principal
amount of the then outstanding Notes may declare all the Notes to be due and
payable immediately,

      Upon any such declaration, the Notes shall become due and payable
immediately.

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      The Holders of a majority in aggregate principal amount of the then
outstanding Notes by written notice to the Trustee may, on behalf of all of the
Holders, rescind an acceleration and its consequences, if the rescission would
not conflict with any judgment or decree and if all existing Events of Default
(except nonpayment of principal, interest or premium or Special Interest, if
any, that has become due solely because of the acceleration) have been cured or
waived.

Section 6.03 Other Remedies.

      If an Event of Default occurs and is continuing, the Trustee may, subject
to the provisions of the Collateral Trust Agreement, pursue any available remedy
to collect the payment of principal, premium and Special Interest, if any, and
interest on the Notes or to enforce the performance of any provision of the
Notes or this Indenture.

      The Trustee may maintain a proceeding even if it does not possess any of
the Notes or does not produce any of them in the proceeding. A delay or omission
by the Trustee or any Holder of a Note 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. All remedies are
cumulative to the extent permitted by law.

Section 6.04 Waiver of Past Defaults.

      Holders of not less than a majority in aggregate principal amount of the
then outstanding Notes by notice to the Trustee may on behalf of the Holders of
all of the Notes waive an existing Default or Event of Default and its
consequences hereunder, except a continuing Default or Event of Default in the
payment of the principal of, premium and Special Interest, if any, or interest
on, the Notes (including in connection with an offer to purchase); provided,
however, that the Holders of a majority in aggregate principal amount of the
then outstanding Notes may rescind an acceleration and its consequences,
including any related payment default that resulted from such acceleration. Upon
any such waiver, such Default shall cease to exist, and any Event of Default
arising therefrom shall be deemed to have been cured for every purpose of this
Indenture; but no such waiver shall extend to any subsequent or other Default or
impair any right consequent thereon.

Section 6.05 Control by Majority.

      Holders of a majority in aggregate principal amount of the then
outstanding Notes may direct the time, method and place of conducting any
proceeding for exercising any remedy available to the Trustee or exercising any
trust or power conferred on it. However, the Trustee may refuse to follow any
direction that conflicts with law or this Indenture that the Trustee determines
may be unduly prejudicial to the rights of other Holders of Notes or that may
involve the Trustee in personal liability.

Section 6.06 Limitation on Suits.

      Subject to Article 7, in case an Event of Default occurs and is
continuing, the Trustee shall be under no obligation to exercise any of the
rights or powers under this Indenture at the request or direction of any Holders
of Notes unless such Holders have offered to the Trustee reasonable indemnity or
security against any loss, liability or expense. Except to enforce the right to
receive payment of principal, premium, if any, or interest or Special Interest,
if any, when due, no Holder of a Note may pursue any remedy with respect to this
Indenture or the Notes unless:

      (a) such Holder gives to the Trustee written notice that an Event of
Default is continuing;

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      (b) Holders of at least 25% in aggregate principal amount of the then
outstanding Notes make a written request to the Trustee to pursue the remedy;

      (c) such Holder or Holders offer and, if requested, provide to the Trustee
security or indemnity reasonably satisfactory to the Trustee against any loss,
liability or expense;

      (d) the Trustee does not comply with the request within 60 days after
receipt of the request and the offer of security or indemnity; and

      (e) during such 60-day period, Holders of a majority in aggregate
principal amount of the then outstanding Notes do not give the Trustee a
direction inconsistent with such request.

      A Holder of a Note may not use this Indenture to prejudice the rights of
another Holder of a Note or to obtain a preference or priority over another
Holder of a Note.

Section 6.07 Rights of Holders of Notes to Receive Payment.

      Notwithstanding any other provision of this Indenture, the right of any
Holder of a Note to receive payment of principal, premium and Special Interest,
if any, and interest on the Note, on or after the respective due dates expressed
in the Note (including in connection with an offer to purchase), 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; provided
that a Holder shall not have the right to institute any such suit for the
enforcement of payment if and to the extent that the institution or prosecution
thereof or the entry of judgment therein would, under applicable law, result in
the surrender, impairment, waiver or loss of the Lien of this Indenture upon any
property subject to such Lien.

Section 6.08 Collection Suit by Trustee.

      If an Event of Default specified in Section 6.01(a) or (b) hereof occurs
and is continuing, the Trustee is authorized to recover judgment in its own name
and as Trustee of an express trust against the Company for the whole amount of
principal of, premium and Special Interest, if any, and interest remaining
unpaid on, the Notes and interest on overdue principal and, to the extent
lawful, interest and such further amount as shall be sufficient to cover the
costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

Section 6.09 Trustee May File Proofs of Claim.

      The Trustee is authorized to 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 (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel) and the
Holders of the Notes allowed in any judicial proceedings relative to the Company
(or any other obligor upon the Notes), its creditors or its property and shall
be entitled and empowered to collect, receive and distribute any money or other
property payable or deliverable on any such claims and any custodian in any such
judicial proceeding is hereby authorized by each Holder to make such 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 to
it for the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 7.07 hereof. To the extent that the payment of any such compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, and
any other amounts due the Trustee under Section 7.07 hereof out of the estate in
any such proceeding, shall be denied for any reason, payment of the same shall
be secured by a Lien on, and shall be paid out of, any and all distributions,
dividends, money, securities and

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other properties that the Holders may be entitled to receive in such proceeding
whether in liquidation or under any plan of reorganization or arrangement or
otherwise. Nothing herein contained shall be deemed to authorize 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 Notes or
the rights of any Holder, or to authorize the Trustee to vote in respect of the
claim of any Holder in any such proceeding.

Section 6.10 Priorities.

      If the Trustee collects any money pursuant to this Article 6, to the
extent such money is not required to be paid to the Collateral Trustee for
application in accordance with the Collateral Trust Agreement, it shall pay out
the money in the following order:

      First: to the Trustee, its agents and attorneys for amounts due under
Section 7.07 hereof, including payment of all compensation, expenses and
liabilities incurred, and all advances made, by the Trustee and the costs and
expenses of collection;

      Second: to Holders of Notes for amounts due and unpaid on the Notes for
principal, premium and Special Interest, if any, and interest, ratably, without
preference or priority of any kind, according to the amounts due and payable on
the Notes for principal, premium and Special Interest, if any and interest,
respectively; and

      Third: to the Company or to such party as a court of competent
jurisdiction shall direct.

      The Trustee may fix a record date and payment date for any payment to
Holders of Notes pursuant to this Section 6.10.

Section 6.11 Undertaking for Costs.

      In any suit for the enforcement of any right or remedy under this
Indenture or in any suit against the Trustee for any action taken or omitted by
it as a Trustee, a court in its discretion may require the filing by any party
litigant in the suit of an undertaking to pay the costs of the suit, and the
court in its discretion may assess reasonable costs, including reasonable
attorneys' fees, against any party litigant in the suit, having due regard to
the merits and good faith of the claims or defenses made by the party litigant.
This Section 6.11 does not apply to a suit by the Trustee, a suit by a Holder of
a Note pursuant to Section 6.07 hereof, or a suit by Holders of more than 10% in
aggregate principal amount of the then outstanding Notes.

                                    ARTICLE 7
                                     TRUSTEE

Section 7.01 Duties of Trustee.

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

      (b) Except during the continuance of an Event of Default:

            (1) the duties of the Trustee shall be determined solely by the
      express provisions of this Indenture and the Trustee need perform only
      those duties that are specifically set forth in this

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      Indenture and no others, and no implied covenants or obligations shall be
      read into this Indenture against the Trustee; and

            (2) in the absence of bad faith on its part, the Trustee may
      conclusively rely, as to the truth of the statements and the correctness
      of the opinions expressed therein, upon certificates or opinions furnished
      to the Trustee and conforming to the requirements of this Indenture.
      However, the Trustee shall examine the certificates and opinions to
      determine whether or not they conform to the requirements of this
      Indenture.

      (c) The Trustee may not be relieved from liabilities for its own negligent
action, its own negligent failure to act, or its own willful misconduct, except
that:

            (1) this paragraph does not limit the effect of paragraph (b) of
      this Section 7.01;

            (2) the Trustee shall not be liable for any error of judgment made
      in good faith by a Responsible 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 6.05 hereof.

      (d) Whether or not therein expressly so provided, every provision of this
Indenture that in any way relates to the Trustee is subject to paragraphs (a),
(b), and (c) of this Section 7.01.

      (e) No provision of this Indenture shall require the Trustee to expend or
risk its own funds or incur any liability. The Trustee shall be under no
obligation to exercise any of its rights and powers under this Indenture at the
request of any Holders, unless such Holder has offered to the Trustee security
and indemnity satisfactory to it against any loss, liability or expense.

      (f) 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. Money held in
trust by the Trustee need not be segregated from other funds except to the
extent required by law.

      Section 7.02 Rights of Trustee.

      (a) The Trustee may conclusively rely upon any document believed by it to
be genuine and to have been signed or presented by the proper Person. The
Trustee need not investigate any fact or matter stated in the document.

      (b) Before the Trustee acts or refrains from acting, it may require an
Officers' Certificate or an Opinion of Counsel or both. The Trustee shall not be
liable for any action it takes or omits to take in good faith in reliance on
such Officers' Certificate or Opinion of Counsel. The Trustee may consult with
counsel of its selection and the advice of such counsel or any Opinion of
Counsel shall be full and complete authorization and protection from liability
in respect of any action taken, suffered or omitted by it hereunder in good
faith and in reliance thereon.

      (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.

      (d) The Trustee shall not be liable for any action it takes or omits to
take in good faith that it believes to be authorized or within the rights or
powers conferred upon it by this Indenture.

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      (e) Unless otherwise specifically provided in this Indenture, any demand,
request, direction or notice from the Company shall be sufficient if signed by
an Officer of the Company.

      (f) The Trustee shall be under no obligation to exercise any of the rights
or powers vested in it by this Indenture at the request or direction of any of
the Holders unless such Holders shall have offered to the Trustee reasonable
indemnity or security against the losses, liabilities and expenses that might be
incurred by it in compliance with such request or direction.

      (g) The Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture,
note, other evidence of indebtedness or other paper or document, but the
Trustee, in its discretion, may make such further inquiry or investigation into
such facts or matters as it may see fit, and, if the Trustee shall determine to
make such further inquiry or investigation, it shall be entitled to examine the
books, records and premises of the Company, personally or by agent or attorney
at the sole cost of the Company and shall incur no liability or additional
liability of any kind by reason of such inquiry or investigation.

      (h) In no event shall the Trustee be responsible or liable for special,
indirect, or consequential loss or damage of any kind whatsoever (including, but
not limited to, loss of profit) irrespective of whether the Trustee has been
advised of the likelihood of such loss or damage and regardless of the form of
action.

      (i) The Trustee shall not be deemed to have notice of any Default or Event
of Default unless a Responsible Officer of the Trustee has actual knowledge
thereof or unless written notice of any event which is in fact such a default is
received by the Trustee at the Corporate Trust Office of the Trustee, and such
notice references the Securities and this Indenture.

      (j) The rights, privileges, protections, immunities and benefits given to
the Trustee, including, without limitation, its right to be indemnified, are
extended to, and shall be enforceable by, the Trustee in each of its capacities
hereunder, and each agent, custodian and other Person employed to act hereunder.

Section 7.03 Individual Rights of Trustee.

      The Trustee in its individual or any other capacity may become the owner
or pledgee of Notes and may otherwise deal with the Company or any Affiliate of
the Company 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 (if this Indenture has been qualified under the TIA) or
resign. Any Agent may do the same with like rights and duties. The Trustee is
also subject to Sections 7.10 and 7.11 hereof.

Section 7.04 Trustee's Disclaimer.

      The Trustee shall not be responsible for and makes no representation as to
the validity or adequacy of this Indenture or the Notes, it shall not be
accountable for the Company's use of the proceeds from the Notes or any money
paid to the Company or upon the Company's direction under any provision of this
Indenture, it shall not be responsible for the use or application of any money
received by any Paying Agent other than the Trustee, and it shall not be
responsible for any statement or recital herein or any statement in the Notes or
any other document in connection with the sale of the Notes or pursuant to this
Indenture other than its certificate of authentication.

Section 7.05 Notice of Defaults.

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      If a Default or Event of Default occurs and is continuing and if it is
known to the Trustee, the Trustee shall mail to Holders of Notes a 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 in payment of principal of, premium or Special
Interest, if any, or interest on, any Note, the Trustee may withhold the notice
if and so long as a committee of its Responsible Officers in good faith
determines that withholding the notice is in the interests of the Holders of the
Notes.

Section 7.06 Reports by Trustee to Holders of the Notes.

      (a) Within 60 days after each May 15 beginning with the May 15 following
the date of this Indenture, and for so long as Notes remain outstanding, the
Trustee shall mail to the Holders of the Notes a brief report dated as of such
reporting date that complies with TIA Section 313(a) (but if no event described
in TIA Section 313(a) has occurred within the twelve months preceding the
reporting date, no report need be transmitted). The Trustee also shall comply
with TIA Section 313(b)(2). The Trustee shall also transmit by mail all reports
as required by TIA Section 313(c).

      (b) A copy of each report at the time of its mailing to the Holders of
Notes shall be mailed by the Trustee to the Company and filed by the Trustee
with the SEC and each stock exchange on which the Notes are listed in accordance
with TIA Section 313(d). The Company shall promptly notify the Trustee when the
Notes are listed on any stock exchange.

Section 7.07 Compensation and Indemnity.

      (a) The Company shall pay to the Trustee from time to time such
compensation for its acceptance of this Indenture and services hereunder as
shall be agreed in writing between the Company and the Trustee. 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 promptly upon request for
all reasonable disbursements, advances and expenses incurred or made by it in
addition to the compensation for its services. Such expenses shall include the
reasonable compensation, disbursements and expenses of the Trustee's agents and
counsel.

      (b) The Company and the Guarantors shall, jointly and severally, indemnify
the Trustee and any successor Trustee against any and all losses, damages,
claims, liabilities or expenses, including taxes (other than those based upon,
measured by or determined by the income of the Trustee), incurred by it arising
out of or in connection with the acceptance or administration of its duties
under this Indenture, including the costs and expenses of enforcing this
Indenture against the Company and the Guarantors (including this Section 7.07)
and defending itself against any claim (whether asserted by the Company, the
Guarantors, any Holder or any other Person) or liability in connection with the
exercise or performance of any of its powers or duties hereunder, except to the
extent any such loss, damage, claim, liability or expense may be attributable to
its negligence or bad faith. The Trustee shall notify the Company promptly of
any claim for which it may seek indemnity. Failure by the Trustee to so notify
the Company shall not relieve the Company or any of the Guarantors of their
obligations hereunder. The Company or such Guarantor shall defend the claim and
the Trustee shall cooperate in the defense. The Trustee may have separate
counsel and the Company shall pay the reasonable fees and expenses of such
counsel. Neither the Company nor any Guarantor need pay for any settlement made
without its consent, which consent shall not be unreasonably withheld.

      (c) The obligations of the Company and the Guarantors under this Section
7.07 shall survive the satisfaction and discharge and the resignation or removal
of the Trustee of this Indenture.

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<PAGE>

      (d) To secure the Company's and the Guarantors' payment obligations in
this Section 7.07, the Trustee shall have a Lien prior to the Notes on all money
or property held or collected by the Trustee, except that held in trust to pay
principal and interest on particular Notes. Such Lien shall survive the
satisfaction and discharge of this Indenture.

      (e) When the Trustee incurs expenses or renders services after an Event of
Default specified in Section 6.01(h) or (i) hereof occurs, the expenses and the
compensation for the services (including the fees and expenses of its agents and
counsel) are intended to constitute expenses of administration under any
Bankruptcy Law.

      (f) The Trustee shall comply with the provisions of TIA Section 313(b)(2)
to the extent applicable.

Section 7.08 Replacement of Trustee.

      (a) A resignation or removal of the Trustee and appointment of a successor
Trustee shall become effective only upon the successor Trustee's acceptance of
appointment as provided in this Section 7.08.

      (b) The Trustee may resign in writing at any time and be discharged from
the trust hereby created by so notifying the Company. The Holders of a majority
in aggregate principal amount of the then outstanding Notes may remove the
Trustee by so notifying the Trustee and the Company in writing. The Company may
remove the Trustee if:

            (1) the Trustee fails to comply with Section 7.10 hereof;

            (2) the Trustee is adjudged a bankrupt or an insolvent or an order
      for relief is entered with respect to the Trustee under any Bankruptcy
      Law;

            (3) a custodian or public officer takes charge of the Trustee or its
      property; or

            (4) the Trustee becomes incapable of acting.

      (c) If the Trustee resigns or is removed or if a vacancy exists in the
office of Trustee for any reason, the Company shall promptly appoint a successor
Trustee. Within one year after the successor Trustee takes office, the Holders
of a majority in aggregate principal amount of the then outstanding Notes may
appoint a successor Trustee to replace the successor Trustee appointed by the
Company.

      (d) If a successor Trustee does not take office within 60 days after the
retiring Trustee resigns or is removed, the retiring Trustee, the Company, or
the Holders of at least 10% in aggregate principal amount of the then
outstanding Notes may petition any court of competent jurisdiction at the
expense of the Company (in the case of the Trustee) for the appointment of a
successor Trustee.

      (e) If the Trustee, after written request by any Holder who has been a
Holder for at least six months, fails to comply with Section 7.10 hereof, such
Holder may petition any court of competent jurisdiction for the removal of the
Trustee and the appointment of a successor Trustee.

      (f) A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Thereupon, the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
under this Indenture. The successor Trustee shall mail a notice of its
succession to Holders. The retiring Trustee shall promptly transfer all property
held by it as Trustee to the successor Trustee; provided all sums owing to the
Trustee hereunder have been paid and subject to the Lien provided for in Section
7.07

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hereof. Notwithstanding replacement of the Trustee pursuant to this Section
7.08, the Company's obligations under Section 7.07 hereof shall continue for the
benefit of the retiring Trustee.

Section 7.09 Successor Trustee by Merger, etc.

      If the Trustee consolidates, merges or converts into, or transfers all or
substantially all of its corporate trust business to, another corporation, the
successor corporation without any further act shall be the successor Trustee.

Section 7.10      Eligibility; Disqualification.

      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 $50.0
million as set forth in its most recent published annual report of condition.

      This Indenture shall always have a Trustee who satisfies the requirements
of TIA Section 310(a)(1), (2) and (5). The Trustee is subject to TIA Section
310(b).

Section 7.11 Preferential Collection of Claims Against Company.

      The Trustee is subject to TIA Section 311(a), excluding any creditor
relationship listed in TIA Section 311(b). A Trustee who has resigned or been
removed shall be subject to TIA Section 311(a) to the extent indicated therein.

                                    ARTICLE 8
                    LEGAL DEFEASANCE AND COVENANT DEFEASANCE

Section 8.01 Option to Effect Legal Defeasance or Covenant Defeasance.

      The Company may at any time, at the option of its Board of Directors
evidenced by a resolution set forth in an Officers' Certificate, elect to have
either Section 8.02 or 8.03 hereof be applied to all outstanding Notes upon
compliance with the conditions set forth below in this Article 8.

Section 8.02 Legal Defeasance and Discharge.

      Upon the Company's exercise under Section 8.01 hereof of the option
applicable to this Section 8.02, the Company and each of the Guarantors shall,
subject to the satisfaction of the conditions set forth in Section 8.04 hereof,
be deemed to have been discharged from their obligations with respect to all
outstanding Notes (including the Note Guarantees) and pursuant to Section 10.03
hereof, the Collateral Trustee's Liens upon the Collateral in respect of the
Notes shall be terminated and discharged, on the date the conditions set forth
below are satisfied (hereinafter, "Legal Defeasance"). For this purpose, Legal
Defeasance means that the Company and the Guarantors shall be deemed to have
paid and discharged the entire Indebtedness represented by the outstanding Notes
(including the Note Guarantees), which shall thereafter be deemed to be
"outstanding" only for the purposes of Section 8.05 hereof and the other
Sections of this Indenture referred to in clauses (1) and (2) below, and to have
satisfied all their other obligations under such Notes, the Note Guarantees and
this Indenture (and the Trustee, on demand of and at the expense of the Company,
shall execute proper instruments acknowledging the same), except for the
following provisions which shall survive until otherwise terminated or
discharged hereunder:

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      (a) the rights of Holders of outstanding Notes to receive payments in
respect of the principal of, or interest or premium and Special Interest, if
any, on, such Notes when such payments are due from the trust referred to in
Section 8.04 hereof;

      (b) the Company's obligations with respect to such Notes under Article 2
and Section 4.02 hereof;

      (c) the rights, powers, trusts, duties and immunities of the Trustee
hereunder and the Company's and the Guarantors' obligations in connection
therewith; and

      (d) this Article 8.

      Subject to compliance with this Article 8, the Company may exercise its
option under this Section 8.02 notwithstanding the prior exercise of its option
under Section 8.03 hereof.

Section 8.03 Covenant Defeasance.

      Upon the Company's exercise under Section 8.01 hereof of the option
applicable to this Section 8.03, the Company and each of the Guarantors shall,
subject to the satisfaction of the conditions set forth in Section 8.04 hereof,
be released from each of their obligations under the covenants contained in
Sections 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.15, 4.16, 4.17, 4.18, 4.19
and 4.20 hereof and clause (4) of Section 5.01 hereof with respect to the
outstanding Notes (including the Note Guarantees) and pursuant to Section 10.03
hereof, the Collateral Trustee's Liens upon the Collateral in respect of the
Notes shall be terminated and discharged, on and after the date the conditions
set forth in Section 8.04 hereof are satisfied (hereinafter, "Covenant
Defeasance"), and the Notes shall thereafter be deemed not "outstanding" for the
purposes of any direction, waiver, consent or declaration or act of Holders (and
the consequences of any thereof) in connection with such covenants, but shall
continue to be deemed "outstanding" for all other purposes hereunder (it being
understood that such Notes shall not be deemed outstanding for accounting
purposes). For this purpose, Covenant Defeasance means that, with respect to the
outstanding Notes and Note Guarantees, the Company and the Guarantors may omit
to comply with and shall have no liability in respect of any term, condition or
limitation set forth in any such covenant (or such Note Guarantee), 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 shall not
constitute a Default or an Event of Default under Section 6.01 hereof, but,
except as specified above, the remainder of this Indenture and such Notes shall
be unaffected thereby. In addition, upon the Company's exercise under Section
8.01 hereof of the option applicable to this Section 8.03, subject to the
satisfaction of the conditions set forth in Section 8.04 hereof, Sections
6.01(c) through 6.01(e) hereof shall not constitute Events of Default.

Section 8.04      Conditions to Legal or Covenant Defeasance.

      In order to exercise either Legal Defeasance or Covenant Defeasance under
either Section 8.02 or 8.03 hereof:

      (a) the Company must irrevocably deposit with the Trustee, in trust, for
the benefit of the Holders, cash in U.S. dollars, non-callable Government
Securities, or a combination thereof, in such amounts as shall be sufficient, in
the opinion of a nationally recognized investment bank, appraisal firm, or firm
of independent public accountants, to pay the principal of, premium and Special
Interest, if any, and interest on, the outstanding Notes on the stated date for
payment thereof or on the applicable redemption date, as the case may be, and
the Company must specify whether the Notes are being defeased to such stated
date for payment or to a particular redemption date;

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<PAGE>

      (b) in the case of an election under Section 8.02 hereof, the Company must
deliver to the Trustee an Opinion of Counsel confirming that:

            (1) the Company has received from, or there has been published by,
      the Internal Revenue Service a ruling; or

            (2) since the date of this Indenture, there has been a change in the
      applicable federal income tax law,

            in either case to the effect that, and based thereon such Opinion of
      Counsel shall confirm that, the Holders of the outstanding Notes shall not
      recognize income, gain or loss for federal income tax purposes as a result
      of such Legal Defeasance and shall 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 had not occurred;

      (c) in the case of an election under Section 8.03 hereof, the Company must
deliver to the Trustee an Opinion of Counsel confirming that the Holders of the
outstanding Notes shall not recognize income, gain or loss for federal income
tax purposes as a result of such Covenant Defeasance and shall be subject to
federal income tax on the same amounts, in the same manner and at the same times
as would have been the case if such Covenant Defeasance had not occurred;

      (d) 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) and the deposit shall
not result in a breach or violation of, or constitute a default under, any other
instrument to which the Company or any Guarantor is a party or by which the
Company or any Guarantor is bound;

      (e) such Legal Defeasance or Covenant Defeasance shall not result in a
breach or violation of, or constitute a default under, any material agreement or
instrument (other than this Indenture) to which the Company or any of its
Subsidiaries is a party or by which the Company or any of its Subsidiaries is
bound;

      (f) the Company must deliver to the Trustee an Officers' Certificate
stating that the deposit was not made by the Company with the intent of
preferring the Holders of Notes over the other creditors of the Company with the
intent of defeating, hindering, delaying or defrauding any creditors of the
Company or others; and

      (g) the Company must deliver to the Trustee an Officers' Certificate and
an Opinion of Counsel, each stating that all conditions precedent relating to
the Legal Defeasance or the Covenant Defeasance have been complied with.

Section 8.05 Deposited Money and Government Securities to be Held in Trust;
Other Miscellaneous Provisions.

      Subject to Section 8.06 hereof, all money and non-callable Government
Securities (including the proceeds thereof) deposited with the Trustee (or other
qualifying trustee, collectively for purposes of this Section 8.05, the
"Trustee") pursuant to Section 8.04 hereof in respect of the outstanding Notes
shall be held in trust and applied by the Trustee, in accordance with the
provisions of such Notes and this Indenture, to the payment, either directly or
through any Paying Agent (including the Company acting as Paying Agent) as the
Trustee may determine, to the Holders of such Notes of all sums due and to
become

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<PAGE>

due thereon in respect of principal, premium and Special Interest, if any, and
interest, but such money need not be segregated from other funds except to the
extent required by law.

      The Company shall pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the cash or non-callable Government
Securities deposited pursuant to Section 8.04 hereof or the principal and
interest received in respect thereof other than any such tax, fee or other
charge which by law is for the account of the Holders of the outstanding Notes.

      Notwithstanding anything in this Article 8 to the contrary, the Trustee
shall deliver or pay to the Company from time to time upon the request of the
Company any money or non-callable Government Securities held by it as provided
in Section 8.04 hereof which, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee (which may be the opinion delivered under Section
8.04(1) hereof), are in excess of the amount thereof that would then be required
to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance.

Section 8.06 Repayment to Company.

      Any money deposited with the Trustee or any Paying Agent, or then held by
the Company, in trust for the payment of the principal of, premium or Special
Interest, if any, or interest on, any Note and remaining unclaimed for two years
after such principal, premium or Special Interest, if any, or interest has
become due and payable shall be paid to the Company on its request or (if then
held by the Company) shall be discharged from such trust; and the Holder of such
Note shall thereafter be permitted to look only to the Company for payment
thereof, and all liability of the Trustee or such Paying Agent with respect to
such trust money, and all liability of the Company as trustee thereof, shall
thereupon cease; 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 shall not be less than 30 days from the
date of such notification or publication, any unclaimed balance of such money
then remaining shall be repaid to the Company.

Section 8.07 Reinstatement.

      If the Trustee or Paying Agent is unable to apply any U.S. dollars or
non-callable Government Securities in accordance with Section 8.02 or 8.03
hereof, as the case may be, by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, then the Company's and the Guarantors' obligations under this
Indenture and the Notes and the Note Guarantees shall be revived and reinstated
as though no deposit had occurred pursuant to Section 8.02 or 8.03 hereof until
such time as the Trustee or Paying Agent is permitted to apply all such money in
accordance with Section 8.02 or 8.03 hereof, as the case may be; provided,
however, that, if the Company makes any payment of principal of, premium or
Special Interest, if any, or interest on, any Note following the reinstatement
of its obligations, the Company shall be subrogated to the rights of the Holders
of such Notes to receive such payment from the money held by the Trustee or
Paying Agent.

                                    ARTICLE 9
                        AMENDMENT, SUPPLEMENT AND WAIVER

Section 9.01 Without Consent of Holders of Notes.

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<PAGE>

      Notwithstanding Section 9.02 of this Indenture, the Company, the
Guarantors and the Trustee may amend or supplement this Indenture or the Notes
or the Note Guarantees without the consent of any Holder of Note:

      (a) to cure any ambiguity, defect or inconsistency;

      (b) to provide for uncertificated Notes in addition to or in place of
certificated Notes;

      (c) to provide for the assumption of the Company's or a Guarantor's
obligations to the Holders of the Notes and Note Guarantees by a successor to
the Company or such Guarantor pursuant to Article 5 or Article 11 hereof;

      (d) to make any change that would provide any additional rights or
benefits to the Holders of the Notes or that does not adversely affect the legal
rights hereunder of any Holder;

      (e) to comply with requirements of the SEC in order to effect or maintain
the qualification of this Indenture under the TIA;

      (f) to make, complete or confirm any grant of Collateral permitted or
required by this Indenture or any of the Security Documents or any release of
Collateral that becomes effective as set forth in this Indenture or any of the
Security Documents;

      (g) to conform the text of this Indenture, the Note Guarantees, the
Security Documents and/or the Notes to any provision of the "Description of
Notes" section of the Company's Offering Circular dated July 1, 2004, relating
to the initial offering of the Notes, to the extent that such provision in that
"Description of Notes" was intended to be a verbatim recitation of a provision
of this Indenture, the Note Guarantees, the Security Documents or the Notes;

      (h) to provide for the issuance of Additional Notes in accordance with the
limitations set forth in this Indenture as of the date hereof; or

      (i) to allow any Guarantor to execute a supplemental indenture and/or a
Note Guarantee with respect to the Notes.

      Upon the request of the Company accompanied by a resolution of its Board
of Directors authorizing the execution of any such amended or supplemental
indenture, and upon receipt by the Trustee of the documents described in Section
7.02 hereof, the Trustee shall join with the Company and the Guarantors in the
execution of any amended or supplemental indenture authorized or permitted by
the terms of this Indenture and to make any further appropriate agreements and
stipulations that may be therein contained, but the Trustee shall not be
obligated to enter into such amended or supplemental indenture that affects its
own rights, duties or immunities under this Indenture or otherwise.

Section 9.02 With Consent of Holders of Notes.

      Except as provided below in this Section 9.02, the Company and the Trustee
may amend or supplement this Indenture (including, without limitation, Section
3.09, 4.10 and 4.15 hereof) and the Notes and the Note Guarantees with the
consent of the Holders of at least a majority in aggregate principal amount of
the then outstanding Notes (including, without limitation, Additional Notes, if
any) voting as a single class (including, without limitation, consents obtained
in connection with a tender offer or exchange offer for, or purchase of, the
Notes), and, subject to Sections 6.04 and 6.07 hereof, any existing Default or
Event of Default (other than a Default or Event of Default in the payment of the

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principal of, premium or Special Interest, if any, or interest on, the Notes,
except a payment default resulting from an acceleration that has been rescinded)
or compliance with any provision of this Indenture or the Notes or the Note
Guarantees may be waived with the consent of the Holders of a majority in
aggregate principal amount of the then outstanding Notes (including, without
limitation, Additional Notes, if any) voting as a single class (including,
without limitation, consents obtained in connection with a tender offer or
exchange offer for, or purchase of, the Notes). Section 2.08 hereof shall
determine which Notes are considered to be "outstanding" for purposes of this
Section 9.02.

      Upon the request of the Company accompanied by a resolution of its Board
of Directors authorizing the execution of any such amended or supplemental
indenture, and upon the filing with the Trustee of evidence satisfactory to the
Trustee of the consent of the Holders of Notes as aforesaid, and upon receipt by
the Trustee of the documents described in Section 7.02 hereof, the Trustee shall
join with the Company and the Guarantors in the execution of such amended or
supplemental indenture unless such amended or supplemental indenture directly
affects the Trustee's own rights, duties or immunities under this Indenture or
otherwise, in which case the Trustee may in its discretion, but shall not be
obligated to, enter into such amended or supplemental Indenture.

      It is not be necessary for the consent of the Holders of Notes under this
Section 9.02 to approve the particular form of any proposed amendment,
supplement or waiver, but it is sufficient if such consent approves the
substance thereof.

      After an amendment, supplement or waiver under this Section 9.02 becomes
effective, the Company shall mail to the Holders of Notes affected thereby a
notice briefly describing the amendment, supplement or waiver. Any failure of
the Company to mail such notice, or any defect therein, shall not, however, in
any way impair or affect the validity of any such amended or supplemental
indenture or waiver. Subject to Sections 6.04 and 6.07 hereof, the Holders of a
majority in aggregate principal amount of the Notes then outstanding voting as a
single class may waive compliance in a particular instance by the Company with
any provision of this Indenture or the Notes or the Note Guarantees. However,
without the consent of each Holder affected, an amendment, supplement or waiver
under this Section 9.02 may not (with respect to any Notes held by a
non-consenting Holder):

      (a) reduce the principal amount of Notes whose Holders must consent to an
amendment, supplement or waiver;

      (b) reduce the principal of or change the fixed maturity of any Note or
alter or waive any of the provisions with respect to the redemption of the Notes
(except as provided above with respect to Sections 3.09, 4.10 and 4.15 hereof);

      (c) reduce the rate of or change the time for payment of interest,
including default interest, on any Note;

      (d) waive a Default or Event of Default in the payment of principal of, or
premium or Special Interest, if any, or interest on, the Notes (except a
rescission of acceleration of the Notes by the Holders of at least a majority in
aggregate principal amount of the then outstanding Notes and a waiver of the
payment default that resulted from such acceleration);

      (e) make any Note payable in money other than that stated in the Notes;

      (f) make any change in the provisions of this Indenture relating to
waivers of past Defaults or the rights of Holders of Notes to receive payments
of principal of, or interest or premium or Special Interest, if any, on, the
Notes;

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      (g) waive a redemption payment with respect to any Note (other than a
payment required by Sections 3.09, 4.10 or 4.15 hereof);

      (h) release any Guarantor from any of its obligations under its Note
Guarantee or this Indenture, except in accordance with the terms of this
Indenture; or

      (i) make any change in the preceding amendment and waiver provisions.

      In addition, any amendment to, or waiver of, the provisions of this
Indenture or any security document that has the effect of releasing any portion
of the Collateral from the Liens securing the Notes shall require the consent of
the Holders of at least 66-2/3% in aggregate principal amount of the Notes then
outstanding.

Section 9.03 Compliance with Trust Indenture Act.

      Every amendment or supplement to this Indenture or the Notes shall be set
forth in a amended or supplemental indenture that complies with the TIA as then
in effect.

Section 9.04 Revocation and Effect of Consents.

      Until an amendment, supplement or waiver becomes effective, a consent to
it by a Holder of a Note is a continuing consent by the Holder of a Note and
every subsequent Holder of a Note or portion of a Note that evidences the same
debt as the consenting Holder's Note, even if notation of the consent is not
made on any Note. However, any such Holder of a Note or subsequent Holder of a
Note may revoke the consent as to its Note if the Trustee receives written
notice of revocation before the date the amendment, supplement or waiver becomes
effective. An amendment, supplement or waiver becomes effective in accordance
with its terms and thereafter binds every Holder.

Section 9.05 Notation on or Exchange of Notes.

      The Trustee may place an appropriate notation about an amendment,
supplement or waiver on any Note thereafter authenticated. The Company in
exchange for all Notes may issue and the Trustee shall, upon receipt of an
Authentication Order, authenticate new Notes that reflect the amendment,
supplement or waiver.

      Failure to make the appropriate notation or issue a new Note shall not
affect the validity and effect of such amendment, supplement or waiver.

Section 9.06 Trustee to Sign Amendments, etc.

      The Trustee shall sign any amended or supplemental indenture authorized
pursuant to this Article 9 if the amendment or supplement does not adversely
affect the rights, duties, liabilities or immunities of the Trustee. The Company
may not sign an amended or supplemental indenture until the Board of Directors
of the Company approves it. In executing any amended or supplemental indenture,
the Trustee shall receive and (subject to Section 7.01 hereof) shall be fully
protected in relying upon, in addition to the documents required by Section
13.04 hereof, an Officers' Certificate and an Opinion of Counsel stating that
the execution of such amended or supplemental indenture is authorized or
permitted by this Indenture.

                                   ARTICLE 10
                             COLLATERAL AND SECURITY

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Section 10.01 Equal and Ratable Sharing of Collateral by Holders of Parity Lien
Debt.

      Notwithstanding: (1) anything to the contrary contained in the Security
Documents; (2) the time of incurrence of any Series of Parity Lien Debt; (3) the
order or method of attachment or perfection of any Liens securing any Series of
Parity Lien Debt; (4) the time or order of filing or recording of financing
statements, mortgages or other documents filed or recorded to perfect any Lien
upon any Collateral; (5) the time of taking possession or control over any
Collateral; (6) that any Parity Lien may not have been perfected or may be or
have become subordinated, by equitable subordination or otherwise, to any other
Lien; or (7) the rules for determining priority under any law governing relative
priorities of Liens:

      (a) all Parity Liens granted at any time by the Company or any other
Pledgor shall secure, equally and ratably, all present and future Parity Lien
Obligations; and

      (b) all proceeds of all Parity Liens granted at any time by the Company or
any other Pledgor shall be allocated and distributed equally and ratably on
account of the Parity Lien Debt and other Parity Lien Obligations.

      The foregoing provision is intended for the benefit of, and shall be
enforceable as a third party beneficiary by, each present and future holder of
Parity Lien Obligations, each present and future Parity Lien Representative and
the Collateral Trustee as holder of Parity Liens. The Parity Lien Representative
of each future Series of Parity Lien Debt shall be required to deliver a Lien
Sharing and Priority Confirmation to the Collateral Trustee and the Trustee at
the time of incurrence of such Series of Parity Lien Debt.

Section 10.02 Ranking of Parity Liens.

      Notwithstanding: (1) anything to the contrary contained in the Security
Documents; (2) the time of incurrence of any Series of Secured Debt; (3) the
order or method of attachment or perfection of any Liens securing any Series of
Secured Debt; (4) the time or order of filing or recording of financing
statements, mortgages or other documents filed or recorded to perfect any Lien
upon any Collateral; (5) the time of taking possession or control over any
Collateral; (6) that any Priority Lien may not have been perfected or may be or
have become subordinated, by equitable subordination or otherwise, to any other
Lien; or (7) the rules for determining priority under any law governing relative
priorities of Liens, all Parity Liens at any time granted by the Company or any
other Pledgor shall be subject and subordinate to all Priority Liens securing
Priority Lien Obligations up to the Priority Lien Cap.

      The foregoing provision is intended for the benefit of, and shall be
enforceable as a third party beneficiary by, each present and future holder of
Priority Lien Obligations, each present and future Priority Lien Representative
and the Collateral Trustee as holder of the Priority Liens. No other Person
shall be entitled to rely on, have the benefit of or enforce those provisions.
The Parity Lien Representative of each future Series of Parity Lien Debt shall
be required to deliver a Lien Sharing and Priority Confirmation to the
Collateral Trustee and each Priority Lien Representative at the time of
incurrence of such Series of Parity Lien Debt.

      In addition, the foregoing provision is intended solely to set forth the
relative ranking, as Liens, of the Liens securing Parity Lien Debt as against
the Priority Liens. Neither the Notes, the creditors in respect of Indebtedness
under the Hedge Agreement nor any holder of other Parity Lien Obligations nor
the exercise or enforcement of any right or remedy for the payment or collection
thereof are intended to be, or shall ever be by reason of the foregoing
provision, in any respect subordinated, deferred, postponed, restricted or
prejudiced.

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Section 10.03 Release of Liens in Respect of Notes.

      The Collateral Trustee's Liens upon the Collateral shall no longer secure
the Notes outstanding under this Indenture or any other Obligations under this
Indenture, and the right of the Holders of the Notes and such Obligations to the
benefits and proceeds of the Collateral Trustee's Liens on the Collateral shall
terminate and be discharged:

      (a) upon satisfaction and discharge of this Indenture as set forth under
Article 12 hereof;

      (b) upon a Legal Defeasance or Covenant Defeasance of the Notes as set
forth under Article 8 hereof;

      (c) upon payment in full and discharge of all Notes outstanding under this
Indenture and all Obligations that are outstanding, due and payable under this
Indenture at the time the Notes are paid in full and discharged;

      (d) in whole or in part, with the consent of the Holders of the requisite
percentage of Notes in accordance with Article 9 hereof; or

      (e) upon release of the Liens securing the Priority Lien Debt and the
Hedge Agreement; provided, however, that if, at any time following such release,
any Liens upon the Collateral are granted to secure any Priority Lien Debt or
the Hedge Agreement, then such liens shall also be granted to secure the Notes.

Section 10.04 Relative Rights.

      Nothing in the Note Documents shall:

      (a) impair, as between the Company and the Holders of the Notes, the
obligation of the Company to pay principal of, premium and interest and Special
Interest, if any, on the Notes in accordance with their terms or any other
obligation of the Company or any other Pledgor;

      (b) affect the relative rights of Holders of Notes as against any other
creditors of the Company or any other Pledgor (other than holders of Priority
Liens, Permitted Prior Liens or other Parity Liens);

      (c) restrict the right of any Holder of Notes to sue for payments that are
then due and owing (but not enforce any judgment in respect thereof against any
Collateral to the extent specifically prohibited under the Collateral Trust
Agreement);

      (d) restrict or prevent any Holder of Notes, any creditor in respect of
Indebtedness under the Hedge Agreement or any holder of other Parity Lien
Obligations, the Collateral Trustee or any Parity Lien Representative from
exercising any of its rights or remedies upon a Default or Event of Default not
specifically restricted or prohibited by the Collateral Trust Agreement; or

      (e) restrict or prevent any Holder of Notes, any creditor in respect of
Indebtedness under the Hedge Agreement or any holder of other Parity Lien
Obligations, the Collateral Trustee or any Parity Lien Representative from
taking any lawful action in an Insolvency or Liquidation Proceeding not
specifically restricted or prohibited by the Collateral Trust Agreement.

Section 10.05 Compliance with Trust Indenture Act.

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      The Company shall comply with the provisions of TIA Section 314.

      To the extent applicable, the Company shall cause TIA Section 313(b),
relating to reports, and TIA Section  314(d), relating to the release of
property or securities subject to the Lien of the Security Documents, to be
complied with. Any certificate or opinion required by TIA Section 314(d) may be
made by an Officer of the Company except in cases where TIA Section 314(d)
requires that such certificate or opinion be made by an independent Person,
which Person shall be an independent engineer, appraiser or other expert
selected by or reasonably satisfactory to the Trustee. Notwithstanding anything
to the contrary in this paragraph, the Company shall not be required to comply
with all or any portion of TIA Section 314(d) if it determines, in good faith
based on advice of counsel, that under the terms of TIA Section 314(d) and/or
any interpretation or guidance as to the meaning thereof of the SEC and its
staff, including "no action" letters or exemptive orders, all or any portion of
TIA Section 314(d) is inapplicable to one or a series of released Collateral.

Section 10.06 Further Assurances; Insurance.

      (a) The Company and each of the other Pledgors shall do or cause to be
done all acts and things that may be required, or that the Collateral Trustee
from time to time may reasonably request, to assure and confirm that the
Collateral Trustee holds, for the benefit of the holders of Secured Obligations,
duly created and enforceable and perfected Liens upon the Collateral (including
any property or assets that are acquired or otherwise become Collateral after
the Notes are issued), in each case, as contemplated by, and with the Lien
priority required under, the Secured Debt Documents.

      If the Company or any of the Pledgors acquires any material proved
producing Hydrocarbon Properties or develops any Hydrocarbon Properties that are
producing in commercial quantities, then the Company or such Pledgor shall, not
less than semi-annually, take all such actions and execute all documents that
the Collateral Trustee may reasonably request to create in favor of the
Collateral Trustee, for the benefit of the holders of the Secured Obligations,
valid and perfected security interests in such Hydrocarbon Properties.

      Upon the reasonable request of the Collateral Trustee or any Secured Debt
Representative at any time and from time to time, the Company and each of the
other Pledgors shall promptly execute, acknowledge and deliver such Security
Documents, instruments, certificates, notices and other documents, and take such
other actions as shall be reasonably required, or that the Collateral Trustee
may reasonably request, to create, perfect, protect, assure or enforce the Liens
and benefits intended to be conferred, in each case as contemplated by the
Secured Debt Documents for the benefit of the holders of Secured Obligations.

      (b) The Company and the other Pledgors shall:

            (1) keep their properties adequately insured at all times by
      financially sound and reputable insurers;

            (2) maintain such other insurance, to such extent and against such
      risks (and with such deductibles, retentions and exclusions), including
      fire and other risks insured against by extended coverage and coverage for
      acts of terrorism, as is customary with companies in the same or similar
      businesses operating in the same or similar locations, including public
      liability insurance against claims for personal injury or death or
      property damage occurring upon, in, about or in connection with the use of
      any properties owned, occupied or controlled by them;

            (3) maintain such other insurance as may be required by law; and

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            (4) maintain such other insurance as may be required by the Security
      Documents.

      (c) Upon the request of the Collateral Trustee, the Company and the other
Pledgors shall furnish to the Collateral Trustee full information as to their
property and liability insurance carriers. Holders of Secured Obligations, as a
class, shall be named as additional insureds, with a waiver of subrogation, on
all insurance policies of the Company and the other Pledgors and the Collateral
Trustee shall be named as loss payee, with 30 days' notice of cancellation or
material change, on all property and casualty insurance policies of the Company
and the other Pledgors.

                                   ARTICLE 11
                                 NOTE GUARANTEES

Section 11.01 Guarantee.

      (a) Subject to this Article 12, each of the Guarantors hereby, jointly and
severally, unconditionally guarantees on a second-priority basis to each Holder
of a Note authenticated and delivered by the Trustee and to the Trustee and its
successors and assigns, irrespective of the validity and enforceability of this
Indenture, the Notes or the obligations of the Company hereunder or thereunder,
that:

            (1) the principal, premium and Special Interest, if any, and
      interest on, the Notes shall be promptly paid in full when due, whether at
      maturity, by acceleration, redemption or otherwise, and interest on the
      overdue principal of and interest on the Notes, if any, if lawful, and all
      other obligations of the Company to the Holders or the Trustee hereunder
      or thereunder shall be promptly paid in full or performed, all in
      accordance with the terms hereof and thereof; and

            (2) in case of any extension of time of payment or renewal of any
      Notes or any of such other obligations, that same shall be promptly paid
      in full when due or performed in accordance with the terms of the
      extension or renewal, whether at stated maturity, by acceleration or
      otherwise.

      Failing payment when due of any amount so guaranteed or any performance so
guaranteed for whatever reason, the Guarantors shall be jointly and severally
obligated to pay the same immediately. Each Guarantor agrees that this is a
guarantee of payment and not a guarantee of collection.

      (b) The Guarantors hereby agree that their obligations hereunder are
unconditional, irrespective of the validity, regularity or enforceability of the
Notes or this Indenture, the absence of any action to enforce the same, any
waiver or consent by any Holder of the Notes with respect to any provisions
hereof or thereof, the recovery of any judgment against the Company, any action
to enforce the same or any other circumstance which might otherwise constitute a
legal or equitable discharge or defense of a guarantor. Each Guarantor hereby
waives diligence, presentment, demand of payment, filing of claims with a court
in the event of insolvency or bankruptcy of the Company, any right to require a
proceeding first against the Company, protest, notice and all demands whatsoever
and covenant that this Note Guarantee shall not be discharged except by complete
performance of the obligations contained in the Notes and this Indenture.

      (c) If any Holder or the Trustee is required by any court or otherwise to
return to the Company, the Guarantors or any custodian, trustee, liquidator or
other similar official acting in relation to either the Company or the
Guarantors, any amount paid by either to the Trustee or such Holder, this Note
Guarantee, to the extent theretofore discharged, shall be reinstated in full
force and effect.

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      (d) Each Guarantor agrees that it shall not be entitled to any right of
subrogation in relation to the Holders in respect of any obligations guaranteed
hereby until payment in full of all obligations guaranteed hereby. Each
Guarantor further agrees that, as between the Guarantors, on the one hand, and
the Holders and the Trustee, on the other hand, (1) the maturity of the
obligations guaranteed hereby may be accelerated as provided in Article 6 hereof
for the purposes of this Note Guarantee, notwithstanding any stay, injunction or
other prohibition preventing such acceleration in respect of the obligations
guaranteed hereby, and (2) in the event of any declaration of acceleration of
such obligations as provided in Article 6 hereof, such obligations (whether or
not due and payable) shall forthwith become due and payable by the Guarantors
for the purpose of this Note Guarantee. The Guarantors shall have the right to
seek contribution from any non-paying Guarantor so long as the exercise of such
right does not impair the rights of the Holders under the Note Guarantee.

Section 11.02 Limitation on Guarantor Liability.

      Each Guarantor, and by its acceptance of Notes, each Holder, hereby
confirms that it is the intention of all such parties that the Note Guarantee of
such 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
Note Guarantee. To effectuate the foregoing intention, the Trustee, the Holders
and the Guarantors hereby irrevocably agree that the obligations of such
Guarantor shall be limited to the maximum amount that shall, after giving effect
to such maximum amount and all other contingent and fixed liabilities of such
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 11, result in the obligations of such Guarantor
under its Note Guarantee not constituting a fraudulent transfer or conveyance.

Section 11.03 Execution and Delivery of Note Guarantee.

      To evidence its Note Guarantee set forth in Section 11.01 hereof, each
Guarantor hereby agrees that a notation of such Note Guarantee substantially in
the form attached as Exhibit D hereto shall be endorsed by an Officer of such
Guarantor on each Note authenticated and delivered by the Trustee and that this
Indenture shall be executed on behalf of such Guarantor by one of its Officers.

      Each Guarantor hereby agrees that its Note Guarantee set forth in Section
11.01 hereof shall remain in full force and effect notwithstanding any failure
to endorse on each Note a notation of such Note Guarantee.

      If an Officer whose signature is on this Indenture or on the Note
Guarantee no longer holds that office at the time the Trustee authenticates the
Note on which a Note Guarantee is endorsed, the Note Guarantee shall be valid
nevertheless.

      The delivery of any Note by the Trustee, after the authentication thereof
hereunder, shall constitute due delivery of the Note Guarantee set forth in this
Indenture on behalf of the Guarantors.

      In the event that the Company or any of its Restricted Subsidiaries
creates or acquires any Domestic Subsidiary after the date of this Indenture, if
required by Section 4.17 hereof, the Company shall cause such Domestic
Subsidiary to comply with the provisions of Section 4.17 hereof and this Article
11, to the extent applicable.

Section 11.04 Guarantors May Consolidate, etc., on Certain Terms.

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      Except as otherwise provided in Section 11.05 hereof, no Guarantor may
sell or otherwise dispose of all or substantially all of its assets to, or
consolidate with or merge with or into (whether or not such Guarantor is the
surviving Person) another Person, other than the Company or another Guarantor,
unless:

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

      (b) either:

            (1) subject to Section 11.05 hereof, the Person acquiring the
      property in any such sale or disposition or the Person formed by or
      surviving any such consolidation or merger unconditionally assumes all the
      obligations of that Guarantor under this Indenture, its Note Guarantee and
      the Registration Rights Agreement on the terms set forth herein or
      therein, pursuant to a supplemental indenture in form and substance
      reasonably satisfactory to the Trustee; or

            (2) the Net Proceeds of such sale or other disposition are applied
      in accordance with the applicable provisions of this Indenture, including
      without limitation, Section 4.10 hereof.

      In case of any such consolidation, merger, sale or conveyance and upon the
assumption by the successor Person, by supplemental indenture, executed and
delivered to the Trustee and satisfactory in form to the Trustee, of the Note
Guarantee endorsed upon the Notes and the due and punctual performance of all of
the covenants and conditions of this Indenture to be performed by the Guarantor,
such successor Person shall succeed to and be substituted for the Guarantor with
the same effect as if it had been named herein as a Guarantor. Such successor
Person thereupon may cause to be signed any or all of the Note Guarantees to be
endorsed upon all of the Notes issuable hereunder which theretofore shall not
have been signed by the Company and delivered to the Trustee. All the Note
Guarantees so issued shall in all respects have the same legal rank and benefit
under this Indenture as the Note Guarantees theretofore and thereafter issued in
accordance with the terms of this Indenture as though all of such Note
Guarantees had been issued at the date of the execution hereof.

      Except as set forth in Articles 4 and 5 hereof, and notwithstanding
clauses (b)(1) and (b)(2) above, nothing contained in this Indenture or in any
of the Notes shall prevent any consolidation or merger of a Guarantor with or
into the Company or another Guarantor, or shall prevent any sale or conveyance
of the property of a Guarantor as an entirety or substantially as an entirety to
the Company or another Guarantor.

Section 11.05 Releases.

      (a) The Guarantee of a Guarantor shall be released:

            (1) In the event of any sale or other disposition of all or
      substantially all of the assets of any Guarantor, by way of merger,
      consolidation or otherwise, or a sale or other disposition of all of the
      Capital Stock of any Guarantor, in each case to a Person that is not
      (either before or after giving effect to such transactions) the Company or
      a Restricted Subsidiary of the Company, then such Guarantor (in the event
      of a sale or other disposition, by way of merger, consolidation or
      otherwise, of all of the Capital Stock of such Guarantor) or the
      corporation acquiring the property (in the event of a sale or other
      disposition of all or substantially all of the assets of such Guarantor)
      will be released and relieved of any obligations under its Note Guarantee;
      provided that the Net Proceeds of such sale or other disposition are
      applied in accordance with the applicable provisions of this Indenture,
      including without limitation Section 4.10 hereof. Upon delivery by the
      Company to the Trustee of an Officers' Certificate and an Opinion of
      Counsel to

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      the effect that such sale or other disposition was made by the Company in
      accordance with the provisions of this Indenture, including without
      limitation Section 4.10 hereof, the Trustee will execute any documents
      reasonably required in order to evidence the release of any Guarantor from
      its obligations under its Note Guarantee.

            (2) Upon designation of any Guarantor as an Unrestricted Subsidiary
      in accordance with the terms of this Indenture, such Guarantor will be
      released and relieved of any obligations under its Note Guarantee.

            (3) If any Guarantor is released from its Guarantee of Priority Lien
      Debt and the Hedge Agreement, such Guarantor will be released and relieved
      of any obligations under its Note Guarantee; provided, however, that if,
      at any time following such release, that Guarantor provides a Guarantee of
      any Priority Lien Debt or the Hedge Agreement, then such Guarantor shall
      be required to provide a Note Guarantee at such time.

            (4) Upon Legal Defeasance or Covenant Defeasance in accordance with
      Article 8 hereof or satisfaction and discharge of this Indenture in
      accordance with Article 12 hereof, each Guarantor will be released and
      relieved of any obligations under its Note Guarantee.

      Any Guarantor not released from its obligations under its Note Guarantee
as provided in this Section 11.05 shall remain liable for the full amount of
principal of and interest and premium and Special Interest, if any, on the Notes
and for the other obligations of any Guarantor under this Indenture as provided
in this Article 11.

                                   ARTICLE 12
                           SATISFACTION AND DISCHARGE

Section 12.01 Satisfaction and Discharge.

      This Indenture shall be discharged and shall cease to be of further effect
as to all Notes issued hereunder, when:

      (a) either:

            (1) all Notes that have been authenticated, except lost, stolen or
      destroyed Notes that have been replaced or paid and Notes 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

            (2) all Notes that have not been delivered to the Trustee for
      cancellation have become due and payable by reason of the mailing of a
      notice of redemption or otherwise or shall become due and payable within
      one year and the Company or any Guarantor has irrevocably deposited or
      caused to be 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 shall be
      sufficient, without consideration of any reinvestment of interest, to pay
      and discharge the entire Indebtedness on the Notes not delivered to the
      Trustee for cancellation for principal, premium and Special Interest, if
      any, and accrued interest to the date of maturity or redemption;

      (b) no Default or Event of Default has occurred and is 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) and the deposit shall not
result in a breach or violation of, or constitute a default under, any other

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instrument to which the Company or any Guarantor is a party or by which the
Company or any Guarantor is bound;

      (c) the Company or any Guarantor has paid or caused to be paid all sums
payable by it under this Indenture; and

      (d) the Company has delivered irrevocable instructions to the Trustee
under this Indenture to apply the deposited money toward the payment of the
Notes at maturity or on the redemption date, as the case may be.

      In addition, the Company must deliver an Officers' Certificate and an
Opinion of Counsel to the Trustee stating that all conditions precedent to
satisfaction and discharge have been satisfied.

      Notwithstanding the satisfaction and discharge of this Indenture, if money
has been deposited with the Trustee pursuant to subclause (b) of clause (1) of
this Section 12.01, the provisions of Sections 11.02 and 8.06 hereof shall
survive. In addition, nothing in this Section 12.01 shall be deemed to discharge
those provisions of Section 7.07 hereof, that, by their terms, survive the
satisfaction and discharge of this Indenture.

Section 12.02 Application of Trust Money.

      Subject to the provisions of Section 8.06 hereof, all money deposited with
the Trustee pursuant to Section 12.01 hereof shall be held in trust and applied
by it, in accordance with the provisions of the Notes and this Indenture, to the
payment, either directly or through any Paying Agent (including the Company
acting as its own Paying Agent) as the Trustee may determine, to the Persons
entitled thereto, of the principal (and premium and Special Interest, if any)
and interest for whose payment such money has been deposited with the Trustee;
but such money need not be segregated from other funds except to the extent
required by law.

      If the Trustee or Paying Agent is unable to apply any money or Government
Securities in accordance with Section 12.01 hereof by reason of any legal
proceeding or by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, the
Company's and any Guarantor's obligations under this Indenture and the Notes
shall be revived and reinstated as though no deposit had occurred pursuant to
Section 12.01 hereof; provided that if the Company has made any payment of
principal of, premium or Special Interest, if any, or interest on, any Notes
because of the reinstatement of its obligations, the Company shall be subrogated
to the rights of the Holders of such Notes to receive such payment from the
money or Government Securities held by the Trustee or Paying Agent.

                                   ARTICLE 13
                                  MISCELLANEOUS

Section 13.01 Trust Indenture Act Controls.

      If any provision of this Indenture limits, qualifies or conflicts with the
duties imposed by TIA Section 318(c), the imposed duties shall control.

Section 13.02 Notices.

      Any notice or communication by the Company, any Guarantor or the Trustee
to the others is duly given if in writing and delivered in Person or by first
class mail (registered or certified, return receipt

                                       94
<PAGE>

requested), facsimile transmission or overnight air courier guaranteeing next
day delivery, to the others' address:

      If to the Company and/or any Guarantor:

      Belden & Blake Corporation
      5200 Stoneham Road
      North Canton, OH 44720
      Facsimile No.: (330) 497-5463
      Attention: Robert W. Peshek

      With copies to:

      Bricker & Eckler LLP
      100 South Third Street
      Columbus, OH 43215
      Facsimile No.: (614) 227-2390
      Attention: John Cook, Esq.

      and

      Vinson & Elkins LLP.
      666 Fifth Avenue, 26th Floor
      New York, NY 10103-0040
      Facsimile No.: (330) 497-5463
      Attention: Allan Reiss, Esq.

      If to the Trustee:

      BNY Midwest Trust Company
      Corporate Trust Department
      2 N. LaSalle Street, Suite 1020
      Chicago, IL 60602
      Facsimile No.: (312) 827-8542
      Attention: Linda Garcia

      The Company, any Guarantor or the Trustee, by notice to the others, may
designate additional or different addresses for subsequent notices or
communications.

      All notices and communications (other than those sent to Holders) 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; when receipt acknowledged, if transmitted by facsimile; and
the next Business Day after timely delivery to the courier, if sent by overnight
air courier guaranteeing next day delivery.

      Any notice or communication to a Holder shall be mailed by first class
mail, certified or registered, return receipt requested, or by overnight air
courier guaranteeing next day delivery to its address shown on the register kept
by the Registrar. Any notice or communication shall also be so mailed to any
Person described in TIA Section 313(c), to the extent required by the TIA.
Failure to mail a notice or communication to a Holder or any defect in it shall
not affect its sufficiency with respect to other Holders.

                                       95
<PAGE>

      If a notice or communication is mailed in the manner provided above within
the time prescribed, it is duly given, whether or not the addressee receives it.

      If the Company mails a notice or communication to Holders, it shall mail a
copy to the Trustee and each Agent at the same time.

Section 13.03 Communication by Holders of Notes with Other Holders of Notes.

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

Section 13.04 Certificate and Opinion as to Conditions Precedent.

      Upon any request or application by the Company to the Trustee to take any
action under this Indenture, the Company shall furnish to the Trustee:

      (a) an Officers' Certificate in form and substance reasonably satisfactory
to the Trustee (which must include the statements set forth in Section 13.05
hereof) stating that, in the opinion of the signers, all conditions precedent
and covenants, if any, provided for in this Indenture relating to the proposed
action have been satisfied; and

      (b) an Opinion of Counsel in form and substance reasonably satisfactory to
the Trustee (which must include the statements set forth in Section 13.05
hereof) stating that, in the opinion of such counsel, all such conditions
precedent and covenants have been satisfied.

Section 13.05 Statements Required in Certificate or Opinion.

      Each certificate or opinion with respect to compliance with a condition or
covenant provided for in this Indenture (other than a certificate provided
pursuant to TIA Section 314(a)(4)) must comply with the provisions of TIA
Section 314(e) and must include:

      (a) a statement that the Person making such certificate or opinion has
read such covenant or condition;

      (b) 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;

      (c) 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 satisfied; and

      (d) a statement as to whether or not, in the opinion of such Person, such
condition or covenant has been satisfied.

Section 13.06 Rules by Trustee and Agents.

      The Trustee may make reasonable rules for action by or at a meeting of
Holders. The Registrar or Paying Agent may make reasonable rules and set
reasonable requirements for its functions.

Section 13.07 No Personal Liability of Directors, Officers, Employees and
Stockholders.

                                       96
<PAGE>

      No director, officer, employee, incorporator or stockholder of the Company
or any Guarantor, as such, shall have any liability for any obligations of the
Company or the Guarantors under the Notes, this Indenture, the Note Guarantees,
the Note Documents or for any claim based on, in respect of, or by reason of,
such obligations or their creation. Each Holder of Notes by accepting a Note
waives and releases all such liability. The waiver and release are part of the
consideration for issuance of the Notes. The waiver may not be effective to
waive liabilities under the federal securities laws.

Section 13.08 Governing Law.

      THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO
CONSTRUE THIS INDENTURE, THE NOTES AND THE NOTE GUARANTEES.

Section 13.09 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.

Section 13.10 Successors.

      All agreements of the Company in this Indenture and the Notes shall bind
its successors. All agreements of the Trustee in this Indenture shall bind its
successors. All agreements of each Guarantor in this Indenture shall bind its
successors, except as otherwise provided in Section 11.05 hereof.

Section 13.11 Severability.

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

Section 13.12 Counterpart Originals.

      The parties may sign any number of copies of this Indenture. Each signed
copy shall be an original, but all of them together represent the same
agreement.

Section 13.13 Table of Contents, Headings, etc.

      The Table of Contents, Cross-Reference Table and Headings of the Articles
and Sections of this Indenture have been inserted for convenience of reference
only, are not to be considered a part of this Indenture and shall in no way
modify or restrict any of the terms or provisions hereof.

                         [Signatures on following page]

                                       97
<PAGE>

                                   SIGNATURES

Dated as of July 7, 2004
                                           BELDEN & BLAKE CORPORATION

                                           By: /s/ Robert W. Peshek
                                               ---------------------------------
                                               Name: Robert W. Peshek
                                               Title: Senior Vice President and
                                                      Chief Financial Officer

                                           THE CANTON OIL & GAS COMPANY

                                           By: /s/ Robert W. Peshek
                                               ---------------------------------
                                               Name: Robert W. Peshek
                                               Title: Senior Vice President and
                                                      Chief Financial Officer

                                           WARD LAKE DRILLING, INC.

                                           By: /s/ Robert W. Peshek
                                               ---------------------------------
                                               Name: Robert W. Peshek
                                               Title: Senior Vice President and
                                                      Chief Financial Officer
<PAGE>

                                           BNY MIDWEST TRUST COMPANY

                                           By: /s/ L. Garcia
                                               ---------------------------------
                                               Name: L. Garcia
                                               Title: Assistant Vice President
<PAGE>

                              [Face of Global Note]

                                                            CUSIP/CINS _________

                       8.75% Senior Secured Notes due 2012

No. ___                                                            $____________

                           BELDEN & BLAKE CORPORATION

promises to pay to [____________] or registered assigns, the principal sum of
__________________________________________________________ DOLLARS on
_____________, 2012.

Interest Payment Dates:  January 15 and July 15

Record Dates:  January 1 and July 1

Dated:  July __, 2004

                                           BELDEN & BLAKE CORPORATION

                                           By: _________________________________
                                               Name:
                                               Title:

This is one of the Global Notes referred
to in the within-mentioned Indenture:

BNY MIDWEST TRUST COMPANY,
  as Trustee

By: _______________________________________
              Authorized Signatory

                                      A-1
<PAGE>

                              [Back of Global Note]

                       8.75% Senior Secured Notes due 2012

[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. Belden & Blake Corporation, an Ohio corporation (the
      "Company"), promises to pay interest on the principal amount of this Note
      at 8.75% per annum from July 7, 2004 until maturity and shall pay the
      Special Interest, if any, payable pursuant to Section 2 of the
      Registration Rights Agreement referred to below. The Company will pay
      interest and Special Interest, if any, semi-annually in arrears on January
      15 and July 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 Notes 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 Note 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 January 15,
      2005. The Company will pay interest (including post-petition interest in
      any proceeding under any Bankruptcy Law) on overdue principal and premium,
      if any, from time to time on demand at a rate that is 1% per annum in
      excess of the rate then in effect to the extent lawful; it will pay
      interest (including post-petition interest in any proceeding under any
      Bankruptcy Law) on overdue installments of interest and Special Interest,
      if any, (without regard to any applicable grace periods) from time to time
      on demand at the same rate to the extent lawful. Interest will be computed
      on the basis of a 360-day year of twelve 30-day months.

            (2) METHOD OF PAYMENT. The Company will pay interest on the Notes
      (except defaulted interest) and Special Interest, if any, to the Persons
      who are registered Holders of Notes at the close of business on the
      January 1 or July 1 next preceding the Interest Payment Date, even if such
      Notes are canceled after such record date and on or before such Interest
      Payment Date, except as provided in Section 2.12 of the Indenture with
      respect to defaulted interest. The Notes will be payable as to principal,
      premium and Special Interest, if any, and interest at the office or agency
      of the Company maintained for such purpose within or without the City and
      State of New York, or, at the option of the Company, payment of interest
      and Special Interest, if any, may be made by check mailed to the Holders
      at their addresses set forth in the register of Holders; provided that
      payment by wire transfer of immediately available funds will be required
      with respect to principal of and interest, premium and Special Interest,
      if any, on, all Global Notes and all other Notes the Holders of which will
      have provided wire transfer instructions to the Company or 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.

            (3) PAYING AGENT AND REGISTRAR. Initially, BNY Midwest Trust
      Company, the Trustee under the Indenture, will act as Paying Agent and
      Registrar. The Company may change any Paying Agent or Registrar without
      notice to any Holder. The Company or any of its Subsidiaries may act in
      any such capacity.

                                      A-2
<PAGE>

            (4) INDENTURE. The Company issued the Notes under an Indenture dated
      as of July 7, 2004 (the "Indenture") among the Company, the Guarantors and
      the Trustee. The terms of the Notes include those stated in the Indenture
      and those made part of the Indenture by reference to the TIA. The Notes
      are subject to all such terms, and Holders are referred to the Indenture
      and such Act for a statement of such terms. To the extent any provision of
      this Note conflicts with the express provisions of the Indenture, the
      provisions of the Indenture shall govern and be controlling. The Notes are
      secured obligations of the Company. The Notes are secured by security
      interests in the Collateral pursuant to the Security Documents.

            (5) OPTIONAL REDEMPTION.

                  (a) Except as set forth in subparagraphs (b) and (c) of this
      Paragraph 5, the Company will not have the option to redeem the Notes
      prior to July 15, 2008. On or after July 15, 2008, the Company will have
      the option to redeem all or a part of the Notes upon not less than 30 nor
      more than 60 days' notice, at the redemption prices (expressed as
      percentages of principal amount) set forth below plus accrued and unpaid
      interest and Special Interest, if any, on the Notes redeemed to the
      applicable redemption date, if redeemed during the twelve-month period
      beginning on July 15 of the years indicated below, subject to the rights
      of Holders on the relevant record date to receive interest on the relevant
      interest payment date:

<TABLE>
<CAPTION>
        Year                                Percentage
        ----                                ----------
<S>                                         <C>
2008...............................          104.375%
2009...............................          102.188%
2009 and thereafter................          100.000%
</TABLE>

      Unless the Company defaults in the payment of the redemption price,
interest will cease to accrue on the Notes or portions thereof called for
redemption on the applicable redemption date.

                  (b) Notwithstanding the provisions of subparagraph (a) of this
      Paragraph 5, at any time prior to July 15, 2007, the Company may on any
      one or more occasions redeem up to 35% of the aggregate principal amount
      of Notes (including any Additional Notes) issued under the Indenture at a
      redemption price of 108.750% of the principal amount, plus accrued and
      unpaid interest and Special Interest, if any, to the redemption date, with
      the net cash proceeds of an one or more Equity Offerings or a contribution
      to the Company's common equity capital made with the net cash proceeds of
      a concurrent offering of common stock of the Company's direct parent;
      provided that at least 65% in aggregate principal amount of the Notes
      (including any Additional Notes) issued under the Indenture (excluding
      Notes held by the Company and its Subsidiaries) remains outstanding
      immediately after the occurrence of such redemption and the redemption
      occurs within 60 days of the date of the closing of such Equity Offering
      or such contribution to the Company's common equity capital, as
      applicable.

                  (c) Notwithstanding the provisions of subparagraphs (a) or (b)
      of this Paragraph 5, at any time prior to July 15, 2008, the Company may
      also redeem all or a part of the Notes, upon not less than 30 nor more
      than 60 days' prior notice mailed by first-class mail to each Holder's
      registered address, at a redemption price equal to 100% of the principal
      amount of Notes redeemed plus the Applicable Premium as of, and accrued
      and unpaid interest and Special Interest, if any, to the date of
      redemption, subject to the rights of Holders of Notes on the relevant
      record date to receive interest due on the relevant interest payment date.

            (6) MANDATORY REDEMPTION.

                                      A-3
<PAGE>

      The Company is not be required to make mandatory redemption or sinking
fund payments with respect to the Notes.

            (7) REPURCHASE AT THE OPTION OF HOLDER.

                  (a) If there is a Change of Control, the Company will be
      required to make an offer (a "Change of Control Offer") to each Holder to
      repurchase all or any part (equal to $1,000 or an integral multiple
      thereof) of each Holder's Notes at a purchase price in cash equal to 101%
      of the aggregate principal amount thereof plus accrued and unpaid interest
      and Special Interest, if any, thereon to the date of purchase, subject to
      the rights of Holders on the relevant record date to receive interest due
      on the relevant interest payment date (the "Change of Control Payment").
      Within 30 days following any Change of Control, the Company will mail a
      notice to each Holder setting forth the procedures governing the Change of
      Control Offer as required by the Indenture.

                  (b) Any Net Proceeds from Asset Sales or Casualty Events that
      are not applied or invested as described in Section 4.10 of the Indenture
      will constitute "Excess Proceeds." If following such application or
      investment, the percentage of the Company's expected production volumes
      hedged exceeds a range to be agreed between the Hedge Counterparty and the
      Company at the time each hedge transaction is consummated, then the
      Company shall terminate that portion of the hedges necessary in order to
      have the volumes hedged be within such range, and shall apply Excess
      Proceeds to effect such termination. When the aggregate amount of Excess
      Proceeds not so applied exceeds $15.0 million, within ten days thereof,
      the Company will make an Asset Sale Offer to all Holders of Notes and all
      holders of other Parity Lien Debt containing provisions similar to those
      set forth in the Indenture with respect to offers to purchase or redeem
      with the proceeds of sales of assets to purchase the maximum principal
      amount of Notes and such other Parity Lien Debt that may be purchased out
      of the Excess Proceeds. The offer price in any Asset Sale Offer will be
      equal to 100% of the principal amount plus accrued and unpaid interest and
      Special Interest, if any, to the date of purchase and will be payable in
      cash. If any Excess Proceeds remain after consummation of an Asset Sale
      Offer, the Company may use those Excess Proceeds for any purpose not
      otherwise prohibited by the Indenture. If the aggregate principal amount
      of Notes and other Parity Lien Debt tendered pursuant to such Asset Sale
      Offer exceeds the amount of Excess Proceeds, the Trustee will select the
      Notes and such other Parity Lien Debt to be purchased on a pro rata basis.
      Upon completion of each Asset Sale Offer, the amount of Excess Proceeds
      will be reset at zero. Holders of Notes that are the subject of an offer
      to purchase will receive an Asset Sale Offer from the Company prior to any
      related purchase date and may elect to have such Notes purchased by
      completing the form entitled "Option of Holder to Elect Purchase" attached
      hereto.

            (8) NOTICE OF REDEMPTION. Notice of redemption will be mailed at
      least 30 days but not more than 60 days before the redemption date to each
      Holder whose Notes are to be redeemed at its registered address, except
      that redemption notices may be mailed more than 60 days prior to a
      redemption date if the notice is issued in connection with a defeasance of
      the Notes or a satisfaction or discharge of the Indenture. Notes in
      denominations larger than $1,000 may be redeemed in part but only in whole
      multiples of $1,000, unless all of the Notes held by a Holder are to be
      redeemed.

            (9) DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in registered
      form without coupons in denominations of $2,000 and integral multiples of
      $1,000. The transfer of Notes may be registered and Notes may be exchanged
      as provided in the Indenture. The Registrar and 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 required by

                                      A-4
<PAGE>

      law or permitted by the Indenture. The Company need not exchange or
      register the transfer of any Note or portion of a Note selected for
      redemption, except for the unredeemed portion of any Note being redeemed
      in part. Also, the Company need not exchange or register the transfer of
      any Notes for a period of 15 days before a selection of Notes to be
      redeemed or during the period between a record date and the corresponding
      Interest Payment Date.

            (10) PERSONS DEEMED OWNERS. The registered Holder of a Note may be
      treated as its owner for all purposes.

            (11) AMENDMENT, SUPPLEMENT AND WAIVER. Subject to certain
      exceptions, the Indenture or the Notes or the Note Guarantees may be
      amended or supplemented with the consent of the Holders of at least a
      majority in aggregate principal amount of the then outstanding Notes
      including Additional Notes, if any, voting as a single class, and any
      existing Default or Event or Default or compliance with any provision of
      the Indenture or the Notes or the Note Guarantees may be waived with the
      consent of the Holders of a majority in aggregate principal amount of the
      then outstanding Notes including Additional Notes, if any, voting as a
      single class. Without the consent of any Holder of a Note, the Indenture
      or the Notes or the Note Guarantees may be amended or supplemented to cure
      any ambiguity, defect or inconsistency, to provide for uncertificated
      Notes in addition to or in place of certificated Notes, to provide for the
      assumption of the Company's or a Guarantor's obligations to Holders of the
      Notes and Note Guarantees in case of a merger or consolidation, to make
      any change that would provide any additional rights or benefits to the
      Holders of the Notes or that does not adversely affect the legal rights
      under the Indenture of any such Holder, to comply with the requirements of
      the SEC in order to effect or maintain the qualification of the Indenture
      under the TIA, to make, complete or confirm any grant of Collateral
      permitted or required by the Indenture or any of the Security Documents or
      any release of Collateral that becomes effective as set forth in the
      Indenture or any of the Security Documents, to conform the text of the
      Indenture, the Note Guarantees, the Security Documents and/or the Notes to
      any provision of the "Description of Notes" section of the Company's
      Offering Memorandum dated July 1, 2004, relating to the initial offering
      of the Notes, to the extent that such provision in that "Description of
      Notes" was intended to be a verbatim recitation of a provision of the
      Indenture, the Note Guarantees, the Security Documents or the Notes, to
      provide for the issuance of Additional Notes in accordance with the
      limitations set forth in the Indenture, or to allow any Guarantor to
      execute a supplemental indenture to the Indenture and/or a Note Guarantee
      with respect to the Notes.

            (12) DEFAULTS AND REMEDIES. Events of Default include: (i) default
      for 30 days in the payment when due of interest on, or Special Interest,
      if any, with respect to the Notes; (ii) default in the payment when due
      (at maturity, upon redemption or otherwise) of the principal of, or
      premium, if any, on, the Notes; (iii) failure by the Company or any of its
      Restricted Subsidiaries to comply with Section 4.07, 4.09, 4.10, 4.15 or
      5.01 of the Indenture; (iv) failure by the Company or any of its
      Restricted Subsidiaries for 60 days after notice to the Company by the
      Trustee or the Holders of at least 25% in aggregate principal amount of
      the Notes then outstanding voting as a single class to comply with any of
      the other agreements in the Indenture or the Security Documents; (v)
      default under one of more instruments evidencing or securing Indebtedness
      of the Company or any of its Restricted Subsidiaries having an outstanding
      principal amount of $10.0 million or more that has resulted in the
      acceleration of the payment of such Indebtedness or failure to pay
      principal of, or interest or premium, if any, when due, subject to certain
      exceptions; (vi) one of more final judgments for the payment of money in
      an amount of $10.0 million or more that remain undischarged for a period
      of 60 days; (vii) the occurrence of (a) any Security Document ceasing to
      be enforceable. with certain exceptions, (b) any Parity Lien, individually
      or in the aggregate, having a Fair Market Value in excess of $10.0
      million, ceasing to

                                      A-5
<PAGE>

      be an enforceable and perfect second-priority Lien, subject to Permitted
      Prior Liens or (c) the Company or any other Pledgor denies or disaffirms
      in writing any obligations of the Company or any other Pledgor set forth
      in or arising under any Security Document; (viii) except as permitted by
      the Indenture, any Note Guarantee is held in any judicial proceeding to be
      unenforceable or invalid or ceases for any reason to be in full force and
      effect, or any Guarantor, or any Person acting on behalf of any Guarantor,
      denies or disaffirms its obligations under its Note Guarantee; and (ix)
      certain events of bankruptcy or insolvency with respect to the Company or
      any of its Restricted Subsidiaries that is a Significant Subsidiary or any
      group of Restricted Subsidiaries that, taken together, would constitute a
      Significant Subsidiary. If any Event of Default occurs and is continuing,
      the Trustee or the Holders of at least 25% in aggregate principal amount
      of the then outstanding Notes may declare all the Notes to be due and
      payable immediately. Notwithstanding the foregoing, in the case of an
      Event of Default arising from certain events of bankruptcy or insolvency,
      all outstanding Notes will become due and payable immediately without
      further action or notice. Holders may not enforce the Indenture or the
      Notes except as provided in the Indenture. Subject to certain limitations,
      Holders of a majority in aggregate principal amount of the then
      outstanding Notes may direct the Trustee in its exercise of any trust or
      power. The Trustee may withhold from Holders of the Notes notice of any
      continuing Default or Event of Default (except a Default or Event of
      Default relating to the payment of principal or interest or premium or
      Special Interest, if any) if it determines that withholding notice is in
      their interest. The Holders of a majority in aggregate principal amount of
      the then outstanding Notes by notice to the Trustee may, on behalf of the
      Holders of all of the Notes, rescind an acceleration or waive any existing
      Default or Event of Default and its consequences under the Indenture
      except a continuing Default or Event of Default in the payment of interest
      or premium or Special Interest, if any, on, or the principal of, the
      Notes. The Company is required to deliver to the Trustee annually a
      statement regarding compliance with the Indenture, and the Company is
      required, upon becoming aware of any Default or Event of Default, to
      deliver to the Trustee a statement specifying such Default or Event of
      Default.

            (13) TRUSTEE DEALINGS WITH COMPANY. The Trustee, in its individual
      or any other capacity, may make loans to, accept deposits from, and
      perform services for the Company or its Affiliates, and may otherwise deal
      with the Company or its Affiliates, as if it were not the Trustee.

            (14) NO RECOURSE AGAINST OTHERS. A director, officer, employee,
      incorporator or stockholder of the Company or any of the Guarantors, as
      such, will not have any liability for any obligations of the Company or
      the Guarantors under the Notes, the Note Guarantees or the Indenture or
      for any claim based on, in respect of, or by reason of, such obligations
      or their creation. Each Holder by accepting a Note waives and releases all
      such liability. The waiver and release are part of the consideration for
      the issuance of the Notes.

            (15) AUTHENTICATION. This Note will not be valid until authenticated
      by the manual signature of the Trustee or an authenticating agent.

            (16) 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).

            (17) ADDITIONAL RIGHTS OF HOLDERS OF RESTRICTED GLOBAL NOTES AND
      RESTRICTED DEFINITIVE NOTES. In addition to the rights provided to Holders
      of Notes under the Indenture, Holders of Restricted Global Notes and
      Restricted Definitive Notes will have all the rights set

                                      A-6
<PAGE>

      forth in the Registration Rights Agreement dated as of July 7, 2004, among
      the Company, the Guarantors and the other parties named on the signature
      pages thereof or, in the case of Additional Notes, Holders of Restricted
      Global Notes and Restricted Definitive Notes will have the rights set
      forth in one or more registration rights agreements, if any, among the
      Company, the Guarantors and the other parties thereto, relating to rights
      given by the Company and the Guarantors to the purchasers of any
      Additional Notes (collectively, the "Registration Rights Agreement").

            (18) CUSIP NUMBERS. Pursuant to a recommendation promulgated by the
      Committee on Uniform Security Identification Procedures, the Company has
      caused CUSIP numbers to be printed on the Notes, and the Trustee may use
      CUSIP 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 Notes or as contained in any notice of redemption, and
      reliance may be placed only on the other identification numbers placed
      thereon.

            (19) GOVERNING LAW. THE INTERNAL LAW OF THE STATE OF NEW YORK WILL
      GOVERN AND BE USED TO CONSTRUE THE INDENTURE, THIS NOTE AND THE NOTE
      GUARANTEES.

      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:

Belden & Blake Corporation
5200 Stoneham Road
North Canton, Ohio 44720
Attention: Corporate Secretary

                                      A-7
<PAGE>

                                 ASSIGNMENT FORM

         To assign this Note, fill in the form below:

(I) or (we) assign and transfer this Note 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 Note on the books of the Company. The agent may substitute
another to act for him.

Date:  _______________

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

Signature Guarantee*:  _________________________

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

                                      A-8
<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

      If you want to elect to have this Note purchased by the Company pursuant
to Section 4.10 or 4.15 of the Indenture, check the appropriate box below:

                      Section 4.10        Section 4.15

      If you want to elect to have only part of the Note purchased by the
Company pursuant to Section 4.10 or Section 4.15 of the Indenture, state the
amount you elect to have purchased:

                                 $______________

Date:  _______________

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

                           Tax Identification No.: _____________________________

Signature Guarantee*:  _________________________

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

                                      A-9
<PAGE>

             SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE *

      The following exchanges of a part of this Global Note for an interest in
another Global Note or for a Definitive Note, or exchanges of a part of another
Global Note or Definitive Note for an interest in this Global Note, have been
made:

<TABLE>
<CAPTION>
                                                                        Principal Amount
                                                                       of this Global Note        Signature of
                        Amount of decrease   Amount of increase in       following such        authorized officer
                       in Principal Amount    Principal Amount of           decrease              of Trustee or
Date of Exchange       of this Global Note      this Global Note          (or increase)             Custodian
----------------       -------------------      ----------------          -------------             ---------
<S>                    <C>                   <C>                       <C>                     <C>
</TABLE>

*     This schedule should be included only if the Note is issued in global
form.

                                      A-10
<PAGE>

                                                                       EXHIBIT B

                         FORM OF CERTIFICATE OF TRANSFER

Belden & Blake Corporation
5200 Stoneham Road
North Canton, Ohio 44720

[Registrar address block]

      Re: 8.75% Senior Secured Notes Due 2012

      Reference is hereby made to the Indenture, dated as of July 7, 2004 (the
"Indenture"), among Belden & Blake Corporation, as issuer (the "Company"), the
Guarantors party thereto and BNY Midwest Trust Company, 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
Note[s] or interest in such Note[s] specified in Annex A hereto, in the
principal amount of $___________ in such Note[s] 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 NOTE OR A RESTRICTED DEFINITIVE NOTE 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 Note is being transferred to a Person that the Transferor
reasonably believes is purchasing the beneficial interest or Definitive Note 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 Note will be
subject to the restrictions on transfer enumerated in the Private Placement
Legend printed on the 144A Global Note and/or the Restricted Definitive Note and
in the Indenture and the Securities Act.

      2.    [ ] CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST
IN THE REGULATION S GLOBAL NOTE OR A RESTRICTED DEFINITIVE NOTE PURSUANT TO
REGULATION S. The Transfer is being effected pursuant to and in accordance with
Rule 903 or Rule 904 under the 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 and, (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 Note
will be

                                      B-1
<PAGE>

subject to the restrictions on Transfer enumerated in the Private Placement
Legend printed on the Regulation S Global Note and/or the Restricted Definitive
Note and in the Indenture and the Securities Act.

      3.    [ ] CHECK AND COMPLETE IF TRANSFEREE WILL TAKE DELIVERY OF A
BENEFICIAL IN A RESTRICTED DEFINITIVE NOTE 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 Notes and Restricted Definitive Notes 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.

      4.    [ ] CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST
IN AN UNRESTRICTED GLOBAL NOTE OR OF AN UNRESTRICTED DEFINITIVE NOTE.

      (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
Note will no longer be subject to the restrictions on transfer enumerated in the
Private Placement Legend printed on the Restricted Global Notes, on Restricted
Definitive Notes 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 Note will no longer be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted
Global Notes, on Restricted Definitive Notes 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

                                      B-2
<PAGE>

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 Note will not be
subject to the restrictions on transfer enumerated in the Private Placement
Legend printed on the Restricted Global Notes or Restricted Definitive Notes and
in the Indenture.

      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-3
<PAGE>

                       ANNEX A TO CERTIFICATE OF TRANSFER

1.    The Transferor owns and proposes to transfer the following:

                            [CHECK ONE OF (a) OR (b)]

      (a)   [ ] a beneficial interest in the:

            (i)   [ ] 144A Global Note (CUSIP _________), or

            (ii)  [ ] Regulation S Global Note (CUSIP _________), or

      (b)   [ ] a Restricted Definitive Note.

2.    After the Transfer the Transferee will hold:

                                   [CHECK ONE]

      (a)   [ ] a beneficial interest in the:

            (i)   [ ] 144A Global Note (CUSIP _________), or

            (ii)  [ ] Regulation S Global Note (CUSIP _________), or

            (iii) [ ] Unrestricted Global Note (CUSIP _________); or

      (b)   [ ] a Restricted Definitive Note; or

      (c)   [ ] an Unrestricted Definitive Note,

      in accordance with the terms of the Indenture.

                                      B-4
<PAGE>

                                                                       EXHIBIT C

                         FORM OF CERTIFICATE OF EXCHANGE

Belden & Blake Corporation
5200 Stoneham Road
North Canton, Ohio 44720

[Registrar address block]

      Re: 8.75% Senior Secured Notes Due 2012

                              (CUSIP ____________)

      Reference is hereby made to the Indenture, dated as of July 7, 2004 (the
"Indenture"), among Belden & Blake Corporation, as issuer (the "Company"), the
Guarantors party thereto and BNY Midwest Trust Company, 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 Note[s] or interest in such Note[s] specified herein, in the principal
amount of $____________ in such Note[s] or interests (the "Exchange"). In
connection with the Exchange, the Owner hereby certifies that:

      1.    EXCHANGE OF RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN A
RESTRICTED GLOBAL NOTE FOR UNRESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS
IN AN UNRESTRICTED GLOBAL NOTE

      (a)   [ ] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED
GLOBAL NOTE TO BENEFICIAL INTEREST IN AN UNRESTRICTED GLOBAL NOTE. In connection
with the Exchange of the Owner's beneficial interest in a Restricted Global Note
for a beneficial interest in an Unrestricted Global Note 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
Notes 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 Note 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 NOTE TO UNRESTRICTED DEFINITIVE NOTE. In connection with the Exchange of
the Owner's beneficial interest in a Restricted Global Note for an Unrestricted
Definitive Note, the Owner hereby certifies (i) the Definitive Note 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
Restricted Global Notes 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 Note is being acquired in compliance
with any applicable blue sky securities laws of any state of the United States.

                                      C-1
<PAGE>

      (c)   [ ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO
BENEFICIAL INTEREST IN AN UNRESTRICTED GLOBAL NOTE. In connection with the
Owner's Exchange of a Restricted Definitive Note for a beneficial interest in an
Unrestricted Global Note, 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 Notes 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 NOTE TO
UNRESTRICTED DEFINITIVE NOTE. In connection with the Owner's Exchange of a
Restricted Definitive Note for an Unrestricted Definitive Note, the Owner hereby
certifies (i) the Unrestricted Definitive Note 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 Notes 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 Note is being acquired in compliance with any applicable
blue sky securities laws of any state of the United States.

      2.    EXCHANGE OF RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN
RESTRICTED GLOBAL NOTES FOR RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS
IN RESTRICTED GLOBAL NOTES

      (a)   [ ] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED
GLOBAL NOTE TO RESTRICTED DEFINITIVE NOTE. In connection with the Exchange of
the Owner's beneficial interest in a Restricted Global Note for a Restricted
Definitive Note with an equal principal amount, the Owner hereby certifies that
the Restricted Definitive Note 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 Note issued will continue
to be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the Restricted Definitive Note and in the Indenture
and the Securities Act.

      (b)   [ ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO
BENEFICIAL INTEREST IN A RESTRICTED GLOBAL NOTE. In connection with the Exchange
of the Owner's Restricted Definitive Note for a beneficial interest in the
[CHECK ONE] [ ] 144A Global Note, [ ] Regulation S Global Note, the Owner hereby
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 Notes 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 Note and in the Indenture and the Securities Act.

                                      C-2
<PAGE>

      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
<PAGE>

                                                                       EXHIBIT D

                          FORM OF NOTATION OF GUARANTEE

      For value received, each Guarantor (which term includes any successor
Person under the Indenture) has, jointly and severally, unconditionally
guaranteed, to the extent set forth in the Indenture and subject to the
provisions in the Indenture dated as of July 7, 2004 (the "Indenture") among
Belden & Blake Corporation, (the "Company"), the Guarantors party thereto and
BNY Midwest Trust Company, as trustee (the "Trustee"), (a) the due and punctual
payment of the principal of, premium and Special Interest, if any, and interest
on, the Notes, whether at maturity, by acceleration, redemption or otherwise,
the due and punctual payment of interest on overdue principal of and interest on
the Notes, if any, if lawful, and the due and punctual performance of all other
obligations of the Company to the Holders or the Trustee all in accordance with
the terms of the Indenture and (b) in case of any extension of time of payment
or renewal of any Notes or any of such other obligations, that the same will be
promptly paid in full when due or performed in accordance with the terms of the
extension or renewal, whether at stated maturity, by acceleration or otherwise.
The obligations of the Guarantors to the Holders of Notes and to the Trustee
pursuant to the Note Guarantee and the Indenture are expressly set forth in
Article 11 of the Indenture and reference is hereby made to the Indenture for
the precise terms of the Note Guarantee. Each Holder of a Note, by accepting the
same, (a) agrees to and shall be bound by such provisions (b) authorizes and
directs the Trustee, on behalf of such Holder, to take such action as may be
necessary or appropriate to effectuate the subordination as provided in the
Indenture and (c) appoints the Trustee attorney-in-fact of such Holder for such
purpose.

      Capitalized terms used but not defined herein have the meanings given to
them in the Indenture.

                                          [NAME OF GUARANTOR(S)]

                                          By: __________________________________
                                              Name:
                                              Title:

                                      D-1
<PAGE>

                                                                       EXHIBIT E

                         FORM OF SUPPLEMENTAL INDENTURE
                    TO BE DELIVERED BY SUBSEQUENT GUARANTORS

      SUPPLEMENTAL INDENTURE (this "Supplemental Indenture"), dated as of
________________, 200__, among __________________ (the "Guaranteeing
Subsidiary"), a subsidiary of Belden & Blake Corporation (or its permitted
successor), an Ohio corporation (the "Company"), the Company, the other
Guarantors (as defined in the Indenture referred to herein) and BNY Midwest
Trust Company, as trustee under the Indenture referred to below (the "Trustee").

                               W I T N E S S E T H

      WHEREAS, the Company has heretofore executed and delivered to the Trustee
an indenture (the "Indenture"), dated as of July 7, 2004 providing for the
issuance of 8.75% Senior Secured Notes due 2012 (the "Notes");

      WHEREAS, the Indenture provides that under certain circumstances the
Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental
indenture pursuant to which the Guaranteeing Subsidiary shall unconditionally
guarantee all of the Company's Obligations under the Notes and the Indenture on
the terms and conditions set forth herein (the "Note Guarantee"); and

      WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is
authorized to execute and deliver this Supplemental Indenture.

      NOW, THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the
Guaranteeing Subsidiary and the Trustee mutually covenant and agree for the
equal and ratable benefit of the Holders of the Notes 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 Guaranteeing Subsidiary hereby agrees to
provide an unconditional Guarantee on the terms and subject to the conditions
set forth in the Note Guarantee and in the Indenture including but not limited
to Article 11 thereof.

      4.    NO RECOURSE AGAINST OTHERS. No past, present or future director,
officer, employee, incorporator, stockholder or agent of the Guaranteeing
Subsidiary, as such, shall have any liability for any obligations of the Company
or any Guaranteeing Subsidiary under the Notes, any Note Guarantees, the
Indenture or this Supplemental Indenture or for any claim based on, in respect
of, or by reason of, such obligations or their creation. Each Holder of the
Notes by accepting a Note waives and releases all such liability. The waiver and
release are part of the consideration for issuance of the Notes. Such waiver may
not be effective to waive liabilities under the federal securities laws and it
is the view of the SEC that such a waiver is against public policy.

      5.    NEW YORK LAW TO GOVERN. THE INTERNAL LAW OF THE STATE OF NEW YORK
SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE.

      6.    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.

                                      E-1
<PAGE>

      7.    EFFECT OF HEADINGS. The Section headings herein are for convenience
only and shall not affect the construction hereof.

      8.    THE TRUSTEE. The Trustee shall not be responsible in any manner
whatsoever for or in respect of the validity or sufficiency of this Supplemental
Indenture or for or in respect of the recitals contained herein, all of which
recitals are made solely by the Guaranteeing Subsidiary and the Company.

                                      E-2
<PAGE>

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

      Dated: _______________, 20___

                                           [GUARANTEEING SUBSIDIARY]

                                           By: _________________________________
                                               Name:
                                               Title:

                                           BELDEN & BLAKE CORPORATION

                                           By: _________________________________
                                               Name:
                                               Title:

                                           THE CANTON OIL & GAS COMPANY

                                           By: _________________________________
                                               Name:
                                               Title:

                                           WARD LAKE DRILLING, INC.

                                           By: _________________________________
                                               Name:
                                               Title:

                                           BNY MIDWEST TRUST COMPANY, as Trustee

                                           By: _________________________________
                                               Authorized Signatory

                                      E-3
<PAGE>

                                                                      SCHEDULE 1

                                   GUARANTORS

The following schedule lists each Guarantor of the Notes as of the date of the
Indenture:

<TABLE>
<CAPTION>
        GUARANTORS                           STATE OF INCORPORATION OR FORMATION
        ----------                           -----------------------------------
<S>                                          <C>
1.  The Canton Oil & Gas Company                        Ohio

2.  Ward Lake Drilling, Inc.                            Michigan
</TABLE>

                                   Schedule 1<PAGE>

                                                                    EXHIBIT 10.1

(MULTICURRENCY -- CROSS BORDER)

                                     ISDA(R)

                  International Swap Dealers Association, Inc.

                                MASTER AGREEMENT

                            dated as of June 30, 2004

      J. ARON & COMPANY                          CAPITAL C OHIO, INC.

                                       and

have entered and/or anticipate entering into one or more transactions (each a
"Transaction") that are or will be governed by this Master Agreement, which
includes the schedule (the "Schedule"), and the documents and other confirming
evidence (each a "Confirmation") exchanged between the parties confirming those
Transactions.

Accordingly, the parties agree as follows: --

1.    INTERPRETATION

(a)   DEFINITIONS. The terms defined in Section 14 and in the Schedule will have
the meanings therein specified for the purpose of this Master Agreement.

(b)   INCONSISTENCY. In the event of any inconsistency between the provisions of
the Schedule and the other provisions of this Master Agreement, the Schedule
will prevail. In the event of any inconsistency between the provisions of any
Confirmation and this Master Agreement (including the Schedule), such
Confirmation will prevail for the purpose of the relevant Transaction.

(c)   SINGLE AGREEMENT. All Transactions are entered into in reliance on the
fact that this Master Agreement and all Confirmations form a single agreement
between the parties (collectively referred to as this "Agreement"), and the
parties would not otherwise enter into any Transactions.

2.    OBLIGATIONS

(a)   GENERAL CONDITIONS.

      (i) Each party will make each payment or delivery specified in each
      Confirmation to be made by it, subject to the other provisions of this
      Agreement.

      (ii) Payments under this Agreement will be made on the due date for value
      on that date in the place of the account specified in the relevant
      Confirmation or otherwise pursuant to this Agreement, in freely
      transferable funds and in the manner customary for payments in the
      required currency. Where settlement is by delivery (that is, other than by
      payment), such delivery will be made for receipt on the due date in the
      manner customary for the relevant obligation unless otherwise specified in
      the relevant Confirmation or elsewhere in this Agreement.

      (iii) Each obligation of each party under Section 2(a)(i) is subject to
      (1) the condition precedent that no Event of Default or Potential Event of
      Default with respect to the other party has occurred and is continuing,
      (2) the condition precedent that no Early Termination Date in respect of
      the relevant Transaction has occurred or been effectively designated and
      (3) each other applicable condition precedent specified in this Agreement.

       Copyright (C) 1992 by International Swap Dealers Association, Inc.
<PAGE>

(b)   CHANGE OF ACCOUNT. Either party may change its account for receiving a
payment or delivery by giving notice to the other parry at least five Local
Business Days prior to the scheduled date for the payment or delivery to which
such change applies unless such other party gives timely notice of a reasonable
objection to such change.

(c)   NETTING. If on any date amounts would otherwise be payable: --

      (i) in the same currency; and

      (ii) in respect of the same Transaction,

by each party to the other, then, on such date, each party's obligation to make
payment of any such amount will be automatically satisfied and discharged and,
if the aggregate amount that would otherwise have been payable by one party
exceeds the aggregate amount that would otherwise have been payable by the other
party, replaced by an obligation upon the party by whom the larger aggregate
amount would have been payable to pay to the other party the excess of the
larger aggregate amount over the smaller aggregate amount.

The parties may elect in respect of two or more Transactions that a net amount
will be determined in respect of all amounts payable on the same date in the
same currency in respect of such Transactions, regardless of whether such
amounts are payable in respect of the same Transaction. The election may be made
in the Schedule or a Confirmation by specifying that subparagraph (ii) above
will not apply to the Transactions identified as being subject to the election,
together with the starting date (in which case subparagraph (ii) above will not,
or will cease to, apply to such Transactions from such date). This election may
be made separately for different groups of Transactions and will apply
separately to each pairing of Offices through which the parties make and receive
payments or deliveries.

(d)   DEDUCTION OR WITHHOLDING FOR TAX.

      (i) GROSS-UP. All payments under this Agreement will be made without any
      deduction or withholding for or on account of any Tax unless such
      deduction or withholding is required by any applicable law, as modified by
      the practice of any relevant governmental revenue authority, then in
      effect. If a party is so required to deduct or withhold, then that party
      ("X") will: --

            (1) promptly notify the other party ("Y") of such requirement;

            (2) pay to the relevant authorities the full amount required to be
            deducted or withheld (including the full amount required to be
            deducted or withheld from any additional amount paid by X to Y under
            this Section 2(d)) promptly upon the earlier of determining that
            such deduction or withholding is required or receiving notice that
            such amount has been assessed against Y;

            (3) promptly forward to Y an official receipt (or a certified copy),
            or other documentation reasonably acceptable to Y, evidencing such
            payment to such authorities; and

            (4) if such Tax is an Indemnifiable Tax, pay to Y, in addition to
            the payment to which Y is otherwise entitled under this Agreement,
            such additional amount as is necessary to ensure that the net amount
            actually received by Y (free and clear of Indemnifiable Taxes,
            whether assessed against X or Y) will equal the full amount Y would
            have received had no such deduction or withholding been required.
            However, X will not be required to pay any additional amount to Y to
            the extent that it would not be required to be paid but for: --

                  (A) the failure by Y to comply with or perform any agreement
                  contained in Section 4(a)(i), 4(a)(iii) or 4(d); or

                  (B) the failure of a representation made by Y pursuant to
                  Section 3(f) to be accurate and true unless such failure would
                  not have occurred but for (I) any action taken by a taxing
                  authority, or brought in a court of competent jurisdiction, on
                  or after the date on which a Transaction is entered into
                  (regardless of whether such action is taken or brought with
                  respect to a party to this Agreement) or (II) a Change in Tax
                  Law.

                                       2                            ISDA(R) 1992
<PAGE>

      (ii) LIABILITY. If: --

            (1) X is required by any applicable law, as modified by the practice
            of any relevant governmental revenue authority, to make any
            deduction or withholding in respect of which X would not be required
            to pay an additional amount to Y under Section 2(d)(i)(4);

            (2) X does not so deduct or withhold; and

            (3) a liability resulting from such Tax is assessed directly against
            X,

      then, except to the extent Y has satisfied or then satisfies the liability
      resulting from such Tax, Y will promptly pay to X the amount of such
      liability (including any related liability for interest, but including any
      related liability for penalties only if Y has failed to comply with or
      perform any agreement contained in Section 4(a)(i), 4(a)(iii) or 4(d)).

(e)   DEFAULT INTEREST; OTHER AMOUNTS. Prior to the occurrence or effective
designation of an Early Termination Date in respect of the relevant Transaction,
a party that defaults in the performance of any payment obligation will, to the
extent permitted by law and subject to Section 6(c), be required to pay interest
(before as well as after judgment) on the overdue amount to the other party on
demand in the same currency as such overdue amount, for the period from (and
including) the original due date for payment to (but excluding) the date of
actual payment, at the Default Rate. Such interest will be calculated on the
basis of daily compounding and the actual number of days elapsed. If, prior to
the occurrence or effective designation of an Early Termination Date in respect
of the relevant Transaction, a party defaults in the performance of any
obligation required to be settled by delivery, it will compensate the other
party on demand if and to the extent provided for in the relevant Confirmation
or elsewhere in this Agreement.

3.    REPRESENTATIONS

Each party represents to the other party (which representations will be deemed
to be repeated by each party on each date on which a Transaction is entered into
and, in the case of the representations in Section 3(f), at all times until the
termination of this Agreement) that: --

(a)   BASIC REPRESENTATIONS.

      (i) STATUS. It is duly organized and validly existing under the laws of
      the jurisdiction of its organization or incorporation and, if relevant
      under such laws, in good standing;

      (ii) POWERS. It has the power to execute this Agreement and any other
      documentation relating to this Agreement to which it is a party, to
      deliver this Agreement and any other documentation relating to this
      Agreement that it is required by this Agreement to deliver and to perform
      its obligations under this Agreement and any obligations it has under any
      Credit Support Document to which it is a party and has taken all necessary
      action to authorize such execution, delivery and performance;

      (iii) NO VIOLATION OR CONFLICT. Such execution, delivery and performance
      do not violate or conflict with any law applicable to it, any provision of
      its constitutional documents, any order or judgment of any court or other
      agency of government applicable to it or any of its assets or any
      contractual restriction binding on or affecting it or any of its assets;

      (iv)  CONSENTS. All governmental and other consents that are required to
      have been obtained by it with respect to this Agreement or any Credit
      Support Document to which it is a party have been obtained and are in mil
      force and effect and all conditions of any such consents have been
      complied with; and

      (v) OBLIGATIONS BINDING. Its obligations under this Agreement and any
      Credit Support Document to which it is a party constitute its legal, valid
      and binding obligations, enforceable in accordance with their respective
      terms (subject to applicable bankruptcy, reorganization, insolvency,
      moratorium or similar laws affecting creditors' rights generally and
      subject, as to enforceability, to equitable principles of general
      application (regardless of whether enforcement is sought in a proceeding
      in equity or at law)).

                                       3                            ISDA(R) 1992
<PAGE>
(b)   ABSENCE OF CERTAIN EVENTS. No Event of Default or Potential Event of
Default or. to its knowledge, Termination Event with respect to it has occurred
and is continuing and no such event or circumstance would occur as a result of
its entering into or performing its obligations under this Agreement or any
Credit Support Document to which it is a party.

(c)   ABSENCE OF LITIGATION. There is not pending or, to its knowledge,
threatened against it or any of its Affiliates any action, suit or proceeding at
law or in equity or before any court, tribunal, governmental body, agency or
official or any arbitrator that is likely to affect the legality, validity or
enforceability against it of this Agreement or any Credit Support Document to
which it is a party or its ability to perform its obligations under this
Agreement or such Credit Support Document.

(d)   ACCURACY OF SPECIFIED INFORMATION. All applicable information that is
furnished in writing by or on behalf of it to the other party and is identified
for the purpose of this Section 3(d) in the Schedule is, as of the date of the
information, true, accurate and complete in every material respect.

(e)      PAYER TAX REPRESENTATION. Each representation specified in the Schedule
as being made by it for the purpose of this Section 3(e) is accurate and true.

(f)      PAYEE TAX REPRESENTATIONS. Each representation specified in the
Schedule as being made by it for the purpose of this Section 3(f) is accurate
and true.

4.    AGREEMENTS

Each party agrees with the other that, so long as either party has or may have
any obligation under this Agreement or under any Credit Support Document to
which it is a party: --

(a)   FURNISH SPECIFIED INFORMATION. It will deliver to the other party or, in
certain cases under subparagraph (iii) below, to such government or taxing
authority as the other party reasonably directs: --

      (i) any forms, documents or certificates relating to taxation specified in
      the Schedule or any Confirmation;

      (ii) any other documents specified in the Schedule or any Confirmation;
      and

      (iii) upon reasonable demand by such other party, any form or document
      that may be required or reasonably requested in writing in order to allow
      such other party or its Credit Support Provider to make a payment under
      this Agreement or any applicable Credit Support Document without any
      deduction or withholding for or on account of any Tax or with such
      deduction or withholding at a reduced rate (so long as the completion,
      execution or submission of such form or document would not materially
      prejudice the legal or commercial position of the party in receipt of such
      demand), with any such form or document to be accurate and completed in a
      manner reasonably satisfactory to such other party and to be executed and
      to be delivered with any reasonably required certification,

in each case by the date specified in the Schedule or such Confirmation or, if
none is specified, as soon as reasonably practicable.

(b)   MAINTAIN AUTHORIZATIONS. It will use all reasonable efforts to maintain in
full force and effect all consents of any governmental or other authority that
are required to be obtained by it with respect to this Agreement or any Credit
Support Document to which it is a party and will use all reasonable efforts to
obtain any that may become necessary in the future.

(c)   COMPLY WITH LAWS. It will comply in all material respects with all
applicable laws and orders to which it may be subject if failure so to comply
would materially impair its ability to perform its obligations under this
Agreement or any Credit Support Document to which it is a party.

(d)   TAX AGREEMENT. It will give notice of any failure of a representation made
by it under Section 3(1) to be accurate and true promptly upon learning of such
failure.

(e)   PAYMENT OF STAMP TAX. Subject to Section 11, it will pay any Stamp Tax
levied or imposed upon it or in respect of its execution or performance of this
Agreement by a jurisdiction in which it is incorporated,

                                       4                            ISDA(R) 1992
<PAGE>

organized, managed and controlled, or considered to have its seat, or in which a
branch or office through which it is acting for the purpose of this Agreement is
located ("Stamp Tax Jurisdiction") and will indemnify the other party against
any Stamp Tax levied or imposed upon the other party or in respect of the other
party's execution or performance of this Agreement by any such Stamp Tax
Jurisdiction which is not also a Stamp Tax Jurisdiction with respect to the
other party.

5.    EVENTS OF DEFAULT AND TERMINATION EVENTS

(a)   EVENTS OF DEFAULT. The occurrence at any time with respect to a party or,
if applicable, any Credit Support Provider of such party or any Specified Entity
of such party of any of the following events constitutes an event of default (an
"Event of Default") with respect to such party:--

      (i) FAILURE TO PAY OR DELIVER. Failure by the party to make, when due, any
      payment under this Agreement or delivery under Section 2(a)(i) or 2(e)
      required to be made by it if such failure is not remedied on or before the
      third Local Business Day after notice of such failure is given to the
      party;

      (ii) BREACH OF AGREEMENT. Failure by the party to comply with or perform
      any agreement or obligation (other than an obligation to make any payment
      under this Agreement or delivery under Section 2(a)(i) or 2(e) or to give
      notice of a Termination Event or any agreement or obligation under Section
      4(a)(i), 4(a)(iii) or 4(d)) to be complied with or performed by the party
      in accordance with this Agreement if such failure is not remedied on or
      before the thirtieth day after notice of such failure is given to the
      party;

      (iii) CREDIT SUPPORT DEFAULT.

            (1) Failure by the party or any Credit Support Provider of such
            party to comply with or perform any agreement or obligation to be
            complied with or performed by it in accordance with any Credit
            Support Document if such failure is continuing after any applicable
            grace period has elapsed;

            (2) the expiration or termination of such Credit Support Document or
            the failing or ceasing of such Credit Support Document to be in full
            force and effect for the purpose of this Agreement (in either case
            other than in accordance with its terms) prior to the satisfaction
            of all obligations of such party under each Transaction to which
            such Credit Support Document relates without the written consent of
            the other party; or

            (3) the party or such Credit Support Provider disaffirms, disclaims,
            repudiates or rejects, in whole or in part, or challenges the
            validity of, such Credit Support Document;

      (iv) MISREPRESENTATION. A representation (other than a representation
      under Section 3(e) or (f)) made or repeated or deemed to have been made or
      repeated by the party or any Credit Support Provider of such party in this
      Agreement or any Credit Support Document proves to have been incorrect or
      misleading in any material respect when made or repeated or deemed to have
      been made or repeated;

      (v) DEFAULT UNDER SPECIFIED TRANSACTION. The party, any Credit Support
      Provider of such party or any applicable Specified Entity of such party
      (1) defaults under a Specified Transaction and, after giving effect to any
      applicable notice requirement or grace period, there occurs a liquidation
      of, an acceleration of obligations under, or an early termination of, that
      Specified Transaction, (2) defaults, after giving effect to any applicable
      notice requirement or grace period, in making any payment or delivery due
      on the last payment, delivery or exchange date of, or any payment on early
      termination of, a Specified Transaction (or such default continues for at
      least three Local Business Days if there is no applicable notice
      requirement or grace period) or (3) disaffirms, disclaims, repudiates or
      rejects, in whole or in part, a Specified Transaction (or such action is
      taken by any person or entity appointed or empowered to operate it or act
      on its behalf);

      (vi) CROSS DEFAULT. If "Cross Default" is specified in the Schedule as
      applying to the party, the occurrence or existence of (1) a default, event
      of default or other similar condition or event (however

                                       5                            ISDA(R) 1992
<PAGE>
      described) in respect of such party, any Credit Support Provider of such
      party or any applicable Specified Entity of such party under one or more
      agreements or instruments relating to Specified Indebtedness of any of
      them (individually or collectively) in an aggregate amount of not less
      than the applicable Threshold Amount (as specified in the Schedule) which
      has resulted in such Specified Indebtedness becoming, or becoming capable
      at such time of being declared, due and payable under such agreements or
      instruments, before it would otherwise have been due and payable or (2) a
      default by such party, such Credit Support Provider or such Specified
      Entity (individually or collectively) in making one or more payments on
      the due date thereof in an aggregate amount of not less than the
      applicable Threshold Amount under such agreements or instruments (after
      giving effect to any applicable notice requirement or grace period);

      (vii) BANKRUPTCY. The party, any Credit Support Provider of such party or
      any applicable Specified Entity of such party: --

            (1) is dissolved (other than pursuant to a consolidation,
            amalgamation or merger); (2) becomes insolvent or is unable to pay
            its debts or fails or admits in writing its inability generally to
            pay its debts as they become due; (3) makes a general assignment,
            arrangement or composition with or for the benefit of its creditors;
            (4) institutes or has instituted against it a proceeding seeking a
            judgment of insolvency or bankruptcy or any other relief under any
            bankruptcy or insolvency law or other similar law affecting
            creditors' rights, or a petition is presented for its winding-up or
            liquidation, and, in the case of any such proceeding or petition
            instituted or presented against it, such proceeding or petition (A)
            results in a judgment of insolvency or bankruptcy or the entry of an
            order for relief or the making of an order for its winding-up or
            liquidation or (B) is not dismissed, discharged, stayed or
            restrained in each case within 30 days of the institution or
            presentation thereof; (5) has a resolution passed for its
            winding-up, official management or liquidation (other than pursuant
            to a consolidation, amalgamation or merger); (6) seeks or becomes
            subject to the appointment of an administrator, provisional
            liquidator, conservator, receiver, trustee, custodian or other
            similar official for it or for all or substantially all its assets;
            (7) has a secured party take possession of all or substantially all
            its assets or has a distress, execution, attachment, sequestration
            or other legal process levied, enforced or sued on or against all or
            substantially all its assets and such secured party maintains
            possession, or any such process is not dismissed, discharged, stayed
            or restrained, in each case within 30 days thereafter; (8) causes or
            is subject to any event with respect to it which, under the
            applicable laws of any jurisdiction, has an analogous effect to any
            of the events specified in clauses (1) to (7) (inclusive); or (9)
            takes any action in furtherance of, or indicating its consent to,
            approval of, or acquiescence in, any of the foregoing acts; or

      (viii) MERGER WITHOUT ASSUMPTION. The party or any Credit Support Provider
      of such party consolidates or amalgamates with, or merges with or into, or
      transfers all or substantially all its assets to, another entity and, at
      the time of such consolidation, amalgamation, merger or transfer: --

            (1) the resulting, surviving or transferee entity fails to assume
            all the obligations of such party or such Credit Support Provider
            under this Agreement or any Credit Support Document to which it or
            its predecessor was a party by operation of law or pursuant to an
            agreement reasonably satisfactory to the other party to this
            Agreement; or

            (2) the benefits of any Credit Support Document fail to extend
            (without the consent of the other party) to the performance by such
            resulting, surviving or transferee entity of its obligations under
            this Agreement.

(b) TERMINATION EVENTS. The occurrence at any time with respect to a party or,
if applicable, any Credit Support Provider of such party or any Specified Entity
of such party of any event specified below constitutes an Illegality if the
event is specified in (i) below, a Tax Event if the event is specified in (ii)
below or a Tax Event Upon Merger if the event is specified in (iii) below, and,
if specified to be applicable, a Credit Event

                                       6                            ISDA(R) 1992
<PAGE>

Upon Merger if the event is specified pursuant to (iv) below or an Additional
Termination Event if the event is specified pursuant to (v) below: --

      (i) ILLEGALITY. Due to the adoption of, or any change in, any applicable
      law after the date on which a Transaction is entered into, or due to the
      promulgation of, or any change in, the interpretation by any court,
      tribunal or regulatory authority with competent jurisdiction of any
      applicable law after such date, it becomes unlawful (other than as a
      result of a breach by the party of Section 4(b)) for such party (which
      will be the Affected Party): --

            (1) to perform any absolute or contingent obligation to make a
            payment or delivery or to receive a payment or delivery in respect
            of such Transaction or to comply with any other material provision
            of this Agreement relating to such Transaction; or

            (2) to perform, or for any Credit Support Provider of such party to
            perform, any contingent or other obligation which the party (or such
            Credit Support Provider) has under any Credit Support Document
            relating to such Transaction;

      (ii) TAX EVENT. Due to (x) any action taken by a taxing authority, or
      brought in a court of competent jurisdiction, on or after the date on
      which a Transaction is entered into (regardless of whether such action is
      taken or brought with respect to a party to this Agreement) or (y) a
      Change in Tax Law, the party (which will be the Affected Party) will, or
      there is a substantial likelihood that it will, on the next succeeding
      Scheduled Payment Date (1) be required to pay to the other party an
      additional amount in respect of an Indemnifiable Tax under Section
      2(d)(i)(4) (except in respect of interest under Section 2(e), 6(d)(ii) or
      6(e)) or (2) receive a payment from which an amount is required to be
      deducted or withheld for or on account of a Tax (except in respect of
      interest under Section 2(e), 6(d)(ii) or 6(e)) and no additional amount is
      required to be paid in respect of such Tax under Section 2(d)(i)(4) (other
      than by reason of Section 2(d)(i)(4)(A) or (B));

      (iii) TAX EVENT UPON MERGER. The party (the "Burdened Party") on the next
      succeeding Scheduled Payment Date will either (1) be required to pay an
      additional amount in respect of an Indemnifiable Tax under Section
      2(d)(i)(4) (except in respect of interest under Section 2(e), 6(d)(ii) or
      6(e)) or (2) receive a payment from which an amount has been deducted or
      withheld for or on account of any Indemnifiable Tax in respect of which
      the other party is not required to pay an additional amount (other than by
      reason of Section 2(d)(i)(4)(A) or (B)), in either case as a result of a
      party consolidating or amalgamating with, or merging with or into, or
      transferring all or substantially all its assets to, another entity (which
      will be the Affected Party) where such action does not constitute an event
      described in Section 5(a)(viii);

      (iv) CREDIT EVENT UPON MERGER. If "Credit Event Upon Merger" is specified
      in the Schedule as applying to the party, such party ("X"), any Credit
      Support Provider of X or any applicable Specified Entity of X consolidates
      or amalgamates with, or merges with or into, or transfers all or
      substantially all its assets to, another entity and such action does not
      constitute an event described in Section 5(a)(viii) but the
      creditworthiness of the resulting, surviving or transferee entity is
      materially weaker than that of X, such Credit Support Provider or such
      Specified Entity, as the case may be, immediately prior to such action
      (and, in such event, X or its successor or transferee, as appropriate,
      will be the Affected Party); or

      (v) ADDITIONAL TERMINATION EVENT. If any "Additional Termination Event" is
      specified in the Schedule or any Confirmation as applying, the occurrence
      of such event (and, in such event, the Affected Party or Affected Parties
      shall be as specified for such Additional Termination Event in the
      Schedule or such Confirmation).

(c) EVENT OF DEFAULT AND ILLEGALITY. If an event or circumstance which would
otherwise constitute or give rise to an Event of Default also constitutes an
Illegality, it will be treated as an Illegality and will not constitute an Event
of Default.

                                       7                            ISDA(R) 1992
<PAGE>

6. EARLY TERMINATION

(a) RIGHT TO TERMINATE FOLLOWING EVENT OF DEFAULT. If at any time an Event of
Default with respect to a party (the "Defaulting Party") has occurred and is
then continuing, the other party (the "Non-defaulting Party") may, by not more
than 20 days notice to the Defaulting Party specifying the relevant Event of
Default, designate a day not earlier than the day such notice is effective as an
Early Termination Date in respect of all outstanding Transactions. If. however,
"Automatic Early Termination" is specified in the Schedule as applying to a
party, then an Early Termination Date in respect of all outstanding Transactions
will occur immediately upon the occurrence with respect to such party of an
Event of Default specified in Section 5(a)(vii)(l), (3), (5), (6) or, to the
extent analogous thereto, (8), and as of the time immediately preceding the
institution of the relevant proceeding or the presentation of the relevant
petition upon the occurrence with respect to such party of an Event of Default
specified in Section 5(a)(vii)(4) or, to the extent analogous thereto, (8).

(b) RIGHT TO TERMINATE FOLLOWING TERMINATION EVENT.

      (i) NOTICE. If a Termination Event occurs, an Affected Party will,
      promptly upon becoming aware of it, notify the other party, specifying the
      nature of that Termination Event and each Affected Transaction and will
      also give such other information about that Termination Event as the other
      party may reasonably require.

      (ii) TRANSFER TO AVOID TERMINATION EVENT. If either an Illegality under
      Section 5(b)(i)(l) or a Tax Event occurs and there is only one Affected
      Party, or if a Tax Event Upon Merger occurs and the Burdened Party is the
      Affected Party, the Affected Party will, as a condition to its right to
      designate an Early Termination Date under Section 6(b)(iv), use all
      reasonable efforts (which will not require such party to incur a loss,
      excluding immaterial, incidental expenses) to transfer within 20 days
      after it gives notice under Section 6(b)(i) all its rights and obligations
      under this Agreement in respect of the Affected Transactions to another of
      its Offices or Affiliates so that such Termination Event ceases to exist.

      If the Affected Party is not able to make such a transfer it will give
      notice to the other party to that effect within such 20 day period,
      whereupon the other party may effect such a transfer within 30 days after
      the notice is given under Section 6(b)(i).

      Any such transfer by a party under this Section 6(b)(ii) will be subject
      to and conditional upon the prior written consent of the other party,
      which consent will not be withheld if such other party's policies in
      effect at such time would permit it to enter into transactions with the
      transferee on the terms proposed.

      (iii) TWO AFFECTED PARTIES. If an Illegality under Section 5(b)(i)(l) or a
      Tax Event occurs and there are two Affected Parties, each party will use
      all reasonable efforts to reach agreement within 30 days after notice
      thereof is given under Section 6(b)(i) on action to avoid that Termination
      Event.

      (iv) RIGHT TO TERMINATE. If: --

            (1) a transfer under Section 6(b)(ii) or an agreement under Section
            6(b)(iii), as the case may be, has not been effected with respect to
            all Affected Transactions within 30 days after an Affected Party
            gives notice under Section 6(b)(i); or

            (2) an Illegality under Section 5(b)(i)(2), a Credit Event Upon
            Merger or an Additional Termination Event occurs, or a Tax Event
            Upon Merger occurs and the Burdened Party is not the Affected Party,

      either party in the case of an Illegality, the Burdened Party in the case
      of a Tax Event Upon Merger, any Affected Party in the case of a Tax Event
      or an Additional Termination Event if there is more than one Affected
      Party, or the party which is not the Affected Party in the case of a
      Credit Event Upon Merger or an Additional Termination Event if there is
      only one Affected Party may, by not more than 20 days notice to the other
      party and provided that the relevant Termination Event is then

                                       8                            ISDA(R) 1992
<PAGE>

      continuing, designate a day not earlier than the day such notice is
      effective as an Early Termination Date in respect of all Affected
      Transactions.

(c) EFFECT OF DESIGNATION.

      (i) If notice designating an Early Termination Date is given under Section
      6(a) or (b), the Early Termination Date will occur on the date so
      designated, whether or not the relevant Event of Default or Termination
      Event is then continuing.

      (ii) Upon the occurrence or effective designation of an Early Termination
      Date, no further payments or deliveries under Section 2(a)(i) or 2(e) in
      respect of the Terminated Transactions will be required to be made, but
      without prejudice to the other provisions of this Agreement. The amount,
      if any, payable in respect of an Early Termination Date shall be
      determined pursuant to Section 6(e).

(d) CALCULATIONS.

      (i) STATEMENT. On or as soon as reasonably practicable following the
      occurrence of an Early Termination Date, each party will make the
      calculations on its part, if any, contemplated by Section 6(e) and will
      provide to the other party a statement (1) showing, in reasonable detail,
      such calculations (including all relevant quotations and specifying any
      amount payable under Section 6(e)) and (2) giving details of the relevant
      account to which any amount payable to it is to be paid. In the absence of
      written confirmation from the source of a quotation obtained in
      determining a Market Quotation, the records of the party obtaining such
      quotation will be conclusive evidence of the existence and accuracy of
      such quotation.

      (ii) PAYMENT DATE. An amount calculated as being due in respect of any
      Early Termination Date under Section 6(e) will be payable on the day that
      notice of the amount payable is effective (in the case of an Early
      Termination Date which is designated or occurs as a result of an Event of
      Default) and on the day which is two Local Business Days after the day on
      which notice of the amount payable is effective (in the case of an Early
      Termination Date which is designated as a result of a Termination Event).
      Such amount will be paid together with (to the extent permitted under
      applicable law) interest thereon (before as well as after judgment) in the
      Termination Currency, from (and including) the relevant Early Termination
      Date to (but excluding) the date such amount is paid, at the Applicable
      Rate. Such interest will be calculated on the basis of daily compounding
      and the actual number of days elapsed.

(e) PAYMENTS ON EARLY TERMINATION. If an Early Termination Date occurs, the
following provisions shall apply based on the parties' election in the Schedule
of a payment measure, either "Market Quotation" or "Loss", and a payment method,
either the "First Method" or the "Second Method". If the parties fail to
designate a payment measure or payment method in the Schedule, it will be deemed
that "Market Quotation" or the "Second Method", as the case may be, shall apply.
The amount, if any, payable in respect of an Early Termination Date and
determined pursuant to this Section will be subject to any Set-off.

      (i) EVENTS OF DEFAULT. If the Early Termination Date results from an Event
      of Default: --

            (1) First Method and Market Quotation. If the First Method and
            Market Quotation apply, the Defaulting Party will pay to the
            Non-defaulting Party the excess, if a positive number, of (A) the
            sum of the Settlement Amount (determined by the Non-defaulting
            Party) in respect of the Terminated Transactions and the Termination
            Currency Equivalent of the Unpaid Amounts owing to the
            Non-defaulting Party over (B) the Termination Currency Equivalent of
            the Unpaid Amounts owing to the Defaulting Party.

            (2) First Method and Loss. If the First Method and Loss apply, the
            Defaulting Party will pay to the Non-defaulting Party, if a positive
            number, the Non-defaulting Party's Loss in respect of this
            Agreement.

            (3) Second Method and Market Quotation. If the Second Method and
            Market Quotation apply, an amount will be payable equal to (A) the
            sum of the Settlement Amount (determined by the

                                       9                            ISDA(R) 1992
<PAGE>

            Non-defaulting Party) in respect of the Terminated Transactions and
            the Termination Currency Equivalent of the Unpaid Amounts owing to
            the Non-defaulting Party less (B) the Termination Currency
            Equivalent of the Unpaid Amounts owing to the Defaulting Party. If
            that amount is a positive number, the Defaulting Party will pay it
            to the Non-defaulting Party; if it is a negative number, the
            Non-defaulting Party will pay the absolute value of that amount to
            the Defaulting Party.

            (4) Second Method and Loss. If the Second Method and Loss apply, an
            amount will be payable equal to the Non-defaulting Party's Loss in
            respect of this Agreement. If that amount is a positive number, the
            Defaulting Party will pay it to the Non-defaulting Party; if it is a
            negative number, the Non-defaulting Party will pay the absolute
            value of that amount to the Defaulting Party.

      (ii) TERMINATION EVENTS. If the Early Termination Date results from a
      Termination Event:

            (1) One Affected Party. If there is one Affected Party, the amount
            payable will be determined in accordance with Section 6(e)(i)(3), if
            Market Quotation applies, or Section 6(e)(i)(4), if Loss applies,
            except that, in either case, references to the Defaulting Party and
            to the Non-defaulting Party will be deemed to be references to the
            Affected Party and the party which is not the Affected Party,
            respectively, and, if Loss applies and fewer than all the
            Transactions are being terminated, Loss shall be calculated in
            respect of all Terminated Transactions.

            (2) Two Affected Parties. If there are two Affected Parties: --

                  (A) if Market Quotation applies, each party will determine a
                  Settlement Amount in respect of the Terminated Transactions,
                  and an amount will be payable equal to (1) the sum of (a)
                  one-half of the difference between the Settlement Amount of
                  the party with the higher Settlement Amount ("X") and the
                  Settlement Amount of the party with the lower Settlement
                  Amount ("Y") and (b) the Termination Currency Equivalent of
                  the Unpaid Amounts owing to X less (II) the Termination
                  Currency Equivalent of the Unpaid Amounts owing to Y; and

                  (B) if Loss applies, each party will determine its Loss in
                  respect of this Agreement (or, if fewer than all the
                  Transactions are being terminated, in respect of all
                  Terminated Transactions) and an amount will be payable equal
                  to one-half of the difference between the Loss of the party
                  with the higher Loss ("X") and the Loss of the party with the
                  lower Loss ("Y").

            If the amount payable is a positive number, Y will pay it to X; if
            it is a negative number, X will pay the absolute value of that
            amount to Y.

      (iii) ADJUSTMENT FOR BANKRUPTCY. In circumstances where an Early
      Termination Date occurs because "Automatic Early Termination" applies in
      respect of a party, the amount determined under this Section 6(e) will be
      subject to such adjustments as are appropriate and permitted by law to
      reflect any payments or deliveries made by one party to the other under
      this Agreement (and retained by such other party) during the period from
      the relevant Early Termination Date to the date for payment determined
      under Section 6(d)(ii).

      (iv) PRE-ESTIMATE. The parties agree that if Market Quotation applies an
      amount recoverable under this Section 6(e) is a reasonable pre-estimate of
      loss and not a penalty. Such amount is payable for the loss of bargain and
      the loss of protection against future risks and except as otherwise
      provided in this Agreement neither party will be entitled to recover any
      additional damages as a consequence of such losses.

                                       10                           ISDA(R) 1992
<PAGE>

7. TRANSFER

Subject to Section 6(b)(ii). neither this Agreement nor any interest or
obligation in or under this Agreement may be transferred (whether by way of
security or otherwise) by either party without the prior written consent of the
other party, except that: --

(a) a party may make such a transfer of this Agreement pursuant to a
consolidation or amalgamation with, or merger with or into, or transfer of all
or substantially all its assets to, another entity (but without prejudice to any
other right or remedy under this Agreement); and

(b) a party may make such a transfer of all or any part of its interest in any
amount payable to it from a Defaulting Party under Section 6(e).

Any purported transfer that is not in compliance with this Section will be void.

8. CONTRACTUAL CURRENCY

(a) PAYMENT IN THE CONTRACTUAL CURRENCY. Each payment under this Agreement will
be made in the relevant currency specified in this Agreement for that payment
(the "Contractual Currency"). To the extent permitted by applicable law, any
obligation to make payments under this Agreement in the Contractual Currency
will not be discharged or satisfied by any tender in any currency other than the
Contractual Currency, except to the extent such tender results in the actual
receipt by the party to which payment is owed, acting in a reasonable manner and
in good faith in converting the currency so tendered into the Contractual
Currency, of the full amount in the Contractual Currency of all amounts payable
in respect of this Agreement. If for any reason the amount in the Contractual
Currency so received falls short of the amount in the Contractual Currency
payable in respect of this Agreement, the party required to make the payment
will, to the extent permitted by applicable law, immediately pay such additional
amount in the Contractual Currency as may be necessary to compensate for the
shortfall. If for any reason the amount in the Contractual Currency so received
exceeds the amount in the Contractual Currency payable in respect of this
Agreement, the party receiving the payment will refund promptly the amount of
such excess.

(b) JUDGMENTS. To the extent permitted by applicable law, if any judgment or
order expressed in a currency other than the Contractual Currency is rendered
(i) for the payment of any amount owing in respect of this Agreement, (ii) for
the payment of any amount relating to any early termination in respect of this
Agreement or (iii) in respect of a judgment or order of another court for the
payment of any amount described in (i) or (ii) above, the party seeking
recovery, after recovery in full of the aggregate amount to which such party is
entitled pursuant to the judgment or order, will be entitled to receive
immediately from the other party the amount of any shortfall of the Contractual
Currency received by such party as a consequence of sums paid in such other
currency and will refund promptly to the other party any excess of the
Contractual Currency received by such party as a consequence of sums paid in
such other currency if such shortfall or such excess arises or results from any
variation between the rate of exchange at which the Contractual Currency is
converted into the currency of the judgment or order for the purposes of such
judgment or order and the rate of exchange at which such party is able, acting
in a reasonable manner and in good faith in converting the currency received
into the Contractual Currency, to purchase the Contractual Currency with the
amount of the currency of the judgment or order actually received by such party.
The term "rate of exchange" includes, without limitation, any premiums and costs
of exchange payable in connection with the purchase of or conversion into the
Contractual Currency.

(c) SEPARATE INDEMNITIES. To the extent permitted by applicable law, these
indemnities constitute separate and independent obligations from the other
obligations in this Agreement, will be enforceable as separate and independent
causes of action, will apply notwithstanding any indulgence granted by the party
to which any payment is owed and will not be affected by judgment being obtained
or claim or proof being made for any other sums payable in respect of this
Agreement.

(d) EVIDENCE OF LOSS. For the purpose of this Section 8, it will be sufficient
for a party to demonstrate that it would have suffered a loss had an actual
exchange or purchase been made.

                                       11                           ISDA(R) 1992
<PAGE>

9. MISCELLANEOUS

(a) ENTIRE AGREEMENT. This Agreement constitutes the entire agreement and
understanding of the parties with respect to its subject matter and supersedes
all oral communication and prior writings with respect thereto.

(b) AMENDMENTS. No amendment, modification or waiver in respect of this
Agreement will be effective unless in writing (including a writing evidenced by
a facsimile transmission) and executed by each of the parties or confirmed by an
exchange of telexes or electronic messages on an electronic messaging system.

(c) SURVIVAL OF OBLIGATIONS. Without prejudice to Sections 2(a)(iii) and
6(c)(ii), the obligations of the parties under this Agreement will survive the
termination of any Transaction.

(d) REMEDIES CUMULATIVE. Except as provided in this Agreement, the rights,
powers, remedies and privileges provided in this Agreement are cumulative and
not exclusive of any rights, powers, remedies and privileges provided by law.

(e) COUNTERPARTS AND CONFIRMATIONS.

      (i) This Agreement (and each amendment, modification and waiver in respect
      of it) may be executed and delivered in counterparts (including by
      facsimile transmission), each of which will be deemed an original.

      (ii) The parties intend that they are legally bound by the terms of each
      Transaction from the moment they agree to those terms (whether orally or
      otherwise). A Confirmation shall he entered into as soon as practicable
      and may he executed and delivered in counterparts (including by facsimile
      transmission) or be created by an exchange of telexes or by an exchange of
      electronic messages on an electronic messaging system, which in each case
      will be sufficient for all purposes to evidence a binding supplement to
      this Agreement. The parties will specify therein or through another
      effective means that any such counterpart, telex or electronic message
      constitutes a Confirmation.

(f) NO WAIVER OF RIGHTS. A failure or delay in exercising any right, power or
privilege in respect of this Agreement will not be presumed to operate as a
waiver, and a single or partial exercise of any right, power or privilege will
not be presumed to preclude any subsequent or further exercise, of that right,
power or privilege or the exercise of any other right, power or privilege.

(g) HEADINGS. The headings used in this Agreement are for convenience of
reference only and are not to affect the construction of or to be taken into
consideration in interpreting this Agreement.

10. OFFICES; MULTIBRANCH PARTIES

(a) If Section 10(a) is specified in the Schedule as applying, each party that
enters into a Transaction through an Office other than its head or home office
represents to the other party that, notwithstanding the place of booking office
or jurisdiction of incorporation or organization of such party, the obligations
of such party are the same as if it had entered into the Transaction through its
head or home office. This representation will be deemed to be repeated by such
party on each date on which a Transaction is entered into.

(b) Neither party may change the Office through which it makes and receives
payments or deliveries for the purpose of a Transaction without the prior
written consent of the other party.

(c) If a party is specified as a Multibranch Party in the Schedule, such
Multibranch Party may make and receive payments or deliveries under any
Transaction through any Office listed in the Schedule, and the Office through
which it makes and receives payments or deliveries with respect to a Transaction
will be specified in the relevant Confirmation.

11. EXPENSES

A Defaulting Party will, on demand, indemnify and hold harmless the other party
for and against all reasonable out-of-pocket expenses, including legal fees and
Stamp Tax, incurred by such other party by reason of the enforcement and
protection of its rights under this Agreement or any Credit Support Document

                                       12                           ISDA(R) 1992
<PAGE>

to which the Defaulting Party is a party or by reason of the early termination
of any Transaction, including, but not limited to, costs of collection.

12. NOTICES

(a) EFFECTIVENESS. Any notice or other communication in respect of this
Agreement may be given in any manner set forth below (except that a notice or
other communication under Section 5 or 6 may not be given by facsimile
transmission or electronic messaging system) to the address or number or in
accordance with the electronic messaging system details provided (see the
Schedule) and will be deemed effective as indicated: --

      (i) if in writing and delivered in person or by courier, on the date it is
      delivered;

      (ii) if sent by telex, on the date the recipient's answerback is received;

      (iii) if sent by facsimile transmission, on the date that transmission is
      received by a responsible employee of the recipient in legible form (it
      being agreed that the burden of proving receipt will be on the sender and
      will not be met by a transmission report generated by the sender's
      facsimile machine);

      (iv) if sent by certified or registered mail (airmail, if overseas) or the
      equivalent (return receipt requested), on the date that mail is delivered
      or its delivery is attempted; or

      (v) if sent by electronic messaging system, on the date that electronic
      message is received,

unless the date of that delivery (or attempted delivery) or that receipt, as
applicable, is not a Local Business Day or that communication is delivered (or
attempted) or received, as applicable, after the close of business on a Local
Business Day, in which case that communication shall be deemed given and
effective on the first following day that is a Local Business Day.

(b) CHANGE OF ADDRESSES. Either party may by notice to the other change the
address, telex or facsimile number or electronic messaging system details at
which notices or other communications are to be given to it.

13. GOVERNING LAW AND JURISDICTION

(a) GOVERNING LAW. This Agreement will be governed by and construed in
accordance with the law specified in the Schedule.

(b) JURISDICTION. With respect to any suit, action or proceedings relating to
this Agreement ("Proceedings"), each party irrevocably: --

      (i) submits to the jurisdiction of the English courts, if this Agreement
      is expressed to be governed by English law, or to the non-exclusive
      jurisdiction of the courts of the State of New York and the United States
      District Court located in the Borough of Manhattan in New York City, if
      this Agreement is expressed to be governed by the laws of the State of New
      York; and

      (ii) waives any objection which it may have at any time to the laying of
      venue of any Proceedings brought in any such court, waives any claim that
      such Proceedings have been brought in an inconvenient forum and further
      waives the right to object, with respect to such Proceedings, that such
      court does not have any jurisdiction over such party.

Nothing in this Agreement precludes either party from bringing Proceedings in
any other jurisdiction (outside, if this Agreement is expressed to be governed
by English law, the Contracting States, as defined in Section 1(3) of the Civil
Jurisdiction and Judgments Act 1982 or any modification, extension or
re-enactment thereof for the time being in force) nor will the bringing of
Proceedings in any one or more jurisdictions preclude the bringing of
Proceedings in any other jurisdiction.

(c) SERVICE OF PROCESS. Each party irrevocably appoints the Process Agent (if
any) specified opposite its name in the Schedule to receive, for it and on its
behalf, service of process in any Proceedings. If for any

                                       13                           ISDA(R) 1992
<PAGE>

reason any party's Process Agent is unable to act as such, such party will
promptly notify the other party and within 30 days appoint a substitute process
agent acceptable to the other party. The parties irrevocably consent to service
of process given in the manner provided for notices in Section 12. Nothing in
this Agreement will affect the right of either party to serve process in any
other manner permitted by law.

(d) WAIVER OF IMMUNITIES. Each party irrevocably waives, to the fullest extent
permitted by applicable law, with respect to itself and its revenues and assets
(irrespective of their use or intended use), all immunity on the grounds of
sovereignty or other similar grounds from (i) suit, (ii) jurisdiction of any
court, (iii) relief by way of injunction, order for specific performance or for
recovery of property, (iv) attachment of its assets (whether before or after
judgment) and (v) execution or enforcement of any judgment to which it or its
revenues or assets might otherwise be entitled in any Proceedings in the courts
of any jurisdiction and irrevocably agrees, to the extent permitted by
applicable law, that it will not claim any such immunity in any Proceedings.

14. DEFINITIONS

As used in this Agreement: --

"ADDITIONAL TERMINATION EVENT" has the meaning specified in Section 5(b).

"AFFECTED PARTY" has the meaning specified in Section 5(b).

"AFFECTED TRANSACTIONS" means (a) with respect to any Termination Event
consisting of an Illegality, Tax Event or Tax Event Upon Merger, all
Transactions affected by the occurrence of such Termination Event and (b) with
respect to any other Termination Event, all Transactions.

"AFFILIATE" means, subject to the Schedule, in relation to any person, any
entity controlled, directly or indirectly, by the person, any entity that
controls, directly or indirectly, the person or any entity directly or
indirectly under common control with the person. For this purpose, "control" of
any entity or person means ownership of a majority of the voting power of the
entity or person.

"APPLICABLE RATE" means: --

(a) in respect of obligations payable or deliverable (or which would have been
but for Section 2(a)(iii)) by a Defaulting Party, the Default Rate;

(b) in respect of an obligation to pay an amount under Section 6(e) of either
party from and after the date (determined in accordance with Section 6(d)(ii))
on which that amount is payable, the Default Rate;

(c) in respect of all other obligations payable or deliverable (or which would
have been but for Section 2(a)(iii)) by a Non-defaulting Party, the Non-default
Rate; and

(d) in all other cases, the Termination Rate.

"BURDENED PARTY" has the meaning specified in Section 5(b).

"CHANGE IN TAX LAW" means the enactment, promulgation, execution or ratification
of, or any change in or amendment to, any law (or in the application or official
interpretation of any law) that occurs on or after the date on which the
relevant Transaction is entered into.

"CONSENT" includes a consent, approval, action, authorization, exemption,
notice, filing, registration or exchange control consent.

"CREDIT EVENT UPON MERGER" has the meaning specified in Section 5(b).

"CREDIT SUPPORT DOCUMENT" means any agreement or instrument that is specified as
such in this Agreement.

"CREDIT SUPPORT PROVIDER" has the meaning specified in the Schedule.

"DEFAULT RATE" means a rate per annum equal to the cost (without proof or
evidence of any actual cost) to the relevant payee (as certified by it) if it
were to fund or of funding the relevant amount plus 1% per annum.

                                       14                           ISDA(R) 1992
<PAGE>

"DEFAULTING PARTY" has the meaning specified in Section 6(a).

"EARLY TERMINATION DATE" means the date determined in accordance with Section
6(a) or 6(h)(iv).

"EVENT OF DEFAULT" has the meaning specified in Section 5(a) and, if applicable,
in the Schedule.

"ILLEGALITY" has the meaning specified in Section 5(b).

"INDEMNIFIABLE TAX" means any Tax other than a Tax that would not be imposed in
respect of a payment under this Agreement but for a present or former connection
between the jurisdiction of the government or taxation authority imposing such
Tax and the recipient of such payment or a person related to such recipient
(including, without limitation, a connection arising from such recipient or
related person being or having been a citizen or resident of such jurisdiction,
or being or having been organized, present or engaged in a trade or business in
such jurisdiction, or having or having had a permanent establishment or fixed
place of business in such jurisdiction, but excluding a connection arising
solely from such recipient or related person having executed, delivered,
performed its obligations or received a payment under, or enforced, this
Agreement or a Credit Support Document).

"LAW" includes any treaty, law, rule or regulation (as modified, in the case of
tax matters, by the practice of any relevant governmental revenue authority) and
"LAWFUL" and "UNLAWFUL" will be construed accordingly.

"LOCAL BUSINESS DAY" means, subject to the Schedule, a day on which commercial
banks are open for business (including dealings in foreign exchange and foreign
currency deposits) (a) in relation to any obligation under Section 2(a)(i), in
the place(s) specified in the relevant Confirmation or, if not so specified, as
otherwise agreed by the panics in writing or determined pursuant to provisions
contained, or incorporated by reference, in this Agreement, (b) in relation to
any other payment, in the place where the relevant account is located and, if
different, in the principal financial centre, if any, of the currency of such
payment, (c) in relation to any notice or other communication, including notice
contemplated under Section 5(a)(i), in the city specified in the address for
notice provided by the recipient and, in the case of a notice contemplated by
Section 2(b), in the place where the relevant new account is to be located and
(d) in relation to Section 5(a)(v)(2), in the relevant locations for performance
with respect to such Specified Transaction.

"LOSS" means, with respect to this Agreement or one or more Terminated
Transactions, as the case may be, and a party, the Termination Currency
Equivalent of an amount that party reasonably determines in good faith to be its
total losses and costs (or gain, in which case expressed as a negative number)
in connection with this Agreement or that Terminated Transaction or group of
Terminated Transactions, as the case may be, including any loss of bargain, cost
of funding or, at the election of such party but without duplication, loss or
cost incurred as a result of its terminating, liquidating, obtaining or
reestablishing any hedge or related trading position (or any gain resulting from
any of them). Loss includes losses and costs (or gains) in respect of any
payment or delivery required to have been made (assuming satisfaction of each
applicable condition precedent) on or before the relevant Early Termination Date
and not made, except, so as to avoid duplication, if Section 6(e)(i)(l) or (3)
or 6(e)(ii)(2)(A) applies. Loss does not include a party's legal fees and
out-of-pocket expenses referred to under Section 11. A party will determine its
Loss as of the relevant Early Termination Date, or, if that is not reasonably
practicable, as of the earliest date thereafter as is reasonably practicable. A
party may (but need not) determine its Loss by reference to quotations of
relevant rates or prices from one or more leading dealers in the relevant
markets.

"MARKET QUOTATION" means, with respect to one or more Terminated Transactions
and a party making the determination, an amount determined on the basis of
quotations from Reference Market-makers. Each quotation will be for an amount,
if any, that would be paid to such party (expressed as a negative number) or by
such party (expressed as a positive number) in consideration of an agreement
between such party (taking into account any existing Credit Support Document
with respect to the obligations of such party) and the quoting Reference
Market-maker to enter into a transaction (the "Replacement Transaction") that
would have the effect of preserving for such party the economic equivalent of
any payment or delivery (whether the underlying obligation was absolute or
contingent and assuming the satisfaction of each applicable condition precedent)
by the parties under Section 2(a)(i) in respect of such Terminated Transaction
or group of Terminated Transactions that would, but for the occurrence of the
relevant Early Termination Date, have

                                       15                           ISDA(R) 1992
<PAGE>

been required after that date. For this purpose, Unpaid Amounts in respect of
the Terminated Transaction or group of Terminated Transactions are to be
excluded but, without limitation, any payment or delivery that would, but for
the relevant Early Termination Date, have been required (assuming satisfaction
of each applicable condition precedent) after that Early Termination Date is to
be included. The Replacement Transaction would be subject to such documentation
as such party and the Reference Market-maker may, in good faith, agree. The
party making the determination (or its agent) will request each Reference
Market-maker to provide its quotation to the extent reasonably practicable as of
the same day and time (without regard to different time zones) on or as soon as
reasonably practicable after the relevant Early Termination Date. The day and
time as of which those quotations are to be obtained will be selected in good
faith by the party obliged to make a determination under Section 6(e), and, if
each party is so obliged, after consultation with the other. If more than three
quotations arc provided, the Market Quotation will be the arithmetic mean of the
quotations, without regard to the quotations having the highest and lowest
values. If exactly three such quotations are provided, the Market Quotation will
be the quotation remaining after disregarding the highest and lowest quotations.
For this purpose, if more than one quotation has the same highest value or
lowest value, then one of such quotations shall be disregarded. If fewer than
three quotations are provided, it will be deemed that the Market Quotation in
respect of such Terminated Transaction or group of Terminated Transactions
cannot be determined.

"NON-DEFAULT RATE" means a rate per annum equal to the cost (without proof or
evidence of any actual cost) to the Non-defaulting Party (as certified by it) if
it were to fund the relevant amount.

"NON-DEFAULTING PARTY" has the meaning specified in Section 6(a).

"OFFICE" means a branch or office of a party, which may be such party's head or
home office.

"POTENTIAL EVENT OF DEFAULT" means any event which, with the giving of notice or
the lapse of time or both, would constitute an Event of Default.

"REFERENCE MARKET-MAKERS" means four leading dealers in the relevant market
selected by the party determining a Market Quotation in good faith (a) from
among dealers of the highest credit standing which satisfy all the criteria that
such party applies generally at the time in deciding whether to offer or to make
an extension of credit and (b) to the extent practicable, from among such
dealers having an office in the same city.

"RELEVANT JURISDICTION" means, with respect to a party, the jurisdictions (a) in
which the party is incorporated, organized, managed and controlled or considered
to have its seat, (b) where an Office through which the party is acting for
purposes of this Agreement is located, (c) in which the party executes this
Agreement and (d) in relation to any payment, from or through which such payment
is made.

"SCHEDULED PAYMENT DATE" means a date on which a payment or delivery is to be
made under Section 2(a)(i) with respect to a Transaction.

"SET-OFF" means set-off, offset, combination of accounts, right of retention or
withholding or similar right or requirement to which the payer of an amount
under Section 6 is entitled or subject (whether arising under this Agreement,
another contract, applicable law or otherwise) that is exercised by, or imposed
on, such payer.

"SETTLEMENT AMOUNT" means, with respect to a party and any Early Termination
Date, the sum of: --

(a) the Termination Currency Equivalent of the Market Quotations (whether
positive or negative) for each Terminated Transaction or group of Terminated
Transactions for which a Market Quotation is determined; and

(b) such party's Loss (whether positive or negative and without reference to any
Unpaid Amounts) for each Terminated Transaction or group of Terminated
Transactions for which a Market Quotation cannot be determined or would not (in
the reasonable belief of the party making the determination) produce a
commercially reasonable result.

"SPECIFIED ENTITY" has the meanings specified in the Schedule.

                                       16                           ISDA(R) 1992
<PAGE>

"SPECIFIED INDEBTEDNESS" means, subject to the Schedule, any obligation (whether
present or future, contingent or otherwise, as principal or surety or otherwise)
in respect of borrowed money.

"SPECIFIED TRANSACTION" means, subject to the Schedule, (a) any transaction
(including an agreement with respect thereto) now existing or hereafter entered
into between one party to this Agreement (or any Credit Support Provider of such
party or any applicable Specified Entity of such party) and the other party to
this Agreement (or any Credit Support Provider of such other party or any
applicable Specified Entity of such other party) which is a rate swap
transaction, basis swap, forward rate transaction, commodity swap, commodity
option, equity or equity index swap, equity or equity index option, bond option,
interest rate option, foreign exchange transaction, cap transaction, floor
transaction, collar transaction, currency swap transaction, cross-currency rate
swap transaction, currency option or any other similar transaction (including
any option with respect to any of these transactions), (b) any combination of
these transactions and (c) any other transaction identified as a Specified
Transaction in this Agreement or the relevant confirmation.

"STAMP TAX" means any stamp, registration, documentation or similar tax.

"TAX" means any present or future tax, levy, impost, duty, charge, assessment or
fee of any nature (including interest, penalties and additions thereto) that is
imposed by any government or other taxing authority in respect of any payment
under this Agreement other than a stamp, registration, documentation or similar
tax.

"TAX EVENT" has the meaning specified in Section 5(b).

"TAX EVENT UPON MERGER" has the meaning specified in Section 5(b).

"TERMINATED TRANSACTIONS" means with respect to any Early Termination Date (a)
if resulting from a Termination Event, all Affected Transactions and (b) if
resulting from an Event of Default, all Transactions (in either case) in effect
immediately before the effectiveness of the notice designating that Early
Termination Date (or, if "Automatic Early Termination" applies, immediately
before that Early Termination Date).

"TERMINATION CURRENCY" has the meaning specified in the Schedule.

"TERMINATION CURRENCY EQUIVALENT" means, in respect of any amount denominated in
the Termination Currency, such Termination Currency amount and, in respect of
any amount denominated in a currency other than the Termination Currency (the
"Other Currency"), the amount in the Termination Currency determined by the
party making the relevant determination as being required to purchase such
amount of such Other Currency as at the relevant Early Termination Date, or, if
the relevant Market Quotation or Loss (as the case may be), is determined as of
a later date, that later date, with the Termination Currency at the rate equal
to the spot exchange rate of the foreign exchange agent (selected as provided
below) for the purchase of such Other Currency with the Termination Currency at
or about 11:00 a.m. (in the city in which such foreign exchange agent is
located) on such date as would be customary for the determination of such a rate
for the purchase of such Other Currency for value on the relevant Early
Termination Date or that later date. The foreign exchange agent will, if only
one party is obliged to make a determination under Section 6(e), be selected in
good faith by that party and otherwise will be agreed by the parties.

"TERMINATION EVENT" means an Illegality, a Tax Event or a Tax Event Upon Merger
or, if specified to be applicable, a Credit Event Upon Merger or an Additional
Termination Event.

"TERMINATION RATE" means a rate per annum equal to the arithmetic mean of the
cost (without proof or evidence of any actual cost) to each party (as certified
by such party) if it were to fund or of funding such amounts.

"UNPAID AMOUNTS" owing to any party means, with respect to an Early Termination
Date, the aggregate of (a) in respect of all Terminated Transactions, the
amounts that became payable (or that would have become payable but for Section
2(a)(iii)) to such party under Section 2(a)(i) on or prior to such Early
Termination Date and which remain unpaid as at such Early Termination Date and
(b) in respect of each Terminated Transaction, for each obligation under Section
2(a)(i) which was (or would have been but for Section 2(a)(iii)) required to be
settled by delivery to such party on or prior to such Early Termination Date and
which has not been so settled as at such Early Termination Date, an amount equal
to the fair market

                                       17                           ISDA(R) 1992
<PAGE>

value of that which was (or would have been) required to be delivered as of the
originally scheduled date for delivery, in each case together with (to the
extent permitted under applicable law) interest, in the currency of such
amounts, from (and including) the date such amounts or obligations were or would
have been required to have been paid or performed to (but excluding) such Early
Termination Date, at the Applicable Rate. Such amounts of interest will be
calculated on the basis of daily compounding and the actual number of days
elapsed. The fair market value of any obligation referred to in clause (b) above
shall be reasonably determined by the party obliged to make the determination
under Section 6(e) or, if each party is so obliged, it shall be the average of
the Termination Currency Equivalents of the fair market values reasonably
determined by both parties.

IN WITNESS WHEREOF the parties have executed this document on the respective
dates specified below with effect from the date specified on the first page of
this document.

      J. ARON & COMPANY                                 CAPITAL C OHIO, INC.

  -------------------------                          ---------------------------
       (Name of Party)                                    (Name of Party)

By: /s/ L. PETER O'HAGAN                           BY: /s/ GREGORY BEARD
    -----------------------                            -------------------------
    Name: L. PETER O'HAGAN                             Name: GREGORY BEARD
    Title:                                             Title:
    Date:                                              Date:

                                       18                           ISDA(R) 1992
<PAGE>

                                    SCHEDULE
                                     TO THE
                              ISDA MASTER AGREEMENT
                                   DATED AS OF
                                  JUNE 30, 2004

                                     BETWEEN

                               J. ARON & COMPANY,
     A GENERAL PARTNERSHIP ORGANIZED UNDER THE LAWS OF THE STATE OF NEW YORK
                                  ("J. ARON"),

                                       AND

                              CAPITAL C OHIO, INC.,
       A CORPORATION ORGANIZED UNDER THE LAWS OF OHIO ("CAPITAL C OHIO").

       IN RELATION TO TRANSACTIONS ENTERED INTO IN ANTICIPATION OF AND IN
       CONNECTION WITH THE MERGER OF CAPITAL C OHIO WITH AND INTO BELDEN
                               &BLAKE CORPORATION

PART 1. TERMINATION PROVISIONS.

      (a)   "SPECIFIED ENTITY"

            (i) means, in relation to J. Aron, not applicable; and

            (ii) means, in relation to Capital C Ohio, not applicable

      (b)   "SPECIFIED TRANSACTION" will have the meaning specified in Section
            14 of the Agreement and will also include any transaction that is or
            includes a forward, swap, future or option on or involving any
            commodity (including, but not limited to, natural gas and oil). The
            "CROSS DEFAULT" provisions of Section 5(a)(vi) will apply to J. Aron
            and Capital C Ohio (and following the Merger, to Belden & Blake and
            any Credit Support Provider of Belden & Blake), provided that (i)
            the phrase "or becoming capable at such time of being declared"
            shall be deleted from clause (1) of such Section 5(a)(vi) so that
            only Specified Indebtedness that has actually been accelerated
            triggers this Event of Default; and (ii) the following language
            shall be added to the end thereof: "Notwithstanding the foregoing,
            the default shall not constitute an Event of Default if (i) the
            default was caused solely by error or omission of an administrative
            or operational nature; and (ii) with respect to a default under
            subsection (2) hereof, funds were available to enable the party to
            make the payment when due, and the payment is made within two Local
            Business Days of such party's receipt of written notice of its
            failure to pay."

            "SPECIFIED INDEBTEDNESS" will have the meaning specified in Section
            14 of this Schedule.

                                        1
<PAGE>

      (c)   "THRESHOLD AMOUNT" means in relation to J. Aron, US$50,000,000 (or
            its equivalent in another currency) and in relation to Capital C
            Ohio, $500,000, and following the consummation of the Merger, in
            relation to Belden & Blake, US$10,000,000 (or its equivalent in
            another currency). The "CREDIT EVENT UPON MERGER" provisions of
            Section 5(b)(iv) will apply to J. Aron but will not apply to Belden
            & Blake; the "CREDIT EVENT UPON MERGER" provisions of Section
            5(b)(iv) will not apply to the Merger of Capital C Ohio into Belden
            & Blake in accordance with the provisions of the Merger Agreement.

      (d)   The "AUTOMATIC EARLY TERMINATION" provision of Section 6(a) will not
            apply to J. Aron and will not apply to Capital C Ohio and Belden &
            Blake.

      (e)   PAYMENTS ON EARLY TERMINATION. For the purpose of Section 6(e):

            (i)   Market Quotation will apply.

            (ii)  The Second Method will apply.

      (f)   "TERMINATION CURRENCY" means United States Dollars.

      (g)   ADDITIONAL EVENTS OF DEFAULT WITH RESPECT TO CAPITAL C OHIO. Prior
            to the consummation of the Merger but not thereafter, Section 5(a)
            is hereby amended by including the following as clause (ix) and upon
            the occurrence of one or more of the events or circumstance set
            forth in such clause (ix) an Event of Default shall have occurred
            with respect to Capital C Ohio as Defaulting Party:

            "(ix) ADDITIONAL EVENTS OF DEFAULT WITH RESPECT TO CAPITAL C OHIO:

            (1)   IMPERMISSIBLE INDEBTEDNESS. Capital C Ohio directly or
                  indirectly, creates, incurs, assumes or guaranties, or
                  otherwise becomes or remains directly or indirectly liable
                  with respect to any Indebtedness other than Indebtedness (i)
                  incurred pursuant to this Agreement and the Transactions
                  entered into hereunder and (ii) incurred pursuant to the
                  Merger Agreement.

            (2)   IMPERMISSIBLE LIENS. Capital C Ohio directly or indirectly,
                  creates, incurs, assumes or permits to exist any Lien on or
                  with respect to any property or asset of any kind (including
                  any document or instrument in respect of goods or accounts
                  receivable) of Capital C Ohio, whether now or hereafter
                  acquired, or any income or profits therefrom, or files or
                  permits the filing of, or permits to remain in effect, any
                  financing statement or other similar notice of any Lien with
                  respect to any such property, asset, income or profits under
                  the UCC of any State or under any similar recording or notice
                  statute other than Liens to secure its obligations under this
                  Agreement and the Transactions entered into hereunder.

            (3)   IMPERMISSIBLE BUSINESS ACTIVITIES. Capital C Ohio engages in
                  any activities other than entering into this Agreement, the
                  Merger and activities reasonably necessary to consummate or
                  perform any of the foregoing.

                                       2
<PAGE>

            (4)   FAILURE TO MAINTAIN REQUIRED CASH/CASH EQUIVALENTS.

                  (i) Failure of Capital C Ohio to own or maintain at any time
                  prior to the consummation of the Merger Cash and/or Cash
                  Equivalents in an amount equal to or greater than the Required
                  Base Capital Amount; or

                  (ii) Failure of Capital C Ohio to own or maintain within two
                  Local Business Days of delivery by J. Aron of an Additional
                  Capital Requirement Notice Cash and/or Cash Equivalents in an
                  amount equal to or greater than the sum of the Required Base
                  Capital Amount and the Additional Capital Amount.

                  The following terms have the meanings specified below for
                  purposes of this provision:

                  "Required Base Capital Amount" means $20,000,000;

                  "Additional Capital Requirement Notice" means a written notice
                  from J. Aron to Capital C Ohio delivered on any Local Business
                  Day on or after July 7, 2004 and before the consummation of
                  the Merger (i) stating that in J. Aron's reasonable judgment
                  the Merger is unlikely to be consummated prior to July 31,
                  2004 and (ii) setting forth the Additional Capital Amount; and

                  "Additional Capital Amount" means the amount (if positive)
                  equal to the difference of (x) the amount that would be owing
                  by Capital C Ohio to J. Aron if all the Transactions under
                  this Agreement were to be terminated on a determination date
                  in accordance with Section 6(e) of this Agreement based on the
                  occurrence of an Event of Default with respect to Capital C
                  Ohio minus (y) the sum of (i) $10,000,000 and (ii) any
                  Additional Capital Amount held by Capital C Ohio as of such
                  determination date.

            (5)   FAILURE TO CONSUMMATE MERGER OR DELEGATE LIABILITIES UNDER THE
                  AGREEMENT TO AN ACCEPTABLE AFFILIATED ENTITY. Either (i) the
                  Merger is not consummated on or before July 16, 2004 and
                  Capital C Ohio is not acting diligently and in good faith to
                  seek an affiliated entity to assume all liability under this
                  Agreement from Capital C Ohio that would be acceptable to J.
                  Aron in its discretion or (ii) the Merger is not consummated
                  on or before July 31, 2004 and the liabilities of Capital C
                  Ohio under this Agreement have not been assumed by an
                  affiliated entity acceptable to J. Aron in its discretion on
                  or before July 31, 2004.

            (6)   TERMINATION OF TRANSACTIONS. On any Local Business Day prior
                  to July 31, 2004, Capital C Ohio notifies J. Aron in writing
                  that Capital C Ohio is designating a day, not earlier than the
                  Local Business Day next following the date on which such
                  notice is received by J. Aron, as an Early Termination Date."

      (h)   ADDITIONAL EVENTS OF DEFAULT WITH RESPECT TO BELDEN & BLAKE.
            Following the consummation of the Merger, Section 5(a) is hereby
            amended by including the

                                       3
<PAGE>

            following as clause (ix) and upon the occurrence of one or more of
            the events or circumstance set forth in such clause (ix) an Event of
            Default shall have occurred with respect to Belden & Blake as
            Defaulting Party:,

            "(ix) ADDITIONAL EVENTS OF DEFAULT WITH RESPECT TO BELDEN & BLAKE:

                  (a) Failure of Belden & Blake to comply with any of the
                  covenants set forth in Sections 5.1(b), (c), (d), (e), (f),
                  (g), (j), (n), (o) and (p) (Financial Statements and Other
                  Information), 5.11 (Additional Material Real Estate Assets),
                  6.1 (Indebtedness), 6.2 (Liens), 6.3 (Equitable Lien), 6.4 (No
                  Further Negative Pledges), 6.8 (Financial Covenants), 6.9
                  (Fundamental Changes; Disposition of Assets), 6.10
                  (Disposition of Subsidiary Interests), 6.15 (Amendments or
                  Waivers of Certain Related Agreements) and 6.16 (Amendment of
                  Senior Secured Indebtedness), as such covenants are amended,
                  modified, supplemented or waived by the Requisite Lenders (as
                  defined in the Credit Agreement); provided that for purposes
                  of this clause (ix) (i) any reference to the Administrative
                  Agent shall be deemed to be J. Aron; and (ii) any reference to
                  the "Obligations" shall include the obligations under this
                  Agreement (provided that any such reference shall not effect
                  the ranking of the security interest granted to J. Aron).

                  (b) Failure of Belden & Blake to comply with any of the
                  covenants set forth in Section 4.09 (Incurrence of
                  Indebtedness and Issuance of Preferred Stock) and Section 4.12
                  (Permitted Liens) as such Sections relate to the incurrence of
                  any Parity Lien Debt and any liens in connection therewith
                  pursuant to the definition of `Parity Lien Debt' and clause
                  (2) of the definition of `Permitted Liens,' as such covenants
                  are in effect as of the date of the Merger."

      (i)   EARLY TERMINATION. Notwithstanding anything to the contrary in
            Section 6(a) or Section 6(b), the parties agree that the
            Non-defaulting Party or the party that is not the Affected Party (in
            a case where a Termination Event under Section 5(b)(iv) has
            occurred) is not required to terminate the Transactions on a single
            day, but rather may terminate the Transactions over a commercially
            reasonable period of time (not to exceed ten days) (the "Early
            Termination Period"). The last day of the Early Termination Period
            shall be the Early Termination Date for purposes of Section 6;
            provided, however, that interest shall accrue on the Transactions
            terminated during the Early Termination Period prior to the Early
            Termination Date at the Non-default Rate.

PART 2. TAX REPRESENTATIONS.

      (a)   PAYER TAX REPRESENTATIONS. For the purposes of Section 3(e), J.
            Aron, Capital C Ohio and Belden & Blake make the following
            representation:

            It is not required by any applicable law, as modified by the
            practice of any relevant governmental revenue authority, of any
            Relevant Jurisdiction to make any deduction or withholding for or on
            account of any Tax from any payment (other than interest under
            Section 2(e), 6(d)(ii), or 6(e) of this Agreement) to be made by it
            to the other party under this Agreement. In making this

                                       4
<PAGE>

            representation, it may rely on (i) the accuracy of any
            representations made by the other party pursuant to Section 3(f) of
            this Agreement, (ii) the satisfaction of the agreement contained in
            Section 4(a)(i) or 4(a)(iii) of this Agreement, and the accuracy and
            effectiveness of any document provided by the other party pursuant
            to Section 4(a)(i) or 4(a)(iii) of this Agreement, and (iii) the
            satisfaction of the agreement of the other party contained in
            Section 4(d) of this Agreement, provided that it shall not be a
            breach of this representation where reliance is placed on clause
            (ii) and the other party does not deliver a form or document under
            Section 4(a)(iii) by reason of material prejudice to its legal or
            commercial position.

      (b)   PAYEE TAX REPRESENTATIONS. For the purposes of Section 3(f), each of
            J. Aron, Capital C Ohio and Belden & Blake make the following
            representations:

            (i)   It is not acting as an agent or intermediary for any foreign
                  person with respect to the payments received or to be received
                  by it in connection with this Agreement.

            (ii)  It is a United States person within the meaning of Section
                  7701(a)(30) of the Internal Revenue Code of 1986, as amended.

PART 3. AGREEMENT TO DELIVER DOCUMENTS

      (a)   For the purpose of Section 4(a):

            Tax forms, documents, or certificates to be delivered are:

<TABLE>
<CAPTION>
  PARTY REQUIRED TO                                                   DATE BY WHICH
  DELIVER DOCUMENT          FORMS/DOCUMENTS/CERTIFICATES             TO BE DELIVERED
-----------------------    ------------------------------    ---------------------------------
<S>                        <C>                               <C>
J. Aron, Capital C Ohio    United States Internal Revenue    (i) On a date which is before the
and Belden & Blake         Service Form W-9, or any          first Scheduled Payment Date
                           successor form.                   under this Agreement, (ii)
                                                             promptly upon reasonable
                                                             demand by the other party, and
                                                             (iii) promptly upon learning that
                                                             any such form previously
                                                             provided by the other party has
                                                             become obsolete, incorrect, or
                                                             ineffective.
</TABLE>

      (b) Other documents to be delivered are:

<TABLE>
<CAPTION>
    PARTY                                                                                           COVERED BY
 REQUIRED TO                                                           DATE BY WHICH TO BE         SECTION 3(d)
   DELIVER                  FORM/DOCUMENT/CERTIFICATE                       DELIVERED             REPRESENTATION
<S>               <C>                                               <C>                           <C>
J. Aron,          Evidence of authority of signatories              Upon execution of this              Yes
Capital C Ohio                                                      Agreement and promptly
and Belden &                                                        following reasonable
                                                                    demand by
</TABLE>

                                       5
<PAGE>

<TABLE>
<S>               <C>                                               <C>                           <C>
Blake                                                               the other party

J. Aron           Guaranty of the party's Credit                    Upon execution of this               No
                  Support Provider                                  Agreement, if not already
                                                                    provided

J. Aron,          Copy of the most recent, publicly available       Promptly following                  Yes
Capital C Ohio    audited annual financial statements and/or of     reasonable demand by the
and Belden &      the unaudited quarterly financial statements      other party
Blake             of, in the case of J. Aron, The Goldman Sachs
                  Group, Inc. or its successor ("Goldman
                  Group"), and, in the case of Capital C Ohio,
                  the pro forma unaudited financial statements
                  dated ______, 2004 prepared in accordance with
                  generally accepted accounting principles in
                  the country in which the party is organized.
                  Following the Merger, the financial reports of
                  Belden & Blake shall be delivered pursuant to
                  Part 1(h).

Capital C         Certified resolutions of its board of             Upon execution of this              Yes
Ohio, Belden      directors or other governing body authorizing     Agreement in the case of
& Blake           this Agreement and the Transactions               Capital C Ohio, and upon
                  contemplated hereby                               consummation of the Merger
                                                                    in the case of Belden &
                                                                    Blake

Capital C Ohio    Evidence of ownership of Cash and Cash            Upon execution of this              Yes
                  Equivalents in an amount not less than the        Agreement and, thereafter,
                  amount specified in Part 1(g)(4)                  within two Business Days
                                                                    of a written request by J.
                                                                    Aron

Belden &          Legal Opinion as to the authorization,            Upon consummation of the            No
Blake             execution and delivery of this Agreement and      Merger
                  the legal, valid and binding nature of this
                  Agreement against Belden & Blake.  J. Aron
                  shall also receive a reliance letter with
                  respect to each opinion delivered to the
                  Administrative Agent or the Lenders under the
                  Credit Agreement.
</TABLE>

PART 4. MISCELLANEOUS

      (a) ADDRESSES FOR NOTICES. For the purpose of Section 12(a):

                                       6
<PAGE>

      Address for notices or communications to J. Aron:

            Address:                          J. Aron & Company
                                              85 Broad Street
                                              New York, New York 10004

            NATURAL GAS
            Attention:                        Energy Operations
            Telephone:                        (212) 357-0326
            Facsimile:                        (212) 493-9849

            OIL
            Attention:                        Energy Operations
            Telephone:                        (212) 357-0326
            Facsimile:                        (212) 493-9849

            Address for notices or communications to Capital C Ohio (prior to
            the consummation of the Merger):

            Address:                          Capital C Ohio
                                              333 Clay Street, Suite 4960
                                              Houston, TX  77002
            Attention:                        Frost Cochran
            Telephone:                        (713) 571-9393
            Facsimile:                        (713) 571-9533

            Address for notices or communications to Belden & Blake (following
            the consummation of the Merger only):

            Address:                          Belden & Blake Corporation
                                              5200 Stoneham Road
                                              North Canton, OH 44720-0500
            Attention:                        Duane Clark
            Telephone:                        (330) 498-5737
            Facsimile:                        (330) 498-8737

      (b)   PROCESS AGENT. For the purpose of Section 13(c):

            J. Aron appoints as its Process Agent: Not applicable.

            Capital C Ohio, and subsequent to the consummation of the Merger,
            Belden & Blake appoints as its Process Agent: Not applicable.

      (c)   OFFICES. The provisions of Section 10(a) will apply to this
            Agreement.

      (d)   MULTIBRANCH PARTY. For the purpose of Section 10(c):

            J. Aron is not a Multibranch Party.

            Neither Capital C Ohio nor, subsequent to the consummation of the
            Merger, Belden & Blake is a Multibranch Party.

                                       7
<PAGE>

      (e)   CALCULATION AGENT. The Calculation Agent is J. Aron.

      (f)   CREDIT SUPPORT DOCUMENT. Details of any other Credit Support
            Document, each of which is incorporated by reference in, and made
            part of, this Agreement and each Confirmation (unless provided
            otherwise in a Confirmation) as if set forth in full in this
            Agreement or such Confirmation:

            Any guaranty or other form of credit support provided on behalf of
            Belden & Blake at any time shall constitute a Credit Support
            Document with respect to the obligations of Belden & Blake. Each of
            the Collateral Trust Agreement and the mortgages, security
            agreements and pledge agreements constituting Senior Secured Note
            Documents (as defined in the Collateral Trust Agreement) shall
            constitute Credit Support Documents with respect to Belden & Blake.
            Belden & Blake and J. Aron acknowledge and agree that the Senior
            Secured Note Documents constitute a source of credit support for the
            obligations of Belden & Blake that is separate from, independent of,
            and not limited by, the Credit Support Annex.

            Guaranty by The Goldman Sachs Group, Inc. ("Goldman Group") in favor
            of Belden & Blake as beneficiary thereof shall constitute a Credit
            Support Document with respect to the obligations of J. Aron; and

      (g)   CREDIT SUPPORT PROVIDER.

            Credit Support Provider means in relation to J. Aron, Goldman Group.

            Credit Support Provider means in relation to Belden & Blake, each of
            the wholly owned subsidiaries of Belden & Blake that are Guarantors
            under the Credit Agreement and any party that at any time provides a
            guaranty or other form of credit support on behalf of Belden & Blake
            but shall not include any issuer of a Letter of Credit under the
            terms of the Credit Support Annex.

            Capital C Ohio shall not be required to have a Credit Support
            Provider prior to the consummation of the Merger.

      (h)   GOVERNING LAW. Section 13(a) is hereby replaced with the following:

            (i)   GOVERNING LAW. This Agreement, each Transaction entered into
                  hereunder, and all matters arising in connection with this
                  Agreement will be governed by, and construed and enforced in
                  accordance with, the law of the State of New York.

      (i)   JURISDICTION. Section 13(b) is hereby amended by:

            (i)   deleting in the second line of subparagraph (i) thereof the
                  word "non-"; and

            (ii)  deleting the final paragraph thereof.

      (j)   NETTING OF PAYMENTS. Subparagraph (ii) of Section 2(c) will not
            apply to Transactions.

                                       8
<PAGE>

PART 5. OTHER PROVISIONS.

      (a)   ACCURACY OF SPECIFIED INFORMATION. Section 3(d) is hereby amended by
            adding in the third line thereof after the word "respect" and before
            the period, the phrase "or, in the case of audited or unaudited
            financial statements, a fair presentation in all material respects
            of the financial condition of the relevant person subject, in the
            case of any unaudited financial statements, to changes resulting
            from audit and normal year-end adjustments ."

      (b)   SCOPE OF AGREEMENT. Notwithstanding anything contained in this
            Agreement to the contrary, any transaction which may otherwise
            constitute a "Specified Transaction" for purposes of this Agreement
            which has been or will be entered into between J. Aron and Capital C
            Ohio, and subsequent to the consummation of the Merger, Belden &
            Blake, shall constitute a "Transaction" which is subject to,
            governed by, and construed in accordance with the terms of this
            Agreement, unless the Confirmation thereto expressly provides
            otherwise.

      (c)   ADDITIONAL REPRESENTATIONS. The parties agree to amend Section 3 by
            adding new Sections 3(g), (h), (i), and (j) as follows:

            (i)   ELIGIBLE CONTRACT PARTICIPANT. It is an "eligible contract
                  participant" as defined in the U.S. Commodity Exchange Act.

            (ii)  NON-RELIANCE. It is acting for its own account, and it has
                  made its own independent decisions to enter into that
                  Transaction and as to whether that Transaction is appropriate
                  or proper for it based upon its own judgment and upon advice
                  from such advisers as it has deemed necessary. It is not
                  relying on any communication (written or oral) of the other
                  party as investment advice or as a recommendation to enter
                  into that Transaction; it being understood that information
                  and explanations related to the terms and conditions of a
                  Transaction shall not be considered investment advice or a
                  recommendation to enter into that Transaction. No
                  communication (written or oral) received from the other party
                  shall be deemed to be an assurance or guarantee as to the
                  expected results of that Transaction.

            (iii) ASSESSMENT AND UNDERSTANDING. It is capable of assessing the
                  merits of and understanding (on its own behalf or through
                  independent professional advice), and understands and accepts,
                  the terms, conditions and risks of that Transaction. It is
                  also capable of assuming, and assumes, the risks of that
                  Transaction.

            (iv)  STATUS OF PARTIES. The other party is not acting as a
                  fiduciary for or an adviser to it in respect of that
                  Transaction.

      (d)   TRANSFER. The following amendments are hereby made to Section 7:

            (i)   In the third line, insert the words "which consent will not be
                  arbitrarily withheld or delayed," immediately before the word
                  "except"; and

                                       9
<PAGE>

            (ii)  in clause (a), insert the words "or reorganization,
                  incorporation, reincorporation, or reconstitution into or as,"
                  immediately before the word "another."

            (iii) The following new sentence is added after clause (b): "Nothing
                  in this Section 7 shall prevent (A) a party from granting a
                  security interest in this Agreement and the Transactions
                  entered into pursuant to this Agreement to secure its
                  obligations to its creditors or any one or more groups of its
                  creditors and (B) such party's secured creditors from
                  exercising remedies available to them in respect of this
                  Agreement; provided, however, that in all cases the grant of
                  such a security interest and the exercise of such remedies
                  shall be subject to the rights of the other party to this
                  Agreement to exercise its contractual and other rights
                  (including, without limitation, the right to designate an
                  Early Termination Date and effect rights to terminate,
                  liquidate and net Transactions, to exercise rights with
                  respect to Posted Credit Support and to exercise rights of
                  set-off)."

      (e)   CONSENT TO RECORDING. The parties agree that each party or its agent
            may electronically record all telephone conversations between them,
            with or without the use of a warning tone, and that, it may be used
            in a Proceeding solely for the purpose of establishing, and only to
            the extent reasonably necessary to establish, the existence of a
            Transaction and the terms thereof.

      (f)   DEFINITIONS. The following amendments are hereby made to Section 14:

            (i)   "DEFAULT RATE" shall be the overnight London Interbank Offered
                  Rate, as determined by the relevant payee in a commercially
                  reasonable manner plus 1%, and

            (ii)  "TERMINATION CURRENCY" means U.S. Dollars.

      (g)   SEVERABILITY. If any term, provision, covenant, or condition of this
            Agreement, or the application thereof to any party or circumstance,
            shall be held to be invalid or unenforceable (in whole or in part)
            for any reason, the remaining terms, provisions, covenants, and
            conditions hereof shall continue in full force and effect as if this
            Agreement had been executed with the invalid or unenforceable
            portion eliminated, so long as this Agreement as so modified
            continues to express, without material change, the original
            intentions of the parties as to the subject matter of this Agreement
            and the deletion of such portion of this Agreement will not
            substantially impair the respective benefits or expectations of the
            parties to this Agreement; provided, however, that this Agreement
            shall be deemed to be invalid and unenforceable if any provision of
            Sections 1(c), 2, 5, 6, or 13 (or any definition or provision in
            Section 14 to the extent it relates to, or is used in or in
            connection with, any such Section) shall be so held to be invalid or
            unenforceable.

      (h)   SET-OFF. The parties agree to amend Section 6 by adding a new
            Section 6(f) as follows:

                                       10
<PAGE>

            "(f) Upon the occurrence of an Event of Default or Termination Event
            under Section 5(b)(iv) with respect to a party ("X"), the other
            party ("Y") will have the right (but not be obliged) without prior
            notice to X or any other person to set-off or apply any obligation
            of X owed to Y (whether or not matured or contingent and whether or
            not arising under this Agreement, and regardless of the currency,
            place of payment or booking office of the obligation) against any
            obligation of Y owed to X (whether or not matured or contingent and
            whether or not arising under this Agreement, and regardless of the
            currency, place of payment or booking office of the obligation). Y
            will give notice to the other party of any set-off effected under
            this Section 6(f).

            Amounts (or the relevant portion of such amounts) subject to set-off
            may be converted by Y into the Termination Currency at the rate of
            exchange at which such party would be able, acting in a reasonable
            manner and in good faith, to purchase the relevant amount of such
            currency.

            If any obligation is unascertained, Y may in good faith estimate
            that obligation and set-off in respect of the estimate, subject to
            the relevant party accounting to the other when the obligation is
            ascertained.

            Nothing in this Section 6(f) shall be effective to create a charge
            or other security interest. This Section 6(f) shall be without
            prejudice and in addition to any right of set-off, combination of
            accounts, lien or other right to which any party is at any time
            otherwise entitled (whether by operation of law, contract or
            otherwise)."

      (i)   DEFINITIONS. This Agreement, each Confirmation and each Transaction
            is subject to the 2000 ISDA Definitions and the 1993 ISDA Commodity
            Derivatives Definitions as supplemented by the 2000 Supplement to
            the 1993 ISDA Commodity Derivatives Definitions as published by the
            International Swaps and Derivatives Association, Inc. ("ISDA") and
            the 1998 FX and Currency Option Definitions as published by ISDA,
            the Emerging Markets Traders Association, and the Foreign Exchange
            Committee (together, the "Definitions"), and will be governed in all
            respects by the Definitions (except that references to "Swap
            Transactions" in the Definitions will be deemed to be references to
            "Transactions"). The Definitions are incorporated by reference in,
            and made part of, this Agreement and each Confirmation as if set
            forth in full in this Agreement and such Confirmations. In the event
            of any inconsistency between the provisions of this Agreement and
            the Definitions, this Agreement will prevail. Subject to Section
            1(b), in the event of any inconsistency between the provisions of
            any Confirmation, this Agreement, and the Definitions, such
            Confirmation will prevail for the purpose of the relevant
            Transaction.

      (j)   MARKET DISRUPTION EVENTS; DISRUPTION FALLBACKS. The following will
            constitute Market Disruption Events within the meaning of the
            Definitions: Price Source Disruption, Trading Suspension,
            Disappearance of Commodity Reference Price, Material Change in
            Formula, Material Change in Content. In the event of a Market
            Disruption Event, the following Disruption Fallbacks will apply in
            the order specified: (i) Fallback Reference Price, (ii) Postponement
            (with two Maximum Days of Disruption), (iii) Negotiated Fallback and
            (iv) Calculation Agent Determination. "Additional Market Disruption
            Events" shall apply only if so specified in the relevant
            Confirmation.

                                       11
<PAGE>

      (k)   WAIVER OF TRIAL BY JURY. Each party hereby irrevocably waives any
            and all right to trial by jury in any Proceeding.

      (l)   COLLATERAL. So long as any Transaction is outstanding under this
            Agreement and until termination of the obligations of Belden & Blake
            under this Agreement, J. Aron shall have the benefit of a second
            priority lien in the collateral identified in the Collateral
            Documents. Other than as provided in the Collateral Trust Agreement,
            no such Collateral shall be released by Belden & Blake or any other
            owner of such Collateral without the prior written consent of J.
            Aron.

      (m)   MERGER. For the avoidance of doubt, notwithstanding any provision in
            this Agreement to the contrary, all obligations of Capital C Ohio
            under this Agreement shall be assumed by Belden & Blake upon
            consummation of the Merger.

      (n)   BANKRUPTCY. For purposes of this Agreement, Section 5(b)(ii) is
            hereby modified by deleting the number "30" as it appears after the
            word "within" and before the word "days" in the tenth and eighteenth
            lines thereof and inserting the number "60" in place thereof.

      (o)   TAX EVENT. For purpose of this Agreement, Section 5(b)(ii) is hereby
            amended to delete the words ", or there is a substantial likelihood
            that it will," as they appear after the word "will" and before the
            word "on" in the fourth line thereof.

      (p)   CONFIRMATIONS. Section 9(e)(ii) is hereby amended by deleting the
            second sentence thereof and inserting the following in its place:

            "On or promptly following a Trade Date of a Transaction, J. Aron
            will send to Capital C Ohio (or after the Merger, Belden & Blake) a
            Confirmation. Capital C Ohio (or after the Merger, Belden & Blake)
            will promptly thereafter confirm the accuracy of, or require the
            correction of, such Confirmation. If any disputes shall arise as to
            whether an error exists in a Confirmation. If any disputes shall
            arise as to whether an error exists in a Confirmation, the parties
            shall in good faith make reasonable efforts to resolve the dispute.
            If Capital C Ohio (or after the Merger, Belden & Blake) fails to
            accept or dispute the Confirmation in the manner described above
            within five (5) Local Business Days after such Confirmation was sent
            by J. Aron, the Confirmation shall be deemed to correctly reflect
            the parties' agreement on the terms of the Transaction referred to
            therein, absent manifest error.

      (q)   LIMITATION OF LIABILITY. NO PARTY SHALL BE REQUIRED TO PAY OR BE
            LIABLE FOR SPECIAL, PUNITIVE, EXEMPLARY INCIDENTAL, CONSEQUENTIAL,
            OR INDIRECT DAMAGES (WHETHER OR NOT ARISING FROM ITS NEGLIGENCE) TO
            THE OTHER PARTY; PROVIDED, HOWEVER, THAT NOTHING IN THIS PROVISION
            SHALL AFFECT THE ENFORCEABILITY OR OPERATION OF SECTION 6(E) OF THIS
            AGREEMENT. IF AND TO THE EXTENT ANY PAYMENT REQUIRED TO BE MADE
            PURSUANT TO THIS AGREEMENT IS DEEMED TO CONSTITUTE LIQUIDATED
            DAMAGES, THE PARTIES ACKNOWLEDGE AND AGREE THAT SUCH DAMAGES ARE
            DIFFICULAT OR IMPOSSIBLE TO

                                       12
<PAGE>

            DETERMINE AND THAT SUCH PAYMENT IS INTENDED TO BE A REASONABLE
            APPROXIMATION OF THE AMOUNT OF SUCH DAMAGES AND NOT A PENALTY.

      (r)   APPLICATION OF UNIFORM COMMERCIAL CODE. The parties agree that
            Section 2-609 of the New York Uniform Commercial Code and any
            analogous common law rights shall not apply to this Agreement.

      (s)   ADDITIONAL DEFINITIONS. Section 14 is hereby amended to include the
            following definitions in applicable alphabetical order:

            "Cash" means money, currency or a credit balance in any demand or
            Deposit Account.

            "Cash Equivalents" means, as at any date of determination, (i)
            marketable securities (a) issued or directly and unconditionally
            guaranteed as to interest and principal by the United States
            Government or (b) issued by any agency of the United States the
            obligations of which are backed by the full faith and credit of the
            United States, in each case maturing no more than two months after
            such date; (ii) marketable direct obligations issued by any state of
            the United States of America or any political subdivision of any
            such state or any public instrumentality thereof, in each case
            maturing no more than two months after such date and having, at the
            time of the acquisition thereof, a rating of at least A-1 from
            Standard & Poor's Ratings Group ("S&P") or at least P-1 from Moody's
            Investor's Services, Inc. ("Moody's"); (iii) commercial paper
            maturing no more than two months from the date of creation thereof
            and having, at the time of the acquisition thereof, a rating of at
            least A-1 from S&P or at least P-1 from Moody's; (iv) certificates
            of deposit or bankers' acceptances maturing no more than two months
            after such date and issued or accepted by any commercial bank
            organized under the laws of the United States of America or any
            state thereof or the District of Columbia that (a) is at least
            "adequately capitalized" (as defined in the regulations of its
            primary Federal banking regulator) and (b) has Tier 1 capital (as
            defined in such regulations) of not less than $100,000,000; and (v)
            shares of any money market mutual fund that (a) has substantially
            all of its assets invested continuously in the types of investments
            referred to in clauses (i) through (iv) above, (b) has net assets of
            not less than $500,000,000, and (c) has the highest rating
            obtainable from either S&P or Moody's.

            "Credit Agreement" means the Credit and Guaranty Agreement to be
            entered into by and among Belden & Blake Corporation, certain
            Subsidiaries of Belden & Blake Corporation, as Guarantors, various
            Lenders, Goldman Sachs Credit Partners, L.P. as Lead Arranger, Sole
            Bookrunner, Syndication Agent and Administrative Agent, and entity
            to be identified as Documentation Agent.

            "Collateral Trust Agreement" has the meaning specified in the Credit
            Agreement on the date of this Agreement.

            "Deposit Account" means a demand, time, savings, passbook or like
            account with a bank, savings and loan association, credit union or
            like organization, other than an account evidenced by a negotiable
            certificate of deposit.

                                       13
<PAGE>

            "Indebtedness", as applied to any Person, means, without
            duplication, (i) all indebtedness for borrowed money; (ii) that
            portion of obligations with respect to Capital Leases that is
            properly classified as a liability on a balance sheet in conformity
            with United States generally accepted accounting principles; (iii)
            notes payable and drafts accepted representing extensions of credit
            whether or not representing obligations for borrowed money; (iv) any
            obligation owed for all or any part of the deferred purchase price
            of property or services (excluding any such obligations incurred
            under the Employment Retirement Income Security Act of 1974, as
            amended from time to time), which purchase price is (a) due more
            than six months from the date of incurrence of the obligation in
            respect thereof or (b) evidenced by a note or similar written
            instrument; (v) all indebtedness secured by any Lien on any property
            or asset owned or held by that person regardless of whether the
            indebtedness secured thereby shall have been assumed by that person
            or is nonrecourse to the credit of that person; (vi) the face amount
            of any letter of credit issued for the account of that person or as
            to which that person is otherwise liable for reimbursement of
            drawings; (vii) the direct or indirect guaranty, endorsement
            (otherwise than for collection or deposit in the ordinary course of
            business), co-making, discounting with recourse or sale with
            recourse by such person of the obligation of another; (viii) any
            obligation of such person the primary purpose or intent of which is
            to provide assurance to an obligee that the obligation of the
            obligor thereof will be paid or discharged, or any agreement
            relating thereto will be complied with, or the holders thereof will
            be protected (in whole or in part) against loss in respect thereof;
            (ix) any liability of such person for an obligation of another
            through any agreement (contingent or otherwise) (a) to purchase,
            repurchase or otherwise acquire such obligation or any security
            therefor, or to provide funds for the payment or discharge of such
            obligation (whether in the form of loans, advances, stock purchases,
            capital contributions or otherwise) or (b) to maintain the solvency
            or any balance sheet item, level of income or financial condition of
            another if, in the case of any agreement described under subclauses
            (a) or (b) of this clause (ix), the primary purpose or intent
            thereof is as described in clause (viii) above; and (x) all
            obligations of such person in respect of any exchange traded or over
            the counter derivative transaction whether entered into for hedging
            or speculative purposes.

            "Indenture" means the Indenture to be entered into by and among
            Belden & Blake, certain subsidiaries of Belden & Blake, and The Bank
            of New York, as Indenture Trustee.

            "LC Facility" means the Hedge L/C Commitment under the Credit
            Agreement providing for the issuance of letters of credit having an
            aggregate face amount not to exceed $40 million.

            "Lien" means (i) any lien, mortgage, pledge, assignment, security
            interest, charge or encumbrance of any kind (including any agreement
            to give any of the foregoing, any conditional sale or other title
            retention agreement, and any lease in the nature thereof) and any
            option, trust or other preferential arrangement having the practical
            effect of any of the foregoing and (ii) in the case of Securities,
            any purchase option, call or similar right of a third party with
            respect to such Securities.

                                       14
<PAGE>

            "Merger" means the merger of Capital C Ohio with and into Belden &
            Blake pursuant to the Merger Agreement.

            "Merger Agreement" means the Agreement and Plan of Merger between
            Capital C Ohio and Belden & Blake dated as of June 15, 2004.

            "Securities" means any stock, shares, partnership interests, voting
            trust certificates, certificates of interest or participation in any
            profit-sharing agreement or arrangement, options, warrants, bonds,
            debentures, notes, or other evidences of indebtedness, secured or
            unsecured, convertible, subordinated or otherwise, or in general any
            instruments commonly known as "securities" or any certificates of
            interest, shares or participations in temporary or interim
            certificates for the purchase or acquisition of, or any right to
            subscribe to, purchase or acquire, any of the foregoing.

            The defined terms used in this Agreement and not otherwise defined
            shall have the respective meanings set forth in the Credit Agreement
            as of the date of the consummation of the Merger; provided that the
            definitions "CASH", "CASH EQUIVALENTS", "DEPOSIT ACCOUNT",
            "INDEBTEDNESS", "LIEN" set forth herein shall only be effective
            until the consummation of the Merger.

                                       15
<PAGE>

IN WITNESS WHEREOF, the parties have executed this document on the respective
dates specified below with effect from the date specified on the first page of
this document.

CAPITAL C OHIO, INC.                          J. ARON & COMPANY

By: /s/ GREGORY BEARD                       By: /s/ L. PETER O'HAGAN
    --------------------                        -------------------------
Name: GREGORY BEARD                         Name: L. PETER O'HAGAN
Title:                                      Title:
Date:                                       Date:

                                       16
<PAGE>

(BILATERAL FORM)                  (ISDA AGREEMENTS SUBJECT TO NEW YORK LAW ONLY)

                                     ISDA(R)

              International Swap and Derivatives Association, Inc.

                              CREDIT SUPPORT ANNEX

                             to the Schedule to the
                              ISDA Master Agreement

            ________________________________________________________

                            dated as of June 30, 2004

               J. ARON & COMPANY               CAPITAL C OHIO, INC.
                                    between

_____________________________________ and _____________________________________

            ("Party A")                                  ("Party B")

This Annex supplements, forms part of, and is subject to, the above-referenced
Agreement, is part of its Schedule and is a Credit Support Document under this
Agreement with respect to each party.

Accordingly, the parties agree as follows:--

PARAGRAPH 1. INTERPRETATION

(a) DEFINITIONS AND INCONSISTENCY. Capitalized terms not otherwise defined
herein or elsewhere in this Agreement have the meanings specified pursuant to
Paragraph 12, and all references in this Annex to Paragraphs are to Paragraphs
of this Annex. In the event of any inconsistency between this Annex and the
other provisions of this Schedule, this Annex will prevail, and in the event of
any inconsistency between Paragraph 13 and the other provisions of this Annex,
Paragraph 13 will prevail.

(b) SECURED PARTY AND PLEDGOR. All references in this Annex to the "Secured
Party" will be to either party when acting in that capacity and all
corresponding references to the "Pledgor" will be to the other party when acting
in that capacity; provided, however, that if Other Posted Support is held by a
party to this Annex, all references herein to that party as the Secured Party
with respect to that Other Posted Support will be to that party as the
beneficiary thereof and will not subject that support or that party as the
beneficiary thereof to provisions of law generally relating to security
interests and secured parties.

PARAGRAPH 2. SECURITY INTEREST

Each party, as the Pledgor, hereby pledges to the other party, as the Secured
Party, as security for its Obligations, and grants to the Secured Party a first
priority continuing security interest in, lien on and right of Set-off against
all Posted Collateral Transferred to or received by the Secured Party hereunder.
Upon the Transfer by the Secured Party to the Pledgor of Posted Collateral, the
security interest and lien granted hereunder on that Posted Collateral will be
released immediately and, to the extent possible, without any further action by
either party.

   Copyright(C)1994 by International Swaps and Derivatives Association, Inc.

<PAGE>

PARAGRAPH 3. CREDIT SUPPORT OBLIGATIONS

(a) DELIVERY AMOUNT. Subject to Paragraphs 4 and 5, upon a demand made by the
Secured Party on or promptly following a Valuation Date, if the Delivery Amount
for that Valuation Date equals or exceeds the Pledger's Minimum Transfer Amount,
then the Pledgor will Transfer to the Secured Party Eligible Credit Support
having a Value as of the date of Transfer at least equal to the applicable
Delivery Amount (rounded pursuant to Paragraph 13). Unless otherwise specified
in Paragraph 13, the "DELIVERY AMOUNT" applicable to the Pledgor for any
Valuation Date will equal the amount by which:

      (i) the Credit Support Amount

      exceeds

      (ii) the Value as of that Valuation Date of all Posted Credit Support held
      by the Secured Party.

(b) RETURN AMOUNT. Subject to Paragraphs 4 and 5. upon a demand made by the
Pledgor on or promptly following a Valuation Date, if the Return Amount for that
Valuation Date equals or exceeds the Secured Party's Minimum Transfer Amount,
then the Secured Party will Transfer to the Pledgor Posted Credit Support
specified by the Pledgor in that demand having a Value as of the date of
Transfer as close as practicable to the applicable Return Amount (rounded
pursuant to Paragraph 13). Unless otherwise specified in Paragraph 13, the
"RETURN AMOUNT" applicable to the Secured Party for any Valuation Date will
equal the amount by which:

      (i) the Value as of that Valuation Date of all Posted Credit Support held
      by the Secured Party

      exceeds

      (ii) the Credit Support Amount.

"CREDIT SUPPORT AMOUNT" means, unless otherwise specified in Paragraph 13, for
any Valuation Date (i) the Secured Party's Exposure for that Valuation Date plus
(ii) the aggregate of all Independent Amounts applicable to the Pledgor, if any,
minus (iii) all Independent Amounts applicable to the Secured Party, if any,
minus (iv) the Pledgor's Threshold; provided, however, that the Credit Support
Amount will be deemed to be zero whenever the calculation of Credit Support
Amount yields a number less than zero.

PARAGRAPH 4. CONDITIONS PRECEDENT, TRANSFER TIMING, CALCULATIONS AND
SUBSTITUTIONS

(a) CONDITIONS PRECEDENT. Each Transfer obligation of the Pledgor under
Paragraphs 3 and 5 and of the Secured Party under Paragraphs 3, 4(d)(ii). 5 and
6(d) is subject to the conditions precedent that:

      (i) no Event of Default, Potential Event of Default or Specified Condition
      has occurred and is continuing with respect to the other party; and

      (ii) no Early Termination Date for which any unsatisfied payment
      obligations exist has occurred or been designated as the result of an
      Event of Default or Specified Condition with respect to the other party.

(b) TRANSFER TIMING. Subject to Paragraphs 4(a) and 5 and unless otherwise
specified, if a demand for the Transfer of Eligible Credit Support or Posted
Credit Support is made by the Notification Time, then the relevant Transfer will
be made not later than the close of business on the next Local Business Day; if
a demand is made after the Notification Time, then the relevant Transfer will be
made not later than the close of business on the second Local Business Day
thereafter.

(c) CALCULATIONS. All calculations of Value and Exposure for purposes of
Paragraphs 3 and 6(d) will be made by the Valuation Agent as of the Valuation
Time. The Valuation Agent will notify each party (or the other party, if the
Valuation Agent is a party) of its calculations not later than the Notification
Time on the Local Business Day following the applicable Valuation Date (or in
the case of Paragraph 6(d), following the date of calculation).

                                       2                             ISDA(R)1994
<PAGE>

(d) SUBSTITUTIONS.

      (i) Unless otherwise specified in Paragraph 13. upon notice to the Secured
      Party specifying the items of Posted Credit Support to be exchanged, the
      Pledgor may, on any Local Business Day, Transfer to the Secured Party
      substitute Eligible Credit Support (the "Substitute Credit Support"); and

      (ii) subject to Paragraph 4(a). the Secured Party will Transfer to the
      Pledgor the items of Posted Credit Support specified by the Pledgor in its
      notice not later than the Local Business Day following the date on which
      the Secured Party receives the Substitute Credit Support, unless otherwise
      specified in Paragraph 13 (the "Substitution Date"); provided that the
      Secured Party will only be obligated to Transfer Posted Credit Support
      with a Value as of the date of Transfer of that Posted Credit Support
      equal to the Value as of that date of the Substitute Credit Support.

PARAGRAPH 5. DISPUTE RESOLUTION

If a party (a "Disputing Party") disputes (I) the Valuation Agent's calculation
of a Delivery Amount or a Return Amount or (II) the Value of any Transfer of
Eligible Credit Support or Posted Credit Support, then (1) the Disputing Party
will notify the other party and the Valuation Agent (if the Valuation Agent is
not the other party) not later than the close of business on the Local Business
Day following (X) the dale that the demand is made under Paragraph 3 in the case
of (I) above or (Y) the date of Transfer in the case of (II) above, (2) subject
to Paragraph 4(a), the appropriate party will Transfer the undisputed amount to
the other party not later than the close of business on the Local Business Day
following (X) the date that the demand is made under Paragraph 3 in the case of
(I) above or (Y) the date of Transfer in the case of (II) above, (3) the parties
will consult with each other in an attempt to resolve the dispute and (4) if
they fail to resolve the dispute by the Resolution Time, then:

      (i) In the case of a dispute involving a Delivery Amount or Return Amount,
      unless otherwise specified in Paragraph 13, the Valuation Agent will
      recalculate the Exposure and the Value as of the Recalculation Date by:

            (A) utilizing any calculations of Exposure for the Transactions (or
            Swap Transactions) that the parties have agreed are not in dispute;

            (B) calculating the Exposure for the Transactions (or Swap
            Transactions) in dispute by seeking four actual quotations at
            mid-market from Reference Market-makers for purposes of calculating
            Market Quotation, and taking the arithmetic average of those
            obtained; provided that if four quotations are not available for a
            particular Transaction (or Swap Transaction), then fewer than four
            quotations may be used for that Transaction (or Swap Transaction);
            and if no quotations are available for a particular Transaction (or
            Swap Transaction), then the Valuation Agent's original calculations
            will be used for that Transaction (or Swap Transaction); and

            (C) utilizing the procedures specified in Paragraph 13 for
            calculating the Value, if disputed, of Posted Credit Support.

      (ii) In the case of a dispute involving the Value of any Transfer of
      Eligible Credit Support or Posted Credit Support, the Valuation Agent will
      recalculate the Value as of the date of Transfer pursuant to Paragraph 13.

Following a recalculation pursuant to this Paragraph, the Valuation Agent will
notify each party (or the other party, if the Valuation Agent is a party) not
later than the Notification Time on the Local Business Day following the
Resolution Time. The appropriate party will, upon demand following that notice
by the Valuation Agent or a resolution pursuant to (3) above and subject to
Paragraphs 4(a) and 4(b), make the appropriate Transfer.

                                       3                             ISDA(R)1994
<PAGE>

PARAGRAPH 6. HOLDING AND USING POSTED COLLATERAL

(a) CARE OF POSTED COLLATERAL. Without limiting the Secured Party's rights under
Paragraph 6(c), the Secured Party will exercise reasonable care to assure the
safe custody of all Posted Collateral to the extent required by applicable law,
and in any event the Secured Party will be deemed to have exercised reasonable
care if it exercises at least the same degree of care as it would exercise with
respect to its own property. Except as specified in the preceding sentence, the
Secured Party will have no duty with respect to Posted Collateral, including,
without limitation, any duty to collect any Distributions, or enforce or
preserve any rights pertaining thereto.

(b) ELIGIBILITY TO HOLD POSTED COLLATERAL; CUSTODIANS.

      (i) GENERAL. Subject to the satisfaction of any conditions specified in
      Paragraph 13 for holding Posted Collateral, the Secured Party will be
      entitled to hold Posted Collateral or to appoint an agent (a "Custodian")
      to hold Posted Collateral for the Secured Party. Upon notice by the
      Secured Party to the Pledgor of the appointment of a Custodian, the
      Pledgor's obligations to make any Transfer will be discharged by making
      the Transfer to that Custodian. The holding of Posted Collateral by a
      Custodian will be deemed to be the holding of that Posted Collateral by
      the Secured Party for which the Custodian is acting.

      (ii) FAILURE TO SATISFY CONDITIONS. If the Secured Party or its Custodian
      fails to satisfy any conditions for holding Posted Collateral, then upon a
      demand made by the Pledgor, the Secured Party will, not later than five
      Local Business Days after the demand, Transfer or cause its Custodian to
      Transfer all Posted Collateral held by it to a Custodian that satisfies
      those conditions or to the Secured Party if it satisfies those conditions.

      (iii) LIABILITY. The Secured Party will be liable for the acts or
      omissions of its Custodian to the same extent that the Secured Party would
      be liable hereunder for its own acts or omissions.

(c) USE OF POSTED COLLATERAL. Unless otherwise specified in Paragraph 13 and
without limiting the rights and obligations of the parties under Paragraphs 3,
4(d)(ii), 5, 6(d) and 8, if the Secured Party is not a Defaulting Party or an
Affected Party with respect to a Specified Condition and no Early Termination
Date has occurred or been designated as the result of an Event of Default or
Specified Condition with respect to the Secured Party, then the Secured Party
will, notwithstanding Section 9-207 of the New York Uniform Commercial Code,
have the right to:

      (i) sell, pledge, rehypothecate, assign, invest, use, commingle or
      otherwise dispose of, or otherwise use in its business any Posted
      Collateral it holds, free from any claim or right of any nature whatsoever
      of the Pledgor, including any equity or right of redemption by the
      Pledgor; and

      (ii) register any Posted Collateral in the name of the Secured Party, its
      Custodian or a nominee for either.

For purposes of the obligation to Transfer Eligible Credit Support or Posted
Credit Support pursuant to Paragraphs 3 and 5 and any rights or remedies
authorized under this Agreement, the Secured Party will be deemed to continue to
hold all Posted Collateral and to receive Distributions made thereon, regardless
of whether the Secured Party has exercised any rights with respect to any Posted
Collateral pursuant to (i) or (ii) above.

(d) DISTRIBUTIONS AND INTEREST AMOUNT.

      (i) DISTRIBUTIONS. Subject to Paragraph 4(a), if the Secured Party
      receives or is deemed to receive Distributions on a Local Business Day, it
      will Transfer to the Pledgor not later than the following Local Business
      Day any Distributions it receives or is deemed to receive to the extent
      that a Delivery Amount would not be created or increased by that Transfer,
      as calculated by the Valuation Agent (and the date of calculation will be
      deemed to be a Valuation Date for this purpose).

                                       4                             ISDA(R)1994
<PAGE>

      (ii) INTEREST AMOUNT. Unless otherwise specified in Paragraph 13 and
      subject to Paragraph 4(a), in lieu of any interest, dividends or other
      amounts paid or deemed to have been paid with respect to Posted Collateral
      in the form of Cash (all of which may be retained by the Secured Party),
      the Secured Party will Transfer to the Pledgor at the times specified in
      Paragraph 13 the Interest Amount to the extent that a Delivery Amount
      would not be created or increased by that Transfer, as calculated by the
      Valuation Agent (and the date of calculation will be deemed to be a
      Valuation Date for this purpose). The Interest Amount or portion thereof
      not Transferred pursuant to this Paragraph will constitute Posted
      Collateral in the form of Cash and will be subject to the security
      interest granted under Paragraph 2.

PARAGRAPH 7. EVENTS OF DEFAULT

For purposes of Section 5(a)(iii)(l) of this Agreement, an Event of Default will
exist with respect to a party if:

      (i) that party fails (or fails to cause its Custodian) to make, when due,
      any Transfer of Eligible Collateral, Posted Collateral or the Interest
      Amount, as applicable, required to be made by it and that failure
      continues for two Local Business Days after notice of that failure is
      given to that party;

      (ii) that party fails to comply with any restriction or prohibition
      specified in this Annex with respect to any of the rights specified in
      Paragraph 6(c) and that failure continues for five Local Business Days
      after notice of that failure is given to that party; or

      (iii) that party fails to comply with or perform any agreement or
      obligation other than those specified in Paragraphs 7(i) and 7(ii) and
      that failure continues for 30 days after notice of that failure is given
      to that party.

PARAGRAPH 8. CERTAIN RIGHTS AND REMEDIES

(a) SECURED PARTY'S RIGHTS AND REMEDIES. If at any time (1) an Event of Default
or Specified Condition with respect to the Pledgor has occurred and is
continuing or (2) an Early Termination Date has occurred or been designated as
the result of an Event of Default or Specified Condition with respect to the
Pledgor, then, unless the Pledgor has paid in full all of its Obligations that
are then due, the Secured Party may exercise one or more of the following rights
and remedies:

      (i) all rights and remedies available to a secured party under applicable
      law with respect to Posted Collateral held by the Secured Party;

      (ii) any other rights and remedies available to the Secured Party under
      the terms of Other Posted Support, if any:

      (iii) the right to Set-off any amounts payable by the Pledgor with respect
      to any Obligations against any Posted Collateral or the Cash equivalent of
      any Posted Collateral held by the Secured Party (or any obligation of the
      Secured Party to Transfer that Posted Collateral); and

      (iv) the right to liquidate any Posted Collateral held by the Secured
      Party through one or more public or private sales or other dispositions
      with such notice, if any, as may be required under applicable law, free
      from any claim or right of any nature whatsoever of the Pledgor, including
      any equity or right of redemption by the Pledgor (with the Secured Party
      having the right to purchase any or all of the Posted Collateral to be
      sold) and to apply the proceeds (or the Cash equivalent thereof) from the
      liquidation of the Posted Collateral to any amounts payable by the Pledgor
      with respect to any Obligations in that order as the Secured Party may
      elect.

Each party acknowledges and agrees that Posted Collateral in the form of
securities may decline speedily in value and is of a type customarily sold on a
recognized market, and, accordingly, the Pledgor is not entitled to prior notice
of any sale of that Posted Collateral by the Secured Party, except any notice
that is required under applicable law and cannot be waived.

                                       5                             ISDA(R)1994
<PAGE>

(b) PLEDGOR'S RIGHTS AND REMEDIES. If at any time an Early Termination Date has
occurred or been designated as the result of an Event of Default or Specified
Condition with respect to the Secured Party, then (except in the case of an
Early Termination Date relating to less than all Transactions (or Swap
Transactions) where the Secured Party has paid in full all of its obligations
that arc then due under Section 6(e) of this Agreement):

      (i) the Pledgor may exercise all rights and remedies available to a
      pledgor under applicable law with respect to Posted Collateral held by the
      Secured Party;

      (ii) the Pledgor may exercise any other rights and remedies available to
      the Pledgor under the terms of Other Posted Support, if any;

      (iii) the Secured Party will be obligated immediately to Transfer all
      Posted Collateral and the Interest Amount to the Pledgor; and

      (iv) to the extent that Posted Collateral or the Interest Amount is not so
      Transferred pursuant to (iii) above, the Pledgor may:

            (A) Set-off any amounts payable by the Pledgor with respect to any
            Obligations against any Posted Collateral or the Cash equivalent of
            any Posted Collateral held by the Secured Party (or any obligation
            of the Secured Party to Transfer that Posted Collateral); and

            (B) to the extent that the Pledgor does not Set-off under (iv)(A)
            above, withhold payment of any remaining amounts payable by the
            Pledgor with respect to any Obligations, up to the Value of any
            remaining Posted Collateral held by the Secured Party, until that
            Posted Collateral is Transferred to the Pledgor.

(c) DEFICIENCIES AND EXCESS PROCEEDS. The Secured Party will Transfer to the
Pledgor any proceeds and Posted Credit Support remaining after liquidation,
Set-off and/or application under Paragraphs 8(a) and 8(b) after satisfaction in
full of all amounts payable by the Pledgor with respect to any Obligations; the
Pledgor in all events will remain liable for any amounts remaining unpaid after
any liquidation, Set-off and/or application under Paragraphs 8(a) and 8(b).

(d) FINAL RETURNS. When no amounts are or thereafter may become payable by the
Pledgor with respect to any Obligations (except for any potential liability
under Section 2(d) of this Agreement), the Secured Party will Transfer to the
Pledgor all Posted Credit Support and the Interest Amount, if any.

PARAGRAPH 9. REPRESENTATIONS

Each party represents to the other party (which representations will be deemed
to be repeated as of each date on which it, as the Pledgor, Transfers Eligible
Collateral) that:

      (i) it has the power to grant a security interest in and lien on any
      Eligible Collateral it Transfers as the Pledgor and has taken all
      necessary actions to authorize the granting of that security interest and
      lien;

      (ii) it is the sole owner of or otherwise has the right to Transfer all
      Eligible Collateral it Transfers to the Secured Party hereunder, free and
      clear of any security interest, lien, encumbrance or other restrictions
      other than the security interest and lien granted under Paragraph 2;

      (iii) upon the Transfer of any Eligible Collateral to the Secured Party
      under the terms of this Annex, the Secured Party will have a valid and
      perfected first priority security interest therein (assuming that any
      central clearing corporation or any third-party financial intermediary or
      other entity not within the control of the Pledgor involved in the
      Transfer of that Eligible Collateral gives the notices and takes the
      action required of it under applicable law for perfection of that
      interest); and

      (iv) the performance by it of its obligations under this Annex will not
      result in the creation of any security interest, hen or other encumbrance
      on any Posted Collateral other than the security interest and lien granted
      under Paragraph 2.

                                       6                             ISDA(R)1994
<PAGE>

PARAGRAPH 10. EXPENSES

(a) GENERAL. Except as otherwise provided in Paragraphs 10(b) and 10(c). each
party will pay its own costs and expenses in connection with performing its
obligations under this Annex and neither party will be liable for any costs and
expenses incurred by the other party in connection herewith.

(b) POSTED CREDIT SUPPORT. The Pledgor will promptly pay when due all taxes,
assessments or charges of any nature that are imposed with respect to Posted
Credit Support held by the Secured Party upon becoming aware of the same,
regardless of whether any portion of that Posted Credit Support is subsequently
disposed of under Paragraph 6(c), except for those taxes, assessments and
charges that result from the exercise of the Secured Party's rights under
Paragraph 6(c).

(c) LIQUIDATION/APPLICATION OF POSTED CREDIT SUPPORT. All reasonable costs and
expenses incurred by or on behalf of the Secured Party or the Pledgor in
connection with the liquidation and/or application of any Posted Credit Support
under Paragraph 8 will be payable, on demand and pursuant to the Expenses
Section of this Agreement, by the Defaulting Party or, if there is no Defaulting
Party, equally by the parties.

PARAGRAPH 11. MISCELLANEOUS

(a) DEFAULT INTEREST. A Secured Party that fails to make, when due, any Transfer
of Posted Collateral or the Interest Amount will be obligated to pay the Pledgor
(to the extent permitted under applicable law) an amount equal to interest at
the Default Rate multiplied by the Value of the items of property that were
required to be Transferred, from (and including) the date that Posted Collateral
or Interest Amount was required to be Transferred to (but excluding) the date of
Transfer of that Posted Collateral or Interest Amount. This interest will be
calculated on the basis of daily compounding and the actual number of days
elapsed.

(b) FURTHER ASSURANCES. Promptly following a demand made by a party, the other
party will execute, deliver, file and record any Financing statement, specific
assignment or other document and take any other action that may be necessary or
desirable and reasonably requested by that party to create, preserve, perfect or
validate any security interest or lien granted under Paragraph 2, to enable that
party to exercise or enforce its rights under this Annex with respect to Posted
Credit Support or an Interest Amount or to effect or document a release of a
security interest on Posted Collateral or an Interest Amount.

(c) FURTHER PROTECTION. The Pledgor will promptly give notice to the Secured
Party of, and defend against, any suit, action, proceeding or lien that involves
Posted Credit Support Transferred by the Pledgor or that could adversely affect
the security interest and lien granted by it under Paragraph 2, unless that
suit, action, proceeding or lien results from the exercise of the Secured
Party's rights under Paragraph 6(c).

(d) GOOD FAITH AND COMMERCIALLY REASONABLE MANNER. Performance of all
obligations under this Annex, including, but not limited to, all calculations,
valuations and determinations made by either party, will be made in good faith
and in a commercially reasonable manner.

(e) DEMANDS AND NOTICES. All demands and notices made by a party under this
Annex will be made as specified in the Notices Section of this Agreement, except
as otherwise provided in Paragraph 13.

(f) SPECIFICATIONS OF CERTAIN MATTERS. Anything referred to in this Annex as
being specified in Paragraph 13 also may be specified in one or more
Confirmations or other documents and this Annex will be construed accordingly.

                                       7                             ISDA(R)1994
<PAGE>

PARAGRAPH 12. DEFINITIONS

As used in this Annex:--

"CASH" means the lawful currency of the United States of America.

"CREDIT SUPPORT AMOUNT" has the meaning specified in Paragraph 3.

"CUSTODIAN" has the meaning specified in Paragraphs 6(b)(i) and 13.

"DELIVERY AMOUNT" has the meaning specified in Paragraph 3(a).

"DISPUTING PARTY" has the meaning specified in Paragraph 5.

"DISTRIBUTIONS" means with respect to Posted Collateral other than Cash, all
principal, interest and other payments and distributions of cash or other
property with respect thereto, regardless of whether the Secured Party has
disposed of that Posted Collateral under Paragraph 6(c). Distributions will not
include any item of property acquired by the Secured Party upon any disposition
or liquidation of Posted Collateral or, with respect to any Posted Collateral in
the form of Cash, any distributions on that collateral, unless otherwise
specified herein.

"ELIGIBLE COLLATERAL" means, with respect to a party, the items, if any,
specified as such for that party in Paragraph 13.

"ELIGIBLE CREDIT SUPPORT" means Eligible Collateral and Other Eligible Support.

"EXPOSURE" means for any Valuation Date or other date for which Exposure is
calculated and subject to Paragraph 5 in the case of a dispute, the amount, if
any, that would be payable to a party that is the Secured Party by the other
party (expressed as a positive number) or by a party that is the Secured Party
to the other party (expressed as a negative number) pursuant to Section
6(e)(ii)(2)(A) of this Agreement as if all Transactions (or Swap Transactions)
were being terminated as of the relevant Valuation Time; provided that Market
Quotation will be determined by the Valuation Agent using its estimates at
mid-market of the amounts that would be paid for Replacement Transactions (as
that term is defined in the definition of "Market Quotation").

"INDEPENDENT AMOUNT" means, with respect to a party, the amount specified as
such for that party in Paragraph 13; if no amount is specified, zero.

"INTEREST AMOUNT" means, with respect to an Interest Period, the aggregate sum
of the amounts of interest calculated for each day in that Interest Period on
the principal amount of Posted Collateral in the form of Cash held by the
Secured Party on that day, determined by the Secured Party for each such day as
follows:

      (x) the amount of that Cash on that day; multiplied by

      (y) the Interest Rate in effect for that day; divided by

      (z) 360.

"INTEREST PERIOD" means the period from (and including) the last Local Business
Day on which an Interest Amount was Transferred (or, if no Interest Amount has
yet been Transferred, the Local Business Day on which Posted Collateral in the
form of Cash was Transferred to or received by the Secured Party) to (but
excluding) the Local Business Day on which the current Interest Amount is to be
Transferred.

"INTEREST RATE" means the rate specified in Paragraph 13.

"LOCAL BUSINESS DAY", unless otherwise specified in Paragraph 13, has the
meaning specified in the Definitions Section of this Agreement, except that
references to a payment in clause (b) thereof will be deemed to include a
Transfer under this Annex.

                                       8                             ISDA(R)1994
<PAGE>

"MINIMUM TRANSFER AMOUNT" means, with respect to a party, the amount specified
as such for that party in Paragraph 13; if no amount is specified, zero.

"NOTIFICATION TIME" has the meaning specified in Paragraph 13.

"OBLIGATIONS" means, with respect to a party, all present and future obligations
of that party under this Agreement and any additional obligations specified for
that party in Paragraph 13.

"OTHER ELIGIBLE SUPPORT" means, with respect to a party, the items, if any,
specified as such for that party in Paragraph 13.

"OTHER POSTED SUPPORT" means all Other Eligible Support Transferred to the
Secured Party that remains in effect for the benefit of that Secured Party.

"PLEDGOR" means either party, when that party (i) receives a demand for or is
required to Transfer Eligible Credit Support under Paragraph 3(a) or (ii) has
Transferred Eligible Credit Support under Paragraph 3(a).

"POSTED COLLATERAL" means all Eligible Collateral, other property,
Distributions, and all proceeds thereof that have been Transferred to or
received by the Secured Party under this Annex and not Transferred to the
Pledgor pursuant to Paragraph 3(b), 4(d)(ii) or 6(d)(i) or released by the
Secured Party under Paragraph 8. Any Interest Amount or portion thereof not
Transferred pursuant to Paragraph 6(d)(ii) will constitute Posted Collateral in
the form of Cash.

"POSTED CREDIT SUPPORT" means Posted Collateral and Other Posted Support.

"RECALCULATION DATE" means the Valuation Date that gives rise to the dispute
under Paragraph 5; provided, however, that if a subsequent Valuation Date occurs
under Paragraph 3 prior to the resolution of the dispute, then the
"Recalculation Date" means the most recent Valuation Date under Paragraph 3.

"RESOLUTION TIME" has the meaning specified in Paragraph 13.

"RETURN AMOUNT" has the meaning specified in Paragraph 3(b).

"SECURED PARTY" means either party, when that party (i) makes a demand for or is
entitled to receive Eligible Credit Support under Paragraph 3(a) or (ii) holds
or is deemed to hold Posted Credit Support.

"SPECIFIED CONDITION" means, with respect to a party, any event specified as
such for that party in Paragraph 13.

"SUBSTITUTE CREDIT SUPPORT" has the meaning specified in Paragraph 4(d)(i).

"SUBSTITUTION DATE" has the meaning specified in Paragraph 4(d)(ii).

"THRESHOLD" means, with respect to a party, the amount specified as such for
that party in Paragraph 13; if no amount is specified, zero.

"TRANSFER" means, with respect to any Eligible Credit Support, Posted Credit
Support or Interest Amount, and in accordance with the instructions of the
Secured Party, Pledgor or Custodian, as applicable:

      (i) in the case of Cash, payment or delivery by wire transfer into one or
      more bank accounts specified by the recipient;

      (ii) in the case of certificated securities that cannot be paid or
      delivered by book-entry, payment or delivery in appropriate physical form
      to the recipient or its account accompanied by any duly executed
      instruments of transfer, assignments in blank, transfer tax stamps and any
      other documents necessary to constitute a legally valid transfer to the
      recipient;

      (iii) in the case of securities that can be paid or delivered by
      book-entry, the giving of written instructions to the relevant depository
      institution or other entity specified by the recipient, together with a
      written copy thereof to the recipient, sufficient if complied with to
      result in a legally effective transfer of the relevant interest to the
      recipient; and

      (iv) in the case of Other Eligible Support or Other Posted Support, as
      specified in Paragraph 13.

                                       9                             ISDA(R)1994
<PAGE>

"VALUATION AGENT" has the meaning specified in Paragraph 13.

"VALUATION DATE" means each date specified in or otherwise determined pursuant
to Paragraph 13.

"VALUATION PERCENTAGE" means, for any item of Eligible Collateral, the
percentage specified in Paragraph 13.

"VALUATION TIME" has the meaning specified in Paragraph 13.

"VALUE" means for any Valuation Date or other date for which Value is calculated
and subject to Paragraph 5 in the case of a dispute, with respect to:

      (i) Eligible Collateral or Posted Collateral that is:

            (A) Cash, the amount thereof; and

            (B) a security, the bid price obtained by the Valuation Agent
            multiplied by the applicable Valuation Percentage, if any;

      (ii) Posted Collateral that consists of items that are not specified as
      Eligible Collateral, zero; and

      (iii) Other Eligible Support and Other Posted Support, as specified in
      Paragraph 13.

                                       10                            ISDA(R)1994
<PAGE>

                              CREDIT SUPPORT ANNEX

                             TO THE SCHEDULE TO THE
                                MASTER AGREEMENT
                           DATED AS OF JUNE 30, 2004,

                                     BETWEEN

                          J. ARON & COMPANY ("J. ARON")

                                       AND

                              CAPITAL C OHIO, INC.
                               ("CAPITAL C OHIO").

       IN RELATION TO TRANSACTIONS ENTERED INTO IN ANTICIPATION OF AND IN
       CONNECTION WITH THE MERGER OF CAPITAL C OHIO WITH AND INTO BELDEN
                               &BLAKE CORPORATION

PARAGRAPH 13. ELECTIONS AND VARIABLES

(a)   SECURITY INTEREST FOR "OBLIGATIONS". The term "OBLIGATIONS" as used in
      this Annex includes the following additional obligations:

      With respect to Belden & Blake: Not applicable.

(b)   CREDIT SUPPORT OBLIGATIONS.

      (i)   DELIVERY AMOUNT, RETURN AMOUNT AND CREDIT SUPPORT AMOUNT.

            (A) "DELIVERY AMOUNT" has the meaning specified in Paragraph 3(a).
            Notwithstanding anything to the contrary in subparagraph 3(a), in
            respect of the Delivery Amount applicable to Belden & Blake for any
            Valuation Date:

            a) if at any time between the date of the Credit Agreement and the
            date that is 18 months following the date of the Credit Agreement,
            the Delivery Amount would otherwise exceed $55,000,000 then the
            Delivery Amount shall be deemed to be $55,000,000; and

                                     - 1 -
<PAGE>

            b) if at any time from and after the date that is 18 months
            following the date of the Credit Agreement, the Delivery Amount
            would otherwise exceed the Applicable Delivery Amount Cap, then the
            Delivery Amount shall be deemed to be the Applicable Delivery Amount
            Cap. For purposes of this provision, the "Applicable Delivery Amount
            Cap" means, as of any determination date, the lesser of $40,000,000
            and the lowest Potential Exposure Amount for J. Aron determined for
            all Credit Support Annex Determination Dates occurring on or before
            such determination date. "Potential Exposure" means the amount that
            J. Aron could be owed if it were to terminate the Transactions under
            this Agreement based on the occurrence of an Event of Default with
            respect to Belden & Blake on any Credit Support Annex Determination
            Date determined by J. Aron in a commercially reasonable manner and
            consistent with its practices for determining potential exposures
            for transactions of the same type as the Transactions under this
            Agreement using statistical analysis of historical data with 95th
            percentile confidence interval and "Credit Support Annex
            Determination Date" means each of July 15, 2005, January 15, 2006,
            July 15, 2006, January 15, 2007, July 15, 2007, January 15, 2008,
            July 15, 2008, January 15, 2009, July 15, 2009, January 15, 2010,
            July 15, 2010, January 15, 2011, July 15, 2011, January 15, 2012 and
            July 15, 2012; provided, however that if any of the foregoing days
            is not a Local Business Day then the Applicable Credit Support Annex
            Determination Date that would have otherwise occurred on such date
            shall be deemed to be the next following day that is a Local
            Business Day. The parties acknowledge that Capital C Ohio (or Belden
            & Blake after the Merger) intends, from time to time, to enter into
            additional hedging arrangements and may approach J. Aron to request
            a review of the Applicable Delivery Amount Cap and that J. Aron will
            act in a commercially reasonable manner in consideration of such
            requests taking into account the value of the Collateral provided
            under the Collateral Trust Agreement.

                  (B)   "RETURN AMOUNT" has the meaning specified in Paragraph
                        3(b).

                  (C)   "CREDIT SUPPORT AMOUNT" has the meaning specified in
                        Paragraph 3.

      (ii)  ELIGIBLE COLLATERAL. The following items will qualify as "ELIGIBLE
            COLLATERAL" for the party specified:

<TABLE>
<CAPTION>
                                                                          VALUATION
                                                        BELDEN & BLAKE    PERCENTAGE
<S>                                                     <C>               <C>
(A)     Cash                                                 [X]              100%

(B)     Negotiable debt obligations issued by the
        U.S. Treasury Department having an original
        maturity at issuance of not more than one
        year ("Treasury Bills") and maturing not
        more than 180 days from the date of Transfer
        by the Pledgor to the Secured Party                  [X]             98.5%
</TABLE>

                                     - 2 -
<PAGE>

      (iii) OTHER ELIGIBLE SUPPORT. Letter of Credit as defined in Paragraph
            13(j)(v) and any other mutually acceptable collateral will qualify
            as "OTHER ELIGIBLE SUPPORT" for either party (provided that the
            Collateral shall not constitute "OTHER ELIGIBLE SUPPORT"). In this
            regard, the parties acknowledge and agree that it is the intention
            of Belden & Blake to utilize the LC Facility to meet its obligations
            under the Annex and that it shall constitute an Event of Default
            with respect to Belden & Blake for the LC Facility to be used for
            any other purpose except to the extent that the Applicable Delivery
            Amount Cap is less than $40 million.

      (iv)  THRESHOLDS.

            (A) "INDEPENDENT AMOUNT" MEANS with respect to Belden & Blake : (i)
            at all times prior to July 15, 2008, $20,000,000 and (ii) after July
            15, 2008, an amount equal to the lesser of $20,000,000 and the
            lowest Maximum Exposure Amount determined for all Credit Support
            Annex Determination Dates. For this purpose, "Maximum Exposure
            Amount" means the largest exposure that J. Aron could have to Belden
            & Blake during the course of three consecutive Local Business Days
            in respect of Transactions under this Agreement (taking into account
            the cost associated with terminating such Transactions) as
            determined by J. Aron on each Credit Support Annex Determination
            Date.

            (B) "THRESHOLD" means with respect to Belden & Blake : $0

            (C) "MINIMUM TRANSFER AMOUNT" means with respect to Belden & Blake :
            $0

            (D) ROUNDING. The Delivery Amount and the Return Amount will be
            rounded up and down to the nearest integral multiple of $5,000,000
            respectively.

(c)   VALUATION AND TIMING.

      (i)   "VALUATION AGENT" means, for the purposes of this Annex, J. Aron.

      (ii)  "VALUATION DATE" means each New York Business Day (as defined below)
            which, if treated as a Valuation Date, would result in a Delivery
            Amount or a Return Amount. A notice of the Valuation Agent's
            calculations may be combined with a demand for a Delivery Amount or
            a Return Amount.

      (iii) "VALUATION TIME" means the close of business in New York City on the
            Valuation Date; provided that the calculations of Value and Exposure
            will be made as of approximately the same time on the same date.

      (iv)  "NOTIFICATION TIME" means 12:00 noon, New York time, on a New York
            Business Day. Notwithstanding Paragraph 4(b), if on any New York
            Business Day a demand for

                                     - 3 -
<PAGE>

            Transfer of Eligible Credit Support or Posted Credit Support is made
            by the Notification Time, then the relevant Transfer will be made by
            the close of business on the third following New York Business Day
            and, if any such demand is made after the Notification Time, the
            relevant Transfer will be made by the close of business on the
            fourth following New York Business Day.

      (v)   "NEW YORK BUSINESS DAY" means a Local Business Day in New York City.

(d)   CONDITIONS PRECEDENT AND SECURED PARTY'S RIGHTS AND REMEDIES. The
      following Termination Event(s) will be a "SPECIFIED CONDITION" for the
      party specified (that party being the Affected Party if the Termination
      Event occurs with respect to that party):

<TABLE>
<CAPTION>
                                             BELDEN &
                                   J. ARON    BLAKE
<S>                                <C>       <C>
Illegality                          [   ]      [ ]
Tax Event                           [   ]      [ ]
Tax Event Upon Merger               [   ]      [ ]
Credit Event Upon Merger            [ x ]      [ ]
Additional Termination Event(s):    [   ]      [ ]
</TABLE>

(e)   SUBSTITUTION.

      (i)   "SUBSTITUTION DATE" has the meaning specified in Paragraph 4(d)(ii).

      (ii)  CONSENT. If specified here as applicable, then the Pledgor must
            obtain the Secured Party's consent for any substitution pursuant to
            Paragraph 4(d): Inapplicable.

(f)   DISPUTE RESOLUTION.

      (i)   "RESOLUTION TIME" means 1:00 p.m., New York time, on the Local
            Business Day following the date on which notice of the dispute is
            given under Paragraph 5.

      (ii)  "VALUE". For purposes of Paragraphs 5(i)(c) and 5(ii), disputes over
            Value will be resolved by the Valuation Agent seeking three
            mid-market quotes as of the relevant Valuation Date or date of
            Transfer from parties that regularly act as dealers in the
            securities or other property in question. The Value will be the
            arithmetic mean of the quotes received by the Valuation Agent.

      (iii) "ALTERNATIVE". The provisions of Paragraph 5 will apply; provided,
            however, that notwithstanding any contrary provision of Paragraph 5,
            the full amount of each Delivery Amount as calculated by the
            Valuation Agent shall be transferred by the Pledgor to the

                                     - 4 -
<PAGE>

            Secured Party in accordance with the requirements of Paragraphs 4(b)
            and 13(c)(iv). The parties agree that the mechanisms herein
            providing for resolution of disputes shall not be used if the amount
            in dispute does not exceed US$500,000.

(g)   HOLDING AND USING POSTED COLLATERAL.

      (i)   ELIGIBILITY TO HOLD POSTED COLLATERAL; CUSTODIANS. J. Aron and its
            Custodian will be entitled to hold Posted Collateral pursuant to
            Paragraph 6(b); provided that the following conditions applicable to
            it are satisfied:

            (1) J. Aron is not a Defaulting Party and there is no Specified
            Condition that has occurred or is continuing with respect to J.
            Aron.

            (2) Posted Collateral may be held only in the United States.

            Initially, the CUSTODIAN for J. Aron is Goldman Sachs & Co.

      (ii)  USE OF POSTED COLLATERAL. The provisions of Paragraph 6(c) will
            apply to each party, provided that J. Aron will attempt to draw on
            the Eligible Collateral and Other Eligible Support prior to seeking
            to receive any portion of the Collateral upon the liquidation or
            other disposition thereof pursuant to the Collateral Documents.

(h)   DISTRIBUTIONS AND INTEREST AMOUNT.

      (i)   INTEREST RATE. The "INTEREST RATE" will be the Federal Funds
            (Effective) rate minus 25 basis points as displayed on Telerate page
            120. Notwithstanding anything herein to the contrary, each calendar
            month shall be an "INTEREST PERIOD."

      (ii)  TRANSFER OF INTEREST AMOUNT. The Transfer of the Interest Amount
            will be made on the third New York Business Day following the end of
            each Interest Period and on termination pursuant to Section 6 of
            this Agreement.

      (iii) ALTERNATIVE TO INTEREST AMOUNT. The provisions of Paragraph 6(d)(ii)
            will apply.

(i)   ADDITIONAL REPRESENTATIONS. none.

(j)   OTHER ELIGIBLE SUPPORT AND OTHER POSTED SUPPORT.

      (i)   "VALUE" with respect to Other Eligible Support and Other Posted
            Support means: the Valuation Percentage multiplied by the stated
            amount (undrawn portion) of any Letter of Credit maintained by the
            Pledgor (or its Credit Support Provider) for the benefit of the
            Secured Party.

      (ii)  "TRANSFER" with respect to Other Eligible Support and Other Posted
            Support means:

                                     - 5 -
<PAGE>

            (1)   For purposes of Paragraph 3(a), delivery of the Letter of
                  Credit by the Pledgor or issuer of the Letter of Credit to the
                  Secured Party at the address of the Secured Party specified in
                  the "Notices" Section of this Agreement, or delivery of an
                  executed amendment to such Letter of Credit in form and
                  substance satisfactory to the Secured Party (extending the
                  term or increasing the amount available to the Secured Party
                  thereunder) by the Pledgor or the issuer of the Letter of
                  Credit to the Secured Party at the address of the Secured
                  Party specified in the "Notices" Section of this Agreement;
                  and

            (2)   For purposes of Paragraph 3(b), by the return of an
                  outstanding Letter of Credit by the Secured Party to the
                  Pledgor, at the address of the Pledgor specified in the
                  "Notices" Section of this Agreement, or delivery of an
                  executed amendment to the Letter of Credit in form and
                  substance satisfactory to the Secured Party (reducing the
                  amount available to the Secured Party thereunder) by the
                  Pledgor or the issuer of the Letter of Credit to the Secured
                  Party at the Secured Party's address specified in the
                  "Notices" Section of this Agreement. If a transfer is to be
                  effected by a reduction in the amount of an outstanding Letter
                  of Credit previously issued for the benefit of the Secured
                  Party, the Secured Party shall not unreasonably withhold its
                  consent to a commensurate reduction in the amount of such
                  Letter of Credit and shall take such action as is reasonably
                  necessary to effectuate such reduction.

      (iii) LETTER OF CREDIT PROVISIONS. Other Eligible Support and Other Posted
            Support provided in the form of a Letter of Credit shall be subject
            to the following provisions:

            (1)   Unless otherwise agreed in writing by the parties, each Letter
                  of Credit shall be provided in accordance with the provisions
                  of this Agreement, and each Letter of Credit shall be
                  maintained for the benefit of the Secured Party. The Pledgor
                  shall (i) renew or cause renewal of each outstanding Letter of
                  Credit on a timely basis as provided in the relevant Letter of
                  Credit, (ii) if the bank that issued an outstanding Letter of
                  Credit has indicated its intent not to renew such Letter of
                  Credit, provide a substitute Letter of Credit at least ten
                  (10) Business Days prior to the expiration of the outstanding
                  Letter of Credit, and (iii) if a bank issuing a Letter of
                  Credit shall fail to honor the Secured Party's properly
                  documented request to draw on an outstanding Letter of Credit,
                  provide for the benefit of the Secured Party, (x) a substitute
                  Letter of Credit, that is issued by a bank acceptable to the
                  Secured Party, other than the bank failing to honor the
                  outstanding Letter of Credit, or (y) Eligible Collateral, in
                  each case within one (1) Business Day after the Pledgor
                  receives notice of such failure; provided that, at the time
                  the Pledgor is required to perform in accordance with (i),
                  (ii), or (iii) above, the Delivery Amount applicable to the
                  Pledgor equals or exceeds the Pledgor's Minimum Transfer
                  Amount.

            (2)   If Letter of Credit is to expire within ten (10) Business
                  Days, the Secured Party

                                     - 6 -
<PAGE>

                  shall have the right to draw on such Letter of Credit and
                  utilize the proceeds of such draw as Eligible Collateral to
                  satisfy the Credit Support Obligations owing to it under this
                  Annex.

            (3)   As one method of providing Eligible Credit Support, the
                  Pledgor may increase the amount of an outstanding Letter of
                  Credit or establish one or more additional Letters of Credit.

            (4)   If the Pledgor shall fail to renew, substitute, or
                  sufficiently increase the amount of an outstanding Letter of
                  Credit (as the case may be), or establish one or more
                  additional Letters of Credit, or otherwise provide sufficient
                  Eligible Credit Support and if the Delivery Amount applicable
                  to the Pledgor equals or exceeds the Pledgor's Minimum
                  Transfer Amount as a result of such failure, then the Secured
                  Party may draw on the entire, undrawn portion of any
                  outstanding Letter of Credit upon submission to the bank
                  issuing such Letter of Credit of one or more certificates
                  specifying the amounts due and owing to the Secured Party in
                  accordance with the specific requirements of the Letter of
                  Credit. The Pledgor shall remain liable for any amounts due
                  and owing to the Secured Party and remaining unpaid after the
                  application of the amounts so drawn by the Secured Party.

            (5)   If a party's Credit Support Provider shall furnish a Letter of
                  Credit hereunder, the amount otherwise required under such
                  Letter of Credit may at the option of such Credit Support
                  Provider be reduced by the amount of any Letter of Credit
                  established by such party (but only for such time as such
                  party's Letter of Credit shall be in effect). If a party shall
                  be required to furnish a Letter of Credit hereunder, the
                  amount otherwise required under such Letter of Credit may at
                  the option of such party be reduced by the amount of any
                  Letter of Credit established by such party's Credit Support
                  Provider (but only for such time as such Credit Support
                  Provider's Letter of Credit shall be in effect).

            (6)   Upon the occurrence of a Letter of Credit Default, the Pledgor
                  agrees to deliver a substitute Letter of Credit or other
                  Eligible Credit Support to the Secured Party in an amount at
                  least equal to that of the Letter of Credit to be replaced on
                  or before the first (1st) Business Day after written demand by
                  the Secured Party (or the fourth (4th) Business Day if only
                  clause (i) under the definition of Letter of Credit Default
                  applies) and failure to do so shall constitute an Event of
                  Default within the terms of clause 5(a)(iii) of the Master
                  Agreement (it being understood that if the relevant Letter of
                  Credit has been drawn and the proceeds are held by the Secured
                  Party as Eligible Credit Support, then the Pledgor shall not
                  be obligated to replace such Letter of Credit).

            (7)   Notwithstanding Paragraph 10, in all cases, the costs and
                  expenses (including but not limited to the reasonable costs,
                  expenses, and external attorneys' fees of the Secured Party)
                  of establishing, renewing, substituting, canceling,
                  increasing, and

                                     - 7 -
<PAGE>

                  reducing the amount of (as the case may be) one or more
                  Letters of Credit shall be borne by the Pledgor.

      (iv)  CERTAIN RIGHTS AND REMEDIES.

            (1)   SECURED PARTY'S RIGHTS AND REMEDIES. For purposes of Paragraph
                  8(a)(ii), the Secured Party may draw on any outstanding Letter
                  of Credit (Other Posted Support) in an amount equal to any
                  amounts payable by the Pledgor with respect to any
                  Obligations.

            (2)   PLEDGOR'S RIGHTS AND REMEDIES. For purposes of Paragraph
                  8(b)(ii), (i) the Secured Party will be obligated immediately
                  to Transfer any Letter of Credit (Other Posted Support) to the
                  Pledgor and (ii) the Pledgor may do any one or more the
                  following: (x) to the extent that the Letter of Credit (Other
                  Posted Support) is not Transferred to the Pledgor as required
                  pursuant to (i) above, Set-off any amounts payable by the
                  Pledgor with respect to any Obligations against any such
                  Letter of Credit (Other Posted Support) held by the Secured
                  Party and to the extent its rights to Set-off are not
                  exercised, withhold payment of any remaining amounts payable
                  by the Pledgor with respect to any Obligations, up to the
                  Value of any remaining Posted Collateral and the Value of any
                  Letter of Credit (Other Posted Support) held by the Secured
                  Party, until any such Posted Collateral and such Letter of
                  Credit (Other Posted Support) is transferred to the Pledgor;
                  and (y) exercise rights and remedies available to the Pledgor
                  under the terms of the Letter of Credit.

      (v)   ADDITIONAL DEFINITIONS. As used in this Agreement:

            "LETTER OF CREDIT" shall mean an irrevocable, transferable, standby
            Letter of Credit substantially in the form attached in the Schedule,
            issued by a major U.S. commercial bank or a foreign bank with a U.S.
            branch office, with the respective rating then assigned to its
            unsecured and senior, long-term debt or deposit obligations (not
            supported by third party credit enhancement) by S&P or Moody's (the
            "Letter of Credit Issuer Rating") of at least "A-" by S&P or "A3" by
            Moody's.

            "LETTER OF CREDIT DEFAULT" shall mean with respect to an outstanding
            Letter of Credit, the occurrence of any of the following events: (i)
            the Letter of Credit Issuer Rating ceases to be at least "A-" by S&P
            or "A3" by Moody's; (ii) the issuer of the Letter of Credit shall
            fail to comply with or perform its obligations under such Letter of
            Credit if such failure shall be continuing after the lapse of any
            applicable grace period; (iii) the issuer of such Letter of Credit
            shall disaffirm, disclaim, repudiate or reject, in whole or in part,
            or challenge the validity of, such Letter of Credit; (iv) such
            Letter of Credit shall expire or terminate prior to being drawn by
            the beneficiary thereof, or shall fail or cease to be in full force
            and effect at any time during the term of any Transaction under this
            Agreement, in each case, without having been replaced by another
            Letter of Credit; or (v) any event analogous to an event specified
            in Section 5(a)(vii) of this Agreement shall occur with respect to
            the issuer of such Letter of Credit; provided, however, that no
            Letter of Credit

                                     - 8 -
<PAGE>

            Default shall occur in any event with respect to a Letter of Credit
            after the time such Letter of Credit is required to be canceled or
            returned to the Pledgor in accordance with the terms of this
            Agreement.

(k)   DEMANDS AND NOTICES.

All demands, specifications and notices under this Annex will be made pursuant
to the Notices Section of this Agreement, unless otherwise specified here:

      J. Aron:          as specified in Part 4 of the Schedule to the Agreement.

      Belden & Blake:   as specified in Part 4 of the Schedule to the Agreement.

(l)   ADDRESSES FOR TRANSFERS.

      J. Aron:          as notified in writing from time to time.

      Belden & Blake :       as notified in writing from time to time.

(m)   OTHER PROVISIONS.

      (i) In Paragraph 4(d)(ii), the phrase "(or less than, but as close as
      practicable to)" shall be inserted in the second-to-last line after the
      words "equal to."

      (iii) Paragraph 8(a) is amended as follows: In the second line, the words
      "Early Termination Period has commenced or an" are inserted before the
      term "Early Termination Date," and on the fourth-from-last line, the words
      "or commodities" are inserted after the phrase "in the form of
      securities."

      (iv) Paragraph 1(b) is deleted and replaced by the following:

            "(b) Secured Party and Pledgor. All references in this Annex to the
            `Secured Party' will be to J. Aron and all corresponding references
            to the `Pledgor' will be to Belden & Blake; provided, however, that
            if Other Posted Support is held by a party to this Annex, all
            references herein to that party as the Secured Party with respect to
            that Other Posted Support will be to that party as the beneficiary
            thereof and will not subject that support or that party as
            beneficiary thereof to provisions of law generally relating to
            security interest and secured parties."

      (v) Modifications to Paragraph 12. The following definitions of "Pledgor"
      and "Secured Party" are substituted for the definitions of those terms
      contained in Paragraph 12 of this Annex:

                                     - 9 -
<PAGE>

            `Pledgor' means Belden & Blake, when that party (i) receives a
            demand for or is required to Transfer Eligible Credit Support under
            Paragraph 3(a) or (ii) has Transferred Eligible Credit Support under
            Paragraph 3(a).

            `Secured Party' means J. Aron, when that party (i) makes a demand
            for or is entitled to receive Eligible Credit Support under
            Paragraph 3(a) or (ii) holds or is deemed to hold Posted
            Collateral."

      (vi) Belden & Blake , J. Aron and Goldman, Sachs & Co. ("GS&Co.") hereby
      agree that Posted Credit Support may be held by GS&Co. as agent and
      securities intermediary on behalf of J. Aron. Belden & Blake acknowledges
      and GS&Co. agrees that GS&Co. will take only such actions with respect to
      such Posted Credit Support as J. Aron shall direct (including, but not
      limited to, instructions from J. Aron directing transfer of Posted Credit
      Support in circumstances prescribed by the provisions of this Annex), and
      in no event shall any consent of Belden & Blake be required for the taking
      of any such action by GS&Co.

      (vii) The provisions of this Annex shall not be effective until
      consummation of the Merger.

                                     - 10 -
<PAGE>

CAPITAL C OHIO INC.            J. ARON & COMPANY

By: /s/ GREGORY A. BEARD       By: /s/ L. PETER O'HAGAN
    -----------------------        -----------------------------
Name: GREGORY A. BEARD         Name: L. PETER O'HAGAN
Title:                         Title:

                               GOLDMAN SACHS & CO.,
                               SOLELY IN ITS CAPACITY AS AN AGENT AND SECURITIES
                               INTERMEDIARY OF J. ARON & COMPANY
                               WITH RESPECT TO PARAGRAPH 13(m)(vi) HEREOF

                               By: /s/ L. PETER O'HAGAN
                                   --------------------------------
                               Name: L. PETER O'HAGAN
                               Title:

                                     - 11 -
<PAGE>

                                    Schedule

"Standard" letter of credit format for securing collateral obligations

WE HEREBY ESTABLISH OUR IRREVOCABLE STAND-BY LETTER OF CREDIT NO._____________

IN FAVOR OF:
J. ARON & COMPANY
85 BROAD STREET
NEW YORK, NY 10004
Attn   : Sherry Lankford
Telex : 6720148 GSPNY

BY ORDER AND FOR THE ACCOUNT OF:
(insert full style and address)

FOR AN AMOUNT OF:
US DOLLARS _________________________
(UNITED STATES DOLLARS __________________________________)

AVAILABLE FOR PAYMENT AT SIGHT UPON PRESENTATION AT OUR COUNTERS IN (insert city
and country where documents are to be presented) OF THE FOLLOWING DOCUMENT:

STATEMENT SIGNED BY A PURPORTEDLY AUTHORIZED REPRESENTATIVE OF J. ARON AND
COMPANY CERTIFYING THAT EITHER (I) (insert your company name) HAS NOT PERFORMED
IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT(S) BETWEEN J. ARON AND COMPANY AND
(insert your company name) OR (II) THIS LETTER OF CREDIT IS TO EXPIRE WITHIN TEN
(10) BUSINESS DAYS AND THAT THE AMOUNT BEING DRAWN OF USD_____________ DOES NOT
EXCEED THAT AMOUNT WHICH J. ARON AND COMPANY IS ENTITLED TO DRAW.

SPECIAL CONDITIONS:

1.    PARTIAL AND MULTIPLE DRAWINGS ARE PERMITTED.

2.    ALL CHARGES RELATED TO THIS LETTER OF CREDIT ARE FOR OPENER'S ACCOUNT.

3.    DOCUMENTS MUST BE PRESENTED NOT LATER THAN (insert expiry date) OR IN THE
      EVENT OF FORCE MAJEURE INTERRUPTING OUR BUSINESS, WITHIN THIRTY (30) DAYS
      AFTER RESUMPTION OF OUR BUSINESS, WHICHEVER IS LATER.

UPON RECEIPT OF DOCUMENTS ISSUED IN COMPLIANCE WITH THE TERMS OF THIS CREDIT, WE
HEREBY IRREVOCABLY UNDERTAKE TO COVER YOU AS PER YOUR INSTRUCTIONS WITH VALUE
ONE BANK WORKING DAY.

                                     - 12 -
<PAGE>

THIS STANDBY CREDIT IS SUBJECT TO THE UNIFORM CUSTOMS AND PRACTICE FOR
DOCUMENTARY CREDITS 1993 REVISION), I.C.C. PUBLICATION 500.

                                     - 13 -

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