Document:

Exhibit 4.1

 

 

 

 

BERRY PETROLEUM COMPANY

 

 

TO

 

 

WELLS FARGO BANK, NATIONAL ASSOCIATION

 

 

Indenture

 

 

Dated as of June 15, 2006

 

 

SENIOR DEBT SECURITIES

 

 

 

 

Certain Sections of this Indenture relating to
Sections 310 through 318, 

inclusive, of the Trust Indenture Act of 1939:

 

	
  Trust Indenture

  Act Section

  	
   

  	
   

  	
  Indenture

  Section

  
	
   

  	
   

  	
   

  	
   

  
	
  §310(a)(1)

  	
   

  	
   

  	
  611

  
	
  (a)(2)

  	
   

  	
   

  	
  611

  
	
  (a)(3)

  	
   

  	
   

  	
  Not
  Applicable

  
	
  (a)(4)

  	
   

  	
   

  	
  Not
  Applicable

  
	
  (b)

  	
   

  	
   

  	
  603,
  608, 609

  
	
  §311(a)

  	
   

  	
   

  	
  612

  
	
  (b)

  	
   

  	
   

  	
  612

  
	
  §312(a)

  	
   

  	
   

  	
  701,
  702

  
	
  (b)

  	
   

  	
   

  	
  702

  
	
  (c)

  	
   

  	
   

  	
  702

  
	
  §313(a)

  	
   

  	
   

  	
  703

  
	
  (b)

  	
   

  	
   

  	
  703

  
	
  (c)

  	
   

  	
   

  	
  703

  
	
  (d)

  	
   

  	
   

  	
  703

  
	
  §314(a)

  	
   

  	
   

  	
  704

  
	
  (a)(4)

  	
   

  	
   

  	
  101,
  1004

  
	
  (b)

  	
   

  	
   

  	
  Not
  Applicable

  
	
  (c)(1)

  	
   

  	
   

  	
  102

  
	
  (c)(2)

  	
   

  	
   

  	
  102

  
	
  (c)(3)

  	
   

  	
   

  	
  Not
  Applicable

  
	
  (d)

  	
   

  	
   

  	
  Not
  Applicable

  
	
  (e)

  	
   

  	
   

  	
  102

  
	
  §315(a)

  	
   

  	
   

  	
  601

  
	
  (b)

  	
   

  	
   

  	
  605

  
	
  (c)

  	
   

  	
   

  	
  601

  
	
  (d)

  	
   

  	
   

  	
  601

  
	
  (e)

  	
   

  	
   

  	
  514

  
	
  §316(a)(1)(A)

  	
   

  	
   

  	
  502,
  512

  
	
  (a)(1)(B)

  	
   

  	
   

  	
  513

  
	
  (a)(2)

  	
   

  	
   

  	
  Not
  Applicable

  
	
  (b)

  	
   

  	
   

  	
  508

  
	
  (c)

  	
   

  	
   

  	
  104

  
	
  §317(a)(1)

  	
   

  	
   

  	
  503

  
	
  (a)(2)

  	
   

  	
   

  	
  504

  
	
  (b)

  	
   

  	
   

  	
  1003

  
	
  §318(a)

  	
   

  	
   

  	
  107

  

 

NOTE:  This Reconciliation and tie shall not,
for any purpose, be deemed to be a part of the Indenture.

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
  ARTICLE
  ONE

  	
  DEFINITIONS
  AND OTHER PROVISIONS OF GENERAL APPLICATION

  	
  1

  
	
  SECTION 101.

  	
  Definitions.

  	
  1

  
	
  SECTION 102.

  	
  Compliance Certificates and Opinions.

  	
  9

  
	
  SECTION 103.

  	
  Form of Documents Delivered to Trustee.

  	
  10

  
	
  SECTION 104.

  	
  Acts of Holders; Record Dates.

  	
  11

  
	
  SECTION 105.

  	
  Notices, Etc., to Trustee and Company.

  	
  13

  
	
  SECTION 106.

  	
  Notice to Holders; Waiver.

  	
  13

  
	
  SECTION 107.

  	
  Conflict with Trust Indenture Act.

  	
  13

  
	
  SECTION 108.

  	
  Effect of Headings and Table of Contents.

  	
  14

  
	
  SECTION 109.

  	
  Successors and Assigns.

  	
  14

  
	
  SECTION 110.

  	
  Separability Clause.

  	
  14

  
	
  SECTION 111.

  	
  Benefits of Indenture.

  	
  14

  
	
  SECTION 112.

  	
  Governing Law.

  	
  14

  
	
  SECTION 113.

  	
  Legal Holidays.

  	
  14

  
	
  SECTION 114.

  	
  Language of Notices, Etc.

  	
  15

  
	
  SECTION 115.

  	
  Rules by Trustee and Agents.

  	
  15

  
	
  SECTION 116.

  	
  No Adverse Interpretation of Other Agreements.

  	
  15

  
	
  SECTION 117.

  	
  Counterparts.

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  TWO

  	
  SECURITY
  FORMS

  	
  15

  
	
  SECTION 201.

  	
  Forms Generally.

  	
  15

  
	
  SECTION 202.

  	
  Form of Legend for Global Securities.

  	
  16

  
	
  SECTION 203.

  	
  Form of Trustee’s Certificate of Authentication.

  	
  16

  
	
  SECTION 204.

  	
  Securities in Global Form.

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  THREE

  	
  THE
  SECURITIES

  	
  17

  
	
  SECTION 301.

  	
  Amount Unlimited; Issuable in Series.

  	
  17

  
	
  SECTION 302.

  	
  Denominations.

  	
  21

  
	
  SECTION 303.

  	
  Execution, Authentication, Delivery and Dating.

  	
  22

  
	
  SECTION 304.

  	
  Temporary Securities.

  	
  23

  
	
  SECTION 305.

  	
  Registration, Registration of Transfer and Exchange.

  	
  23

  
	
  SECTION 306.

  	
  Mutilated, Destroyed, Lost and Stolen Securities.

  	
  25

  
	
  SECTION 307.

  	
  Payment of Interest; Interest Rights Preserved.

  	
  26

  
	
  SECTION 308.

  	
  Persons Deemed Owners.

  	
  27

  
	
  SECTION 309.

  	
  Cancellation.

  	
  27

  
	
  SECTION 310.

  	
  Computation of Interest.

  	
  28

  
	
  SECTION 311.

  	
  CUSIP Numbers.

  	
  28

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  FOUR  

  	
  SATISFACTION
  AND DISCHARGE

  	
  28

  
	
  SECTION 401.

  	
  Satisfaction and Discharge of Indenture.

  	
  28

  
	
  SECTION 402.

  	
  Application of Trust Money.

  	
  29

  

 

 

	
  ARTICLE
  FIVE

  	
  REMEDIES

  	
  30

  
	
  SECTION 501.

  	
  Events of Default.

  	
  30

  
	
  SECTION 502.

  	
  Acceleration of Maturity; Rescission and Annulment.

  	
  31

  
	
  SECTION 503.

  	
  Collection of Indebtedness and Suits for Enforcement by
  Trustee.

  	
  32

  
	
  SECTION 504.

  	
  Other Remedies.

  	
  33

  
	
  SECTION 505.

  	
  Trustee May File Proofs of Claim.

  	
  33

  
	
  SECTION 506.

  	
  Trustee May Enforce Claims Without Possession of
  Securities.

  	
  34

  
	
  SECTION 507.

  	
  Application of Money Collected.

  	
  34

  
	
  SECTION 508.

  	
  Limitation on Suits.

  	
  34

  
	
  SECTION 509.

  	
  Unconditional Right of Holders to Receive Principal,
  Premium and Interest.

  	
  35

  
	
  SECTION 510.

  	
  Restoration of Rights and Remedies.

  	
  35

  
	
  SECTION 511.

  	
  Rights and Remedies Cumulative.

  	
  35

  
	
  SECTION 512.

  	
  Delay or Omission Not Waiver.

  	
  36

  
	
  SECTION 513.

  	
  Control by Holders.

  	
  36

  
	
  SECTION 514.

  	
  Waiver of Past Defaults.

  	
  36

  
	
  SECTION 515.

  	
  Undertaking for Costs.

  	
  37

  
	
  SECTION 516.

  	
  Priorities.

  	
  37

  
	
  SECTION 517.

  	
  Waiver of Usury, Stay or Extension Laws.

  	
  37

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  SIX

  	
  THE
  TRUSTEE

  	
  37

  
	
  SECTION 601.

  	
  Certain Duties and Responsibilities.

  	
  37

  
	
  SECTION 602.

  	
  Duties of Trustee.

  	
  38

  
	
  SECTION 603.

  	
  Certain Rights of Trustee.

  	
  39

  
	
  SECTION 604.

  	
  Trustee’s Disclaimer.

  	
  40

  
	
  SECTION 605.

  	
  Notice of Defaults.

  	
  41

  
	
  SECTION 606.

  	
  Reports by Trustee to Holders of the Securities of Any
  Series.

  	
  41

  
	
  SECTION 607.

  	
  Compensation and Reimbursement.

  	
  41

  
	
  SECTION 608.

  	
  Resignation and Removal; Appointment of Successor.

  	
  42

  
	
  SECTION 609.

  	
  Acceptance of Appointment by Successor.

  	
  44

  
	
  SECTION 610.

  	
  Merger, Conversion, Consolidation or Succession to
  Business.

  	
  45

  
	
  SECTION 611.

  	
  Eligibility; Disqualification.

  	
  45

  
	
  SECTION 612.

  	
  Preferential Collection of Claims Against Company.

  	
  45

  
	
  SECTION 613.

  	
  Appointment of Authenticating Agent.

  	
  45

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  SEVEN

  	
  HOLDERS’
  LISTS AND REPORTS BY TRUSTEE AND COMPANY

  	
  47

  
	
  SECTION 701.

  	
  Company to Furnish Trustee Names and Addresses of Holders.

  	
  47

  
	
  SECTION 702.

  	
  Preservation of Information; Communications to Holders.

  	
  47

  
	
  SECTION 703.

  	
  Reports by Trustee.

  	
  48

  
	
  SECTION 704.

  	
  Reports by Company.

  	
  48

  

 

 

	
  ARTICLE
  EIGHT

  	
  CONSOLIDATION,
  MERGER, CONVEYANCE, TRANSFER OR LEASE

  	
  48

  
	
  SECTION 801.

  	
  Company May Consolidate, Etc., Only on Certain Terms.

  	
  48

  
	
  SECTION 802.

  	
  Successor Substituted.

  	
  49

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  NINE

  	
  SUPPLEMENTAL
  INDENTURES

  	
  49

  
	
  SECTION 901.

  	
  Supplemental Indentures Without Consent of Holders.

  	
  49

  
	
  SECTION 902.

  	
  Supplemental Indentures With Consent of Holders.

  	
  51

  
	
  SECTION 903.

  	
  Execution of Supplemental Indentures.

  	
  52

  
	
  SECTION 904.

  	
  Effect of Supplemental Indentures.

  	
  52

  
	
  SECTION 905.

  	
  Conformity with Trust Indenture Act.

  	
  53

  
	
  SECTION 906.

  	
  Reference in Securities to Supplemental Indentures.

  	
  53

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  TEN

  	
  COVENANTS

  	
  53

  
	
  SECTION 1001.

  	
  Payment of Principal, Premium and Interest.

  	
  53

  
	
  SECTION 1002.

  	
  Maintenance of Office or Agency.

  	
  53

  
	
  SECTION 1003.

  	
  Money for Securities Payments to Be Held in Trust.

  	
  54

  
	
  SECTION 1004.

  	
  Statement by Officers as to Default.

  	
  55

  
	
  SECTION 1005.

  	
  Existence.

  	
  55

  
	
  SECTION 1006.

  	
  Payment of Taxes and Other Claims.

  	
  55

  
	
  SECTION 1007.

  	
  Repurchase at the Option of Holders upon Change of Control.

  	
  55

  
	
  SECTION 1008.

  	
  Payment for Consents.

  	
  57

  
	
  SECTION 1009.

  	
  Waiver of Certain Covenants.

  	
  57

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  ELEVEN

  	
  REDEMPTION
  OF SECURITIES

  	
  57

  
	
  SECTION 1101.

  	
  Applicability of Article.

  	
  57

  
	
  SECTION 1102.

  	
  Election to Redeem; Notice to Trustee.

  	
  58

  
	
  SECTION 1103.

  	
  Selection by Trustee of Securities to Be Redeemed.

  	
  58

  
	
  SECTION 1104.

  	
  Notice of Redemption.

  	
  58

  
	
  SECTION 1105.

  	
  Deposit of Redemption Price.

  	
  59

  
	
  SECTION 1106.

  	
  Securities Payable on Redemption Date.

  	
  59

  
	
  SECTION 1107.

  	
  Securities Redeemed in Part.

  	
  60

  
	
  SECTION 1108.

  	
  Other Mandatory Redemption.

  	
  60

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  TWELVE

  	
  DEFEASANCE
  AND COVENANT DEFEASANCE

  	
  60

  
	
  SECTION 1201.

  	
  Company’s Option to Effect Defeasance or Covenant
  Defeasance.

  	
  60

  
	
  SECTION 1202.

  	
  Defeasance and Discharge.

  	
  61

  
	
  SECTION 1203.

  	
  Covenant Defeasance.

  	
  61

  
	
  SECTION 1204.

  	
  Conditions to Defeasance or Covenant Defeasance.

  	
  61

  
	
  SECTION 1205.

  	
  Acknowledgment of Discharge By Trustee.

  	
  63

  
	
  SECTION 1206.

  	
  Deposited Money and Government Obligations to Be Held in
  Trust; Miscellaneous Provisions.

  	
  63

  
	
  SECTION 1207.

  	
  Reinstatement.

  	
  64

  

 

 

	
  ARTICLE THIRTEEN

  	
  IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS,
  DIRECTORS AND EMPLOYEES

  	
  64

  
	
  SECTION 1301.

  	
  Exemption from Individual Liability.

  	
  64

  

 

 

INDENTURE, dated as of June 15,
2006 between Berry Petroleum Company, a corporation duly organized and existing
under the laws of the State of Delaware (herein called the “Company”), having
its principal office at 5201 Truxtun Avenue, Suite 300, Bakersfield,
California 93309 and Wells Fargo Bank, National Association, as Trustee (herein
called the “Trustee”).

 

Recitals of The Company

 

The Company has duly
authorized the execution and delivery of this Indenture to provide for the
issuance from time to time of its debentures, notes or other evidences of
indebtedness (herein called the “Securities”), which may be convertible into or
exchangeable for the common stock, preferred stock or other debt securities of
the Company, to be issued in one or more series as in this Indenture provided.

 

All things necessary to
make this Indenture a valid and legally binding agreement of the Company, in
accordance with its terms, have been done.

 

NOW, THEREFORE, THIS
INDENTURE WITNESSETH:

 

For and in consideration
of the premises and the purchase of the Securities by the Holders thereof, it
is mutually agreed, for the equal and proportionate benefit of all Holders of
the Securities or of any series thereof, as follows:

 

ARTICLE
ONE

 

DEFINITIONS AND OTHER
PROVISIONS OF GENERAL APPLICATION

 

SECTION 101.       Definitions.

 

For all purposes of this
Indenture, except as otherwise expressly provided (including as otherwise
contemplated by Section 301 with respect to any series of Securities) or
unless the context otherwise requires:

 

(1)           the terms defined in this Article One have the
meanings assigned to them in this Article One and include the plural as
well as the singular;

 

(2)           all other terms used herein which are defined in the
Trust Indenture Act, either directly or by reference therein, have the meanings
assigned to them therein;

 

(3)           all accounting terms not otherwise defined herein have
the meanings assigned to them in accordance with generally accepted accounting
principles in the United States of America, and, except as otherwise herein
expressly provided, the term “generally accepted accounting principles” with
respect to any computation required or permitted hereunder shall mean such
accounting principles as are generally accepted as consistently applied by the
Company at the date of such computation;

 

1

 

(4)           unless the context otherwise requires, any reference
to an “Article,” a “Section” or an “Exhibit” refers to an Article, a Section or
an Exhibit, as the case may be, of or to this Indenture;

 

(5)           the words “herein,” “hereof” and “hereunder” and other
words of similar import refer to this Indenture as a whole and not to any
particular Article, Section or other subdivision;

 

(6)           words importing any gender include the other genders;

 

(7)           references to statutes are to be construed as
including all statutory provisions consolidating, amending or replacing the
statute referred to;

 

(8)           references to “writing” include printing, typing,
lithography and other means of reproducing words in a tangible, visible form;

 

(9)           the words “including,” “includes” and “include” shall
be deemed to be followed by the words “without limitation”; and

 

(10)         unless otherwise provided, references to agreements
and other instruments shall be deemed to include all amendments and other
modifications to such agreements and instruments, but only to the extent such
amendments and other modifications are not prohibited by the terms of this
Indenture.

 

Certain terms, used
principally in Article Six and Article Twelve, are defined in those
Articles.

 

“Act,” when used with
respect to any Holder, has the meaning specified in Section 104.

 

“Affiliate” of any
specified Person means any other Person directly or indirectly controlling or
controlled by or under direct or indirect common control with such specified
Person.  For the purposes of this
definition, “control” when used with respect to any specified Person means the
power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or
otherwise; provided that a Person will be deemed to be an Affiliate if the
Company has knowledge that such Person beneficially owns 10% or more of the
Voting Stock of the Company; provided, further, that the Company shall only be
deemed to have knowledge of any Person beneficially owning 10% or more of the
Company’s Voting Stock if such Person has filed a statement of beneficial
ownership pursuant to Sections 13(d) or 13(g) of the Exchange Act or
has provided written notice thereof to the Company.  For purposes of this definition, the terms “controlling,”
“controlled by” and “under common control with” have correlative meanings.

 

“Agent” means the
Securities Registrar, or any Paying Agent or additional paying agent.

 

“Authenticating Agent”
means any Person authorized by the Trustee pursuant to Section 613 to act
on behalf of the Trustee to authenticate Securities of one or more series.

 

2

 

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

 

“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.

 

“Board Resolution” means
a copy of a resolution certified by the Secretary or an Assistant Secretary of
the Company to have been duly adopted by the Board of Directors, or such
committee of the Board of Directors or officers of the Company to which
authority to act on behalf of the Board of Directors has been delegated, and to
be in full force and effect on the date of such certification, and delivered to
the Trustee.

 

“Business Day,” when used
with respect to any Place of Payment, means each Monday, Tuesday, Wednesday,
Thursday and Friday that is not a day on which banking institutions in that
Place of Payment are authorized or obligated by law or executive order to
close.

 

“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.

 

“Change of Control” means
the occurrence of any of the following events:

 

(a)           any “person” or “group” (as such terms
are used in Sections 13(d) and 14(d) of the Exchange Act or any
successor provisions to either of the foregoing), including any 

 

3

 

group acting for the
purpose of acquiring, holding, voting or disposing of securities within the
meaning of Rule 13d-5(b)(1) under the Exchange Act, becomes the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act, except that a
person will be deemed to have “beneficial ownership” of all shares that any
such person has the right to acquire, whether such right is exercisable
immediately or only after the passage of time), directly or indirectly, of 50%
or more of the total voting power of the Voting Stock of the Company; or

 

(b)           the sale, transfer, assignment, lease,
conveyance or other disposition, directly or indirectly, of all or
substantially all the properties and assets of the Company and the Restricted
Subsidiaries, considered as a whole (other than a disposition of such
properties and assets as an entirety or virtually as an entirety to a Wholly
Owned Restricted Subsidiary) or the Company merges or consolidates with or into
any other Person or any other Person merges or consolidates with or into the
Company, in any such event pursuant to a transaction in which the outstanding
Voting Stock of the Company is reclassified into or exchanged for cash,
securities or other properties and assets, other than any such transaction
where:

 

(1)           the outstanding Voting Stock of the Company is
reclassified into or exchanged for other Voting Stock of the Company or for
Voting Stock of the surviving corporation; and

 

(2)           the holders of the Voting Stock of the Company immediately
prior to such transaction own, directly or indirectly, not less than a majority
of the Voting Stock of the Company or the surviving corporation immediately
after such transaction and in substantially the same proportion as before the
transaction; or

 

(c)           during any period of two consecutive
years, individuals who at the beginning of such period constituted the Board of
Directors (together with any new directors whose election or appointment by
such Board or whose nomination for election by the stockholders of the Company
was approved by a vote of not less than a majority of the directors then still
in office who were either directors at the beginning of such period or whose
election or nomination for election was previously so approved) cease for any
reason to constitute at least a majority of the Board of Directors then in
office; or

 

(d)           the stockholders of the Company shall
have approved any plan of liquidation or dissolution of the Company.

 

“Change of Control Offer”
has the meaning set forth in, Section 1007(a).

 

“Change of Control
Payment Date” has the meaning set forth in Section 1007(b).

 

“Change of Control
Purchase Price” has the meaning set forth in Section 1007(a).

 

“Circular 230” has the
meaning specified in Section 103.

 

“Commission” means the
United States Securities and Exchange Commission, from time to time
constituted, created under the Exchange Act, or, if at any time after the
execution of this instrument the United States Securities and Exchange
Commission is not existing and 

 

4

 

performing
the duties now assigned to it under the Trust Indenture Act, then the body
performing such duties at such time.

 

“Company” means the
Person named as the “Company” in the first paragraph of this instrument until a
successor Person shall have become such pursuant to the applicable provisions
of this Indenture, and thereafter “Company” shall mean such successor Person.

 

“Company Request” or “Company
Order” means a written request or order signed in the name of the Company by
its Chairman of the Board, its Vice Chairman of the Board, its President or any
Vice President, and by its Treasurer, an Assistant Treasurer, its Secretary or
an Assistant Secretary, and delivered to the Trustee.

 

“Corporate Trust Office”
means the principal office of the Trustee at which at any particular time its
corporate trust business shall be administered, which as of the date hereof is
located at 707 Wilshire Blvd, 17th Floor Los Angeles, CA 90017, Attn: Corporate
Trust Administration.

 

“Corporation” means a
corporation, association, company, joint-stock company, limited liability
company or business trust.

 

“Covenant Defeasance” has
the meaning specified in Section 1203.

 

“Defaulted Interest” has
the meaning specified in Section 307.

 

“Defeasance” has the
meaning specified in Section 1202.

 

“Depositary” means, with
respect to Securities of any series issuable in whole or in part in the form of
one or more Global Securities, a clearing agency registered under the Exchange
Act that is designated to act as Depositary for such Securities as contemplated
by Section 301.

 

“Event of Default” has
the meaning specified in Section 501.

 

“Exchange Act” means the
United States Securities Exchange Act of 1934 and any statute successor thereto,
in each case as amended from time to time.

 

“Expiration Date” has the
meaning specified in Section 104.

 

“Global Security” means a
Security that evidences all or part of the Securities of any series and bears
the legend set forth in Section 202 (or such legend as may be specified as
contemplated by Section 301 for such Securities).

 

“Government Obligation”
has the meaning specified in Section 1204.

 

“Holder” means the Person
in whose name a Security is registered in the Security Register.

 

“Indenture” means this
instrument as originally executed and as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered
into 

 

5

 

pursuant
to the applicable provisions hereof, including, for all purposes of this
instrument and any such supplemental indenture, the provisions of the Trust
Indenture Act that are deemed to be a part of and govern this instrument and
any such supplemental indenture, respectively. 
The term “Indenture” shall also include the terms of particular series
of Securities established as contemplated by Section 301.

 

“Interest,” when used
with respect to an Original Issue Discount Security which by its terms bears
interest only after Maturity, means interest payable after Maturity.

 

“Interest Payment Date,”
when used with respect to any Security, means the Stated Maturity of an
installment of interest on such Security.

 

“Investment Company Act”
means the United States Investment Company Act of 1940 and any statute
successor thereto, in each case as amended from time to time.

 

“Maturity,” when used
with respect to any Security, means the date on which the principal of such
Security or an installment of principal becomes due and payable as therein or
herein provided, whether at the Stated Maturity or by declaration of
acceleration, call for redemption or otherwise.

 

“Notice of Default” means
a written notice of the kind specified in Section 501(3).

 

“Officer’s Certificate”
means a certificate signed by the Chairman of the Board, a Vice Chairman of the
Board, the President or any Vice President, and by the Treasurer, an Assistant
Treasurer, the Secretary or an Assistant Secretary, of the Company, and
delivered to the Trustee.  One of the
officers signing an Officer’s Certificate given pursuant to Section 1004
shall be the principal executive, financial or accounting officer of the
Company.

 

“Opinion of Counsel”
means an opinion from legal counsel that meets the requirements of Sections 102
and 103 hereof.  The counsel may be an
employee of or counsel to the Company or any Subsidiary of the Company.

 

“Original Issue Discount
Security” means any Security which provides for an amount less than the
principal amount thereof to be due and payable upon a declaration of acceleration
of the Maturity thereof pursuant to Section 502.

 

“Outstanding,” when used
with respect to Securities of any series, means, as of the date of
determination, all Securities theretofore authenticated and delivered under
this Indenture, except:

 

(1)           Securities theretofore cancelled by
the Trustee or delivered to the Trustee for cancellation;

 

(2)           Securities for whose payment or
redemption money in the necessary amount has been theretofore deposited with
the Trustee or any Paying Agent (other than the Company) in trust for the
Holders of such Securities; provided that, if such Securities are to be
redeemed, notice of such redemption has been duly given pursuant to this
Indenture or provision therefor satisfactory to the Trustee has been made;

 

6

 

(3)           Securities as to which Defeasance has
been effected pursuant to Section 1202; and

 

(4)           Securities that have been paid
pursuant to Section 306 or in exchange for or in lieu of which other
Securities have been authenticated and delivered pursuant to this Indenture,
other than any such Securities in respect of which there shall have been
presented to the Trustee proof satisfactory to it that such Securities are held
by a bona fide purchaser in whose hands such Securities are valid obligations
of the Company; provided, however, that in determining whether the Holders of
the requisite principal amount of the Outstanding Securities have given, made
or taken any request, demand, authorization, direction, notice, consent,
waiver, or other action hereunder as of any date, (A) the principal amount
of an Original Issue Discount Security which shall be deemed to be Outstanding
shall be the amount of the principal thereof that would be due and payable as
of such date upon acceleration of the Maturity thereof to such date pursuant to
Section 502, (B) if, as of such date, the principal amount payable at
the Stated Maturity of a Security is not determinable, the principal amount of
such Security that shall be deemed to be Outstanding shall be the amount as
specified or determined as contemplated by Section 301, (C) the
principal amount of a Security denominated in one or more foreign currencies or
currency units which shall be deemed to be Outstanding shall be the U.S.  dollar equivalent, determined as of such date
in the manner provided as contemplated by Section 301, of the principal
amount of such Security (or, in the case of a Security described in Clause (A) or
(B) above, of the amount determined as provided in such Clause), and (D) Securities
owned by the Company or any other obligor upon the Securities or any Affiliate
of the Company or of such other obligor shall be disregarded and deemed not to
be Outstanding, except that, in determining whether the Trustee shall be protected
in relying upon any such request, demand, authorization, direction, notice,
consent, waiver or other action, only Securities that a Responsible Officer of
the Trustee actually knows to be so owned shall be so disregarded.  Securities so owned that have been pledged in
good faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Trustee the pledgee’s right so to act with respect to such
Securities and that the pledgee is not the Company or any other obligor upon
the Securities or any Affiliate of the Company or of such other obligor.

 

“Paying Agent” means any
Person authorized by the Company to pay the principal of or any premium or
interest on any Securities on behalf of the Company.  The Company initially authorizes and appoints
the Trustee as the Paying Agent for the Securities.

 

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

 

“Place of Payment,” when
used with respect to the Securities of any series, means the place or places
specified in accordance with Section 301 where the principal of and any
premium and interest on the Securities of that series are payable.

 

“Predecessor Security” of
any particular Security means every previous Security evidencing all or a
portion of the same debt as that evidenced by such particular Security; and, 

 

7

 

for the
purposes of this definition, any Security authenticated and delivered under Section 306
in exchange for or in lieu of a mutilated, destroyed, lost or stolen Security
shall be deemed to evidence the same debt as the mutilated, destroyed, lost or
stolen Security.

 

“Redemption Date,” when
used with respect to any Security to be redeemed, means the date fixed for such
redemption by or pursuant to this Indenture.

 

“Redemption Price,” when
used with respect to any Security to be redeemed, means the price at which it
is to be redeemed pursuant to this Indenture.

 

“Regular Record Date” for
the interest payable on any Interest Payment Date on the Securities of any
series means the date specified for that purpose as contemplated by Section 301.

 

“Responsible Officer”,
when used with respect to the Trustee, means any vice president, any treasurer,
any assistant treasurer, any trust officer or assistant trust officer, 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 and who shall have responsibility for the administration of this
Indenture.

 

“Restricted Subsidiary”
mean any Subsidiary of the Company other than an Unrestricted Subsidiary.

 

“Securities” has the
meaning stated in the first recital of this Indenture and more particularly
means any Securities authenticated and delivered under this Indenture.

 

“Securities Act” means
the United States Securities Act of 1933 and any statute successor thereto, in
each case as amended from time to time.

 

“Security Register” and “Security
Registrar” have the respective meanings specified in Section 305.

 

“Special Record Date” for
the payment of any Defaulted Interest means a date fixed by the Trustee
pursuant to Section 307.

 

“Stated Maturity,” when
used with respect to any Security or any installment of principal thereof or
premium, if any, or interest thereon, means the date specified in such Security
as the fixed date on which the principal of or premium, if any, on such
Security or such installment of principal or interest is due and payable.

 

“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 

 

8

 

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).

 

“Trust Indenture Act” or “TIA”
means the United States Trust Indenture Act of 1939 as in force at the date as
of which this instrument was executed; provided, however, that in the event the
Trust Indenture Act of 1939 is amended after such date, “Trust Indenture Act”
means, to the extent required by any such amendment, the Trust Indenture Act of
1939 as so amended.

 

“Trustee” means the
Person named as the “Trustee” in the first paragraph of this instrument until a
successor Trustee shall have become such pursuant to the applicable provisions
of this Indenture, and thereafter “Trustee” shall mean or include each Person
who is then a Trustee hereunder, and if at any time there is more than one such
Person, “Trustee” as used with respect to the Securities of any series shall
mean the Trustee with respect to Securities of that series.

 

“Unrestricted Subsidiary”
means

 

(a) any Subsidiary
of the Company that is designated in one or more indentures supplemental hereto
as an Unrestricted Subsidiary and in any case so long as the respective
Unrestricted Subsidiary is not thereafter redesignated as a Restricted
Subsidiary; and

 

(b) any Subsidiary
of an Unrestricted Subsidiary.

 

“Vice President,” when
used with respect to the Company or the Trustee, means any vice president,
whether or not designated by a number or a word or words added before or after
the title “vice president.”

 

“Voting Stock” of any
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.

 

“Wholly Owned Restricted
Subsidiary” means, at anytime, a Restricted Subsidiary all the Voting Stock of
which (except directors’ qualifying shares) is at such time owned, directly or
indirectly, by the Company and its other Wholly Owned Restricted Subsidiaries.

 

SECTION 102.       Compliance
Certificates and Opinions.

 

Upon any application or
request by the Company to the Trustee to take any action under any provision of
this Indenture, the Company shall furnish to the Trustee such certificates and
opinions as may be required under the Trust Indenture Act.  Each such certificate or opinion shall be
given in the form of an Officer’s Certificate, if to be given by an officer of
the Company, or an Opinion of Counsel, if to be given by counsel, and shall
comply with the requirements of the Trust Indenture Act and any other
requirements set forth in this Indenture.

 

9

 

Every certificate or
opinion (other than (i) certificates provided for in Section 1004 and
(ii) a certificate provided pursuant to Section 314(a)(4) of the
Trust Indenture Act), with respect to compliance with a condition or covenant
provided for in this Indenture shall comply with the provisions of Section 314(e) of
the Trust Indenture Act and must include:

 

(1)           a statement the Person signing such certificate or
opinion has read such covenant or condition;

 

(2)           a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions contained in
such certificate or opinion are based;

 

(3)           a statement that, in the opinion of such Person, he or
she has made or caused to be 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

 

(4)           a statement as to whether, in the opinion of such
Person, such condition or covenant has been satisfied.

 

SECTION 103.       Form of
Documents Delivered to Trustee.

 

In any case where several
matters are required to be certified by, or covered by an opinion of, any specified
Person, it is not necessary that all such matters be certified by, or covered
by the opinion of, only one such Person, or that they be so certified or
covered by only one document, but one such Person may certify or give an
opinion with respect to some matters and one or more other such Persons may
certify or give an opinion as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.

 

Any certificate or
opinion of an officer of the Company may be based, insofar as it relates to
legal matters, upon a certificate or opinion of, or representations by,
counsel, unless such officer knows, or in the exercise of reasonable care
should know, that the certificate or opinion or representations with respect to
the matters upon which such officer’s certificate or opinion is based are
erroneous.  Any such certificate or
Opinion of Counsel may be based, insofar as it relates to factual matters, upon
a certificate or opinion of, or representations by, an officer or officers of
the Company stating that the information with respect to such factual matters
is in the possession of the Company, unless such counsel knows, or in the
exercise of reasonable care should know, that the certificate or opinion or
representations with respect to such matters are erroneous.  In addition, to the extent that an Opinion of
Counsel relates to any tax matter, such Opinion of Counsel may be in such form
and may contain such analyses, disclosures, evaluations, information, limitations,
qualifications and other statements as are or may be necessary in order for
such Opinion of Counsel to comply with the provisions of Treasury Regulations
§ 10.35 and any similar state, local or foreign law or regulation
applicable to such Opinion of Counsel (collectively, “Circular 230”) and to
constitute a “limited scope opinion” (as that term is defined in Circular 230)
with respect to the tax matters that such Opinion of Counsel is required by
this Indenture to address.

 

10

 

Where any Person is required to make, give or execute
two or more applications, requests, consents, certificates, statements,
opinions or other instruments under this Indenture, they may, but need not, be
consolidated and form one instrument.

 

SECTION 104.       Acts of Holders; Record Dates.

 

Any request, demand, authorization, direction, notice,
consent, waiver or other action provided or permitted by this Indenture to be
given, made or taken by Holders may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such Holders in person or
by an agent duly appointed in writing; and, except as herein otherwise
expressly provided, such action shall become effective when such instrument or
instruments are delivered to the Trustee and, where it is hereby expressly
required, to the Company.  Such
instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the “Act” of the Holders signing
such instrument or instruments.  Proof of
execution of any such instrument or of a writing appointing any such agent
shall be sufficient for any purpose of this Indenture and (subject to Section 601)
conclusive in favor of the Trustee and the Company, if made in the manner
provided in this Section.

 

The fact and date of the execution by any Person of
any such instrument or writing may be proved in any reasonable manner which the
Trustee deems sufficient.  Where such
execution is by a signer acting in a capacity other than his individual capacity,
such certificate or affidavit shall also constitute sufficient proof of his
authority.  The fact and date of the
execution of any such instrument or writing, or the authority of the Person
executing the same, may also be proved in any other manner which the Trustee
deems sufficient.

 

The ownership of Securities shall be proved by the
Security Register.

 

Any request, demand, authorization, direction, notice,
consent, waiver or other Act of the Holder of any Security shall bind every
future Holder of the same Security and the Holder of every Security issued upon
the registration of transfer thereof or in exchange therefor or in lieu thereof
in respect of anything done, omitted or suffered to be done by the Trustee or
the Company in reliance thereon, whether or not notation of such action is made
upon such Security.

 

The Company may set any day as a record date for the
purpose of determining the Holders of Outstanding Securities of any series
entitled to give, make or take any request, demand, authorization, direction,
notice, consent, waiver or other action provided or permitted by this Indenture
to be given, made or taken by Holders of Securities of such series, provided,
that the Company may not set a record date for, and the provisions of this
paragraph shall not apply with respect to, the giving or making of any notice,
declaration, request or direction referred to in the next paragraph.  If any record date is set pursuant to this
paragraph, the Holders of Outstanding Securities of the relevant series on such
record date, and no other Holders, shall be entitled to take the relevant
action, whether or not such Holders remain Holders after such record date;
provided, that no such action shall be effective hereunder unless taken on or
prior to the applicable Expiration Date (as defined below) by Holders of the
requisite principal amount of Outstanding Securities of such series on such
record date.  Nothing in this paragraph
shall be construed to prevent the Company from setting a new record date for
any action for which a record date has previously been set pursuant to this
paragraph (whereupon the record date 

 

11

 

previously set shall automatically and with no action
by any Person be cancelled and of no effect), and nothing in this paragraph
shall be construed to render ineffective any action taken by Holders of the
requisite principal amount of Outstanding Securities of the relevant series on
the date such action is taken.  Promptly
after any record date is set pursuant to this paragraph, the Company, at its
own expense, shall cause notice of such record date, the proposed action by
Holders and the applicable Expiration Date to be given to the Trustee in
writing and to each Holder of Securities of the relevant series in the manner
set forth in Section 106.

 

The Trustee may set any day as a record date for the
purpose of determining the Holders of Outstanding Securities of any series
entitled to join in the giving or making of (i) any Notice of Default, (ii) any
declaration of acceleration referred to in Section 502, (iii) any
request to institute proceedings referred to in Section 508(2) or (iv) any
direction referred to in Section 513, in each case with respect to
Securities of such series.  If any record
date is set pursuant to this paragraph, the Holders of Outstanding Securities
of such series on such record date, and no other Holders, shall be entitled to
join in such notice, declaration, request or direction, whether or not such
Holders remain Holders after such record date; provided, that no such action
shall be effective hereunder unless taken on or prior to the applicable
Expiration Date by Holders of the requisite principal amount of Outstanding
Securities of such series on such record date. 
Nothing in this paragraph shall be construed to prevent the Trustee from
setting a new record date for any action for which a record date has previously
been set pursuant to this paragraph (whereupon the record date previously set
shall automatically and with no action by any Person be cancelled and of no
effect), and nothing in this paragraph shall be construed to render ineffective
any action taken by Holders of the requisite principal amount of Outstanding
Securities of the relevant series on the date such action is taken.  Promptly after any record date is set
pursuant to this paragraph, the Trustee, at the Company’s expense, shall cause
notice of such record date, the proposed action by Holders and the applicable
Expiration Date to be given to the Company in writing and to each Holder of
Securities of the relevant series in the manner set forth in Section 106.

 

With respect to any record date set pursuant to this
Section, the party hereto that sets such record date may designate any day as
the “Expiration Date” and from time to time may change the Expiration Date to
any earlier or later day; provided that no such change shall be effective
unless notice of the proposed new Expiration Date is given to the other party
hereto in writing, and to each Holder of Securities of the relevant series in
the manner set forth in Section 106, on or prior to the existing
Expiration Date.  If an Expiration Date
is not designated with respect to any record date set pursuant to this Section,
the party hereto that set such record date shall be deemed to have initially
designated the 180th day after such record date as the Expiration Date with
respect thereto, subject to its right to change the Expiration Date as provided
in this paragraph.

 

Without limiting the foregoing, a Holder entitled
hereunder to take any action hereunder with regard to any particular Security
may do so with regard to all or any part of the principal amount of such
Security or by one or more duly appointed agents each of which may do so
pursuant to such appointment with regard to all or any part of such principal
amount.

 

12

 

SECTION 105.       Notices,
Etc., to Trustee and Company.

 

Any request, demand, authorization, direction, notice,
consent, waiver or Act of Holders or other document provided or permitted by
this Indenture to be made upon, given or furnished to, or filed with,

 

(1)           the Trustee by any Holder or by the
Company shall be sufficient for every purpose hereunder if made, given,
furnished or filed in writing (which may be via facsimile) to or with the
Trustee at its Corporate Trust Office, Attention: Corporate Trust
Administration, or

 

(2)           the Company by the Trustee or by any
Holder shall be sufficient for every purpose hereunder (unless otherwise herein
expressly provided) if in writing and mailed, first-class postage prepaid, to
the Company addressed to it at the address of its principal office specified in
the first paragraph of this instrument, Attention: Chief Financial Officer, or
at any other address previously furnished in writing to the Trustee by the
Company.

 

SECTION 106.       Notice
to Holders; Waiver.

 

Except as otherwise expressly provided herein, where
this Indenture provides for notice of any event to Holders of Securities, such
notice shall be sufficiently given to Holders of Securities if in writing and
mailed, first-class postage prepaid, to each Holder of a Security affected by
such event, at the address of such Holder as it appears in the Security
Register, not later than the latest date (if any), and not earlier than the
earliest date (if any), prescribed for the giving of such notice.

 

In case by reason of the suspension of regular mail
service or by reason of any other cause it shall be impracticable to give such
notice to Holders of Securities by mail, then such notification as shall be
made with the approval of the Trustee shall constitute a sufficient
notification for every purpose hereunder. 
In any case where notice to Holders of Securities is given by mail,
neither the failure to mail such notice, nor any defect in any notice so
mailed, to any particular Holder of a Security shall affect the sufficiency of
such notice with respect to other Holders.

 

Where this Indenture provides for notice in any
manner, such notice may be waived in writing by the Person entitled to receive
such notice either before or after the event, and such waiver shall be the
equivalent of such notice.  Waivers of
notice by Holders of Securities shall be filed with the Trustee, but such
filing shall not be a condition precedent to the validity of any action taken
in reliance upon such waiver.

 

SECTION 107.       Conflict
with Trust Indenture Act.

 

This Indenture shall incorporate and be governed by
the provisions of the Trust Indenture Act that are required to be part of and
to govern indentures qualified under the Trust Indenture Act.  If any provision hereof limits, qualifies or
conflicts with a provision of the Trust Indenture Act that is required under
such Act to be a part of and govern this Indenture, the latter provision shall
control.  If any provision of this
Indenture modifies or excludes any provision of the Trust 

 

13

 

Indenture Act that may be so modified or excluded, the
latter provision shall be deemed to apply to this Indenture as so modified or
to be excluded, as the case may be.

 

SECTION 108.       Effect
of Headings and Table of Contents.

 

The Article and Section headings herein and
the Table of Contents are for convenience only and shall not affect the
construction hereof.

 

SECTION 109.       Successors
and Assigns.

 

All covenants and agreements in this Indenture by the
Company shall bind its successors and assigns, whether so expressed or not.

 

SECTION 110.       Separability
Clause.

 

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

 

SECTION 111.       Benefits
of Indenture.

 

Nothing in this Indenture or in the Securities,
express or implied, shall give to any Person, other than the parties hereto and
their successors hereunder, and the Holders of Securities, any benefit or any
legal or equitable right, remedy or claim under this Indenture.

 

SECTION 112.       Governing
Law.

 

THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN
AND BE USED TO CONSTRUE THIS INDENTURE AND THE SECURITIES WITHOUT GIVING EFFECT
TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION
OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

SECTION 113.       Legal
Holidays.

 

In any case where any Interest Payment Date,
Redemption Date or Stated Maturity of any Security shall not be a Business Day
at any Place of Payment, then (notwithstanding any other provision of this
Indenture or of the Securities (other than a provision of any Security which
specifically states that such provision shall apply in lieu of this Section))
payment of interest or principal (and premium, if any) need not be made at such
Place of Payment on such date, but may be made on the next succeeding Business
Day at such Place of Payment with the same force and effect as if made on the
Interest Payment Date or Redemption Date, or at the Stated Maturity, and no
additional interest shall accrue as the result of such delayed payment.

 

14

 

SECTION 114.       Language
of Notices, Etc.

 

Any request, demand, authorization, direction, notice,
consent or waiver required or permitted under this Indenture shall be in the English
language, except that any published notice may be in an official language of
the country of publication.

 

SECTION 115.       Rules by
Trustee and Agents.

 

The Trustee may make reasonable rules for action
by or at a meeting of Holders of Securities of any series.  The Registrar or Paying Agent may make
reasonable rules and set reasonable requirements for its functions.

 

SECTION 116.       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 117.       Counterparts.

 

The parties may sign any number of copies of this
Indenture.  Each signed copy will be an
original, but all of them together represent the same agreement.

 

ARTICLE TWO

SECURITY FORMS

 

SECTION 201.       Forms
Generally.

 

Except as otherwise contemplated by Section 301
with respect to any series of Securities, the Securities of each series shall
be in substantially the forms set forth in Exhibits A and A1 or in such other
form (including temporary or permanent global form) as shall be established by
or pursuant to a Board Resolution or in one or more indentures supplemental hereto,
in each case with such appropriate insertions, omissions, substitutions and
other variations as are required or permitted by this Indenture, and may have
such letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may be required to comply with applicable tax
laws or the rules of any securities exchange or automated quotation system
on which the Securities of such series may be listed or traded or Depositary
therefor or as may, consistently herewith, be determined by the officers
executing such Securities, as evidenced by their execution thereof.  If the form of Securities of any series is
established by action taken pursuant to a Board Resolution, a copy of an
appropriate record of such action shall be certified by the Secretary or an
Assistant Secretary of the Company and delivered to the Trustee at or prior to
the delivery of the Company Order contemplated by Section 303 for the
authentication and delivery of such Securities (or any such temporary global
Security).

 

The definitive Securities of each series shall be
typewritten, printed, lithographed or engraved or produced by any combination
of these methods, if required by any securities exchange or automated quotation
system on which the Securities of such series may be listed or 

 

15

 

traded, on steel engraved borders or may be produced
in any other manner permitted by the rules of any securities exchange or
automated quotation system on which the Securities of such series may be listed
or traded, all as determined by the officers executing such Securities, as
evidenced by their execution of such Securities.

 

SECTION 202.       Form of
Legend for Global Securities.

 

Unless otherwise specified as contemplated by Section 301
for the Securities evidenced thereby, every Global Security authenticated and
delivered hereunder shall bear a legend in substantially the following form:

 

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING
OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A
DEPOSITARY OR A NOMINEE THEREOF.  THIS
SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY
REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE
REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE
THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

SECTION 203.       Form of
Trustee’s Certificate of Authentication.

 

The Trustee’s certificates of authentication shall be
in substantially the following form:

 

This is one of the Securities of the series designated
therein referred to in the within-mentioned Indenture.

 

	
   

  	
   

  
	
   

  	
  As Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Authorized
  Signatory

  
	
   

  	
   

  
	
   

  	
  Dated:

  	
   

  
				

 

SECTION 204.       Securities
in Global Form.

 

If Securities of or within a series are issuable in
global form, as specified as contemplated by Section 301, then,
notwithstanding clause (28) of Section 301 and the provisions of Section 302,
any such Security shall represent such of the Outstanding Securities of such
series as shall be specified therein and may provide that it shall represent
the aggregate amount of Outstanding Securities from time to time endorsed
thereon and that the aggregate amount of Outstanding Securities represented
thereby may from time to time be reduced to reflect exchanges.  Any endorsement of a Security in global form
to reflect the amount, or any increase or decrease in the amount, of
Outstanding Securities represented thereby shall be made by the Trustee in such
manner and upon instructions given by such Person or Persons as shall be
specified therein or in the Company Order to be delivered to the Trustee
pursuant to Section 303 or Section 304.  Subject to the provisions of Section 303
and, if applicable, Section 304, the Trustee shall deliver 

 

16

 

and redeliver any Security in permanent global form in
the manner and upon instructions given by the Person or Persons specified
therein or in the applicable Company Order. 
If a Company Order pursuant to Section 303 or Section 304 has
been, or simultaneously is, delivered, any instructions by the Company with
respect to endorsement or delivery or redelivery of a Security in global form
shall be in writing but need not comply with Section 102 and need not be
accompanied by an Opinion of Counsel.

 

The provisions of the last sentence of Section 303
shall apply to any Security represented by a Security in global form if such
Security was never issued and sold by the Company and the Company delivers to
the Trustee the Security in global form together with written instructions
(which need not comply with Section 102 and need not be accompanied by an
Opinion of Counsel) with regard to the reduction in the principal amount of
Securities represented thereby, together with the written statement
contemplated by the last sentence of Section 303.

 

Notwithstanding the provisions of Section 201 and
307, unless otherwise specified as contemplated by Section 301, payment of
principal of and any premium and interest on any Security in permanent global
form shall be made to the Person or Persons specified therein.

 

ARTICLE THREE

 

THE SECURITIES

 

SECTION 301.       Amount
Unlimited; Issuable in Series.

 

The aggregate principal amount of Securities which may
be authenticated and delivered under this Indenture is unlimited.

 

The Securities may be issued in one or more series, in
each case with the same or various Maturities, at par or at a discount.  At or prior to the issuance of Securities of
any series, the following shall be established in or pursuant to a Board
Resolution, an Officer’s Certificate or one or more indentures supplemental
hereto:

 

(1)           the title of the
Securities of the series (including CUSIP Numbers which shall distinguish the
Securities of the series from Securities of any other series) and the price or
prices at which the Company will sell the Securities;

 

(2)           any limit upon the
aggregate principal amount of the Securities of the series which may be
authenticated and delivered under this Indenture (except for Securities
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, other Securities of the series pursuant to Section 304,
305, 306, 906 or 1107 and except for any Securities which, pursuant to Section 303,
are deemed never to have been authenticated and delivered hereunder); provided,
however, that the authorized aggregate principal amount of such series may be
increased above such amount by a Board Resolution to such effect;

 

17

 

(3)           the date or dates on
which the principal of any Securities of the series is payable, or the method
by which such date or dates shall be determined or extended;

 

(4)           the rate or rates at
which the Securities of the series shall bear interest, if any, or the method
by which such rate or rates shall be determined, the date or dates from which
such interest shall accrue, or the method by which such date or dates shall be
determined, the Interest Payment Dates on which such interest shall be payable
and the Regular Record Date, if any, for the interest payable on any Interest
Payment Date, or the method by which such date or dates shall be determined,
the right, if any, to extend or defer interest payments and the duration of
such extension or deferral;

 

(5)           the place or places
where the principal of and any premium and interest on any Securities of the
series shall be payable, the place or places where the Securities of such
series may be presented for registration of transfer or exchange, or
surrendered for conversion or exchange, as applicable, and the place or places
where notices and demands to or upon the Company in respect of the Securities
of such series may be made;

 

(6)           the period or
periods within or the date or dates on which, the price or prices at which and
the term and conditions upon which any Securities of the series may be
redeemed, in whole or in part, at the option of the Company;

 

(7)           if applicable, the
Person or Persons to whom interest on any Securities of the series shall be
payable, if other than the Person in whose name the security is registered on
the record date for such interest, and the extent to which, or the manner in
which, any interest payable on a temporary Global Security will be paid if
other than the manner provided in this Indenture;

 

(8)           the obligation or
the right, if any, of the Company to redeem or purchase any Securities of the
series pursuant to any sinking fund, amortization or analogous provisions or at
the option of the Holder thereof and the period or periods within which, the
price or prices at which, the currency or currencies (including currency unit
or units) in which and the other terms and conditions upon which any Securities
of the series shall be redeemed or purchased, in whole or in part, pursuant to
such obligation;

 

(9)           if other than
denominations of $1,000 and any integral multiple thereof, the denominations in
which any Securities of the series shall be issuable;

 

(10)         if the amount of
principal of or any premium or interest on any Securities of the series may be
determined with reference to an index or pursuant to a formula, the manner in
which such amounts shall be determined;

 

18

 

(11)         if other than the
currency of the United States of America, the currency, currencies or currency
units, including composite currencies, in which the principal of or any premium
or interest on any Securities of the series shall be payable and the manner of
determining the equivalent thereof in the currency of the United States of America
for any purpose, including for purposes of the definition of “Outstanding” in Section 101;

 

(12)         if the principal of
or any premium or interest on any Securities of the series is to be payable, at
the election of the Company or the Holder thereof, in one or more currencies or
currency units other than that or those in which such Securities are stated to
be payable, the currency, currencies or currency units in which the principal
of or any premium or interest on such Securities as to which such election is
made shall be payable, the period or periods within or the date or dates on
which and the terms and conditions upon which such election is to be made and
the amount so payable (or the manner in which such amount shall be determined);

 

(13)         the percentage of the
principal amount at which such Securities will be issued and, if other than the
principal amount thereof, the portion of the principal amount of Securities of
the series that shall be payable upon declaration of acceleration of the
Maturity thereof pursuant to Section 502 or the method by which such
portion shall be determined;

 

(14)         if the principal
amount payable at the Stated Maturity of any Securities of the series will not
be determinable as of any one or more dates prior to the Stated Maturity, the
amount which shall be deemed to be the principal amount of such Securities as
of any such date for any purpose thereunder or hereunder, including the
principal amount thereof which shall be due and payable upon any Maturity other
than the Stated Maturity or which shall be deemed to be Outstanding as of any
date prior to the Stated Maturity (or, in any such case, the manner in which
such amount deemed to be the principal amount shall be determined);

 

(15)         if applicable, that
the Securities of the series, in whole or any specified part, shall not be
defeasible or shall be defeasible in a manner varying from Section 1202
and Section 1203;

 

(16)         whether the
Securities of the series, or any portion thereof, shall initially be issuable
in the form of a temporary Global Security representing all or such portion of
the Securities of such series and provisions for the exchange of such temporary
Global Security for definitive Securities of such series;

 

(17)         if applicable, that
any Securities of the series, or any portion thereof, shall be issuable in
whole or in part in the form of one or more Global Securities and, in such
case, the respective Depositaries for such Global Securities, the form of any
legend or legends which shall be borne by any such Global Security in addition
to or in lieu of that set forth in Section 202 and any 

 

19

 

circumstances in
addition to or in lieu of those set forth in Clause (2) of the last
paragraph of Section 305 in which any such Global Security may be
exchanged in whole or in part for Securities registered, and any transfer of
such Global Security in whole or in part may be registered, in the name or
names of Persons other than the Depositary for such Global Security or a nominee
thereof;

 

(18)         any addition or
change in the form of the Securities of any series set forth in Exhibits A and
A1 hereto or to the form of certificate set forth in Exhibit C1 hereto;

 

(19)         any addition or
change in the provisions related to transfer and exchange set forth in Section 305
which applies to Securities of the series;

 

(20)         any addition or
change in the provisions set forth in Article Eight which applies to
Securities of the series;

 

(21)         any addition or
change in the provisions related to satisfaction and discharge set forth in Article Four
which applies to the supplemental indenture for Securities of the series;

 

(22)         any addition to or
change in the Events of Default which applies to any Securities of the series
and any change in the right of the Trustee or the requisite Holders of such
Securities to declare the principal amount thereof due and payable pursuant to Section 502
and any addition or change in the provisions set forth in Article Five
which applies to Securities of the series;

 

(23)         any covenants which
provide for the designation of Restricted and Unrestricted Subsidiaries of the
Company

 

(24)         any covenants which
place a limitation on asset sales of the Company or its Subsidiaries;

 

(25)         any addition to or
change in the covenants set forth in Article Ten which applies to the
Company or to the Securities of the series (including, but not limited to,
covenants related to placing limitations on: debt, restricted payments, liens,
distributions from Restricted Subsidiaries and transactions with Affiliates);

 

(26)         the additions or
changes, if any, to this Indenture with respect to the Securities of such
series as shall be necessary to permit or facilitate the issuance of the
Securities of such series in bearer form, registrable or not registrable as to
principal, and with or without interest coupons;

 

(27)         the appointment of
any Paying Agent or Agents for the Securities of such series, if other than the
Trustee;

 

(28)         the terms of any
right to convert or exchange Securities of such series into any other
securities or property of the Company, including 

 

20

 

common stock,
preferred stock or other debt securities, and the additions or changes, if any,
to this Indenture with respect to the Securities of such series to permit or
facilitate such conversion or exchange;

 

(29)         any restriction or
condition on the transferability of the Securities of such series;

 

(30)         any addition or
change in the provisions related to the Trustee set forth in Article Six which
applies to Securities of such series;

 

(31)         any addition or
change in the provisions related to supplemental indentures set forth in
Sections 901 and 902 which applies to Securities of such series;

 

(32)         provisions, if any,
granting special rights to Holders upon the occurrence of specified events;

 

(33)         any addition or
change to any of the definitions set forth in Section 101 which applies to
Securities of such series;

 

(34)         the ability to issue
additional Securities in the same series without the consent of any Holders of
such series Outstanding at the time of issuance;

 

(35)         if applicable, that
the Securities of the series, or any portion thereof, shall be guaranteed by
certain of the Company’s subsidiaries; and

 

(36)         any other terms of
the Securities of such series (which terms shall not be inconsistent with the
provisions of this Indenture, except as permitted by Section 901(5)).

 

All Securities of any one series shall be
substantially identical except as to denomination and except as may otherwise be
provided herein or in or pursuant to the Board Resolution referred to above and
(subject to Section 303) set forth, or determined in the manner provided,
in the Officer’s Certificate referred to above or in any such indenture
supplemental hereto.

 

If any of the terms of the Securities of any series
are established by action taken pursuant to a Board Resolution, a copy of an
appropriate record of such action shall be certified by the Secretary or an
Assistant Secretary of the Company and delivered to the Trustee at or prior to
the delivery of the Officer’s Certificate or Company Order setting forth the
terms of the series.

 

SECTION 302.       Denominations.

 

The Securities of each series shall be issuable only
in registered form without coupons and only in such denominations as shall be
specified as contemplated by Section 301. 
In the absence of any such specified denomination with respect to the
Securities of any series, the Securities of such series shall be issuable in
denominations of $1,000 and any integral multiple thereof.

 

21

 

SECTION 303.       Execution,
Authentication, Delivery and Dating.

 

The Securities shall be executed on behalf of the
Company by its Chairman of the Board, its Vice Chairman of the Board, its
President or any one of its Vice Presidents. 
The signature of any of these officers on the Securities may be manual
or facsimile.

 

Securities bearing the manual or facsimile signature
of an individual who was at any time the Company’s Chairman of the Board, its
Vice Chairman of the Board, its President or any one of its Vice Presidents
shall bind the Company, notwithstanding that such individual has ceased to hold
such office prior to the authentication and delivery of such Securities or did
not hold such office at the date of such Securities.

 

At any time and from time to time after the execution
and delivery of this Indenture, the Company may deliver Securities of any
series executed by the Company to the Trustee for authentication, together with
a Company Order for the authentication and delivery of such Securities, and the
Trustee in accordance with the Company Order shall authenticate and deliver
such Securities.  If the form or terms of
the Securities of the series have been established by or pursuant to one or
more Board Resolutions as permitted by Sections 201 and 301, in authenticating
such Securities, and accepting the additional responsibilities under this
Indenture in relation to such Securities, the Trustee shall be entitled to
receive, and (subject to Section 601) shall be fully protected in relying
upon, an Opinion of Counsel stating that the conditions precedent, if any,
provided for in this Indenture have been complied with.

 

If such form or terms have been so established, the
Trustee shall not be required to authenticate such Securities if the issue of
such Securities pursuant to this Indenture will affect the Trustee’s own
rights, duties or immunities under the Securities and this Indenture or
otherwise in a manner that is not reasonably acceptable to the Trustee.

 

Notwithstanding the provisions of Section 301 and
of the preceding paragraph, if all Securities of a series are not to be
originally issued at one time, it shall not be necessary to deliver the Officer’s
Certificate or Company Order otherwise required pursuant to Section 301 or
the Company Order and Opinion of Counsel otherwise required pursuant to such
preceding paragraph at or prior to the authentication of each Security of such
series if such documents are delivered at or prior to the authentication upon
original issuance of the first Security of such series to be issued.

 

Each Security shall be dated the date of its
authentication.

 

No Security shall be entitled to any benefit under
this Indenture or be valid or obligatory for any purpose unless there appears
on such Security a certificate of authentication substantially in the form
provided for herein executed by the Trustee by the manual signature of one of
its authorized signatories, and such certificate upon any Security shall be
conclusive evidence, and the only evidence, that such Security has been duly
authenticated and delivered hereunder. 
Notwithstanding the foregoing, if any Security shall have been
authenticated and delivered hereunder but never issued and sold by the Company,
and the Company shall deliver such Security to the Trustee for cancellation as
provided in Section 309, for all purposes of this 

 

22

 

Indenture such Security shall be deemed never to have
been authenticated and delivered hereunder and shall never be entitled to the
benefits of this Indenture.

 

SECTION 304.       Temporary
Securities.

 

Pending the preparation of definitive Securities of
any series, the Company may execute, and upon receipt of a Company Order the
Trustee shall authenticate and deliver, temporary Securities which are printed,
lithographed, typewritten, mimeographed or otherwise produced, in any
authorized denomination, substantially of the tenor of the definitive
Securities of such series in lieu of which they are issued and with such
appropriate insertions, omissions, substitutions and other variations as the
officers executing such Securities may determine, as evidenced by their
execution of such Securities.

 

If temporary Securities of any series are issued, the
Company will cause definitive Securities of that series to be prepared without
unreasonable delay.  After the
preparation of definitive Securities of that series, the temporary Securities
of such series shall be exchangeable for definitive Securities of such series
upon surrender of the temporary Securities of such series at the office or
agency of the Company in a Place of Payment for that series, without charge to
the Holder.  Upon surrender for
cancellation of any one or more temporary Securities of any series the Company
shall execute and the Trustee shall authenticate and deliver in exchange
therefor one or more definitive Securities of the same series, of any
authorized denominations and like aggregate principal amount and tenor.

 

Until so exchanged in full as hereinafter provided,
the Holders of temporary Securities of any series shall in all respects be
entitled to the same benefits under this Indenture as Holders of definitive
Securities of the same series and of like tenor authenticated and delivered
hereunder.

 

SECTION 305.       Registration,
Registration of Transfer and Exchange.

 

Except as otherwise contemplated by Section 301
with respect to any series of Securities, the Company shall cause to be kept at
the Corporate Trust Office of the Trustee a register (the register maintained
in such office and in any other office or agency of the Company in a Place of
Payment being herein sometimes collectively referred to as the “Security
Register”) in which, subject to such reasonable regulations as it may
prescribe, the Company shall provide for the registration of Securities and of
transfers of Securities.  The Trustee is
hereby appointed “Security Registrar” for the purpose of registering Securities
and transfers of Securities as herein provided. 
If any indenture supplemental hereto refers to any transfer agents (in
addition to the Security Registrar) initially designated by the Company with
respect to any series of Securities, the Company may at any time rescind the
designation of any such transfer agent or approve a change in the location
through which any such transfer agent acts, provided that the Company maintains
a transfer agent in each Place of Payment for such series.  The Company may at any time designate
additional transfer agents with respect to any series of Securities.

 

Upon surrender for registration of transfer of any
Security of a series at the office or agency of the Company in a Place of
Payment for that series, the Company shall execute, and the Trustee shall
authenticate and deliver, in the name of the designated transferee or transferees,
one 

 

23

 

or more new Securities of the same series, of any
authorized denominations and of like tenor and aggregate principal amount.

 

At the option of the Holder, Securities of any series
may be exchanged for other Securities of the same series, of any authorized
denominations and of like tenor and aggregate principal amount, upon surrender
of the Securities to be exchanged at such office or agency.  Whenever any Securities are so surrendered
for exchange, the Company shall execute, and the Trustee shall authenticate and
deliver, the Securities which the Holder making the exchange is entitled to
receive.

 

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

 

Every Security presented or surrendered for
registration of transfer or for exchange shall (if so required by the Company
or the Trustee) be duly endorsed, or be accompanied by a written instrument of
transfer in form satisfactory to the Company and the Security Registrar duly
executed, by the Holder thereof or his attorney duly authorized in writing.

 

No service charge shall be made for any registration
of transfer or exchange of Securities, but the Company may require payment of a
sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any registration of transfer or exchange of
Securities.

 

Neither the Trustee nor the Company shall be required,
pursuant to the provisions of this Section 305, (A) to issue,
register the transfer of or exchange any Securities of any series (or of any
series and specified tenor, as the case may be) during a period beginning at
the opening of business 15 days before the day of the mailing of a notice of
redemption of any such Securities selected for redemption under Section 1103
and ending at the close of business on the day of such mailing, or (B) to
register the transfer of or exchange any Security so selected for redemption,
in whole or in part, except, in the case of any Security to be redeemed in
part, any portion not to be redeemed.

 

The provisions of Clauses (1), (2), (3) and (4) below
shall apply only to Global Securities:

 

(1)           Each Global Security authenticated under
this Indenture shall be registered in the name of the Depositary designated for
such Global Security or a nominee thereof and delivered to such Depositary or a
nominee thereof or custodian therefor, and each such Global Security shall
constitute a single Security for all purposes of this Indenture.

 

(2)           Notwithstanding any other provision in
this Indenture, no Global Security may be exchanged in whole or in part for
Securities registered, and no transfer of a Global Security in whole or in part
may be registered, in the name of any Person other than the Depositary for such
Global Security or a nominee thereof unless (A) such Depositary (i) has
notified the Company that it is unwilling or unable to continue as Depositary
for such Global Security or (ii) has 

 

24

 

ceased to be a
clearing agency registered under the Exchange Act at a time when the Depositary
is required to be so registered to act as depositary, in each case, unless the
Company has approved a successor Depositary within 90 days, (B) the
Company in its sole discretion determines that such Global Security will be so
exchangeable or transferable and executes and delivers to the Trustee a Company
Order that such Global Security shall be so exchangeable or transferable, (C) there
shall have occurred and be continuing an Event of Default with respect to the
Securities represented by such Global Security, or (D) there shall exist
such circumstances, if any, in addition to or in lieu of the foregoing as have
been specified for this purpose as contemplated by Section 301.

 

(3)           Subject to Clause (2) above, any
exchange of a Global Security for other Securities may be made in whole or in
part, and all Securities issued in exchange for a Global Security or any
portion thereof shall be registered in such names as the Depositary for such
Global Security shall direct.

 

(4)           Every Security authenticated and
delivered upon registration of transfer of, or in exchange for or in lieu of, a
Global Security or any portion thereof, whether pursuant to this Section 305,
Section 304, 306, 906 or 1107 or otherwise, shall be authenticated and
delivered in the form of, and shall be, a Global Security, unless such Security
is registered in the name of a Person other than the Depositary for such Global
Security or a nominee thereof.

 

SECTION 306.       Mutilated,
Destroyed, Lost and Stolen Securities.

 

If any mutilated Security is surrendered to the
Trustee together with such security or indemnity as may be required by the
Company or the Trustee to save each of them harmless, the Company shall execute
and the Trustee shall authenticate and deliver in exchange therefor a new
Security of the same series and of like tenor and principal amount and bearing
a number not contemporaneously outstanding and shall cancel and destroy such
mutilated Security.

 

If there shall be delivered to the Company and the
Trustee (i) evidence to their satisfaction of the destruction, loss or
theft of any Security and (ii) such security or indemnity as may be
required by them to save each of them and any agent of either of them harmless,
then, in the absence of notice to the Company or the Trustee that such Security
has been acquired by a bona fide purchaser, the Company shall execute and the
Trustee shall authenticate and deliver, in lieu of any such destroyed, lost or
stolen Security, a new Security of the same series and of like tenor and principal
amount and bearing a number not contemporaneously outstanding.

 

In case any such mutilated, destroyed, lost or stolen
Security has become or is about to become due and payable, the Company in its
discretion may, instead of issuing a new Security, pay such Security.

 

Upon the issuance of any new Security under this Section 306,
the Company may require the payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of counsel to 

 

25

 

the Company and the fees and expenses of the Trustee,
its agents and counsel) connected therewith.

 

Every new Security of any series issued pursuant to
this Section 306 in lieu of any destroyed, lost or stolen Security shall
constitute an original additional contractual obligation of the Company,
whether or not the destroyed, lost or stolen Security shall be at any time
enforceable by anyone, and shall be entitled to all the benefits of this
Indenture equally and proportionately with any and all other Securities of that
series duly issued hereunder.

 

The provisions of this Section 306 are exclusive
and shall preclude (to the extent lawful) all other rights and remedies with
respect to the replacement or payment of mutilated, destroyed, lost or stolen
Securities.

 

SECTION 307.       Payment
of Interest; Interest Rights Preserved.

 

Except as otherwise contemplated by Section 301
with respect to any series of Securities, interest on any Security of any
series which is payable, and is punctually paid or duly provided for, on any
Interest Payment Date shall be paid to the Person in whose name that Security
(or one or more Predecessor Securities) is registered at the close of business
on the Regular Record Date for such interest.

 

Any Paying Agents will be identified in a supplemental
indenture hereto.  The Company may at any
time designate additional Paying Agents or rescind the designation of any
Paying Agent; however, the Company at all times will be required to maintain a
Paying Agent in each Place of Payment for each series of Securities.

 

Unless otherwise contemplated by Section 301 with
respect to any series of Securities, any interest on any Security of any series
which is payable, but is not timely paid or duly provided for, on any Interest
Payment Date for Securities of such series (herein called “Defaulted Interest”),
shall forthwith cease to be payable to the registered Holder on the relevant
Regular Record Date by virtue of having been such Holder, and such Defaulted
Interest plus, to the extent lawful, interest payable on defaulted interest,
shall be paid by the Company, as provided in Clause (1) or (2) below
(at the Company’s election):

 

(1)           The Company may elect to make payment of
any Defaulted Interest to the Persons in whose names the Securities of such
series in respect of which interest is in default (or their respective
Predecessor Securities) are registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest, which shall be fixed in
the following manner.  The Company shall
notify the Trustee in writing of the amount of Defaulted Interest proposed to
be paid on each Security of such series and the date of the proposed payment, and
at the same time the Company shall deposit with the Trustee an amount of money
equal to the aggregate amount proposed to be paid in respect of such Defaulted
Interest or shall make arrangements satisfactory to the Trustee for such
deposit prior to the date of the proposed payment, such money when deposited to
be held in trust for the benefit of the Persons entitled to such Defaulted
Interest as provided in this Clause (1). 
Thereupon the Trustee shall fix 

 

26

 

a Special Record
Date for the payment of such Defaulted Interest which shall be not more than 15
days and not less than 5 days prior to the date of the proposed payment and not
less than 5 days after the receipt by the Trustee of the notice of the proposed
payment.  The Trustee shall promptly
notify the Company of such Special Record Date and, in the name and at the
expense of the Company, shall cause notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor to be given to each
Holder of Securities of such series in the manner set forth in Section 106,
not less than 10 days prior to such Special Record Date.  Notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor having been so mailed,
such Defaulted Interest shall be paid to the Persons in whose names the
Securities of such series (or their respective Predecessor Securities) are
registered at the close of business on such Special Record Date and shall no
longer be payable pursuant to the following Clause (2).

 

(2)           The Company may make payment of any
Defaulted Interest on the Securities of any series in any other lawful manner
not inconsistent with the requirements of any securities exchange or automated
quotation system on which such Securities may be listed or traded, and upon
such notice as may be required by such exchange or automated quotation system,
if, after notice given by the Company to the Trustee of the proposed payment
pursuant to this Clause, such manner of payment shall be deemed practicable by
the Trustee.

 

Subject to the foregoing provisions of this Section 307,
each Security delivered under this Indenture upon registration of transfer of
or in exchange for or in lieu of any other Security shall carry the rights to
interest accrued and unpaid, and to accrue, which were carried by such other
Security.

 

SECTION 308.       Persons
Deemed Owners.

 

Except as otherwise contemplated by Section 301
with respect to any series of Securities, the Company, the Trustee and any
Agent shall deem and treat the Person in whose name any Security shall be
registered upon the Security Register for such series as the absolute owner of
such Security for the purpose of receiving payment of or on account of the
principal of and, subject to the provisions of this Indenture, interest on such
Security and for all other purposes.

 

SECTION 309.       Cancellation.

 

Except as otherwise contemplated by Section 301
with respect to any series of Securities, all Securities surrendered for
payment, redemption, registration of transfer or exchange or for credit against
any sinking fund payment shall, if surrendered to any Person other than the
Trustee, be delivered to the Trustee and shall be promptly canceled by it.  The Company may at any time deliver to the
Trustee for cancellation any Securities previously authenticated and delivered
hereunder which the Company may have acquired in any manner whatsoever, and may
deliver to the Trustee (or to any other Person for delivery to the Trustee) for
cancellation any Securities previously authenticated hereunder which the
Company has not issued and sold, and all Securities so delivered shall be
promptly canceled by the Trustee.  No
Securities shall be 

 

27

 

authenticated in lieu of or in exchange for any
Securities canceled as provided in this Section 309, except as expressly
permitted by this Indenture.  All
canceled Securities held by the Trustee shall be disposed of by the Trustee in
its customary manner.  The Trustee shall
return cancelled Securities to the Company upon its request therefor.

 

SECTION 310.       Computation
of Interest.

 

Except as otherwise specified as contemplated by Section 301
for Securities of any series, interest on the Securities of each series shall
be computed on the basis of a 360-day year of twelve 30-day months and interest
on the Securities of each series for any partial period shall be computed on
the basis of a 360-day year of twelve 30-day months and the number of days
elapsed in any partial month.

 

SECTION 311.       CUSIP
Numbers.

 

The Company in issuing the Securities may use “CUSIP”
numbers (if then generally in use), and, (except as otherwise contemplated by Section 301)
with respect to any series of Securities, if so, the Trustee shall use such “CUSIP”
numbers in notices of redemption as a convenience to Holders; provided that any
such notice may state that no representation is made as to the correctness of
such numbers either as printed on the Securities or as contained in any notice
of a redemption and that reliance may be placed only on the other
identification numbers printed on the Securities, and any such redemption shall
not be affected by any defect in or omission of such numbers.  The Company will notify the Trustee of any
change in “CUSIP” numbers.

 

ARTICLE FOUR

 

SATISFACTION AND DISCHARGE

 

SECTION 401.       Satisfaction
and Discharge of Indenture.

 

Except as otherwise contemplated by Section 301
with respect to any series of Securities, this Indenture shall upon Company
Request cease to be of further effect (except as to any surviving rights of
registration of transfer or exchange of Securities herein expressly provided
for, and any right to receive additional amounts, as otherwise provided in this
Section 401), and the Trustee, at the expense of the Company, shall
execute proper instruments acknowledging satisfaction and discharge of this
Indenture, when

 

(1)           either

 

(A)          all Securities
theretofore authenticated and delivered (other than (i) Securities which
have been mutilated, destroyed, lost or stolen and which have been replaced or
paid as provided in Section 306 and (ii) Securities for which payment
money has theretofore been deposited in trust or segregated and held in trust
by the Company and thereafter repaid to the Company or discharged from such
trust, as provided in Section 1003) have been delivered to the Trustee for
cancellation; or

 

28

 

(B)           all such Securities
not theretofore delivered to the Trustee for cancellation:

 

(i)      have become due and
payable, or

 

(ii)     will become due and
payable at their Stated Maturity within one year of the date of deposit, or

 

(iii)    are to be called for
redemption within one year under arrangements satisfactory to the Trustee for
the giving of notice of redemption by the Trustee in the name, and at the
expense, of the Company,

 

and the Company, in the case of (i), (ii) or (iii) above,
has deposited or caused to be deposited with the Trustee as trust funds in
trust for such purpose money in an amount sufficient to pay and discharge the
entire indebtedness on such Securities not theretofore delivered to the Trustee
for cancellation, for principal and any premium and interest to the date of
such deposit (in the case of Securities which have become due and payable) or to
the Stated Maturity or Redemption Date, as the case may be;

 

(2)           the Company has paid or caused to be paid
all other sums payable hereunder by the Company; and

 

(3)           the Company has delivered to the Trustee
an Officer’s Certificate and an Opinion of Counsel, each stating that all
conditions precedent herein provided for relating to the satisfaction and
discharge of this Indenture have been complied with.

 

Notwithstanding the satisfaction and discharge of this
Indenture, the obligations of the Company to the Trustee under Section 607,
the obligations of the Trustee or the Company to any Authenticating Agent under
Section 613 and, if money shall have been deposited with the Trustee
pursuant to subclause (B) of Clause (1) of this Section, the
obligations of the Trustee under Section 402 and the last paragraph of Section 1003
shall survive such satisfaction and discharge. 
Each supplemental indenture with respect to any series of Securities may
provide terms for satisfaction and discharge of such supplemental indenture and
such terms shall control as to such supplemental indenture.

 

SECTION 402.       Application
of Trust Money.

 

Except as otherwise contemplated by Section 301
with respect to any series of Securities, subject to the provisions of the last
paragraph of Section 1003, all money deposited with the Trustee pursuant
to Section 401 shall be held in trust and applied by it, in accordance
with the provisions of the Securities 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 any premium and interest for whose payment such
money has been deposited with the Trustee.

 

29

 

ARTICLE FIVE

 

REMEDIES

 

SECTION 501.                    Events of
Default.

 

Except as otherwise contemplated by Section 301
with respect to any series of Securities, “Event of Default,” wherever used
herein with respect to the Securities of any series, means any one of the following
events (whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any
judgment, decree or order of any court or any order, rule or regulation of
any administrative or governmental body):

 

(1)                                  default in the payment of any interest upon any
Security of that series when it becomes due and payable, and continuance of
such default for a period of 30 days; or

 

(2)                                  default in the payment of the principal of or any premium
on any Security of that series at its Maturity; or

 

(3)                                  default in the performance, or breach, in any material
respect, of any covenant or warranty of the Company in this Indenture with
respect to a Security of that series (other than a covenant or warranty a
default in the performance of which or the breach of which is specifically
covered elsewhere in this Section 501 or which has expressly been included
in this Indenture solely for the benefit of series of Securities other than
that series), and continuance of such default or breach for a period of 90 days
after there has been given, by registered or certified mail, to the Company by
the Trustee or to the Company and the Trustee by the Holders of at least 25% in
principal amount of the Outstanding Securities of that series a written notice
specifying such default or breach and requiring it to be remedied and stating
that such notice is a “Notice of Default” under this Indenture; or

 

(4)                                  the entry by a court having jurisdiction in the
premises of (A) a decree or order for relief in respect of the Company in
an involuntary case or proceeding under any applicable federal or state
bankruptcy, insolvency, reorganization or other similar law or (B) a
decree or order adjudging the Company a bankrupt or insolvent, or approving as
properly filed a petition seeking reorganization, arrangement, adjustment or
composition of or in respect of the Company under any applicable federal or
state law, or appointing a custodian, receiver, liquidator, assignee, trustee,
sequestrator or other similar official of the Company or of any substantial
part of its property, or ordering the winding up or liquidation of its affairs,
and the continuance of any such decree or order for relief or any such other
decree or order unstayed and in effect for a period of 90 consecutive days; or

 

30

 

(5)                                  the commencement by the Company of a voluntary case or
proceeding under any applicable federal or state bankruptcy, insolvency,
reorganization or other similar law or of any other case or proceeding to be
adjudicated a bankrupt or insolvent, or the consent by it to the entry of a
decree or order for relief in respect of the Company in an involuntary case or
proceeding under any applicable federal or state bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any bankruptcy or
insolvency case or proceeding against it, or the filing by it of a petition or
answer or consent seeking reorganization or relief under any applicable federal
or state law, or the consent by it to the filing of such petition or to the
appointment of or taking possession by a custodian, receiver, liquidator,
assignee, trustee, sequestrator or other similar official of the Company or of
any substantial part of its property, or the making by it of an assignment of a
substantial part of its property for the benefit of creditors, or the admission
by it in writing of its inability to pay its debts generally as they become
due, or the taking of corporate action by the Company in furtherance of any
such action; or

 

(6)                                  any other Event of Default provided with respect to
Securities of that series established as provided in Section 301.

 

Provided, however, that no event described in Clause
(4), (5), or (6) above shall constitute an Event of Default hereunder
until a Responsible Officer assigned to and working in the Trustee’s corporate
trust department has actual knowledge thereof or until a written notice of any
such event is received by the Trustee at the Corporate Trust Office, and such
notice refers to the facts underlying such event, the Securities generally, the
Company and the Indenture.

 

SECTION 502.                    Acceleration
of Maturity; Rescission and Annulment.

 

Except as otherwise contemplated by Section 301 with
respect to any series of Securities, if an Event of Default (other than an
Event of Default specified in Section 501(4) or 501(5)) with respect
to Securities of any series at the time Outstanding occurs and is continuing,
then in every such case the Trustee or the Holders of not less than 25% in
principal amount of the Outstanding Securities of that series may declare the
principal amount of all the Securities of that series (or, if any Securities of
that series are Original Issue Discount Securities, such portion of the
principal amount of such Securities as may be specified by the terms thereof)
to be due and payable immediately, by a notice in writing to the Company (and
to the Trustee if given by Holders), and upon any such declaration such principal
amount (or specified amount) shall become immediately due and payable.  If an Event of Default specified in Section 501(4) or
501(5) occurs and is continuing, then in every such case, the principal
amount of all of the Securities of that series then Outstanding shall
automatically, and without any declaration or any other action on the part of
the Trustee or any Holder, become due and payable immediately.

 

Except as otherwise contemplated by Section 301
with respect to any series of Securities, at any time after such a declaration
of acceleration with respect to Securities of any series has been made and
before a judgment or decree for payment of the money due has been obtained by
the Trustee as hereinafter provided in this Article Five, the Event of
Default giving rise to such declaration of acceleration shall, without further
act, be deemed to have been waived, and such 

 

31

 

declaration and its consequences shall, without
further act, be deemed to have been rescinded and annulled, if:

 

(1)                                  the Company has paid or deposited with the Trustee a
sum sufficient to pay:

 

(A)                              all overdue installments of interest on
all Securities of  that series,

 

(B)                                the principal of (and premium, if any,
on) any Securities of that series which have become due otherwise than by such
declaration of acceleration and any interest thereon at the rate or rates
prescribed therefor in such Securities,

 

(C)                                to the extent that payment of such
interest is lawful, interest upon overdue interest at the rate or rates
prescribed therefor in such Securities, and

 

(D)                               all sums paid or advanced by the Trustee
hereunder and the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel; and

 

(2)                                  all Events of Default with respect to Securities of
that series, other than the non-payment of the principal of Securities of that
series which have become due solely by such declaration of acceleration, have
been cured or waived as provided in Section 513.

 

No such rescission shall affect any subsequent default
or impair any right consequent thereon.

 

SECTION 503.                    Collection
of Indebtedness and Suits for Enforcement by Trustee.

 

Except as otherwise contemplated by Section 301
with respect to any series of Securities, the Company covenants that if

 

(1)                                  default is made in the payment of any interest on any
Security when such interest becomes due and payable and such default continues
for a period of 30 days, or

 

(2)                                  default is made in the payment of the principal of (or
premium, if any, on) any Security at the Maturity thereof,

 

the Company will, upon demand of the Trustee, pay to
the Trustee, for the benefit of the Holders of such Securities, the whole
amount then due and payable on such Securities for principal and any premium
and interest and, to the extent that payment of such interest shall be legally
enforceable, interest on any overdue principal and premium and on any overdue
interest, at the rate or rates prescribed therefor in such Securities, and, in
addition thereto, all amounts owing the 

 

32

 

Trustee, its agents and counsel
under Section 607, as supplemented by any supplemental indenture.

 

If an Event of Default with respect to Securities of
any series occurs and is continuing, the Trustee may in its discretion proceed
to protect and enforce its rights and the rights of the Holders of Securities
of such series by such appropriate judicial proceedings as the Trustee shall
deem reasonably necessary to protect and enforce any such rights, whether for
the specific enforcement of any covenant or agreement in this Indenture or in
aid of the exercise of any power granted herein, or to enforce any other proper
remedy.

 

SECTION 504.                    Other
Remedies.

 

If an Event of Default occurs and is continuing, the
Trustee may pursue any available remedy by proceeding at law or in equity to
collect the payment of principal of, or premium, if any, and interest on the
Securities or to enforce the performance of any provision of this Indenture and
may take any necessary action requested of it as Trustee to settle, compromise,
adjust or otherwise conclude any proceedings to which it is a party.

 

The Trustee may maintain a proceeding even if it does
not possess any of the Securities or does not produce any of them in the
proceeding.  Any such proceeding
instituted by the Trustee may be brought in its own name and as trustee of an
express trust, and any recovery of judgment shall, after provisions for the payment
of the reasonable compensation, expenses, disbursements of the Trustee and its
counsel, be for the ratable benefit of the Holders in respect of which such
judgment has been recovered.  A delay or
omission by the Trustee or any Holder in exercising any right or remedy
accruing upon an Event of Default shall not impair the right or remedy or
constitute a waiver of or acquiescence in the Event of Default.  No remedy is exclusive of any other
remedy.  All available remedies are
cumulative, to the extent permitted by law. 
Any costs associated with actions taken by the Trustee under this Section 504
shall be reimbursed to the Trustee by the Company.

 

SECTION 505.                    Trustee May File
Proofs of Claim.

 

Except as otherwise contemplated by Section 301
with respect to any series of Securities, in case of any judicial proceeding
relative to the Company (or any other obligor upon the Securities), its
property or its creditors, the Trustee shall be entitled and empowered, by
intervention in such proceeding or otherwise, to take any and all actions
authorized under the Trust Indenture Act in order to have claims of the Holders
and the Trustee allowed in any such proceeding. 
In particular, the Trustee shall be authorized to collect and receive
any moneys or other property payable or deliverable on any such claims and to
distribute the same; and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official 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 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 607.

 

33

 

No provision
of this Indenture 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 Securities
or the rights of any Holder thereof or to authorize the Trustee to vote in
respect of the claim of any Holder in any such proceeding; provided, however,
that the Trustee may, on behalf of the Holders, vote for the election of a
trustee in bankruptcy or similar official and be a member of a creditors’ or
other similar committee.

 

SECTION 506.                    Trustee May Enforce
Claims Without Possession of Securities.

 

Except as otherwise contemplated by Section 301
with respect to any series of Securities, all rights of action and claims under
this Indenture or the Securities may be prosecuted and enforced by the Trustee
without the possession of any of the Securities or the production thereof in
any proceeding relating thereto, and any such proceeding instituted by the
Trustee shall be brought in its own name as trustee of an express trust, and
any recovery of judgment shall, after provision for the payment of the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, be for the ratable benefit of the Holders of the
Securities in respect of which such judgment has been recovered.

 

SECTION 507.                    Application
of Money Collected.

 

Except as otherwise contemplated by Section 301
with respect to any series of Securities, any money or property collected or to
be applied by the Trustee with respect to a series of Securities pursuant to
this Article Five shall be applied in the following order, at the date or
dates fixed by the Trustee and, in case of the distribution of such money or
property on account of principal or any premium or interest, upon presentation
of the Securities and the notation thereon of the payment if only partially
paid and upon surrender thereof if fully paid:

 

FIRST: To the payment of all amounts due the Trustee
under Section 607 as supplemented by any supplemental indenture;

 

SECOND: To the payment of the amounts then due and
unpaid for principal of and any premium and interest on such series of Securities
in respect of which or for the benefit of which such money has been collected,
ratably, without preference or priority of any kind, according to the amounts
due and payable on such series of Securities for principal and any premium and
interest, respectively; and

 

THIRD: To the payment of the remainder, if any, to the
Company.

 

SECTION 508.                    Limitation
on Suits.

 

Except as otherwise contemplated by Section 301
with respect to any series of Securities, no Holder of any Security of any
series shall have any right to pursue any remedy hereunder, unless

 

(1)                                  such Holder has previously given written notice to the
Trustee of a continuing Event of Default with respect to the Securities of that
series;

 

34

 

(2)                                  the Holders of not less than 25% in principal amount
of the Outstanding Securities of that series shall have made written request to
the Trustee to pursue the remedy;

 

(3)                                  such Holder or Holders have offered and, if requested,
provide to the Trustee security or indemnity satisfactory to the Trustee
against any loss, liability or expense;

 

(4)                                  the Trustee does not comply with the request within 60
days after receipt of the request and the offer and, if requested, the
provision of security or indemnity; and

 

(5)                                  during such 60-day period the Holders of a majority in
aggregate principal amount of the Outstanding Securities of that series do not
give the Trustee a direction inconsistent with the request;

 

it being understood and intended that no one or more
of such Holders shall have any right in any manner whatever by virtue of, or by
availing itself of, any provision of this Indenture to prejudice the rights of
any other Holders of Securities, or to obtain or to seek to obtain priority or
preference over any other of such Holders or to enforce any right under this
Indenture.

 

SECTION 509.                    Unconditional
Right of Holders to Receive Principal, Premium and Interest.

 

Notwithstanding any other provision in this Indenture
(except as otherwise contemplated by Section 301 with respect to any
series of Securities), the Holder of any Security shall have the right, which
is absolute and unconditional, to receive payment of the principal of and any
premium and (subject to Section 307) interest on such Security on the
respective Stated Maturities expressed in such Security (or, in the case of
redemption, on the Redemption Date) and to institute suit for the enforcement
of any such payment, and such rights shall not be impaired without the consent
of such Holder.

 

SECTION 510.                    Restoration
of Rights and Remedies.

 

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

 

SECTION 511.                    Rights and
Remedies Cumulative.

 

Except as otherwise provided with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Securities in
the last paragraph of Section 306, no right or remedy herein conferred
upon or reserved to the Trustee or to the Holders is intended to be exclusive
of any other right or remedy, and every right and remedy shall, to the extent
permitted by law, be cumulative and in addition to every other right and remedy
given hereunder or now or hereafter 

 

35

 

existing at law or in equity or
otherwise.  The assertion or employment
of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or remedy.

 

SECTION 512.                    Delay or
Omission Not Waiver.

 

Except as otherwise contemplated by Section 301
with respect to any series of Securities, no delay or omission of the Trustee
or of any Holder of any Securities to exercise any right or remedy accruing
upon any Event of Default shall impair any such right or remedy or constitute a
waiver of any such Event of Default or an acquiescence therein.  Every right and remedy given by this Article Five
or by law to the Trustee or to the Holders may be exercised from time to time,
and as often as may be deemed expedient, by the Trustee or by the Holders, as
the case may be.

 

SECTION 513.                    Control by Holders.

 

Except as otherwise contemplated by Section 301
with respect to any series of Securities, the Holders of a majority in
principal amount of the Outstanding Securities of any series shall have the
right to direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred on
the Trustee, with respect to the Securities of such series, provided that

 

(1)                                  such direction shall not be in conflict with any rule of
law or with this Indenture, and

 

(2)                                  the Trustee may take any other action deemed proper by
the Trustee which is not inconsistent with such direction.

 

SECTION 514.                    Waiver of
Past Defaults.

 

Except as otherwise contemplated by Section 301
with respect to any series of Securities, the Holders of not less than a
majority in principal amount of the Outstanding Securities of any series may on
behalf of the Holders of all the Securities of such series waive any past
default hereunder with respect to such series and its consequences, except a
default

 

(1)                                  in the payment of the principal of or any premium or
interest on any Security of such series, or

 

(2)                                  in respect of a covenant or provision hereof which
under Article Nine cannot be modified or amended without the consent of
the Holder of each Outstanding Security of such series affected.

 

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.

 

36

 

SECTION 515.                    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,
suffered or omitted by it as Trustee, a court may require any party litigant in
such suit to file an undertaking to pay the costs of such suit, and may assess
costs including reasonable attorneys’ fees and expenses against any such party
litigant, in the manner and to the extent provided in the Trust Indenture Act;
provided that neither this Section nor the Trust Indenture Act shall be
deemed to authorize any court to require such an undertaking or to make such an
assessment in any suit instituted by the Company.

 

SECTION 516.                    Priorities.

 

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

 

FIRST: to the Trustee for amounts due under Section 607;

 

SECOND: to Holders for amounts due and unpaid on the
Securities for principal, premium, if any, and interest as to each, ratably,
without preference or priority of any kind, according to the amounts due and
payable on the Securities; and

 

THIRD: to the Company.

 

The Trustee may fix a record date and payment date for
any payment to Holders pursuant to this Section 516.

 

SECTION 517.                    Waiver of
Usury, Stay or Extension Laws.

 

Except as otherwise contemplated by Section 301
with respect to any series of Securities, the Company covenants (to the extent
that it may lawfully do so) that it will not at any time insist upon, or plead,
or in any manner whatsoever claim or take the benefit or advantage of, any
usury, stay or extension law wherever enacted, now or at any time hereafter in
force, which may affect the covenants or the performance of this Indenture; and
the Company (to the extent that it may lawfully do so) hereby expressly waives
all benefit or advantage of any such law and covenants that it will not hinder,
delay or impede the execution of any power herein granted to the Trustee, but
will suffer and permit the execution of every such power as though no such law
had been enacted.

 

ARTICLE SIX

 

THE TRUSTEE

 

SECTION 601.                    Certain
Duties and Responsibilities.

 

The duties and responsibilities of the Trustee shall
be as provided by the Trust Indenture Act.

 

37

 

SECTION 602.                    Duties of
Trustee.

 

In furtherance of and subject to Section 601:

 

(1)                                  If an Event of Default has occurred and is continuing
with respect to any series of Securities, 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.

 

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

 

(A)                              the Trustee need perform only those
duties that are specifically set forth in this Indenture; and

 

(B)                                in the absence of bad faith or willful
misconduct 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, in the case of certificates or
opinions specifically required by any provision hereof to be furnished to it,
the Trustee shall be under a duty to examine the certificates and opinions to
determine whether or not they conform on their face to the requirements of this
Indenture (but need not confirm or investigate the accuracy of mathematical
calculations or other facts stated therein). 
Whenever in the administration of this Indenture the Trustee shall deem
it desirable that a matter be proved or established prior to taking suffering
or omitting any action hereunder, the Trustee (unless other evidence be herein
specifically prescribed) may, in the absence of bad faith on its part,
conclusively rely upon an Officer’s Certificate, subject to the requirement in
the preceding sentence, if applicable.

 

(3)                                  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:

 

(A)                              this paragraph does not limit the effect
of paragraph (2) of this Section 602;

 

(B)                                the Trustee shall not be liable for any
error of judgment made in good faith by a Responsible Officer or Responsible
Officers of the Trustee, unless it is proved that the Trustee was negligent in
ascertaining the pertinent facts; and

 

(C)                                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 512 or 513 hereof, or
with respect to any 

 

38

 

series of
Securities, provisions in the supplemental indenture for such series that
supersede Section 512 and 513 hereof.

 

(4)                                  Whether or not therein expressly so provided, every
provision of this Indenture or any other document executed by the Trustee in
connection with or related to any series of Securities that in any way relates
to the Trustee is subject to paragraphs (1), (2), (3), (5) and (6) of
this Section 602.

 

(5)                                  No provision of this Indenture or document executed by
the Trustee in connection with any series of Securities shall require the
Trustee to expend or risk its own funds or incur any liability in the
performance of any of its rights, powers or duties if it shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity
satisfactory to it against such risk or liability is not reasonably assured to
it.  The Trustee will be under no
obligation to exercise any of its rights and powers under this Indenture or
document executed by the Trustee in connection with or related to any series of
Securities 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.

 

(6)                                  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 603.                    Certain
Rights of Trustee.

 

(1)                                  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.

 

(2)                                  Before the Trustee acts or refrains from acting, it
may require an Officer’s Certificate or an Opinion of Counsel or both. The
Trustee will not be liable for any action it takes or omits to take in good
faith in reliance on such Officer’s Certificate or Opinion of Counsel. The
Trustee may consult with counsel of its own selection and the advice of such
counsel or any Opinion of Counsel will 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.

 

(3)                                  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.

 

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

 

39

 

thereto; provided
that the Trustee’s conduct does not constitute willful misconduct, negligence
or bad faith.

 

(5)                                  Unless otherwise specifically provided in this
Indenture or any supplement thereto, any demand, request, direction or notice
from the Company shall be sufficient if signed by the Company’s Chairman of the
Board, its Vice Chairman of the Board, its President or one of its Vice
Presidents.

 

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

 

(7)                                  The Trustee in its individual or any other capacity
may become the owner or pledgee of the Securities of any series 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 Commission for permission to continue as trustee
or resign. Any Agent may do the same with like rights and duties. The Trustee
is also subject to Sections 611 and 612 hereof.

 

(8)                                  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.

 

(9)                                  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.

 

(10)                            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 604.                    Trustee’s
Disclaimer.

 

The Trustee shall not be responsible for and makes no
representation as to the validity or adequacy of this Indenture or any document
executed by the Trustee in connection with or related to any series of
Securities, it shall not be accountable for the Company’s use of the proceeds
from any series of Securities or any money paid to the Company pursuant to the
terms of this Indenture and it shall not be responsible for any statement in
any series of Securities or 

 

40

 

this Indenture other than its
certificate of authentication, except that the Trustee represents that it is
duly authorized to execute and deliver this Indenture and perform its
obligations hereunder and that the statements made by it in any Statement of
Eligibility and Qualification on Form T-1 to be supplied to the Company
will be true and accurate subject to the qualifications set forth therein.

 

SECTION 605.                    Notice of
Defaults.

 

Except as otherwise contemplated by Section 301
with respect to any series of Securities, if a Default or Event of Default
occurs and is continuing with respect to Securities of any series and if it is
known to the Trustee, the Trustee shall mail to Holders of such series 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 Securities of any series, the
Trustee may withhold from Holders the notice if and so long as a committee of
its Responsible Officers in good faith determines that withholding notice is in
the best interests of the Holders of Securities of such series.

 

SECTION 606.                    Reports by
Trustee to Holders of the Securities of Any Series.

 

Except as otherwise contemplated by Section 301
with respect to any series of Securities:

 

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

 

(2)                                  a copy of each report at the time of its mailing to
the Holders of Outstanding Securities of any series shall be mailed by the
Trustee to the Company and filed by the Trustee with the Commission and each
stock exchange, if any, on which the Securities of such series are listed in
accordance with TIA § 313(d). The Company shall promptly notify the Trustee
when Securities of any series are listed on any stock exchange.

 

SECTION 607.                    Compensation
and Reimbursement.

 

Except as otherwise contemplated by Section 301
with respect to any series of Securities, the Company agrees:

 

(1)                                  to pay to the Trustee from time to time such
reasonable compensation for all services rendered by it hereunder in such
amounts as the Company and the Trustee shall agree in writing from time to time
(which compensation shall not be limited by any provision of law in regard to
the compensation of a trustee of an express trust);

 

41

 

(2)           except as otherwise expressly provided
herein, to reimburse the Trustee upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Trustee in accordance with
any provision of this Indenture (including the reasonable compensation and the
expenses and disbursements of its agents and counsel), except any such expense,
disbursement or advance as may be attributable to its own negligence, willful
misconduct or bad faith;

 

(3)           to indemnify the Trustee for, and to hold
it harmless against, any loss, liability, claim, damage or expense incurred
without negligence, willful misconduct or bad faith on its part, arising out of
or in connection with the acceptance or administration of the trust or trusts
hereunder, including the costs and reasonable expenses of defending itself
against any claim or liability in connection with the exercise or performance
of any of its powers or duties hereunder, except those determined to have been
caused by its own negligence, willful misconduct or bad faith;

 

(4)           the obligations of the Company under this
Section 607 will survive the satisfaction and discharge of this Indenture;

 

(5)           when the Trustee incurs expenses or
renders services after an Event of Default specified in Section 501 (6) or
(7) hereof occurs, the expenses and the compensation for its services
(including the fees and expenses of its agents and counsel) are intended to
constitute expenses of administration under any Bankruptcy Law;

 

(6)           the Trustee shall comply with the
provisions of Section 313(b)(2) of the Trust Indenture Act to the
extent applicable; and

 

(7)           the Company’s obligations under this Section 607
shall survive the resignation or removal of the Trustee, any termination of
this Indenture, including any termination or rejection of this Indenture in any
insolvency or similar proceeding and the repayment of all Securities of any
series.

 

SECTION 608.       Resignation and Removal; Appointment
of Successor.

 

No resignation or removal of the Trustee and no
appointment of a successor Trustee pursuant to this Article Six shall
become effective until the acceptance of appointment by the successor Trustee
in accordance with the applicable requirements of Section 609.

 

The Trustee may resign at any time with respect to the
Securities of one or more series by giving written notice thereof to the
Company. The Holders of a majority in aggregate principal amount of the then
Outstanding Securities of any series may remove the Trustee, as to that series,
by so notifying the Trustee and the Company in writing. The Company may remove
the Trustee with respect to all Securities if:

 

If at any time:

 

42

 

(1)           the Trustee fails to comply with Section 611
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.

 

If the Trustee
shall resign, be removed or become incapable of acting, or if a vacancy shall
occur in the office of Trustee for any cause, with respect to the Securities of
one or more series, the Company, by a Board Resolution, shall promptly appoint
a successor Trustee or Trustees with respect to the Securities of that or those
series (it being understood that any such successor Trustee may be appointed
with respect to the Securities of one or more or all of such series and that at
any time there shall be only one Trustee with respect to the Securities of any
particular series). Within one year after the successor Trustee takes office,
the Holders of a majority in principal amount of the Outstanding Securities of
such series may appoint a successor Trustee to replace the successor Trustee
appointed by the Company.

 

If, within 60
days after such resignation, removal or incapability, or the occurrence of such
vacancy, a successor Trustee with respect to the Securities of any series shall
be appointed by Act of the Holders of a majority in principal amount of the
Outstanding Securities of such series delivered to the Company and the retiring
Trustee, the successor Trustee so appointed shall, forthwith upon its
acceptance of such appointment in accordance with the applicable requirements
of this Indenture, become the successor Trustee with respect to the Securities
of such series and to that extent supersede the successor Trustee appointed by
the Company.

 

If no
successor Trustee with respect to the Securities of any series shall have been
so appointed by the Company or the Holders and accepted appointment in the
manner required by this Indenture, Holders of at least 10% in aggregate
principal amount of the Outstanding Securities of such series or the resigning
or removed Trustee may petition at the expense of the Company any court of
competent jurisdiction for the appointment of a successor Trustee with respect
to the Securities of such series.

 

If the Trustee
with respect to the Securities of any series, after written request by any Holder
who has been a bona fide Holder of a Security of such series for at least six
months, fails to comply with Section 611 such Holder may, on behalf of
himself and all others similarly situated, petition any court of competent
jurisdiction for removal of the Trustee and appointment of a successor Trustee
with respect to the Securities of such series.

 

The Company
shall give notice of each resignation and each removal of the Trustee with
respect to the Securities of any series and each appointment of a successor
Trustee with respect to the Securities of any series to all Holders of
Securities of such series in the manner provided in Section 106. Each
notice shall include the name of the successor Trustee with respect to the
Securities of such series and the address of its Corporate Trust Office.

 

43

 

SECTION 609.       Acceptance of Appointment by
Successor.

 

In case of the
appointment hereunder of a successor Trustee with respect to all Securities,
any successor Trustee so appointed shall execute, acknowledge and deliver to
the Company and to the retiring Trustee an instrument accepting such
appointment, and thereupon the resignation or removal of the retiring Trustee
shall become effective and such successor Trustee, without any further act,
deed or conveyance, shall become vested with all the rights, powers, trusts and
duties of the retiring Trustee; but, on the request of the Company or the
successor Trustee, such retiring Trustee shall, upon payment of its charges,
execute and deliver an instrument (in form and substance satisfactory to the
retiring Trustee and the Company) transferring to such successor Trustee all
the rights, powers and trusts of the retiring Trustee and shall duly assign,
transfer and deliver to such successor Trustee all property and money held by
such retiring Trustee hereunder.

 

In case of the
appointment hereunder of a successor Trustee with respect to the Securities of
one or more (but not all) series, the Company, the retiring Trustee and each
successor Trustee with respect to the Securities of one or more series shall
execute and deliver an indenture supplemental hereto (in form and substance
satisfactory to the retiring Trustee, the successor Trustee and the Company)
wherein each successor Trustee shall accept such appointment and which (1) shall
contain such provisions as shall be necessary or desirable to transfer and
confirm to, and to vest in, each successor Trustee all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Securities of
that or those series to which the appointment of such successor Trustee
relates, (2) if the retiring Trustee is not retiring with respect to all
Securities, shall contain such provisions as shall be deemed necessary or
desirable to confirm that all the rights, powers, trusts and duties of the
retiring Trustee with respect to the Securities of that or those series as to
which the retiring Trustee is not retiring shall continue to be vested in the
retiring Trustee, and (3) shall add to or change any of the provisions of
this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, it being
understood that nothing herein or in such supplemental indenture shall
constitute such Trustee’s co-trustees of the same trust and that each such
Trustee shall be trustee of a trust or trusts hereunder separate and apart from
any trust or trusts hereunder administered by any other such Trustee; and upon
the execution and delivery of such supplemental indenture the resignation or
removal of the retiring Trustee shall become effective to the extent provided
therein and each such successor Trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties
of the retiring Trustee with respect to the Securities of that or those series
to which the appointment of such successor Trustee relates; but, on request of
the Company or any successor Trustee, such retiring Trustee shall duly assign,
transfer and deliver to such successor Trustee all property and money held by
such retiring Trustee hereunder with respect to the Securities of that or those
series to which the appointment of such successor Trustee relates, provided all
sums owing to the Trustee hereunder have been paid. Notwithstanding replacement
of the Trustee, the Company’s obligations under Section 607 hereof, as
modified as to any series of Securities by any supplemental indenture, shall
continue for the benefit of the retiring Trustee.

 

Upon request
of any such successor Trustee, the Company shall execute any and all
instruments for more fully and certainly vesting in and confirming to such
successor Trustee all 

 

44

 

such rights, powers and trusts
referred to in the first or second preceding paragraph, as the case may be.

 

No successor
Trustee shall accept its appointment unless at the time of such acceptance such
successor Trustee shall be qualified and eligible under this Article Six.

 

SECTION 610.       Merger, Conversion, Consolidation or
Succession to Business.

 

Any
corporation into which the Trustee may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion
or consolidation to which the Trustee shall be a party, or any corporation
succeeding to all or substantially all the corporate trust business of the
Trustee, shall be the successor of the Trustee hereunder, without any further
act.

 

SECTION 611.       Eligibility; Disqualification.

 

There shall at
all times be one (and only one) Trustee hereunder with respect to the
Securities of each series, which may be Trustee hereunder for Securities of one
or more other series. Each Trustee shall be a Person that is eligible pursuant
to the Trust Indenture Act to act as such and has a combined capital and
surplus of at least $100,000,000. If any such Person publishes reports of
condition at least annually, pursuant to law or to the requirements of its
supervising or examining authority, then for the purposes of this Section 611
and to the extent permitted by the TIA, the combined capital and surplus of
such Person shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. If at any time the Trustee
with respect to the Securities of any series shall cease to be eligible in
accordance with the provisions of this Section 611, it shall resign
immediately in the manner and with the effect hereinafter specified in this Article Six.

 

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

 

SECTION 612.       Preferential Collection of Claims
Against Company.

 

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

 

SECTION 613.       Appointment of Authenticating Agent.

 

The Trustee
may appoint an Authenticating Agent or Agents with respect to one or more
series of Securities which shall be authorized to act on behalf of the Trustee
to authenticate Securities of such series issued upon original issue and upon
exchange, registration of transfer or partial redemption thereof or pursuant to
Section 306, and Securities so authenticated shall be entitled to the
benefits of this Indenture and shall be valid and binding obligations
enforceable for all purposes as if authenticated by the Trustee hereunder.  Wherever reference is made in this Indenture
to the authentication and delivery of Securities by the Trustee or the Trustee’s
certificate of authentication, such reference shall be deemed to include
authentication and delivery on behalf of the Trustee by an Authenticating Agent
and a certificate of authentication 

 

45

 

executed on behalf of the
Trustee by an Authenticating Agent.  In
order to be eligible to serve as an Authenticating Agent under this Indenture,
each Authenticating Agent shall at all times be a corporation organized and
doing business under the laws of the United States of America, any state
thereof or the District of Columbia, authorized under such laws to act as
Authenticating Agent, having a combined capital and surplus of not less than
$100,000,000 and subject to supervision or examination by federal or state
authority.  If such Authenticating Agent
publishes reports of condition at least annually, pursuant to law or to the
requirements of said supervising or examining authority, then for the purposes
of this Section 613, the combined capital and surplus of such
Authenticating Agent shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published.  If at any time an Authenticating Agent shall
cease to be eligible in accordance with the provisions of this Section 613,
such Authenticating Agent shall resign immediately in the manner and with the
effect specified in this Section 613.

 

Any corporation
into which an Authenticating Agent may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion
or consolidation to which such Authenticating Agent shall be a party, or any
corporation succeeding to all or substantially all of the corporate agency or
corporate trust business of an Authenticating Agent shall be the successor
Authenticating Agent hereunder, without the execution or filing of any paper or
any further act on the part of the Trustee or the Authenticating Agent.

 

An
Authenticating Agent may resign at any time by giving written notice thereof to
the Trustee and to the Company.  The
Trustee may at any time terminate the agency of an Authenticating Agent by
giving written notice thereof to such Authenticating Agent and to the
Company.  Upon receiving such a notice of
resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section 613, the Trustee may appoint a successor
Authenticating Agent and shall give notice of such appointment in the manner
provided in Section 106 to all Holders of Securities of the series with
respect to which such Authenticating Agent will serve.  Any successor Authenticating Agent upon
acceptance of its appointment hereunder shall become vested with all the
rights, powers and duties of its predecessor hereunder, with like effect as if
originally named as an Authenticating Agent. 
No successor Authenticating Agent shall be appointed unless eligible
under the provisions of this Section 613.

 

The Company
agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section 613, and in the event
that the Trustee shall pay the Authenticating Agent, the Trustee shall be
entitled to be reimbursed for such payments, subject to the provisions of Section 607.

 

If an
appointment with respect to one or more series is made pursuant to this Section 613,
the Securities of such series may have endorsed thereon, in addition to the
Trustee’s certificate of authentication, an alternative certificate of
authentication in the following form:

 

This is one of
the Securities of the series designated therein referred to in the
within-mentioned Indenture.

 

46

 

	
  Date of
  authentication:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ,

  	
   

  
	
  as Trustee

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  ,

  	
   

  
	
   

  	
  as Authenticating Agent

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  ,

  	
   

  
	
   

  	
   Authorized Signatory

  	
   

  	
   

  
					

 

ARTICLE SEVEN

 

HOLDERS’ LISTS AND REPORTS BY

TRUSTEE AND COMPANY

 

SECTION 701.       Company to Furnish Trustee Names and
Addresses of Holders.

 

Except as otherwise contemplated by Section 301
with respect to any series of Securities, the Company will furnish or cause to
be furnished to the Trustee:

 

(1)           semi-annually, not later than 15 days
after each Regular Record Date or in the case of any series of Securities on
which semi-annual interest is not payable, not more than 15 days after such
semi-annual dates specified by the Trustee, a list, in such form as the Trustee
may reasonably require, of the names and addresses of the Holders of Securities
of each series as of the Regular Record Date or such semi-annual date, as the
case may be, and

 

(2)           at such other times as the Trustee may
request in writing, within 30 days after the receipt by the Company of any such
request, a list of similar form and content as of a date not more than 15 days
prior to the time such list is furnished;

 

excluding from any such list names and addresses
received by the Trustee in its capacity as Security Registrar.

 

SECTION 702.       Preservation of Information;
Communications to Holders.

 

The Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of Holders contained in the
most recent list furnished to the Trustee as provided in Section 701 and
the names and addresses of Holders received by the Trustee in its capacity as
Security Registrar.  The Trustee may
destroy any list furnished to it as provided in Section 701 upon receipt
of a new list so furnished.

 

47

 

The rights of
Holders to communicate with other Holders with respect to their rights under
this Indenture or under the Securities, and the corresponding rights and
privileges of the Trustee, shall be as provided in the Trust Indenture Act.

 

Every Holder
of Securities, by receiving and holding the same, agrees with the Company and
the Trustee that neither the Company nor the Trustee nor any agent of either of
them shall be held accountable by reason of any disclosure of information as to
names and addresses of Holders made pursuant to the Trust Indenture Act.

 

SECTION 703.       Reports by Trustee.

 

The Trustee shall transmit to Holders such reports
specified in Section 606 hereof.

 

SECTION 704.       Reports by Company.

 

The Company
shall file with the Trustee and the Commission, and transmit to Holders, such
information, documents and other reports, and such summaries thereof, as may be
required pursuant to the Trust Indenture Act at the times and in the manner
provided in the Trust Indenture Act.

 

ARTICLE EIGHT

 

CONSOLIDATION, MERGER, CONVEYANCE,

TRANSFER OR LEASE

 

SECTION 801.       Company May Consolidate, Etc.,
Only on Certain Terms.

 

Except as
otherwise contemplated by Section 301 with respect to any series of
Securities, the Company may not (a) merge with or into or consolidate
with, or (b) sell, assign, transfer, lease or convey its properties and
assets substantially as an entirety to any Person, other than, with respect to
this clause (b), a direct or indirect wholly-owned subsidiary of the Company,
unless:

 

(1)           The Company is the surviving corporation,
or in the case the Company shall consolidate or merge with any other Person or
convey, transfer or lease its properties and assets substantially as an
entirety to another Person, the Person formed by such consolidation or into
which the Company is merged or the Person which acquires by conveyance or
transfer, or which leases, the properties and assets of the Company
substantially as an entirety shall be a corporation, partnership, trust or
other entity, shall be organized and validly existing under the laws of the
United States of America, any state thereof or the District of Columbia and
shall expressly assume, by an indenture supplemental hereto, executed and
delivered to the Trustee, in form satisfactory to the Trustee, the due and
punctual payment of the principal of and any premium and interest on all the
Securities and the performance or observance of every covenant of this
Indenture on the part of the Company to be performed or observed;

 

48

 

(2)           immediately after giving effect to such
transaction and treating any indebtedness which becomes an obligation of the
Company or any Subsidiary as a result of such transaction as having been
incurred by the Company or such Subsidiary at the time of such transaction, no
Event of Default, and no event which, after notice or lapse of time or both,
would become an Event of Default, shall have happened and be continuing; and

 

(3)           the Company has delivered to the Trustee
an Officer’s Certificate and an Opinion of Counsel stating that such
consolidation, merger, conveyance, transfer or lease and, if a supplemental
indenture is required in connection with such transaction, such supplemental
indenture comply with this Article Eight and that all conditions precedent
herein provided for relating to such transaction have been complied with;
provided, however, that the delivery of an Officer’s Certificate or an Opinion
of Counsel is not required with respect to any consolidation, merger,
conveyance, transfer or lease involving the Company and any direct or indirect
wholly owned subsidiary of the Company.

 

SECTION 802.       Successor Substituted.

 

Except as
otherwise contemplated by Section 301 with respect to any series of
Securities, upon any consolidation of the Company with, or merger of the
Company into, any other Person or any conveyance, transfer or lease of the
properties and assets of the Company substantially as an entirety in accordance
with Section 801, the successor Person formed by such consolidation or
into which the Company is merged or to which such conveyance, transfer or lease
is made shall succeed to, and be substituted for, 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, and thereafter, except
in the case of a lease the predecessor Person shall be relieved of all
obligations and covenants under this Indenture and the Securities.

 

ARTICLE NINE

 

SUPPLEMENTAL INDENTURES

 

SECTION 901.       Supplemental Indentures Without
Consent of Holders.

 

Without the
consent of any Holders, the Company, when authorized by a Board Resolution, and
the Trustee, at any time and from time to time, may enter into one or more
indentures supplemental hereto, in form satisfactory to the Trustee, for any of
the following purposes:

 

(1)           to
evidence the succession of another Person to the Company, or successive
successions, and the assumption by the successor Person of the covenants,
agreements and obligations of the Company pursuant to Article Eight; or

 

(2)           to
add to the covenants of the Company for the benefit of the Holders of all or
any series of Securities (and if such covenants are to be for the benefit of
less than all series of Securities, stating that such covenants are expressly
being included solely for 

 

49

 

the benefit of such
series) or to surrender any right or power herein conferred upon the Company;
or

 

(3)           to add any
additional Events of Default for the benefit of the Holders of all or any
series of Securities (and if such additional Events of Default are to be for
the benefit of less than all series of Securities, stating that such additional
Events of Default are expressly being included solely for the benefit of such
series), provided, however, that in respect of any such additional Events of
Default such supplemental indenture may provide for a particular period of
grace after default (which period may be shorter or longer than that allowed in
the case of other defaults) or may provide for an immediate enforcement upon
such default or may limit the remedies available to the Trustee upon such
default or may limit the right of the Holders of a majority in aggregate
principal amount of that or those series of Securities to which such additional
Events of Default apply to waive such default; or

 

(4)           to add to or change
any of the provisions of this Indenture to such extent as shall be necessary to
permit or facilitate the issuance of Securities in bearer form, registrable or
not registrable as to principal, and with or without interest coupons, or to
permit or facilitate the issuance of Securities in uncertificated form; or

 

(5)           to add to, change or
eliminate any of the provisions of this Indenture in respect of one or more
series of Securities; provided, that any such addition, change or elimination (i) shall
neither (A) apply to any Security of any series created prior to the
execution of such supplemental indenture and entitled to the benefit of such
provision nor (B) materially modify the rights of the Holder of any such
Security with respect to such provision or (ii) shall become effective
only when there is no such Security Outstanding; or

 

(6)           to convey, transfer,
assign, mortgage or pledge any property to or with the Trustee or to surrender
any right or power herein conferred upon the Company; or

 

(7)           to establish the
form or terms of Securities of any series as permitted by Sections 201 and 301;
or

 

(8)           to provide for
uncertificated securities in addition to certificated securities; or

 

(9)           to evidence and
provide for the acceptance of appointment hereunder by a successor Trustee with
respect to the Securities of one or more series and to add to or change any of
the provisions of this Indenture as shall be necessary to provide for or
facilitate the administration of the trusts hereunder by more than one Trustee,
pursuant to the requirements of Section 609; or

 

(10)         to cure any ambiguity
or mistake, to correct or supplement any provision herein which may be
defective or inconsistent with any other provision herein, or to make any other
provisions with respect to matters or questions arising under this Indenture,
provided that such action pursuant to this Clause (10) shall not
materially adversely affect the interests, taken as a whole, of the Holders of
Securities of any series; or

 

50

 

(11)         to supplement any of
the provisions of this Indenture to such extent as shall be necessary to permit
or facilitate the defeasance and discharge of any series of Securities pursuant
to Sections 401, 1202 and 1203; provided that any such action shall not
adversely affect the interests of the holders of Securities of such series or
any other series of Securities; or

 

(12)         to comply with the rules or
regulations of any securities exchange or automated quotation system on which
any of the Securities may be listed or traded; or

 

(13)         to add any
subsidiaries of the Company as guarantors in respect of one or more series of
Securities; or

 

(14)         to add to, change or
eliminate any of the provisions of this Indenture as shall be necessary or
desirable in accordance with any amendments to the Trust Indenture Act,
provided that such action does not adversely affect the rights or interests of
any Holder of Securities.

 

SECTION 902.       Supplemental Indentures With Consent
of Holders.

 

Except as
otherwise contemplated by Section 301 with respect to any series of
Securities, with the consent of the Holders of not less than a majority in
principal amount of the Outstanding Securities of each series affected by such
supplemental indenture (with the Holders of each series of Securities voting
together as a single class), by Act of said Holders delivered to the Company
and the Trustee, the Company, when authorized by a Board Resolution, and the
Trustee may enter into an indenture or indentures supplemental hereto for the
purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions of this Indenture or of modifying in any manner the
rights of the Holders of Securities of such series under this Indenture;
provided, however, that, except as otherwise contemplated by Section 301
with respect to any series of Securities, no such supplemental indenture shall,
without the consent of the Holder of each Outstanding Security affected
thereby,

 

(1)           except to the extent
otherwise specified in the form or terms of the Securities of any series as
permitted by Sections 201 and 301 with respect to extending the Stated Maturity
of any Security of such series, change the Stated Maturity of the principal of,
or any installment of principal of or interest on, any Security, or reduce the
principal amount thereof or the rate of interest thereon or any premium payable
upon the redemption thereof, or reduce the amount of the principal of an
Original Issue Discount Security or any other Security which would be due and
payable upon a declaration of acceleration of the Maturity thereof pursuant to Section 502,
or change any Place of Payment where, or the currency in which, any Security or
any premium or interest thereon is payable, or impair the right to institute
suit for the enforcement of any such payment on or after the Stated Maturity
thereof (or, in the case of redemption, on or after the Redemption Date); or

 

(2)           reduce the
percentage in principal amount of the Outstanding Securities of any series, the
consent of the Holders of which is required for any such supplemental indenture,
or the consent of the Holders of which is required for any waiver (of 

 

51

 

compliance
with certain provisions of this Indenture or certain defaults hereunder and
their consequences) provided for in this Indenture; or

 

(3)           modify any of the
provisions of this Section 902, Section 513 or Section 1006,
except to increase any such percentage or to provide that certain other
provisions of this Indenture cannot be modified or waived without the consent
of the Holder of each Outstanding Security affected thereby; provided, however,
that this clause shall not be deemed to require the consent of any Holder with
respect to changes in the references to “the Trustee” and concomitant changes
in this Section 902 and Section 1009, or the deletion of this
proviso, in accordance with the requirements of Sections 609 and 901(9); or

 

(4)           if the Securities of
any series are convertible or exchangeable into any other securities or
property of the Company, make any change that adversely affects the right to
convert or exchange any Security of such series (except as permitted by Section 901)
or decrease the conversion or exchange rate or increase the conversion price of
any such Security of such series.

 

A supplemental
indenture which changes or eliminates any covenant or other provision of this
Indenture which has expressly been included solely for the benefit of one or
more particular series of Securities, or which modifies the rights of the
Holders of Securities of such series with respect to such covenant or other
provision, shall be deemed not to affect the rights under this Indenture of the
Holders of Securities of any other series.

 

It shall not
be necessary for any Act of Holders under this Section 902 to approve the
particular form of any proposed supplemental indenture, but it shall be
sufficient if such Act shall approve the substance thereof.

 

SECTION 903.       Execution of Supplemental Indentures.

 

In executing,
or accepting the additional trusts created by, any supplemental indenture
permitted by this Article Nine or the modifications thereby of the trusts
created by this Indenture, the Trustee shall be entitled to receive, and
(subject to Section 601) shall be fully protected in relying upon, an
Officer’s Certificate and an Opinion of Counsel stating that the execution of
such supplemental indenture is authorized or permitted by this Indenture.  The Trustee may, but shall not be obligated
to, enter into any such supplemental indenture which affects the Trustee’s own
rights, duties or immunities under this Indenture or otherwise.

 

SECTION 904.       Effect of Supplemental Indentures.

 

Upon the
execution of any supplemental indenture under this Article Nine, this
Indenture shall be modified in accordance therewith, and such supplemental
indenture shall form a part of this Indenture for all purposes; and every
Holder of Securities theretofore or thereafter authenticated and delivered
hereunder shall be bound thereby.

 

52

 

SECTION 905.       Conformity with Trust Indenture Act.

 

Every
supplemental indenture executed pursuant to this Article Nine shall
conform to the requirements of the Trust Indenture Act.

 

SECTION 906.       Reference in Securities to
Supplemental Indentures.

 

Securities of
any series authenticated and delivered after the execution of any supplemental
indenture pursuant to this Article Nine may, and shall if required by the
Trustee, bear a notation in form approved by the Trustee as to any matter
provided for in such supplemental indenture. 
If the Company shall so determine, new Securities of any series so
modified as to conform, in the opinion of the Trustee and the Company, to any
such supplemental indenture may be prepared and executed by the Company and
authenticated and delivered by the Trustee in exchange for Outstanding
Securities of such series.

 

ARTICLE TEN

COVENANTS

 

SECTION 1001.     Payment of Principal, Premium and
Interest.

 

The Company
covenants and agrees for the benefit of each series of Securities that it will
duly and punctually pay the principal of and any premium and interest on the
Securities of that series in accordance with the terms of the Securities and
this Indenture.

 

SECTION 1002.     Maintenance of Office or Agency.

 

Except as
otherwise contemplated by Section 301 with respect to any series of
Securities, the Company will maintain in each Place of Payment for any series
of Securities an office or agency where Securities of that series may be
presented or surrendered for payment, where Securities of that series may be
surrendered for registration of transfer or exchange and where notices and
demands to or upon the Company in respect of the Securities of that series and
this Indenture may be served.  The
Company initially appoints the Trustee, acting through its Corporate Trust
Office, as its agent for said purpose. 
The Company will 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, and
the Company hereby appoints the Trustee as its agent to receive all such
presentations, surrenders, notices and demands.

 

The Company
may also from time to time designate one or more other offices or agencies
where the Securities of one or more series 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 each
Place of Payment for Securities of any series for such purposes.  The Company will 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.

 

53

 

SECTION 1003.     Money for Securities Payments to Be Held
in Trust.

 

Except as
otherwise contemplated by Section 301 with respect to any series of
Securities, if the Company shall at any time act as its own Paying Agent with
respect to any series of Securities, it will, on or before each due date of the
principal of or any premium or interest on any of the Securities of that
series, segregate to the extent required by law and hold in trust for the
benefit of the Persons entitled thereto a sum sufficient to pay the principal
and any premium and interest so becoming due until such sums shall be paid to
such Persons or otherwise disposed of as herein provided and will promptly
notify the Trustee of its action or failure so to act.

 

Whenever the
Company shall have one or more Paying Agents for any series of Securities, it
will, prior to each due date of the principal of or any premium or interest on
any Securities of that series, deposit with a Paying Agent a sum sufficient to
pay such amount, such sum to be held as provided by the Trust Indenture Act,
and (unless such Paying Agent is the Trustee) the Company will promptly notify
the Trustee of its action or failure so to act.

 

The Company
will cause each Paying Agent for any series of Securities other than the
Trustee to execute and deliver to the Trustee an instrument in which such
Paying Agent shall agree with the Trustee, subject to the provisions of this Section 1003,
that such Paying Agent will (1) comply with the provisions of the Trust
Indenture Act applicable to it as a Paying Agent and (2) during the
continuance of any default by the Company (or any other obligor upon the
Securities of that series) in the making of any payment in respect of the
Securities of that series, upon the written request of the Trustee, forthwith
pay to the Trustee all sums held in trust by such Paying Agent for payment in
respect of the Securities of that series.

 

The Company
may at any time, for the purpose of obtaining the satisfaction and discharge of
this Indenture or for any other purpose, pay, or by Company Order direct any
Paying Agent to pay, to the Trustee all sums held in trust by the Company or
such Paying Agent, such sums to be held by the Trustee upon the same trusts as
those upon which such sums were held by the Company or such Paying Agent; and,
upon such payment by any Paying Agent to the Trustee, such Paying Agent shall
be released from all further liability with respect to such money.

 

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 or any premium or interest on any
Security of any series and remaining unclaimed for two years after such
principal, premium or interest has become due and payable may be paid to the
Company on Company Request, or (if then held by the Company) shall be
discharged from such trust; and the Holder of such Security shall thereafter,
as an unsecured general creditor, 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 a newspaper published in the English language,
customarily published on each Business Day and of general circulation in The
City of New York, 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 publication, any unclaimed balance of such money then remaining will be
repaid to the Company.

 

54

 

SECTION 1004.     Statement by Officers as to Default.

 

Except as
otherwise specified as contemplated by Section 301 for Securities of such
series, the Company will deliver to the Trustee, within 120 days after the end
of each fiscal year of the Company ending after the date hereof, an Officer’s
Certificate stating whether or not to the best knowledge of the signers thereof
the Company, is in default in the performance and observance of any of the
terms, provisions, covenants and conditions of this Indenture (without regard
to any period of grace or requirement of notice provided hereunder) and, if the
Company shall be in default, specifying all such defaults and the nature and
status thereof of which they may have knowledge.

 

SECTION 1005.     Existence.

 

Except as
otherwise contemplated by Section 301 with respect to any series of
Securities, subject to Article Eight, the Company will do or cause to be
done all things necessary to preserve and keep in full force and effect its
legal existence; provided, however, that the Company shall not be required to
preserve any such right or franchise 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 that the loss thereof is not disadvantageous in any
material respect to the Holders.

 

SECTION 1006.     Payment of Taxes and Other Claims.

 

The Company
shall, and shall cause each of its Restricted Subsidiaries to, pay or discharge
or cause to be paid or discharged, before the same shall become delinquent, (1) all
material taxes, assessments and governmental charges levied or imposed upon the
Company or any of its Subsidiaries or upon the income, profits, capital or
properties and assets of the Company or any of its Subsidiaries, and (2) all
material lawful claims for labor, materials and supplies which, if unpaid,
might by law become a lien upon the properties and assets of the Company or any
of its Subsidiaries; provided, however, that the Company shall not be required
to pay or discharge or cause to be paid or discharged any such tax, assessment,
charge or claim whose amount, applicability or validity is being contested in
good faith by appropriate proceedings.

 

SECTION 1007.     Repurchase at the Option of Holders upon
Change of Control.

 

(a)           Upon the occurrence of a Change of
Control, each Holder will have the right to require the Company to repurchase
all or any part of such Holder’s Securities pursuant to the offer described
below (the “Change of Control Offer”) at a purchase price (the “Change of
Control Purchase Price”) equal to 101 % of the aggregate principal amount
thereof, plus accrued and unpaid interest, if any, to but excluding the
repurchase date (subject to the right of Holders of record on the relevant
record date to receive interest due on the relevant interest payment date); provided,
however, that notwithstanding the occurrence of a Change of Control, the
Company shall not be obligated to purchase the Securities pursuant to this Section 1007
in the event that it has mailed the notice to exercise its right to redeem all
the Securities at any time prior to the requirement to consummate the Change of
Control Offer and redeems the Securities in accordance with such notice.

 

55

 

(b)                                 Within
30 days following any Change of Control the Company shall (x) cause a
notice of the Change of Control Offer to be sent at least once to the Dow Jones
News Service or similar business news service in the United States, and (y) send,
by first-class mail, with a copy to the Trustee, to each Holder, at such Holder’s
address appearing in the register, a notice stating:

 

(1)           that a Change of Control has occurred or
will occur and a Change of Control Offer is being made pursuant to this Section 1007
and that all Securities timely tendered will be accepted for payment;

 

(2)           the Change of Control Purchase Price and
the purchase date (the “Change of Control Payment Date”), which shall be,
subject to any contrary requirements of applicable law, a Business Day and a
point in time occurring after the consummation of the Change of Control and not
later than 60 days from the date such notice is mailed;

 

(3)           the circumstances and relevant facts
regarding the Change of Control; and

 

(4)           the procedures that Holders must follow
in order to tender their Securities (or portions thereof) for payment, and the
procedures that Holders must follow in order to withdraw an election to tender
Securities (or portions thereof) for payment.

 

Holders
electing to have a Security purchased shall be required to surrender the
Security, with an appropriate form duly completed, to the Company or its agent
at the address specified in the notice at least three Business Days prior to
the Change of Control Payment Date. 
Holders shall be entitled to withdraw their election if the Trustee or
the Company receives, not later than one Business Day prior to the Change of
Control Payment Date, a telegram, telex, facsimile transmission, electronic
mail or letter setting forth the name of the Holder, the principal amount of
the Security that was delivered for purchase by the Holder and a statement that
such Holder is withdrawing its election to have such Security purchased.

 

(c)                                  On
or prior to the Change of Control Payment Date, the Company shall irrevocably
deposit with the Trustee or with the Paying Agent (or, if the Company or any of
its Subsidiaries is acting as the Paying Agent, segregate and hold in trust) in
cash an amount equal to the Change of Control Purchase Price payable to the
Holders entitled thereto, to be held for payment in accordance with this Section 1007.  On the Change of Control Payment Date, the
Company or its Agent shall deliver to the Trustee the Security or portions
thereof that have been properly tendered to and are to be accepted by the
Company for payment.

 

(d)                                 The
Trustee or the Paying Agent shall, on the Change of Control Payment Date, mail
or deliver payment to each tendering Holder of the Change of Control Purchase
Price.  In the event that the aggregate
Change of Control Purchase Price is less than the amount delivered by the Company
to the Trustee or the Paying Agent, the Trustee or the Paying Agent, as the
case may be, shall deliver the excess to the Company immediately after the
Change of Control Payment Date.

 

56

 

(e)                                  The
Company shall comply, to the extent applicable, with the requirements of Section 14(e) and
Rule 14e-1 of the Exchange Act and any other applicable securities laws or
regulations in connection with the repurchase of Securities pursuant to a
Change of Control Offer, including any applicable securities laws of the United
States.  To the extent that the
provisions of any securities laws or regulations conflict with the provisions
of this Section 1007, the Company will comply with the applicable
securities laws and regulations and will not be deemed to have breached its
obligations under this Section 1007 by virtue of such compliance with
these securities laws or regulations.

 

(f)                                    The
Company shall not be required to make a Change of Control Offer upon a Change
of Control if another entity makes the Change of Control Offer in the manner,
at the times and otherwise in compliance with the requirements set forth in
this Section 1007 applicable to a Change of Control Offer made by the
Company and purchases all Securities properly tendered and not withdrawn under
the Change of Control Offer.

 

SECTION 1008.     Payment for Consents.

 

The Company
shall not, and shall not permit any of its Subsidiaries to, directly or
indirectly, pay or cause to be paid any consideration, whether by way of
interest, fee or otherwise, to any Holder of any Securities for or as an
inducement to any consent, waiver or amendment of any of the terms or
provisions of this Indenture or the Securities unless such consideration is
offered to be paid or is paid to all Holders 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 1009.     Waiver of Certain Covenants.

 

Except as
otherwise specified as contemplated by Section 301 for Securities of such
series, the Company may, with respect to the Securities of any series, omit in
any particular instance to comply with any term, provision or condition set
forth in any covenant provided pursuant to Section 301(23), 301(24),
301(25), 901(2) or 901(7) for the benefit of the Holders of such
series or in Section 1005, if the Holders of at least a majority in
principal amount of the Outstanding Securities of such series shall, by Act of
such Holders, either waive such compliance in such instance or generally waive
compliance with such term, provision or condition, but no such waiver shall
extend to or affect such term, provision or condition except to the extent so
expressly waived, and, until such waiver shall become effective, the
obligations of the Company and the duties of the Trustee in respect of any such
term, provision or condition shall remain in full force and effect.

 

ARTICLE ELEVEN

 

REDEMPTION OF SECURITIES

 

SECTION 1101.     Applicability of Article.

 

Securities of
any series which are redeemable before their Stated Maturity shall be
redeemable in accordance with their terms and (except as otherwise specified as
contemplated by Section 301 for such Securities) in accordance with this Article Eleven.

 

57

 

SECTION 1102.     Election to Redeem; Notice to Trustee.

 

The election
of the Company to redeem any Securities shall be evidenced by a Board
Resolution or in another manner specified as contemplated by Section 301
for such Securities.  In case of any
redemption at the election of the Company of less than all the Securities of
any series, the Company shall, not less than 30 nor more than 60 days prior to
the Redemption Date fixed by the Company (unless a shorter notice shall be
satisfactory to the Trustee), notify the Trustee of such Redemption Date, of
the principal amount of Securities of such series to be redeemed and, if
applicable, of the tenor of the Securities to be redeemed.  In the case of any redemption of Securities
prior to the expiration of any restriction on such redemption provided in the
terms of such Securities or elsewhere in this Indenture, the Company shall
furnish the Trustee with an Officer’s Certificate evidencing compliance with
such restriction.

 

SECTION 1103.     Selection by Trustee of Securities to Be
Redeemed.

 

Except as
otherwise contemplated by Section 301 with respect to any series of
Securities, if less than all the Securities of any series are to be redeemed
(unless all the Securities of such series and of a specified tenor are to be
redeemed), the particular Securities to be redeemed shall be selected not more
than 60 days prior to the Redemption Date by the Trustee, from the Outstanding
Securities of such series not previously called for redemption, pro rata, by
lot or by such other method as the Trustee shall deem fair and appropriate and
which may provide for the selection for redemption of a portion of the
principal amount of any Security of such series; provided that the unredeemed
portion of the principal amount of any Security shall be in an authorized
denomination (which shall not be less than the minimum authorized denomination)
for such Security.  If less than all the
Securities of such series and of a specified tenor are to be redeemed, the
particular Securities to be redeemed shall be selected not more than 60 days
prior to the Redemption Date by the Trustee, from the Outstanding Securities of
such series and specified tenor not previously called for redemption in
accordance with the preceding sentence.

 

The Trustee
shall promptly notify the Company in writing of the Securities selected for
redemption as aforesaid and, in case of any Securities selected for partial
redemption as aforesaid, the principal amount thereof to be redeemed.

 

For all purposes
of this Indenture, unless the context otherwise requires, all provisions
relating to the redemption of Securities shall relate, in the case of any
Securities redeemed or to be redeemed only in part, to the portion of the
principal amount of such Securities which has been or is to be redeemed.  If the Company shall so direct, Securities
registered in the name of the Company, any Affiliate or any Subsidiary thereof
shall not be included in the Securities selected for redemption.

 

SECTION 1104.     Notice of Redemption.

 

Except as
otherwise contemplated by Section 301 with respect to any series of
Securities, notice of redemption shall be given by first-class mail, postage
prepaid, mailed not less than 30 nor more than 60 days prior to the Redemption
Date, to each Holder of Securities to be redeemed, at his address appearing in
the Security Register.

 

58

 

With respect
to Securities of each series to be redeemed, each notice of redemption shall
identify the Securities to be redeemed (including CUSIP numbers, if available)
and shall state:

 

(1)           the Redemption Date;

 

(2)           the Redemption
Price;

 

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

 

(4)           that on the
Redemption Date the Redemption Price will become due and payable upon each such
Security to be redeemed and, if applicable, that interest thereon will cease to
accrue on and after said date;

 

(5)           the place or places
where each such Security is to be surrendered for payment of the Redemption
Price; and

 

(6)           that the redemption
is for a sinking fund, if such is the case.

 

Notice of
redemption of Securities to be redeemed at the election of the Company shall be
given by the Company or, at the Company’s request, by the Trustee in the name
and at the expense of the Company.  The
notice if mailed in the manner herein provided shall be conclusively presumed
to have been duly given, whether or not the Holder receives such notice.  In any case, a failure to give such notice by
mail or any defect in the notice to the Holder of any Security designated for
redemption as a whole or in part shall not affect the validity of the
proceedings for the redemption of any other Security.

 

SECTION 1105.     Deposit of Redemption Price.

 

Except as
otherwise contemplated by Section 301 with respect to any series of
Securities, on or before the Redemption Date specified in the notice of
redemption given as provided in Section 1104, the Company shall deposit
with the Trustee or with a Paying Agent (or, if the Company is acting as its
own Paying Agent, segregate and hold in trust as provided in Section 1003)
an amount of money sufficient to pay the Redemption Price of, and (except if
the Redemption Date shall be an Interest Payment Date) accrued interest on, all
the Securities which are to be redeemed on that date.

 

SECTION 1106.     Securities Payable on Redemption Date.

 

Except as
otherwise contemplated by Section 301 with respect to any series of
Securities, notice of redemption having been given as aforesaid, the Securities
so to be redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified, and from and after such date (unless the
Company shall default in the payment of the Redemption Price and accrued
interest) such Securities shall cease to bear interest.  Upon surrender of any such Security for
redemption in accordance with said notice, such Security shall be paid by the
Company at the Redemption Price, together with accrued interest to (but
excluding) the Redemption Date; provided, however, that, unless otherwise
specified as contemplated by 

 

59

 

Section 301, in the event
the Stated Maturity is on or prior to the Redemption Date such installments of
interest will be payable to the Holders of such Securities, or one or more
Predecessor Securities, registered as such at the close of business on the
relevant Record Dates according to their terms and the provisions of Section 307.

 

If any
Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal and any premium shall, until paid, bear interest from
the Redemption Date at the rate prescribed therefor in the Security.

 

SECTION 1107.     Securities Redeemed in Part.

 

Except as
otherwise contemplated by Section 301 with respect to any series of
Securities, any Security which is to be redeemed only in part shall be
surrendered at a Place of Payment therefor (with, if the Company or the Trustee
so requires, due endorsement by, or a written instrument of transfer in form
satisfactory to the Company and the Trustee duly executed by, the Holder thereof
or his attorney duly authorized in writing), and the Company shall execute, and
the Trustee shall authenticate and deliver to the Holder of such Security
without service charge, a new Security or Securities of the same series and of
like tenor, of any authorized denomination as requested by such Holder, in
aggregate principal amount equal to and in exchange for the unredeemed portion
of the principal of the Security so surrendered.  If a Global Security is so surrendered, such
new Security so issued shall be a new Global Security.

 

SECTION 1108.     Other Mandatory Redemption.

 

The Company is
not required to make mandatory redemption or sinking fund payments with respect
to the Securities.  Under certain
circumstances, the Company may be required to offer to purchase Notes as
described under Section 1007.  The
Company may, at any time and from time to time, purchase Securities in the open
market or otherwise.

ARTICLE TWELVE

 

DEFEASANCE AND COVENANT DEFEASANCE

 

SECTION 1201.     Company’s Option to Effect Defeasance or
Covenant Defeasance.

 

The Company
may elect, at its option at any time, to have Section 1202 or Section 1203
applied to any Securities or any series of Securities, as the case may be,
(unless designated pursuant to Section 301 as not being defeasible pursuant
to such Section 1202 or 1203), in accordance with any applicable
requirements provided pursuant to Section 301 and upon compliance with the
conditions set forth below in this Article Twelve.  Any such election shall be evidenced by a
Board Resolution or in another manner specified as contemplated by Section 301
for such Securities.

 

60

 

SECTION 1202.     Defeasance and Discharge.

 

Upon the
Company’s exercise of its option (if any) to have this Section 1202 applied
to any Securities or any series of Securities, as the case may be, the Company
shall be deemed to have been discharged from its obligations with respect to
such Securities as provided in this Section on and after the date the
conditions set forth in Section 1204 are satisfied (hereinafter called “Defeasance”).  For this purpose, such Defeasance means that
the Company shall be deemed to have paid and discharged the entire indebtedness
represented by such Securities and to have satisfied all its other obligations
under such Securities and this Indenture insofar as such Securities are
concerned (and the Trustee, at the expense of the Company, shall execute proper
instruments acknowledging the same), subject to the following which shall
survive until otherwise terminated or discharged hereunder: (1) the rights
of Holders of such Securities to receive, solely from the trust fund described
in Section 1204 and as more fully set forth in such Section, payments in
respect of the principal of and any premium and interest on such Securities
when payments are due, (2) the Company’s obligations with respect to such
Securities under Sections 304, 305, 306, 1002 and 1003, (3) the rights,
powers, trusts, duties and immunities of the Trustee hereunder and (4) this
Article Twelve.  Subject to
compliance with this Article Twelve, the Company may exercise its option
(if any) to have this Section 1202 applied to any Securities
notwithstanding the prior exercise of its option (if any) to have Section 1203
applied to such Securities.

 

SECTION 1203.     Covenant Defeasance.

 

Upon the
Company’s exercise of its option (if any) to have this Section 1203
applied to any Securities or any series of Securities, as the case may be, (1) the
Company shall be released from its obligations under Article Eight (and
any covenant applicable to such Securities that are determined pursuant to Section 301
to be subject to this provision) and (2) the occurrence of any event
specified in Section 501 (with respect to Article Eight) (and any
other Event of Default applicable to such Securities that are determined
pursuant to Section 301 to be subject to this provision) shall be deemed
not to be or result in an Event of Default, in each case with respect to such
Securities as provided in this Section 1203 on and after the date the
conditions set forth in Section 1204 are satisfied (hereinafter called “Covenant
Defeasance”).  For this purpose, such
Covenant Defeasance means that, with respect to such Securities, the Company
may omit to comply with and shall have no liability in respect of any term,
condition or limitation set forth in any such specified Section or clause,
whether directly or indirectly by reason of any reference elsewhere herein to
any such Section or clause or by reason of any reference in any such Section or
clause to any other provision herein or in any other document, but the
remainder of this Indenture and such Securities shall be unaffected thereby.

 

SECTION 1204.     Conditions to Defeasance or Covenant
Defeasance.

 

The following
shall be the conditions to the application of Section 1202 or Section 1203
to any Securities or any series of Securities, as the case may be:

 

(1)           The Company shall
irrevocably have deposited or caused to be deposited with the Trustee (or
another trustee which satisfies the requirements contemplated by Section 609
and agrees to comply with the provisions of this Article Twelve applicable
to 

 

61

 

it) as trust
funds in trust for the purpose of making the following payments, specifically
pledged as security for, and dedicated solely to, the benefits of the Holders
of such Securities, (A) money in an amount, or (B) Government
Obligations which through the scheduled payment of principal and interest in
respect thereof in accordance with their terms will provide, not later than one
day before the due date of any payment, money in an amount, or (C) a
combination thereof, in each case sufficient, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay and discharge, and which
shall be applied by the Trustee (or any such other qualifying trustee) to pay
and discharge, the principal of and any premium and interest on such Securities
on the respective Stated Maturities, in accordance with the terms of this
Indenture and such Securities.  As used
herein, “Government Obligation” means (x) any security which is (i) a
direct obligation of the United States of America for the payment of which the
full faith and credit of the United States of America is pledged or (ii) an
obligation of a Person controlled or supervised by and acting as an agency or
instrumentality of the United States of America the payment of which is
unconditionally guaranteed as a full faith and credit obligation by the United
States of America, which, in either case (i) or (ii), is not callable or
redeemable at the option of the issuer thereof, and (y) any depositary
receipt issued by a bank (as defined in Section 3(a)(2) of the
Securities Act) as custodian with respect to any Government Obligation which is
specified in Clause (x) above and held by such bank for the account of the
holder of such depositary receipt, or with respect to any specific payment of
principal of or interest on any Government Obligation which is so specified and
held, provided that (except as required by law) such custodian is not
authorized to make any deduction from the amount payable to the holder of such
depositary receipt from any amount received by the custodian in respect of the
Government Obligation or the specific payment of principal or interest
evidenced by such depositary receipt.

 

(2)           In the event of an
election to have Section 1202 apply to any Securities or any series of
Securities, as the case may be, the Company shall have delivered to the Trustee
an Opinion of Counsel stating that (A) the Company has received from, or
there has been published by, the Internal Revenue Service a ruling or (B) since
the date of this instrument, there has been a change in the applicable federal
income tax law, in either case (A) or (B) to the effect that, and
based thereon such opinion shall confirm that, the Holders of such Securities
will not recognize gain or loss for federal income tax purposes as a result of
the deposit, Defeasance and discharge to be effected with respect to such
Securities and will be subject to federal income tax on the same amount, in the
same manner and at the same times as would be the case if such deposit,
Defeasance and discharge were not to occur.

 

(3)           In the event of an
election to have Section 1203 apply to any Securities or any series of
Securities, as the case may be, the Company shall have delivered to the Trustee
an Opinion of Counsel to the effect that the Holders of such Securities will
not recognize gain or loss for federal income tax purposes as a result of the
deposit and Covenant Defeasance to be effected with respect to such Securities
and will be subject to federal income tax on the same amount, in the same manner
and at the same times as would be the case if such Covenant Defeasance were not
to occur.

 

62

 

(4)           Such Defeasance or
Covenant Defeasance shall be effected in compliance with any additional terms,
conditions or limitations which may be imposed on the Company in connection
therewith pursuant to Section 301.

 

(5)           No event which is,
or after notice or lapse of time or both would become, an Event of Default with
respect to such Securities shall have occurred and be continuing at the time of
such deposit or, with regard to any such event specified in Sections 501(5) and
(6), at any time on or prior to the 90th day after the date of such deposit (it
being understood that this condition shall not be deemed satisfied until after
such 90th day).

 

(6)           Such Defeasance or
Covenant Defeasance shall not result in the trust arising from such deposit
constituting an investment company within the meaning of the Investment Company
Act unless such trust shall be registered under the Investment Company Act or
exempt from registration thereunder.

 

(7)           The Company shall
have delivered to the Trustee an Officer’s Certificate and an Opinion of
Counsel, each stating that all conditions precedent with respect to such
Defeasance or Covenant Defeasance have been complied with.

 

SECTION 1205.     Acknowledgment of Discharge By Trustee.

 

Subject to Section 1207
below and after the Company has delivered to the Trustee an Officer’s
Certificate and an Opinion of Counsel, each stating that all conditions
precedent referred to in Section 1204 relating to the defeasance or
satisfaction and discharge, as the case may be, of this Indenture have been
complied with, the Trustee upon request of the Company shall acknowledge in
writing the defeasance or the satisfaction and discharge, as the case may be,
of this Indenture and the discharge of the Company’s obligations under this
Indenture.

 

SECTION 1206.     Deposited Money and Government
Obligations to Be Held in Trust; Miscellaneous Provisions.

 

Subject to the
provisions of the last paragraph of Section 1003, all money and Government
Obligations (including the proceeds thereof) deposited with the Trustee or
other qualifying trustee (solely for purposes of this Section 1206, the
Trustee and any such other trustee are referred to collectively as the “Trustee”)
pursuant to Section 1204 in respect of any Securities shall be held in
trust and applied by the Trustee, in accordance with the provisions of such
Securities and this Indenture, to the payment, either directly or through any
such Paying Agent (including the Company acting as its own Paying Agent) as the
Trustee may determine, to the Holders of such Securities, of all sums due and
to become due thereon in respect of principal and any premium and interest, but
money so held in trust 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 Government Obligations deposited pursuant to
Section 1204 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 Outstanding Securities.

 

63

 

Anything in
this Article Twelve to the contrary notwithstanding, the Trustee shall
deliver or pay to the Company from time to time upon Company Request any money
or Government Obligations held by it as provided in Section 1204 with
respect to any Securities which, in the opinion of a nationally recognized firm
of independent public accountants expressed in a written certification thereof
delivered to the Trustee, are in excess of the amount thereof which would then
be required to be deposited to effect the Defeasance or Covenant Defeasance, as
the case may be, with respect to such Securities.

 

SECTION 1207.     Reinstatement.

 

If the Trustee
or the Paying Agent is unable to apply any money in accordance with this Article Twelve
with respect to any Securities by reason of any order or judgment of any court
or governmental authority enjoining, restraining or otherwise prohibiting such
application, then the obligations under this Indenture and such Securities from
which the Company has been discharged or released pursuant to Section 1202
or 1203 shall be revived and reinstated as though no deposit had occurred
pursuant to this Article Twelve with respect to such Securities, until
such time as the Trustee or Paying Agent is permitted to apply all money held
in trust in accordance with this Article Twelve; provided, however, that
if the Company makes any payment of principal of or any premium or interest on
any such Security following such reinstatement of its obligations, the Company
shall be subrogated to the rights (if any) of the Holders of such Securities to
receive such payment from the money so held in trust.

 

ARTICLE THIRTEEN

 

IMMUNITY OF INCORPORATORS, STOCKHOLDERS,

OFFICERS, DIRECTORS AND EMPLOYEES

 

SECTION 1301.     Exemption from Individual Liability.

 

No director,
officer, employee, incorporator or stockholder of the Company, as such, will
have any liability for any obligations of the Company under this Indenture or
the Securities of any series or for any claim based on, in respect of, or by
reason of, such obligations or their creation. 
Each Holder of the Securities of any series by accepting a Security
waives and releases all such liability. 
The waiver and release are part of the consideration for issuance of the
Securities of any series.  The waiver may
not be effective to waive liabilities under the federal securities laws.

 

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

 

BERRY PETROLEUM COMPANY

 

 

	
  By:

  	
  /s/ Ralph
  Goehring

  	
   

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  

 

64

 

WELLS FARGO BANK, NATIONAL
ASSOCIATION

 

 

	
  By:

  	
  /s/ Maddy
  Hall

  	
   

  

 

65

 

EXHIBIT A

 

Form of Face of Registered Security

 

[INSERT ANY LEGEND REQUIRED BY THE INTERNAL REVENUE CODE AND

THE REGULATIONS THEREUNDER.]

 

BERRY PETROLEUM COMPANY

(Title of Security)

 

No.        $

 

CUSIP No.

 

Berry Petroleum
Company, a corporation duly organized and existing under the laws of Delaware
(herein called the “Company,” which term includes any successor Person under
the Indenture hereinafter referred to), for value received, hereby promises to
pay to                                       ,
or registered assigns, the principal sum of
                                              
Dollars on                                   .  [if the Security is to bear interest prior to
Maturity, insert—, and to pay interest thereon from
                                    
or from the most recent Interest Payment Date to which interest has been paid
or duly provided for, semi-annually on
                                  
and in each year, commencing
                                                ,
at the rate of         % per annum,
until the principal hereof is paid or made available for payment] [if
applicable, insert—, provided that any principal and premium, and any such
installment of interest, which is overdue shall bear interest at the rate of
              
% per annum (to the extent permitted by applicable law), from the dates such
amounts are due until they are paid or made available for payment, and such
interest shall be payable on demand]. 
[If applicable, insert—The amount of interest payable for any period
shall be computed on the basis of twelve 30-day months and a 360-day year.  The amount of interest payable for any
partial period shall be computed on the basis of a 360-day year of twelve
30-day months and the days elapsed in any partial month.  In the event that any date on which interest
is payable on this Security is not a Business Day, then a payment of the
interest payable on such date will be made on the next succeeding day which is
a Business Day (and without any interest or other payment in respect of any
such delay) with the same force and effect as if made on the date the payment
was originally payable.  A “Business Day”
shall mean, when used with respect to any Place of Payment, each Monday,
Tuesday, Wednesday, Thursday and Friday which is not a day on which banking
institutions in that Place of Payment are authorized or obligated by law or
executive order to close.] The interest so payable, and punctually paid or duly
provided for, on any Interest Payment Date will, as provided in such Indenture,
be paid to the Person in whose name this Security (or one or -more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest, which shall be the                       
or
                    
(whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date.  Any such interest
not so punctually paid or duly provided for will forthwith cease to be payable
to the Holder on such Regular Record Date and may either be paid to the Person
in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on a Special Record Date for the payment of
such Defaulted Interest to be fixed by the Trustee, notice whereof shall be
given to Holders of Securities of this series not less than 10 days prior to
such Special Record Date, or be paid at any 

 

66

 

time in any other lawful manner
not inconsistent with the requirements of any securities exchange or automated
quotation system on which the Securities of this series may be listed or
traded, and upon such notice as may be required by such exchange or automated
quotation system, all as more fully provided in said Indenture.

 

[If the
Security is not to bear interest prior to Maturity, insert—The principal of
this Security shall not bear interest except in the case of a default in
payment of principal upon acceleration, upon redemption or at Stated Maturity
and in such case the overdue principal and any overdue premium shall bear
interest at the rate of         % per
annum (to the extent that the payment of such interest shall be legally
enforceable), from the dates such amounts are due until they are paid or made
available for payment.  Interest on any
overdue principal or premium shall be payable on demand.

 

Payment of the
principal of (and premium, if any) and [if applicable, insert—any such]
interest on this Security will be made at the office or agency of the Company maintained
for that purpose in
                                            ,
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; provided,
however, that at the option of the Company payment of interest may be made by
check mailed to the address of the Person entitled thereto as such address
shall appear in the Security Register.

 

Reference is
hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as
if set forth at this place.

 

Unless the
certificate of authentication hereof has been executed by the Trustee referred
to on the reverse hereof by manual signature, this Security shall not be
entitled to any benefit under the Indenture or be valid or obligatory for any
purpose.

 

IN WITNESS
WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal.

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

67

 

EXHIBIT A1

 

Form of Reverse of Security

 

This Security
is one of a duly authorized issue of securities of the Company (herein called
the “Securities”), issued and to be issued in one or more series under an
Indenture, dated as of
                                                    
(herein called the “Indenture,” which term shall have the meaning assigned to
it in such instrument), between the Company and
                                        ,
as Trustee (herein called the “Trustee,” which term includes any successor
trustee under the Indenture) to which Indenture and all indentures supplemental
thereto reference is hereby made for a statement of the respective rights,
limitations of rights, duties and immunities thereunder of the Company, the
Trustee[, the holders of Senior Debt] and the Holders of the Securities and of
the terms upon which the Securities are, and are to be, authenticated and
delivered.  [This Security is one of the
series designated on the face hereof [if applicable, insert—,
limited in aggregate principal amount to
$                                                ;
provided, however, that the authorized aggregate principal amount of the
Securities may be increased above such amount by a Board Resolution to such
effect].

 

[If applicable, insert—Notwithstanding the foregoing, the
Company may not, prior to
                
redeem any Securities of this series as contemplated by [if
applicable, insert—Clause (2) of] the preceding paragraph as a
part of, or in anticipation of, any refunding operation by the application,
directly or indirectly, of moneys borrowed having an interest cost to the
Company (calculated in accordance with generally accepted financial practice)
of less than               %
per annum.]

 

 [If the Security is subject
to redemption of any kind, insert—In the event of redemption of this
Security in part only, a new Security or Securities of-this series and of like
tenor for the unredeemed portion hereof will be issued in the name of the
Holder hereof upon the cancellation hereof.]

 

The Indenture
contains provisions for satisfaction and discharge of the entire indebtedness
of this Security upon compliance by the Company with certain conditions set
forth in the Indenture.

 

[If applicable, insert—The Indenture contains provisions for
defeasance at any time of [the entire indebtedness of this Security] [or]
[certain restrictive covenants and Events of Default with respect to this
Security] [, in each case] upon compliance with certain conditions set forth in
the Indenture.]

 

[If the Security is not an Original Issue Discount Security, insert—If
an Event of Default with respect to Securities of this series shall occur and
be continuing, the principal of the Securities of this series may be declared
due and payable in the manner and with the effect provided in the Indenture.]

 

[If the Security is an Original Issue Discount Security, insert—If
an Event of Default with respect to Securities of this series shall occur and
be continuing, an amount of principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture.  Such amount shall be equal to—insert
formula for determining the 

 

68

 

amount.  Upon payment (i) of the amount of
principal so declared due and payable and (ii) of interest on any overdue
principal, premium and interest (in each case to the extent that the payment of
such interest shall be legally enforceable), all of the Company’s obligations
in respect of the payment of the principal of and premium and interest, if any,
on the Securities of this series shall terminate.]

 

The Indenture
permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of
the Holders of the Securities of each series to be affected under the Indenture
at any time by the Company and the Trustee with the consent of the Holders of
50% in principal amount of the Securities at the time Outstanding of each
series to be affected.  The Indenture
also contains provisions permitting the Holders of specified percentages in
principal amount of the Securities of each series at the time Outstanding, on
behalf of the Holders of all Securities of such series, to waive compliance by
the Company with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. 
Any such consent or waiver by the Holder of this Security shall be
conclusive and binding upon such Holder and upon all future Holders of this
Security and of any Security issued upon the registration of transfer hereof or
in exchange herefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Security.

 

As provided in
and subject to the provisions of the Indenture, the Holder of this Security
shall not have the right to institute any proceeding with respect to the
Indenture or for the appointment of a receiver or trustee or for any other
remedy thereunder, unless such Holder shall have previously given the Trustee
written notice of a continuing Event of Default with respect to the Securities
of this series, the Holders of not less than 25% in principal amount of the
Securities of this series at the time Outstanding shall have made written
request to the Trustee to institute proceedings in respect of such Event of
Default as Trustee and offered the Trustee reasonable indemnity, and the
Trustee shall not have received from the Holders of a majority in principal
amount of Securities of this series at the time Outstanding a direction
inconsistent with such request, and shall have failed to institute any such
proceeding, for 60 days after receipt of such notice, request and offer of
indemnity.  The foregoing shall not apply
to any suit instituted by the Holder of this Security for the enforcement of
any payment of principal hereof or any premium or interest hereon on or after
the respective due dates expressed herein.

 

No reference
herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and
unconditional, to pay the principal of and any premium and interest on this
Security at the times, place and rate, and in the coin or currency, herein
prescribed.

 

As provided in
the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registrable in the Security Register, upon
surrender of this Security for registration of transfer at the office or agency
of the Company in any place where the principal of and any premium and interest
on this Security are payable, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Company and the Security
Registrar duly executed by, the Holder hereof or his attorney duly authorized
in writing, and thereupon one or more new Securities of this series and of like
tenor, of authorized denominations and for the same aggregate principal amount,
will be issued to the designated transferee or transferees.

 

69

 

The Securities
of this series are issuable only in registered form without coupons in
denominations of
$                
and any integral multiple thereof.  As
provided in the Indenture and subject to certain limitations therein set forth,
Securities of this series are exchangeable for a like aggregate principal
amount of Securities of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same.

 

No service
charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection therewith.

 

Prior to due
presentment of this Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in
whose name this Security is registered as the owner hereof for all purposes,
whether or not this Security be overdue, and neither the Company, the Trustee
nor any such agent shall be affected by notice to the contrary.

 

All terms used
in this Security which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

 

THE INTERNAL
LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE
AND THIS SECURITY WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS
OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION
WOULD BE REQUIRED THEREBY.

 

70

 

EXHIBIT C1

 

Form of Certificate to be Given by Beneficial Owner of Interest in
a Temporary

Global Security

[ISSUER]

[Title of Securities]

(the “Securities”)

 

This is to certify that as of
the date hereof, and except as set forth below, the above-captioned Securities
held by you for our account (i) are owned by persons that are not citizens
or residents of the United States, domestic partnerships, domestic corporations
or any estate or trust the income of which is subject to United States Federal
income taxation regardless of its source (a “United States Person(s)”), (ii) are
owned by United States Person(s) that are (A) foreign branches of
United States financial institutions (as defined in U.S.  Treasury Regulations Section 1.165-12
(c)(1)(v)) (“Financial Institutions”) purchasing for their own account or for
resale, or (B) United States Person(s) who acquired the Securities
through the foreign branches of United States Financial Institutions and who
hold the Securities through such United States Financial Institutions on the
date hereof (and in either case (A) or (B), each such United States
Financial Institution hereby agrees, on its own behalf or through its agent, to
comply with the requirements of Section 165(j) (3) (A), (B) or,
(C) of the Internal Revenue Code of 1986, as amended, and the regulations
thereunder), or (iii) are owned by United States or foreign Financial
Institutions for purposes of resale during the restricted period (as defined in
U.S.  Treasury Regulations Section 1.163-5(c)(2)(i)(D)(7)),
and in addition if the owner of the Securities is a United States or foreign,
Financial Institution described in clause (iii) above (whether or not also
described in clause (i) or (ii)) this is to further certify that such
Financial Institution has not acquired the Securities for purposes of resale
directly or indirectly to a United States Person(s) or to a person within
the United States or its possessions.

 

If the Securities are of the
category contemplated in Section 230.903(c)(3) of Regulation S under
the Securities Act of 1933, as amended (the “Act”) then this is also to certify
that, except as set forth below (i) in the case of debt securities, the
Securities are beneficially owned by (a) non-U.S.  Person(s) or (b) U.  S. 
Person(s) who purchased the Securities in transactions which did
not require registration under the Act: or (ii) in the case of equity
securities, the Securities are owned by (x) non-U.S.  Person(s) and such persons are not
acquiring the Securities for the account or benefit of U.  S. 
Person(s) or (y) U. 
S.  Person(s) who purchased
the securities in a transaction which did not require registration under the
Act.  If this certification is being
delivered in connection with the exercise of warrants pursuant to Section 230.902(m) of
Regulation S under the Act, then this is further to certify that, except as set
forth below, the Securities are being exercised by and on behalf of non-U.S.  Person(s). 
As used in this paragraph the term “U.S. 
Person(s)” has the meaning given to it by Regulation S under the Act.

 

As used herein, “United States”
means the United States of America (including the States and the District of
Columbia) and its “possessions” including Puerto Rico, the U.S.  Virgin Islands, Guam, American Samoa, Wake
Island and the Northern Mariana Islands.

 

We undertake to advise you
promptly by tested telex on or prior to the date on which you intend to submit
your certification relating to the Securities held by you for our account in
accordance 

 

71

 

with your Operating Procedures
if any applicable statement herein is not correct on such date, and in the
absence of any such notification it may be assumed that this certification
applies as of such date.

 

This certificate excepts and
does not relate to [] of such interest in the above Securities in respect of
which we are not able to certify and as to which we understand exchange and delivery
of definitive Securities (or, if relevant, exercise of any rights or collection
of any interest) cannot be made until we do so certify.

 

We understand that this
certificate is required in connection with certain tax laws and, if applicable,
certain securities laws of the United States. 
In connection therewith, if administrative or legal proceedings are
commenced or threatened in connection with which this certificate is or would
be relevant, we irrevocably authorize you to produce this certification to any
interested party in such proceedings.

 

	
  *Dated:

  	
                                      

  	
  , 200    

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NAME OF
  PERSON MAKING CERTIFICATION

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  

 

* To be dated no earlier than
the fifteenth day prior to the Certification Date.

 

72Exhibit 4.2

 

 

BERRY
PETROLEUM COMPANY, as Issuer

 

AND

 

WELLS
FARGO BANK, NATIONAL ASSOCIATION, as Trustee

 

 

First
Supplemental Indenture

 

 

Dated
as of May 27, 2009

 

$325,000,000

 

101⁄4%
SENIOR NOTES DUE 2014

 

 

 

TABLE
OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE ONE ESTABLISHMENT OF SERIES

  	
  2

  
	
  SECTION 1.01

  	
  Establishment

  	
  2

  
	
  SECTION 1.02

  	
  Book-Entry
  Provisions

  	
  3

  
	
  SECTION 1.03

  	
  Definitive
  Securities

  	
  4

  
	
   

  	
   

  
	
  ARTICLE TWO DEFINITIONS AND OTHER
  PROVISIONS OF GENERAL APPLICATION

  	
  4

  
	
  SECTION 2.01

  	
  Amendments
  to Definitions

  	
  4

  
	
  SECTION 2.02

  	
  Definitions

  	
  4

  
	
  SECTION 2.03

  	
  Other
  Definitions

  	
  37

  
	
   

  	
   

  
	
  ARTICLE THREE EVENTS OF DEFAULT WITH
  RESPECT TO THE NOTES

  	
  38

  
	
  SECTION 3.01

  	
  Original
  Indenture

  	
  38

  
	
  SECTION 3.02

  	
  Events of
  Default

  	
  38

  
	
  SECTION 3.03

  	
  Acceleration

  	
  41

  
	
  SECTION 3.04

  	
  Control
  by Holders

  	
  41

  
	
   

  	
   

  
	
  ARTICLE FOUR CONSOLIDATION, MERGER,
  CONVEYANCE, TRANSFER OR LEASE WITH RESPECT TO THE NOTES

  	
  42

  
	
  SECTION 4.01

  	
  Original
  Indenture

  	
  42

  
	
  SECTION 4.02

  	
  Company
  May Consolidate, Etc., Only on Certain Terms

  	
  42

  
	
  SECTION 4.03

  	
  Successor
  Substituted

  	
  43

  
	
  SECTION 4.04

  	
  Subsidiary
  Guarantors May Consolidate, Etc., Only on Certain Terms

  	
  43

  
	
   

  	
   

  
	
  ARTICLE FIVE SUPPLEMENTAL INDENTURES
  WITH RESPECT TO THE NOTES

  	
  44

  
	
  SECTION 5.01

  	
  Original
  Indenture

  	
  44

  
	
  SECTION 5.02

  	
  Supplemental
  Indentures Without Consent of Holders

  	
  44

  
	
  SECTION 5.03

  	
  Supplemental
  Indentures With Consent of Holders

  	
  45

  
	
   

  	
   

  
	
  ARTICLE SIX COVENANTS WITH RESPECT TO
  THE NOTES

  	
  46

  
	
  SECTION 6.01

  	
  Original
  Indenture

  	
  46

  
	
  SECTION 6.02

  	
  Payment
  of Principal, Premium and Interest

  	
  46

  
	
  SECTION 6.03

  	
  Existence

  	
  47

  
	
  SECTION 6.04

  	
  Statement
  by Officers as to Default

  	
  47

  
	
  SECTION 6.05

  	
  Effectiveness
  of Covenants

  	
  47

  
	
  SECTION 6.06

  	
  Limitation
  on Indebtedness

  	
  48

  
	
  SECTION 6.07

  	
  Calculation of Original Issue Discount

  	
  53

  
	
  SECTION 6.08

  	
  Limitation
  on Restricted Payments

  	
  53

  
	
  SECTION 6.09

  	
  Limitation
  on Liens

  	
  59

  

 

i

 

	
  SECTION 6.10

  	
  Limitation on Restrictions on
  Distributions from Restricted Subsidiaries

  	
  59

  
	
  SECTION 6.11

  	
  Limitation
  on Sales of Assets and Subsidiary Stock

  	
  61

  
	
  SECTION 6.12

  	
  Limitation
  on Affiliate Transactions

  	
  64

  
	
  SECTION 6.13

  	
  Limitation
  on Sale of Capital Stock of Restricted Subsidiaries

  	
  66

  
	
  SECTION 6.14

  	
  Change of
  Control

  	
  67

  
	
  SECTION 6.15

  	
  Commission
  Reports

  	
  68

  
	
  SECTION 6.16

  	
  Future
  Subsidiary Guarantors

  	
  69

  
	
  SECTION 6.17

  	
  Limitation
  on Lines of Business

  	
  69

  
	
   

  	
   

  	
   

  
	
  ARTICLE SEVEN REDEMPTION OF NOTES

  	
  69

  
	
  SECTION 7.01

  	
  Original
  Indenture

  	
  69

  
	
  SECTION 7.02

  	
  Selection
  by Trustee of Notes to Be Redeemed

  	
  69

  
	
  SECTION 7.03

  	
  Notes
  Payable on Redemption Date

  	
  70

  
	
  SECTION 7.04

  	
  Other
  Mandatory Redemption

  	
  70

  
	
  SECTION 7.05

  	
  Optional
  Redemption

  	
  70

  
	
   

  	
   

  	
   

  
	
  ARTICLE EIGHT DEFEASANCE AND COVENANT
  DEFEASANCE WITH RESPECT TO THE NOTES

  	
  71

  
	
  SECTION 8.01

  	
  Original
  Indenture

  	
  71

  
	
  SECTION 8.02

  	
  Discharge
  of Liability on Notes; Defeasance

  	
  71

  
	
  SECTION 8.03

  	
  Conditions
  to Defeasance

  	
  72

  
	
  SECTION 8.04

  	
  Application
  of Trust Money

  	
  73

  
	
  SECTION 8.05

  	
  Repayment
  to Company

  	
  73

  
	
  SECTION 8.06

  	
  Indemnity
  for U.S. Government Obligations

  	
  73

  
	
  SECTION 8.07

  	
  Reinstatement

  	
  74

  
	
   

  	
   

  	
   

  
	
  ARTICLE NINE SUBSIDIARY GUARANTEE

  	
  74

  
	
  SECTION 9.01

  	
  Subsidiary
  Guarantee

  	
  74

  
	
  SECTION 9.02

  	
  Termination,
  Release and Discharge

  	
  75

  
	
  SECTION 9.03

  	
  Limitation
  of Subsidiary Guarantors’ Liability

  	
  76

  
	
  SECTION 9.04

  	
  Contribution

  	
  77

  
	
   

  	
   

  	
   

  
	
  ARTICLE TEN MISCELLANEOUS PROVISIONS
  WITH RESPECT TO THE NOTES

  	
  77

  
	
  SECTION 10.01

  	
  Effect of
  Headings and Table of Contents

  	
  77

  
	
  SECTION 10.02

  	
  Successors
  and Assigns

  	
  77

  
	
  SECTION 10.03

  	
  Separability
  Clause

  	
  77

  
	
  SECTION 10.04

  	
  Governing
  Law

  	
  77

  
	
  SECTION 10.05

  	
  No
  Adverse Interpretation of Other Agreements

  	
  77

  
	
  SECTION 10.06

  	
  Counterparts

  	
  77

  
	
  SECTION 10.07

  	
  Notices

  	
  78

  

 

	
  Exhibit A

  	
  —

  	
  Form of Note

  
	
  Exhibit B

  	
  —

  	
  Form of Supplemental Indenture for Future
  Subsidiary Guarantees

  
	
  Schedule 1

  	
  —

  	
  Existing Affiliate Transactions

  

 

ii

 

This FIRST SUPPLEMENTAL
INDENTURE, dated as of May 27, 2009 between Berry Petroleum Company, a
corporation duly organized and existing under the laws of the State of Delaware
(herein called the “Company”), having its
principal office at 1999 Broadway, Suite 3700, Denver, Colorado 80202, and
Wells Fargo Bank, National Association, a national banking association duly
organized and existing under the laws of the United States of America, as
trustee (herein called the “Trustee”).

 

Recitals
of the Company

 

WHEREAS, the Company and the
Trustee executed and delivered an Indenture, dated as of June 15, 2006
(the “Original Indenture”), to
provide for the issuance by the Company from time to time of its debentures,
notes or other evidences of indebtedness (as defined therein, “Securities”), which may be issued in
one or more series as provided in the Original Indenture;

 

WHEREAS, the Original
Indenture is incorporated herein by this reference, and the Original Indenture,
as supplemented by this First Supplemental Indenture and any other supplemental
indentures applicable to the Securities created pursuant to this First
Supplemental Indenture, is herein called the “Indenture”;

 

WHEREAS, under the Original
Indenture, a new series of Securities may at any time be established in or
pursuant to a Board Resolution, an Officer’s Certificate or one or more
indentures supplemental to the Original Indenture;

 

WHEREAS, the Company
proposes to create under the Indenture a new series of Securities designated as
101⁄4% Senior Notes due 2014 and to add new provisions to, and change and
eliminate certain existing provisions of, the Original Indenture in respect of (i) such
new series of Securities and (ii) as and to the extent specified herein,
any additional series of Securities of other series hereafter established and
issued pursuant to the Indenture as at the time supplemented and modified;

 

WHEREAS, additional
Securities of other series hereafter established, except as may be limited in
the Original Indenture as at the time supplemented and modified, may be issued
from time to time pursuant to the Indenture as at the time supplemented and
modified;

 

WHEREAS, no Security of any
series has been created prior to the date of execution of this First
Supplemental Indenture; and

 

WHEREAS, all conditions
necessary to authorize the execution and delivery of this First Supplemental
Indenture and make it a valid and binding obligation of the Company in
accordance with its terms, have been done or performed.

 

NOW, THEREFORE, THIS FIRST
SUPPLEMENTAL INDENTURE WITNESSETH:

 

For and in consideration of
the premises set forth herein and for other good and valuable consideration the
sufficiency of which is hereby acknowledged, it is mutually agreed as follows:

 

1

 

ARTICLE ONE

ESTABLISHMENT OF SERIES

 

SECTION 1.01              Establishment.

 

There is hereby established
a new series of Securities to be issued under the Indenture, to be designated
as the Company’s 101⁄4% Senior Notes due 2014 (the “Notes”).  This First Supplemental Indenture shall be
deemed to satisfy all requirements of Section 301 of the Original
Indenture necessary for establishment of the Notes as a series of Securities
under the Indenture notwithstanding anything to the contrary therein.

 

There are to be
authenticated and delivered Notes, initially limited in aggregate principal
amount of $325,000,000 and no further Notes shall be authenticated and
delivered except as provided by the terms of the Original Indenture and the
terms of this First Supplemental Indenture; provided, however,
that additional Notes having identical terms and conditions as the Notes other
than issue date, the issue price, the date from which interest thereon shall
accrue, legends, if any, to be included thereon and the first Interest Payment
Date (the “Additional Notes”) may be
issued from time to time in the future, without the consent of the Holders of
the Notes, in accordance with the provisions of the Indenture. With respect to
any Additional Notes, the Company shall set forth in a resolution of the Board
of Directors or an Officers’ Certificate, the following information:

 

(a)           the
aggregate principal amount of such Additional Notes to be authenticated and
delivered pursuant to the Indenture;

 

(b)           the
issue date, the issue price, the first Interest Payment Date of such Additional
Notes, the date from which interest shall accrue and legends, if any, to be
included thereon; and

 

(c)           the
CUSIP and ISIN numbers of the Additional Notes.

 

The Notes and the Additional
Notes, if any, shall be considered collectively as a single class for all
purposes of the Indenture. Holders of the Notes and the Additional Notes, if
any, shall vote and consent together on all matters to which such Holders are
entitled to vote or consent as one class, and none of the Holders of the Notes
or the Additional Notes, if any, shall have the right to vote or consent as a
separate class on any matter to which such Holders are entitled to vote or
consent.

 

The Notes shall be issued in
fully registered form without coupons, and only in denominations of $2,000 and
larger integral multiples of $1,000. The Notes shall be issued in the form of
one or more Global Securities in substantially the form set out in Exhibit A
hereto. The initial Depositary with respect to the Notes shall be DTC. Payments
in respect of Notes represented by a Global Security (including principal,
premium and interest) shall be made by wire transfer of immediately available
funds to the accounts specified by DTC.

 

Each Note shall be dated the
date of authentication thereof and shall bear interest from the date of
original issuance thereof or from the most recent Interest Payment Date to
which interest has been paid or duly provided for.

 

2

 

The Notes may have
notations, legends or endorsements required by law, stock exchange rule or
usage or DTC rule or usage in addition to those set forth on Exhibit A.
The Company and the Trustee shall approve the forms of the Notes and any
notation, endorsement or legend on them, such approval to be evidenced by the
execution or authentication, respectively, and delivery of the Notes by the
Company or the Trustee, respectively. The terms of the Notes set forth in Exhibit A
are part of the terms of the Indenture and, to the extent applicable, the
Company and the Trustee, by their execution and delivery of this First
Supplemental Indenture, expressly agree to be bound by such terms.

 

SECTION 1.02              Book-Entry
Provisions.

 

This Section 1.02
shall apply only to Global Securities deposited with the Trustee, as custodian
for DTC.

 

Each Global Security
initially shall (x) be registered in the name of DTC for such Global
Security or the nominee of DTC, (y) be delivered to the Trustee as
custodian for DTC and (z) bear legends as set forth in Section 202 of
the Original Indenture.

 

Members of, or participants
in, DTC (“Agent Members”) shall have no
rights under the Indenture with respect to any Global Security held on their
behalf by DTC or by the Trustee as the custodian of DTC or under such Global
Security, and DTC may be treated by the Company, the Trustee and any agent of
the Company or the Trustee as the absolute owner of such Global Security for
all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall
prevent the Company, the Trustee or any agent of the Company or the Trustee
from giving effect to any written certification, proxy or other authorization
furnished by DTC or impair, as between DTC and its Agent Members, the operation
of customary practices of DTC governing the exercise of the rights of a Holder
of a beneficial interest in any Global Security.

 

In connection with any
transfer of a portion of the beneficial interest in a Global Security pursuant
to Section 1.03 of this First Supplemental Indenture to beneficial
owners who are required to hold Definitive Securities, the Securities Custodian
shall reflect on its books and records the date and a decrease in the principal
amount of such Global Security in an amount equal to the principal amount of
the beneficial interest in the Global Security to be transferred, and the Company
shall execute, and the Trustee shall authenticate and deliver, one or more
Definitive Securities of like tenor and amount.

 

In connection with the
transfer of an entire Global Security to beneficial owners pursuant to Section 1.03
of this First Supplemental Indenture, such Global Security shall be deemed to
be surrendered to the Trustee for cancellation, and the Company shall execute,
and the Trustee shall authenticate and deliver, to each beneficial owner
identified by DTC in exchange for its beneficial interest in such Global
Security, an equal aggregate principal amount of Definitive Securities of
authorized denominations.

 

The registered Holder of a
Global Security may grant proxies and otherwise authorize any Person, including
Agent Members and Persons that may hold interests through Agent Members, to
take any action which a Holder is entitled to take under the Indenture or the
Notes.

 

3

 

SECTION 1.03              Definitive
Securities.

 

Except as provided below,
owners of beneficial interests in Global Securities shall not be entitled to
receive Definitive Securities. If required to do so pursuant to any applicable
law or regulation, beneficial owners may obtain Definitive Securities in
exchange for their beneficial interests in a Global Security upon written
request in accordance with DTC’s and the Registrar’s procedures. In addition,
Definitive Securities shall be transferred to all beneficial owners in exchange
for their beneficial interests in a Global Security if (a) DTC notifies
the Company that it is unwilling or unable to continue as depositary for such
Global Security or DTC ceases to be a clearing agency registered under the
Exchange Act, at a time when DTC is required to be so registered in order to
act as depositary, and in each case a successor depositary is not appointed by
the Company within 90 days of such notice or, (b) the Company executes and
delivers to the Trustee and Registrar an Officers’ Certificate stating that
such Global Security shall be so exchangeable or (c) an Event of Default
has occurred and is continuing and the Registrar has received a request from
DTC.

 

In connection with the
exchange of a portion of a Definitive Security for a beneficial interest in a
Global Security, the Trustee shall cancel such Definitive Security, and the
Company shall execute, and the Trustee shall authenticate and deliver, to the
transferring Holder a new Definitive Security representing the principal amount
not so transferred.

 

ARTICLE TWO

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

 

SECTION 2.01              Amendments
to Definitions.

 

Each capitalized term used
but not defined in this First Supplemental Indenture shall have the meaning
given to it in the Original Indenture, except that with respect to the Notes, the
terms defined in this Supplemental Indenture shall have the meanings set forth
herein in lieu of the meaning of such term in the Original Indenture.

 

SECTION 2.02              Definitions.

 

The following defined terms
used herein with respect to the Notes shall, unless the context otherwise
requires, have the meanings specified below (notwithstanding any other meaning
given to such terms in the Original Indenture):

 

“Acquired
Indebtedness” means Indebtedness (1) of a Person or any of
its Subsidiaries existing at the time such Person becomes a Restricted
Subsidiary or (2) assumed in connection with the acquisition of assets
from such Person, in each case whether or not Incurred by such Person in
connection with, or in anticipation or contemplation of, such Person becoming a
Restricted Subsidiary or such acquisition. Acquired Indebtedness shall be
deemed to have been Incurred, with respect to clause (1) of
the preceding sentence, on the date such Person becomes a Restricted Subsidiary
and, with respect to clause (2) of the preceding sentence, on
the date of consummation of such acquisition of assets.

 

4

 

“Additional
Assets” means:

 

(1)           any property, plant,
equipment or other asset (excluding current assets) to be used by the Company
or a Restricted Subsidiary in a Related Business;

 

(2)           capital expenditures by the
Company or a Restricted Subsidiary in a Related Business;

 

(3)           the Capital Stock of a
Person that becomes a Restricted Subsidiary as a result of the acquisition of such
Capital Stock by the Company or a Restricted Subsidiary; or

 

(4)           Capital Stock constituting a
minority interest in any Person that at such time is a Restricted Subsidiary;

 

provided, however, that, in the
case of clauses (3) and (4), such Restricted Subsidiary
is primarily engaged in a Related Business.

 

“Additional
Interest” means additional interest at a rate of 0.50% per
annum.

 

“Adjusted
Consolidated Net Tangible Assets” means (without duplication),
as of the date of determination, the remainder of:

 

(a)           the sum of:

 

(i)            discounted future net revenues from proved oil and
gas reserves of the Company and its Restricted Subsidiaries calculated in
accordance with Commission guidelines before any provincial, territorial,
state, Federal or foreign income taxes, as estimated by the Company in a
reserve report prepared as of the end of the Company’s most recently completed
fiscal year for which audited financial statements are available, as increased
by, as of the date of determination, the estimated discounted future net
revenues from

 

(A)          estimated proved oil and gas reserves acquired since
such year end, which reserves were not reflected in such year end reserve
report, and

 

(B)           estimated oil and gas reserves attributable to
upward revisions of estimates of proved oil and gas reserves since such year
end due to exploration, development or exploitation activities,

 

in each case calculated in
accordance with Commission guidelines (utilizing the prices for the fiscal
quarter ending prior to the date of determination),

 

and decreased by, as of the
date of determination, the estimated discounted future net revenues from

 

(C)           estimated proved oil and gas reserves produced or
disposed of since such year end, and

 

(D)           estimated oil and gas reserves attributable to downward
revisions of estimates of proved oil and gas reserves since such year end due
to changes in 

 

5

 

geological conditions or other factors which
would, in accordance with standard industry practice, cause such revisions,

 

in each case calculated on a
pre-tax basis and substantially in accordance with Commission guidelines
(utilizing the prices for the fiscal quarter ending prior to the date of
determination), in each case as estimated by the Company’s petroleum engineers
or any independent petroleum engineers engaged by the Company for that purpose;

 

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

 

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

 

(iv)          the greater of

 

(A)          the net book value 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 annual or quarterly financial statements, and

 

(B)           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;

 

minus

 

(b)           the sum of:

 

(i)            Minority Interests;

 

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

 

(iii)          to the extent included in (a)(i) above,
the discounted future net revenues, calculated in accordance with Commission
guidelines (utilizing the prices utilized in the Company’s year end reserve
report), attributable to reserves which 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 (determined, if
applicable, using the schedules specified with respect thereto); and

 

(iv)          the discounted future net revenues, calculated in
accordance with Commission guidelines, attributable to reserves subject to
Dollar-Denominated Production Payments which, based on the estimates of
production and price assumptions included in determining the discounted future
net revenues specified in (a)(i) above, would be necessary to fully
satisfy the payment obligations of the Company and its Subsidiaries 

 

6

 

with respect to Dollar-Denominated Production
Payments (determined, if applicable, using the schedules specified with respect
thereto).

 

If the Company changes its
method of accounting from the successful efforts method of accounting to the
full cost or a similar method, “Adjusted Consolidated Net
Tangible Assets” will continue to be calculated as if the Company were
still using the successful efforts method of accounting.

 

“Adjusted
Net Assets” of a Subsidiary Guarantor at any date means the
amount by which the fair value of the properties of such Subsidiary Guarantor
exceeds the total amount of liabilities, including contingent liabilities
(after giving effect to all other fixed and contingent liabilities incurred or
assumed on such date), but excluding liabilities under its Subsidiary
Guarantee, of such Subsidiary Guarantor at such date.

 

“Affiliate”
of any specified Person means any other Person, directly or indirectly,
controlling or controlled by or under direct or indirect common control with
such specified Person. For the purposes of this definition, “control” when used with respect to any Person means the power
to direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and the terms “controlling” and “controlled” have meanings correlative to the foregoing; provided that exclusively for purposes of Section 6.12
of this First Supplemental Indenture, beneficial ownership of 10% or more of
the Voting Stock of a Person shall be deemed to be control.

 

“Applicable
Premium” means, with respect to a Note on any date of redemption,
the greater of (1) 1.0% of the principal amount of such Note and (2) the
excess of (a) the present value at such time of all remaining scheduled
payments of principal and interest on such Note (but excluding accrued and
unpaid interest to the redemption date), computed using a discount rate equal
to the Treasury Rate plus 50 basis points, over (b) the then-outstanding
principal amount of such Note.

 

“Asset
Disposition” means any direct or indirect sale, lease (other
than an operating lease entered into in the ordinary course of business),
transfer, issuance or other disposition, or a series of related sales, leases,
transfers, issuances or dispositions that are part of a common plan, of shares
of Capital Stock of a Subsidiary (other than Foreign Required Minority Shares),
property or other assets (each referred to for the purposes of this definition
as a “disposition”) by the Company
or any of its Restricted Subsidiaries, including any disposition by means of a
merger, consolidation or similar transaction, in each case after the Issue
Date.

 

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

 

(1)           a disposition of assets by a
Restricted Subsidiary to the Company or by the Company or a Restricted
Subsidiary to a Restricted Subsidiary;

 

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

 

(3)           a disposition of
Hydrocarbons or Related Assets in the ordinary course of business;

 

7

 

(4)           a disposition of obsolete or
worn out equipment or equipment that is no longer useful in the conduct of the
business of the Company and its Restricted Subsidiaries and that is disposed of
in each case in the ordinary course of business;

 

(5)           transactions subject to and
permitted under Article Four of this First Supplemental Indenture;

 

(6)           an issuance of Capital Stock
by a Restricted Subsidiary to the Company or to a Restricted Subsidiary;

 

(7)           for purposes of Section 6.11
of this First Supplemental Indenture only, the making of a Permitted Investment
(but, in the case of an Investment in which the Company or a Restricted
Subsidiary receives consideration for such transaction including cash or Cash
Equivalents, such transaction shall be deemed to also include an Asset
Disposition having a fair market value equal to the aggregate amount of cash
and Cash Equivalents so received) or a disposition subject to and in compliance
with Section 6.08 of this First Supplemental Indenture;

 

(8)           an Asset Swap effected in
compliance with Section 6.11 of this First Supplemental Indenture;

 

(9)           dispositions of assets with
an aggregate fair market value since the Issue Date of less than $5.0 million;

 

(10)         the creation of a Permitted
Lien and dispositions in connection with Permitted Liens;

 

(11)         dispositions of receivables
in connection with the compromise, settlement or collection thereof in the
ordinary course of business or in bankruptcy or similar proceedings and
exclusive of factoring or similar arrangements;

 

(12)         the issuance by a Restricted
Subsidiary of Preferred Stock that is permitted by Section 6.06 of
this First Supplemental Indenture;

 

(13)         the licensing or
sublicensing of intellectual property or other general intangibles and
licenses, leases or subleases of other property in the ordinary course of
business which do not materially interfere with the business of the Company and
its Restricted Subsidiaries;

 

(14)         foreclosure on assets;

 

(15)         any Production Payments and
Reserve Sales that are customary in the Oil and Gas Business;

 

(16)         a disposition of Permitted
Investments of the type described in clause (7) of the
definition thereof;

 

8

 

(17)         a disposition of Oil and Gas
Properties in connection with tax credit transactions complying with Section 29
or any successor or analogous provisions of the Code;

 

(18)         surrender or waiver of
contract rights or the settlement, release or surrender of contract, tort or
other claims of any kind;

 

(19)         for purposes of clause (2) of
Section 6.11(a) of this First Supplemental Indenture only,
dispositions of equipment in the form of Capitalized Lease Obligations or
mortgage or purchase money financing in an aggregate principal amount not to
exceed $25.0 million at any time outstanding; provided
that any proceeds received in connection with any such transaction must be
applied in accordance with Section 6.11 of this First Supplemental
Indenture; and

 

(20)         Sale/Leaseback Transactions
relating to assets acquired after the Issue Date; provided
that each such Sale/Leaseback Transaction is consummated within 180 days after
the date of the acquisition of such asset by the Company or such Restricted
Subsidiary (each, a “Qualifying SLB”).

 

“Asset
Swap” means a concurrent purchase and sale or exchange of Oil
and Gas Properties between the Company or any of its Restricted Subsidiaries
and another Person; provided that
any cash received must be applied in accordance with Section 6.11
of this First Supplemental Indenture.

 

“Attributable
Indebtedness” in respect of a Sale/Leaseback Transaction means,
as at the time of determination, the present value (discounted at the interest
rate implicit in the transaction) of the total obligations of the lessee for
rental payments during the remaining term of the lease included in such
Sale/Leaseback Transaction (including any period for which such lease has been
extended), determined in accordance with GAAP; provided,
however, that if such Sale/Leaseback Transaction results in a
Capitalized Lease Obligation, the amount of Indebtedness represented thereby
shall be determined in accordance with the definition of “Capitalized
Lease Obligations”, and provided, further,
obligations relating to Qualifying SLBs shall be deemed not to be Attributable
Indebtedness.

 

“Average
Life” means, as of the date of determination, with respect to
any Indebtedness or Preferred Stock, the quotient obtained by dividing (1) the
sum of the products of the numbers of years from the date of determination to
the dates of each successive scheduled principal payment of such Indebtedness
or redemption or similar payment with respect to such Preferred Stock
multiplied by the amount of such payment by (2) the sum of all such
payments.

 

“Board
of Directors” means, as to any Person, the board of directors of
such Person or any duly authorized committee thereof.

 

“Business
Day” means each day that is not a Saturday, Sunday or other day
on which banking institutions in New York, New York are authorized or required
by law to close.

 

“Capital
Stock” of any Person means any and all shares, interests, rights
to purchase, warrants, options, participations or other equivalents of or
interests in (however designated)

 

9

 

equity
of such Person, including any Preferred Stock and limited liability or
partnership interests (whether general or limited), but excluding any debt
securities convertible into such equity.

 

“Capitalized
Lease Obligations” means an obligation that is required to be
classified and accounted for as a capitalized lease for financial reporting
purposes in accordance with GAAP, and the amount of Indebtedness represented by
such obligation shall be the capitalized amount of such obligation at the time
any determination thereof is to be made as determined in accordance with GAAP,
and the Stated Maturity thereof shall be the date of the last payment of rent
or any other amount due under such lease prior to the first date such lease may
be terminated without penalty.

 

“Cash
Equivalents” means:

 

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

 

(2)           marketable general
obligations issued by any state of the United States of America or any
political subdivision of any such state or any public instrumentality thereof
maturing within one year from the date of acquisition thereof (provided that the full faith and credit of the United States
is pledged in support thereof) and, at the time of acquisition, having a credit
rating of “A” or better from either Standard & Poor’s Ratings Group, Inc.
or Moody’s Investors Service, Inc.;

 

(3)           certificates of deposit,
time deposits, eurodollar time deposits, overnight bank deposits or bankers’
acceptances having maturities of not more than one year from the date of
acquisition thereof issued by any commercial bank the long-term debt of which
is rated at the time of acquisition thereof at least “A” or the equivalent
thereof by Standard & Poor’s Ratings Group, Inc., or “A” or the
equivalent thereof by Moody’s Investors Service, Inc., and having combined
capital and surplus in excess of $500 million;

 

(4)           repurchase obligations with
a term of not more than 30 days for underlying securities of the types
described in clauses (1), (2) and (3) entered
into with any bank meeting the qualifications specified in clause (3) above;

 

(5)           commercial paper rated at
the time of acquisition thereof at least “A-2” or the equivalent thereof by
Standard & Poor’s Ratings Group, Inc. or “P-2” or the equivalent
thereof by Moody’s Investors Service, Inc., or carrying an equivalent rating
by a nationally recognized rating agency, if both of the two named rating
agencies cease publishing ratings of investments, and in any case maturing
within one year after the date of acquisition thereof; and

 

(6)           interests in any investment
company or money market fund which invests 95% or more of its assets in
instruments of the type specified in clauses (1) through (5) above.

 

10

 

“Change
of Control” means:

 

(1)           any “person”
or “group” of related persons (as such terms
are used in Sections 13(d) and 14(d) of the Exchange Act), other than
one or more Permitted Holders, becomes the beneficial owner (as defined in Rules 13d-3
and 13d-5 under the Exchange Act, except that such person or group shall be
deemed to have “beneficial ownership” of all
shares that any such person or group has the right to acquire, whether such
right is exercisable immediately or only after the passage of time), directly
or indirectly, of more than 35% of the total voting power of the Voting Stock
of the Company (or its successor by merger, consolidation or purchase of all or
substantially all of its assets) (for the purposes of this clause, such person
or group shall be deemed to beneficially own any Voting Stock of the Company
held by a parent entity, if such person or group “beneficially
owns” (as defined above), directly or indirectly, more than 35% of
the voting power of the Voting Stock of such parent entity); or

 

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

 

(3)           the sale, lease, transfer,
conveyance or other disposition (other than by way of merger or consolidation),
in one or a series of related transactions, of all or substantially all of the
assets of the Company and its Restricted Subsidiaries taken as a whole to any “person” (as such term is used in Sections 13(d) and 14(d) of
the Exchange Act) other than a Permitted Holder; or

 

(4)           the adoption by the
stockholders of the Company of a plan or proposal for the liquidation or
dissolution of the Company.

 

“Change
of Control Offer” shall have the meaning set forth in Section 6.14
of this First Supplemental Indenture.

 

“Change
of Control Payment Date” shall have the meaning set forth in Section 6.14
of this First Supplemental Indenture.

 

“Code”
means the Internal Revenue Code of 1986, as amended.

 

“Commodity
Agreement” means any commodity futures contract, commodity swap,
commodity option or other similar agreement or arrangement, including options,
swaps, floors, caps, collars, futures, forward sales or forward purchases
involving commodities (including Hydrocarbons and Related Assets),
commodity-related revenues or costs (including basis), equities, bonds, or
indexes based on any of the foregoing and any other derivative agreement or
arrangement based on any of the foregoing.

 

“Common
Stock” means with respect to any Person, any and all shares,
interest or other participations in, and other equivalents (however designated
and whether voting or nonvoting) of such Person’s common stock whether or not
outstanding on the Issue Date, and includes, without limitation, all series and
classes of such common stock.

 

11

 

“Consolidated
Cash Flow” for any period means, without duplication, the
Consolidated Net Income for such period, plus the following to the extent
deducted in calculating such Consolidated Net Income:

 

(1)           Consolidated Interest
Expense; plus

 

(2)           Consolidated Income Taxes;
plus

 

(3)           consolidated depletion and
depreciation expense; plus

 

(4)           consolidated amortization
expense or impairment charges recorded in connection with the application of
Financial Accounting Standard No. 142 “Goodwill and Other Intangibles” and
Financial Accounting Standard No. 144 “Accounting for the Impairment or
Disposal of Long Lived Assets” and similar provisions; plus

 

(5)           other non-cash charges
reducing Consolidated Net Income (excluding any such non-cash charge to the
extent it represents an accrual of or reserve for cash charges in any future
period or amortization of a prepaid cash expense that was paid in a prior
period not included in the calculation); plus

 

(6)           consolidated exploration
expense;

 

minus the sum of:

 

(A)          non-cash items increasing
Consolidated Net Income of such Person for such period (excluding any items
which represent the reversal of any accrual of, or reserve for, anticipated
cash charges made in any prior period); and

 

(B)           to the extent included in
calculating such Consolidated Net Income and in excess of any costs or expenses
attributable thereto that were deducted in calculating such Consolidated Net
Income, the sum of (x) the amount of deferred revenues that are amortized
during such period and are attributable to reserves that are subject to
Volumetric Production Payments, and (y) amounts recorded in accordance
with GAAP as repayments of principal and interest pursuant to
Dollar-Denominated Production Payments.

 

Notwithstanding the
preceding sentence, clauses (2) through (6) relating
to amounts of a Restricted Subsidiary of a Person shall be added to
Consolidated Net Income to compute Consolidated Cash Flow of such Person only
to the extent (and in the same proportion) that the net income (loss) of such
Restricted Subsidiary was included in calculating the Consolidated Net Income
of such Person and, to the extent the amounts set forth in clauses (2) through
(6) are in excess of those necessary to offset a net loss of such
Restricted Subsidiary or if such Restricted Subsidiary has net income for such
period included in Consolidated Net Income, only if a corresponding amount
would be permitted at the date of determination to be dividended to the Company
by such Restricted Subsidiary without prior approval (that has not been
obtained), pursuant to the terms of its charter and all agreements,
instruments, judgments, decrees, orders,

 

12

 

statutes, rules and
governmental regulations applicable to that Restricted Subsidiary or its
stockholders.

 

“Consolidated
Coverage Ratio” means as of any date of determination, with
respect to any Person, the ratio of (x) the aggregate amount of
Consolidated Cash Flow of such Person for the period of the most recent four
consecutive fiscal quarters ending prior to the date of such determination for
which financial statements are in existence to (y) Consolidated Interest
Expense for such four fiscal quarters, provided, however,
that:

 

(1)           if the Company or any
Restricted Subsidiary:

 

(a)           has Incurred any
Indebtedness since the beginning of such period that remains outstanding on
such date of determination or if the transaction giving rise to the need to
calculate the Consolidated Coverage Ratio is an Incurrence of Indebtedness,
Consolidated Cash Flow and Consolidated Interest Expense for such period shall
be calculated after giving effect on a pro forma basis to such Indebtedness as
if such Indebtedness had been Incurred on the first day of such period (except
that in making such computation, the amount of Indebtedness under any revolving
credit facility outstanding on the date of such calculation shall be deemed to
be (i) the average daily balance of such Indebtedness during such four
fiscal quarters or such shorter period for which such facility was outstanding
or (ii) if such facility was created after the end of such four fiscal
quarters, the average daily balance of such Indebtedness during the period from
the date of creation of such facility to the date of such calculation) and the
discharge of any other Indebtedness repaid, repurchased, defeased or otherwise
discharged with the proceeds of such new Indebtedness as if such discharge had
occurred on the first day of such period; and

 

(b)           has repaid, repurchased,
defeased or otherwise discharged any Indebtedness since the beginning of the
period that is no longer outstanding on such date of determination or if the
transaction giving rise to the need to calculate the Consolidated Coverage
Ratio involves a discharge of Indebtedness (in each case, other than
Indebtedness Incurred under any revolving credit facility unless such
Indebtedness has been permanently repaid and the related commitment
terminated), Consolidated Cash Flow and Consolidated Interest Expense for such
period shall be calculated after giving effect on a pro forma basis to such
discharge of such Indebtedness, including with the proceeds of such new
Indebtedness, as if such discharge had occurred on the first day of such
period;

 

(2)           if since the beginning of
such period the Company or any Restricted Subsidiary shall have made any Asset
Disposition or disposed of any company, division, operating unit, segment,
business, group of related assets or line of business or if the transaction
giving rise to the need to calculate the Consolidated Coverage Ratio is such an
Asset Disposition:

 

13

 

(a)           the Consolidated Cash Flow
for such period shall be reduced by an amount equal to the Consolidated Cash
Flow (if positive) directly attributable to the assets which are the subject of
such disposition for such period or increased by an amount equal to the
Consolidated Cash Flow (if negative) directly attributable thereto for such
period; and

 

(b)           Consolidated Interest
Expense for such period shall be reduced by an amount equal to the Consolidated
Interest Expense directly attributable to any Indebtedness of the Company or
any Restricted Subsidiary repaid, repurchased, defeased or otherwise discharged
with respect to the Company and its continuing Restricted Subsidiaries in
connection with such disposition for such period (or, if the Capital Stock of
any Restricted Subsidiary is sold, the Consolidated Interest Expense for such
period directly attributable to the Indebtedness of such Restricted Subsidiary
to the extent the Company and its continuing Restricted Subsidiaries are no
longer liable for such Indebtedness after such sale);

 

(3)           if since the beginning of
such period the Company or any Restricted Subsidiary (by merger or otherwise)
shall have made an Investment in any Restricted Subsidiary (or any Person which
becomes a Restricted Subsidiary or is merged with or into the Company or a
Restricted Subsidiary) or an acquisition of assets, including any acquisition
of assets occurring in connection with a transaction causing a calculation to
be made hereunder, which constitutes all or substantially all of a company,
division, operating unit, segment, business, group of related assets or line of
business, Consolidated Cash Flow and Consolidated Interest Expense for such
period shall be calculated after giving pro forma effect thereto (including the
Incurrence of any Indebtedness) as if such Investment or acquisition occurred
on the first day of such period; and

 

(4)           if since the beginning of
such period any Person (that subsequently became a Restricted Subsidiary or was
merged with or into the Company or any Restricted Subsidiary since the
beginning of such period) shall have Incurred any Indebtedness or discharged
any Indebtedness, made any disposition or any Investment or acquisition of
assets that would have required an adjustment pursuant to clause (1),
(2) or (3) above if made by the Company or a Restricted
Subsidiary during such period, Consolidated Cash Flow and Consolidated Interest
Expense for such period shall be calculated after giving pro forma effect
thereto as if such Person had been a Restricted Subsidiary on the first day of
such period and such transaction or transactions had occurred on the first day
of such period.

 

For purposes of this
definition, whenever pro forma effect is to be given to any calculation under
this definition, the pro forma calculations shall be determined in good faith
by a responsible financial or accounting officer of the Company (including pro
forma expense and cost reductions calculated on a basis consistent with
Regulation S-X under the Securities Act). If any Indebtedness bears a floating
rate of interest and is being given pro forma effect, the interest expense on
such Indebtedness shall be calculated as if the rate in effect on the date of
determination had been the applicable rate for the entire period (taking into
account any Interest

 

14

 

Rate Agreement applicable to
such Indebtedness to the extent of the remaining term thereof). If any
Indebtedness that is being given pro forma effect bears an interest rate at the
option of the Company, the interest rate shall be calculated by applying such
optional rate chosen by the Company.

 

“Consolidated
Income Taxes” means, with respect to any Person for any period,
taxes imposed upon such Person or other payments required to be made by such
Person by any governmental authority which taxes or other payments are
calculated by reference to the income or profits of such Person or such Person
and its Restricted Subsidiaries (to the extent such income or profits were
included in computing Consolidated Net Income for such period), regardless of
whether such taxes or payments are required to be remitted to any governmental
authority.

 

“Consolidated
Interest Expense” means, for any period, the total interest
expense of the Company and its consolidated Restricted Subsidiaries, whether
paid or accrued, plus, to the extent not included in such interest expense and
without duplication:

 

(1)           interest expense
attributable to Capitalized Lease Obligations and the interest portion of rent
expense associated with Attributable Indebtedness in respect of the relevant
lease giving rise thereto, determined as if such lease were a capitalized lease
in accordance with GAAP and the interest component of any deferred payment
obligations;

 

(2)           amortization of debt
discount; provided, however, that any amortization
of bond premium shall be credited to reduce Consolidated Interest Expense
unless, pursuant to GAAP, such amortization of bond premium has otherwise
reduced Consolidated Interest Expense;

 

(3)           non-cash interest expense;

 

(4)           commissions, discounts and
other fees and charges owed with respect to letters of credit and bankers’
acceptance financing;

 

(5)           the interest expense on
Indebtedness of another Person that is Guaranteed by such Person or one of its
Restricted Subsidiaries or secured by a Lien on assets of such Person or one of
its Restricted Subsidiaries;

 

(6)           costs associated with
Hedging Obligations (including amortization of fees) provided,
however, that if Hedging Obligations result in net benefits rather
than costs, such benefits shall be credited to reduce Consolidated Interest
Expense unless, pursuant to GAAP, such net benefits are otherwise reflected in
Consolidated Net Income;

 

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

 

(8)           the product of (a) all
dividends paid or payable, in cash, Cash Equivalents or Indebtedness or accrued
during such period on any series of Disqualified Stock of

 

15

 

such
Person or on Preferred Stock of its Restricted Subsidiaries that are not
Subsidiary Guarantors payable to a party other than the Company or a Wholly
Owned Subsidiary, times (b) a fraction, the numerator of which is one and
the denominator of which is one minus the then current combined Federal, state,
provincial and local statutory tax rate of such Person, expressed as a decimal,
in each case, on a consolidated basis and in accordance with GAAP;

 

(9)           Receivables Fees; and

 

(10)         the cash contributions to
any employee stock ownership plan or similar trust to the extent such
contributions are used by such plan or trust to pay interest or fees to any
Person (other than the Company and its Restricted Subsidiaries) in connection
with Indebtedness Incurred by such plan or trust.

 

minus, to the extent
included above, the sum of amortization of debt issuance costs and interest
income.

 

For the purpose of
calculating the Consolidated Coverage Ratio, the calculation of Consolidated
Interest Expense shall include all interest expense (including any amounts
described in clauses (1) through (10) above)
relating to any Indebtedness of the Company or any Restricted Subsidiary
described in the penultimate paragraph of the definition of “Indebtedness”.

 

For purposes of the
foregoing, total interest expense shall be determined (i) after giving
effect to any net payments made or received by the Company and its Subsidiaries
with respect to Interest Rate Agreements and (ii) exclusive of amounts
classified as other comprehensive income in the balance sheet of the Company.
Notwithstanding anything to the contrary contained herein, commissions,
discounts, yield and other fees and charges Incurred in connection with any
transaction pursuant to which the Company or its Restricted Subsidiaries may
sell, convey or otherwise transfer or grant a security interest in any accounts
receivable or related assets shall be included in Consolidated Interest Expense.

 

“Consolidated
Net Income” means, for any period, the net income (loss) of the
Company and its consolidated Restricted Subsidiaries determined in accordance
with GAAP; provided, however, that there shall not
be included in such Consolidated Net Income:

 

(1)           any net income (or loss) of
any Person if such Person is not a Restricted Subsidiary, except that:

 

(a)           subject to the limitations
contained in clauses (3), (4) and (5) below,
the Company’s equity in the net income of any such Person for such period shall
be included in such Consolidated Net Income up to the aggregate amount of cash
actually distributed by such Person during such period to the Company or a
Restricted Subsidiary as a dividend, distribution or other payment (subject, in
the case of a dividend, distribution or other payment to a Restricted
Subsidiary, to the limitations contained in clause (2) below);
and

 

16

 

(b)           the Company’s equity in a
net loss of any such Person (other than an Unrestricted Subsidiary) for such
period shall be included in determining such Consolidated Net Income to the
extent such loss has been funded with cash from the Company or a Restricted
Subsidiary;

 

(2)           any net income (but not
loss) of any Restricted Subsidiary if such Subsidiary is subject to
restrictions, directly or indirectly, on the payment of dividends or the making
of distributions by such Restricted Subsidiary, directly or indirectly, to the
Company, except that:

 

(a)           subject to the limitations
contained in clauses (3), (4) and (5) below,
the Company’s equity in the net income of any such Restricted Subsidiary for
such period shall be included in such Consolidated Net Income up to the
aggregate amount of cash that could have been distributed by such Restricted
Subsidiary during such period to the Company or another Restricted Subsidiary
as a dividend, distribution or other payment (subject, in the case of a
dividend to another Restricted Subsidiary, to the limitation contained in this
clause); and

 

(b)           the Company’s equity in a
net loss of any such Restricted Subsidiary for such period shall be included in
determining such Consolidated Net Income;

 

(3)           any after-tax gain (loss)
realized upon the sale or other disposition of any property, plant or equipment
of the Company or its consolidated Restricted Subsidiaries (including pursuant
to any Sale/Leaseback Transaction) which is not sold or otherwise disposed of
in the ordinary course of business and any gain (loss) realized upon the sale
or other disposition of any Capital Stock of any Person;

 

(4)           any after-tax extraordinary
gain or loss;

 

(5)           the cumulative effect of a
change in accounting principles;

 

(6)           any asset impairment or
writedown on or related to Oil and Gas Properties under GAAP or Commission
guidelines;

 

(7)           any unrealized non-cash
gains or losses or charges in respect of Hedging Obligations (including those
resulting from the application of Statement of Financial Accounting Standards No. 133
or similar provisions);

 

(8)           any after-tax gain or loss
realized on the termination of any employee pension benefit plan;

 

(9)           non-cash charges relating to
grants of performance shares, stock options, stock awards, stock purchase
agreements or management compensation plans for officers, directors, employees
or consultants of the Company or a Restricted Subsidiary (excluding any such
non-cash charge to the extent that it represents an

 

17

 

accrual
of or reserve for cash charges in any future period or amortization of a
prepaid cash expense that was paid in a prior period) to the extent that such
non-cash charges are deducted in computing such Consolidated Net Income; provided that if the Company or any Restricted Subsidiary of
the Company makes a cash payment in respect of a non-cash charge in any period,
such cash payment shall (without duplication) be deducted from the Consolidated
Net Income of the Company for such period;

 

(10)         any adjustments of a
deferred tax liability or asset pursuant to Statement of Financial Accounting
Standards No. 109 which result from changes in enacted tax laws or rates;
and

 

(11)         costs incurred in connection
with acquisitions that were eligible for capitalization treatment under GAAP
but instead were expensed at the time of incurrence, provided
that any such costs shall instead reduce Consolidated Net Income for any period
to the extent of any amortization in such period that would have occurred had
they had been capitalized).

 

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

 

“covenant
defeasance” shall have the meaning set forth in Section 8.02(a) of
this First Supplemental Indenture.

 

“Credit
Facilities” means, with respect to the Company or any Subsidiary
Guarantor, one or more debt facilities (including, without limitation, the
Senior Credit Facility, and the uncommitted money market line of credit
facility, dated November 3, 2005 between the Company and Societe Generale,
as amended, or commercial paper facilities 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 receivables)
or letters of credit, in each case, as amended, restated, modified, renewed,
refunded, replaced or refinanced in whole or in part from time to time (and whether
or not with the original administrative agent and lenders or another
administrative agent or agents or other lenders and whether provided under the
original Senior Credit Facility or any other credit or other agreement or
indenture).

 

“Custodian”
means any receiver, trustee, assignee, liquidator, custodian or similar
official under any Bankruptcy Law.

 

“Currency
Agreement” means in respect of a Person any foreign exchange
contract, currency swap agreement, futures contract, option contract or other
similar agreement as to which such Person is a party or a beneficiary.

 

“Default”
means any event which is, or after notice or passage of time or both would be,
an Event of Default.

 

18

 

“Definitive
Security” means a certificated Note registered in the name of
the Holder thereof and issued in accordance with Section 1.03 of
this First Supplemental Indenture, in the form of Exhibit A hereto
except that such Note shall not bear the Global Security legend set forth
therein.

 

“Disqualified
Stock” means, with respect to any Person, any Capital Stock of
such Person which by its terms (or by the terms of any security into which it
is convertible or for which it is exchangeable) or upon the happening of any
event:

 

(1)           matures or is mandatorily
redeemable pursuant to a sinking fund obligation or otherwise;

 

(2)           is convertible or
exchangeable for Indebtedness or Disqualified Stock (excluding Capital Stock
which is convertible or exchangeable solely at the option of the Company or a
Restricted Subsidiary); or

 

(3)           is redeemable at the option
of the holder of the Capital Stock in whole or in part,

 

in each case on or prior to
the date that is 91 days after the earlier of the date (a) of the Stated
Maturity of the Notes or (b) on which there are no Notes outstanding, provided that only the portion of Capital Stock which so
matures or is mandatorily redeemable, is so convertible or exchangeable or is
so redeemable at the option of the Holder thereof prior to such date shall be
deemed to be Disqualified Stock; provided, further
that any Capital Stock that would constitute Disqualified Stock solely because
the Holders thereof have the right to require the Company to repurchase such
Capital Stock upon the occurrence of a change of control or asset sale (each
defined in a substantially identical manner to the corresponding definitions in
the Indenture) shall not constitute Disqualified Stock if the terms of such
Capital Stock (and all such securities into which it is convertible or for
which it is ratable or exchangeable) provide that the Company may not
repurchase or redeem any such Capital Stock (and all such securities into which
it is convertible or for which it is ratable or exchangeable) pursuant to such
provision prior to compliance by the Company with the provisions of Sections 6.14
and 6.11 of this First Supplemental Indenture and such repurchase or
redemption complies with Section 6.08 of this First Supplemental
Indenture.

 

“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 that is organized
under the laws of the United States of America or any state thereof or the
District of Columbia.

 

“DTC”
means The Depository Trust Company, its nominees and their respective
successors and assigns, or such other depository institution hereinafter
appointed by the Company.

 

“Event
of Default” shall have the meaning set forth in Section 3.02
of this First Supplemental Indenture.

 

19

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and
the rules and regulations of the Commission promulgated thereunder.

 

“Foreign
Required Minority Shares” means directors’ qualifying shares and
other shares of Capital Stock of a Foreign Subsidiary that are required by the
applicable laws and regulations of such foreign jurisdiction to be owned by the
government of such foreign jurisdiction or individual or corporate citizens of
such foreign jurisdiction in order for such Foreign Subsidiary to transact
business in such foreign jurisdiction.

 

“Foreign
Subsidiary” means any Restricted Subsidiary that is not
organized under the laws of the United States of America or any state thereof
or the District of Columbia and any Subsidiary of such Restricted Subsidiary.

 

“GAAP”
means generally accepted accounting principles in the United States of America
as in effect as of the Issue Date, including those set forth in 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 approved by a significant segment of the accounting profession. All
ratios and computations based on GAAP contained in the Indenture shall be
computed in conformity with GAAP, except that in the event the Company is
acquired in a transaction that is accounted for using purchase accounting, the
effects of the application of purchase accounting shall be disregarded in the
calculation of such ratios and other computations contained in the Indenture.

 

“Guarantee”
means any obligation, contingent or otherwise, of any Person directly or
indirectly guaranteeing any Indebtedness of any other Person and any
obligation, direct or indirect, contingent or otherwise, of such Person:

 

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

 

(2)           entered into for purposes of
assuring in any other manner the obligee of such Indebtedness of the payment
thereof or to protect such obligee against loss in respect thereof (in whole or
in part); provided, however, that the term “Guarantee” shall not include endorsements for collection or
deposit in the ordinary course of business. The term “Guarantee”
used as a verb has a corresponding meaning.

 

“Guarantor
Subordinated Obligation” means, with respect to a Subsidiary
Guarantor, any Indebtedness of such Subsidiary Guarantor (whether outstanding
on the Issue Date or thereafter Incurred) which is subordinated in right of
payment to the obligations of such Subsidiary Guarantor under its Subsidiary
Guarantee pursuant to a written agreement.

 

“Hedging
Obligations” of any Person means the obligations of such Person
pursuant to any Interest Rate Agreement, Currency Agreement or Commodity
Agreement.

 

20

 

“Hydrocarbons”
means oil, natural gas, casinghead gas, drip gasoline, natural gasoline,
condensate, distillate, liquid hydrocarbons, gaseous hydrocarbons and all
constituents, elements or compounds thereof and products refined or processed
therefrom.

 

“Incur”
means issue, create, assume, Guarantee, incur or otherwise become liable for; provided, however, that any Indebtedness or Capital Stock of
a Person existing at the time such Person becomes a Restricted Subsidiary
(whether by merger, consolidation, acquisition or otherwise) shall be deemed to
be Incurred by such Restricted Subsidiary at the time it becomes a Restricted
Subsidiary; and the terms “Incurred” and “Incurrence” have meanings correlative to the foregoing.

 

“Indebtedness”
means, with respect to any Person on any date of determination (without
duplication):

 

(1)           the principal of and premium
(if any) in respect of indebtedness of such Person for borrowed money;

 

(2)           the principal of and premium
(if any) in respect of obligations of such Person evidenced by bonds,
debentures, notes or other similar instruments;

 

(3)           the principal component of
all obligations of such Person in respect of letters of credit, bankers’
acceptances or other similar instruments (including reimbursement obligations
with respect thereto except to the extent such reimbursement obligation relates
to a trade payable and such obligation is satisfied within 30 days of
Incurrence);

 

(4)           the principal component of
all obligations of such Person to pay the deferred and unpaid purchase price of
property (except trade payables), which purchase price is due more than six
months after the date of placing such property in service or taking delivery
and title thereto;

 

(5)           Capitalized Lease
Obligations and all Attributable Indebtedness of such Person;

 

(6)           the principal component or
liquidation preference of all obligations of such Person with respect to the
redemption, repayment or other repurchase of any Disqualified Stock or, with
respect to any Subsidiary that is not a Subsidiary Guarantor, any Preferred
Stock;

 

(7)           the principal component of
all Indebtedness of other Persons secured by a Lien on any asset of such
Person, whether or not such Indebtedness is assumed by such Person; provided, however, that the amount of such Indebtedness
shall be the lesser of (a) the liquidation value of such asset at such
date of determination and (b) the amount of such Indebtedness of such
other Persons;

 

(8)           the principal component of
Indebtedness of other Persons to the extent Guaranteed by such Person;

 

21

 

(9)           to the extent not otherwise
included in this definition, net obligations of such Person under Hedging
Obligations (the amount of any such obligations to be equal at any time to the
termination value of such agreement or arrangement giving rise to such
obligation that would be payable by such Person at such time); and

 

(10)         to the extent not otherwise
included in this definition, the amount of obligations outstanding under the
legal documents entered into as part of a securitization transaction or series
of securitization transactions that would be characterized as principal if such
transaction were structured as a secured lending transaction rather than as a
purchase outstanding relating to a securitization transaction or series of
securitization transactions.

 

Notwithstanding the
preceding, Indebtedness shall not include Volumetric Production Payments. The
amount of Indebtedness of any Person at any date shall be the outstanding
balance at such date of all unconditional obligations as described above and
the maximum liability, upon the occurrence of the contingency giving rise to
the obligation, of any contingent obligations at such date. Notwithstanding the
foregoing, money borrowed and set aside at the time of the Incurrence of any
Indebtedness in order to pre-fund the payment of interest on such Indebtedness
shall not be deemed to be “Indebtedness,” provided that such money is held to secure the payment of
such interest.

 

In addition, “Indebtedness” of any Person shall include Indebtedness
described in the preceding paragraph that would not appear as a liability on
the balance sheet of such Person if:

 

(1)           such Indebtedness is the
obligation of a partnership, limited liability company or similar entity that is
not a Restricted Subsidiary (a “Joint Venture”);

 

(2)           such Person or a Restricted
Subsidiary of such Person is a general partner of the Joint Venture (a “General Partner”); and

 

(3)           there is recourse, by
contract or operation of law, with respect to the payment of such Indebtedness
to property or assets of such Person or a Restricted Subsidiary of such Person;
and then such Indebtedness shall be included in an amount not to exceed:

 

(a)           the lesser of (i) the
net assets of the General Partner and (ii) the amount of such obligations
to the extent that there is recourse, by contract or operation of law, to the
property or assets of such Person or a Restricted Subsidiary of such Person; or

 

(b)           if less than the amount
determined pursuant to clause (a) immediately above, the
actual amount of such Indebtedness that is recourse to such Person or a
Restricted Subsidiary of such Person, if the Indebtedness is evidenced by a
writing and is for a determinable amount.

 

22

 

No Indebtedness will be
deemed to be subordinate in right of payment to any other Indebtedness solely
by virtue of being unsecured, being secured by junior liens or having a later
maturity date.

 

“Interest
Rate Agreement” means, with respect to any Person any interest
rate protection agreement, interest rate future agreement, interest rate option
agreement, interest rate swap agreement, interest rate cap agreement, interest
rate collar agreement, interest rate hedge agreement or other similar agreement
or arrangement as to which such Person is party or a beneficiary.

 

“Investment”
means, with respect to any Person, all investments by such Person in other
Persons (including Affiliates) in the form of any direct or indirect advance,
loan or other extension of credit (including by way of Guarantee or similar
arrangement) or capital contribution to (by means of any transfer of cash or
other property to others or any payment for property or services for the
account or use of others), or any purchase or acquisition of Capital Stock,
Indebtedness or other similar instruments issued by, such Person and all other
items that are or would be classified as investments on a balance sheet
prepared in accordance with GAAP.

 

For purposes of Section 6.08
of this First Supplemental Indenture:

 

(1)           “Investment”
shall include the portion (proportionate to the Company’s equity interest in a
Restricted Subsidiary to be designated as an Unrestricted Subsidiary) of the
fair market value of the net assets of such Restricted Subsidiary at the time
that such Restricted Subsidiary is designated an Unrestricted Subsidiary; provided, however, that upon a redesignation of such
Subsidiary as a Restricted Subsidiary, the Company shall be deemed to continue
to have a permanent “Investment” in an
Unrestricted Subsidiary in an amount (if positive) equal to (a) the
Company’s “Investment” in such Subsidiary at the
time of such redesignation less (b) the portion (proportionate to the
Company’s equity interest in such Subsidiary) of the fair market value of the
net assets (as conclusively determined by the Board of Directors of the Company
in good faith) of such Subsidiary at the time that such Subsidiary is so
re-designated a Restricted Subsidiary; and

 

(2)           any property transferred to
or from an Unrestricted Subsidiary shall be valued at its fair market value at
the time of such transfer, in each case as determined in good faith by the
Board of Directors of the Company.

 

“Investment
Grade Rating” means a rating equal to or higher than Baa3 (or
the equivalent) by Moody’s Investors Service, Inc. and BBB- (or the
equivalent) by Standard & Poor’s Ratings Group, Inc., in each
case, with a stable or better outlook.

 

“Issue
Date” means May 27, 2009.

 

“Lien”
means any mortgage, pledge, security interest, encumbrance, lien or charge of
any kind (including any conditional sale or other title retention agreement or
lease in the nature thereof).

 

23

 

“Minority
Interest” means the percentage interest represented by any
shares of stock of any class of Capital Stock of a Restricted Subsidiary that
are not owned by the Company or a Restricted Subsidiary.

 

“Net
Available Cash” from an Asset Disposition means cash payments
received (including any cash payments received by way of deferred payment of
principal pursuant to a note or installment receivable or otherwise and net
proceeds from the sale or other disposition of any securities received as
consideration, but only as and when received, but excluding any other consideration
received in the form of assumption by the acquiring Person of Indebtedness or
other obligations relating to the properties or assets that are the subject of
such Asset Disposition or received in any other non-cash form) therefrom, in
each case net of:

 

(1)           all legal, accounting,
engineering, investment banking, brokerage, title and recording tax expenses,
commissions and other fees and expenses Incurred, and all Federal, state,
provincial, foreign and local taxes required to be paid or accrued as a liability
under GAAP (after taking into account any available tax credits or deductions
and any tax sharing agreements), as a consequence of such Asset Disposition,
and any relocation expenses incurred or assumed in connection with such Asset
Disposition;

 

(2)           all payments made on any
Indebtedness which is secured by any assets subject to such Asset Disposition,
in accordance with the terms of any Lien upon such assets, or which must by its
terms, or in order to obtain a necessary consent to such Asset Disposition, or,
by applicable law, be repaid out of the proceeds from such Asset Disposition;

 

(3)           all distributions and other
payments required to be made to minority interest Holders in Subsidiaries or
Joint Ventures or to holders of royalty or similar interests as a result of
such Asset Disposition; and

 

(4)           the deduction of appropriate
amounts to be provided by the seller as reserves, in accordance with GAAP, (A) for
adjustment in respect of the sale price of the assets that were the subject of
such Asset Disposition and (B) against any liabilities associated with the
assets disposed of in such Asset Disposition and retained by the Company or any
Restricted Subsidiary after such Asset Disposition.

 

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

 

“Net
Working Capital” means (a) all current assets of the
Company and its Restricted Subsidiaries except current assets constituting
non-cash gains on Hedging Obligations resulting from the requirements of
Statement of Financial Accounting Standards No. 133 and similar 

 

24

 

provisions,
less (b) all current liabilities of the Company and its Restricted
Subsidiaries, except current liabilities included in Indebtedness and any
current liabilities constituting any non-cash losses or charges on Hedging Obligations
resulting from the requirements of Statement of Financial Accounting Standards No. 133
and similar provisions, in each case as set forth in the consolidated financial
statements of the Company prepared in accordance with GAAP.

 

“Non-Guarantor
Restricted Subsidiary” means any Restricted Subsidiary that is
not a Subsidiary Guarantor.

 

“Non-Recourse
Debt” means Indebtedness of a Person:

 

(1)           as to which neither the
Company nor any Restricted Subsidiary (a) provides any Guarantee or credit
support of any kind (including any undertaking, guarantee, indemnity, agreement
or instrument that would constitute Indebtedness) or (b) is directly or
indirectly liable (as a guarantor or otherwise); and

 

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

 

“Officer”
means the Chairman of the Board, the Chief Executive Officer, the President,
the Chief Financial Officer, any Vice President, the Treasurer or the Secretary
of the Company. Officer of any Subsidiary Guarantor has a correlative meaning.

 

“Officers’
Certificate” means a certificate signed by two Officers or by an
Officer and either an Assistant Treasurer or an Assistant Secretary of the
Company.

 

“Oil
and Gas Business” means (a) the business of acquiring,
exploring, exploiting, developing, producing, operating and disposing of
interests in Hydrocarbons and Oil and Gas Properties, (b) the business of
gathering, marketing, distributing, treating, processing, storing, refining,
selling and transporting of Hydrocarbons and Oil and Gas Properties and
products produced in association therewith, (c) other energy-related
business, including the ownership and operation of co-generation facilities and
steam and electrical transmission businesses, (d) any business relating to
oil field sales and services including ownership and operation of drilling
rigs, and (e) any business or activity relating to, arising from, or
necessary, appropriate or incidental to, the activities described in the
foregoing clauses of this definition.

 

“Oil
and Gas Properties” means all properties, including equity or
other ownership interests therein, owned by such Person which contain or are
believed to contain oil and gas reserves.

 

“Opinion
of Counsel” means a written opinion from legal counsel who is
acceptable to the Trustee. The counsel may be an employee of or counsel to the
Company or the Trustee.

 

25

 

“Pari
Passu Indebtedness” means Indebtedness that ranks equally in
right of payment to the Notes.

 

“Permitted
Business Investment” means any Investment made in the ordinary
course of, and of a nature that is or shall have become customary in, the Oil
and Gas Business or any other Related Business including investments or
expenditures for actively exploiting, exploring for, acquiring, developing,
producing, operating, disposing of interests in, processing, gathering,
marketing, distributing, treating, storing, refining, selling or transporting
Hydrocarbons, Related Assets and Oil and Gas Properties through agreements,
transactions, interests or arrangements which permit one to share risks or
costs, comply with regulatory requirements regarding local ownership or satisfy
other objectives customarily achieved through the conduct of such businesses
jointly with third parties, including:

 

(1)           ownership interests in Oil
and Gas Properties, co-generation facilities, refineries, liquid natural gas
facilities, processing facilities, gathering systems, pipelines or ancillary
real property interests, either directly or through entities the primary
business of which is to own or operate any of the foregoing; and

 

(2)           entry into and Investments
in the form of or pursuant to, operating agreements, working interests, royalty
interests, mineral leases, processing agreements, farm-in agreements, farm-out
agreements, contracts for the sale, transportation or exchange of oil and
natural gas, production sharing agreements, development agreements, area of mutual
interest agreements, unitization agreements, pooling arrangements, joint
bidding agreements, service contracts, joint venture agreements, partnership
agreements (whether general or limited), limited liability company agreements,
subscription agreements, stock purchase agreements, stockholder agreements and
other similar agreements with third parties (including Unrestricted
Subsidiaries);

 

provided, however that a “Permitted Business Investment” shall
only include Investments in entities that are classified as pass-through
entities for U.S. Federal, state and local and foreign income tax purposes.

 

“Permitted
Holders” means William F. Berry and Winberta Holdings, Ltd. Any
person or group whose acquisition of beneficial ownership constitutes a Change
of Control in respect of which a Change of Control Offer is made in accordance
with the requirements of the Indenture (or would result in a Change of Control
Offer in the absence of the waiver of such requirement by Holders in accordance
with the Indenture) shall thereafter constitute additional Permitted Holders.

 

“Permitted
Investment” means an Investment by the Company or any Restricted
Subsidiary in:

 

(1)           the Company, a Restricted
Subsidiary or a Person which shall, upon the making of such Investment, become
a Restricted Subsidiary; provided, however,
that the primary business of such Restricted Subsidiary is a Related Business;

 

26

 

(2)           another Person if as a
result of such Investment such other Person is merged or consolidated with or
into, or transfers or conveys all or substantially all its assets to, the
Company or a Restricted Subsidiary; provided, however,
that such Person’s primary business is a Related Business;

 

(3)           cash and Cash Equivalents;

 

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

 

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

 

(6)           loans or advances to, and
Guarantees of obligations of, employees, officers or directors of the Company
or any Restricted Subsidiary in the ordinary course of business in an aggregate
amount not in excess of $2.0 million with respect to all loans or advances made
since the Start Date (without giving effect to the forgiveness of any such
loan); provided, however, that the Company and
its Subsidiaries shall comply in all material respects with the provisions of
the Sarbanes Oxley Act of 2002 and the rules and regulations promulgated
in connection therewith relating to the provision of any such loans and
advances as if the Company had filed a registration statement with the
Commission;

 

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

 

(8)           Investments made as a result
of the receipt of non-cash consideration from an Asset Disposition or other
disposition that was made pursuant to and in compliance with Section 6.11
of this First Supplemental Indenture;

 

(9)           Investments in existence on
the Start Date;

 

(10)         Currency Agreements,
Interest Rate Agreements, Commodity Agreements and related Hedging Obligations,
which transactions or obligations are Incurred in compliance with Section 6.06
of this First Supplemental Indenture;

 

(11)         Investments by the Company
or any of its Restricted Subsidiaries, together with all other Investments
pursuant to this clause (11), in an aggregate amount at the time of
such Investment not to exceed $10.0 million outstanding at any one time (with
the fair market value of such Investment being measured at the time made and
without giving effect to subsequent changes in value);

 

27

 

(12)         Guarantees issued in
accordance with Section 6.06 of this First Supplemental Indenture;

 

(13)         any Asset Swap made in
accordance with Section 6.11 of this First Supplemental Indenture;

 

(14)         Permitted Business
Investments;

 

(15)         Investments constituting
prepaid expenses or advances or extensions of credit to customers or suppliers
in the ordinary course of business;

 

(16)         endorsements of negotiable
instruments and documents in the ordinary course of business;

 

(17)         acquisitions of assets,
Capital Stock or other securities by the Company or a Subsidiary for
consideration to the extent such consideration consists of Common Stock of the
Company; provided, however, that the Qualified
Proceeds from such sale of Capital Stock (to the extent so used) shall be excluded
from clause (C)(ii) of Section 6.08(a) of
this First Supplemental Indenture;

 

(18)         Investments in the form of
Capitalized Lease Obligations or mortgage or purchase money financing in an
aggregate principal amount not to exceed $25.0 million at any time outstanding;

 

(19)         Investments in the form of
bank deposits (other than time deposits); and

 

(20)         Investments in the form of
other deposits made in the ordinary course of business and constituting
Permitted Liens.

 

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

 

(1)           Liens securing Indebtedness
under Credit Facilities (and related Hedging Obligations and related
Guarantees) permitted to be Incurred under Section 6.06 of this First
Supplemental Indenture;

 

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

 

(3)           Liens imposed by law,
including carriers’, warehousemen’s, mechanics’, materialmen’s and repairmen’s
Liens, or related contracts in the ordinary course of business, in each case
for sums not yet due or being contested in good faith by 

 

28

 

appropriate
proceedings if a reserve or other appropriate provisions, if any, as shall be
required by GAAP shall have been made in respect thereof;

 

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

 

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

 

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

 

(7)           Liens securing Hedging
Obligations permitted under clause (6) of Section 6.06(b) of
this First Supplemental Indenture;

 

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

 

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

 

(10)         Liens for the purpose of
securing Indebtedness represented by Capitalized Lease Obligations, mortgage
financings, purchase money obligations or other payments Incurred to finance
all or any part of the purchase price or cost of construction or improvement of
assets or property (other than Capital Stock or other Investments) acquired,
constructed or improved by such Person; provided that:

 

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

 

(b)           such Liens are created
within 180 days of construction, acquisition or improvement of such assets or
property and do not encumber any other 

 

29

 

assets or property of such
Person other than such assets or property and assets affixed or appurtenant
thereto and proceeds thereof;

 

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

 

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

 

(b)           such deposit account is not
intended by such Person to provide collateral to the depository institution;

 

(12)         Liens arising
from Uniform Commercial Code financing statement filings regarding operating
leases entered into by such Person in the ordinary course of business;

 

(13)         Liens existing
on the Issue Date (other than Liens permitted under clause (1));

 

(14)         Liens on
property or Capital Stock of a Person at the time such Person becomes a
Restricted Subsidiary, or is merged with or into or consolidated with or
acquired by, the Company or a Restricted Subsidiary; provided,
however, that such Liens are not created, Incurred or assumed in connection
with, or in contemplation of, such event; provided further, however,
that any such Lien may not extend to any other property owned by the Company or
any Restricted Subsidiary other than improvements, additions and accessions to
such property, dividends and distributions in respect of such property and
proceeds of any of the foregoing;

 

(15)         Liens on
property at the time the Company or a Restricted Subsidiary acquired the
property, including any acquisition by means of a merger or consolidation with or
into the Company or any Restricted Subsidiary; provided,
however, that such Liens are not created, Incurred or assumed in
connection with, or in contemplation of, such acquisition; provided
further, however, that such Liens may not extend to any other property
owned by the Company or any Restricted Subsidiary other than improvements,
additions and accessions to such property, dividends and distributions in
respect of such property and proceeds of any of the foregoing;

 

(16)         Liens in favor
of the Company or a Restricted Subsidiary;

 

(17)         Liens securing
the Notes and Subsidiary Guarantees;

 

(18)         Liens securing
Refinancing Indebtedness Incurred to refinance, refund, replace, amend, extend
or modify, as a whole or in part, Indebtedness that was previously so secured
pursuant to clauses (9), (10), (13), (14), (15),
(17) and (18) of this definition, provided
that any such Lien is limited to all or part of the same 

 

30

 

property
or assets (plus improvements, additions, accessions, proceeds, dividends and
distributions in respect thereof) that secured (or, under the written
arrangements under which the original Lien arose, could secure) the
Indebtedness being refinanced or is in respect of property that is the security
for a Permitted Lien hereunder;

 

(19)         any interest or
title of a lessor under any operating lease;

 

(20)         Liens under
industrial revenue, municipal or similar bonds;

 

(21)         Liens in
respect of Production Payments and Reserve Sales, which Liens shall be limited
to the property that is the subject of such Production Payments and Reserve
Sales and proceeds thereof;

 

(22)         Liens arising
under farm-out agreements, farm-in agreements, division orders, mineral leases,
partnership agreements, joint venture agreements, contracts for the sale,
purchase, exchange, transportation, gathering or processing of Hydrocarbons and
Related Assets, unitizations and pooling designations, declarations, orders and
agreements, development agreements, operating agreements, production sales
contracts, area of mutual interest agreements, gas balancing or deferred
production agreements, injection, repressuring and recycling agreements, salt
water or other disposal agreements, seismic or geophysical permits or
agreements, and other agreements which are customary in any Related Business; provided, however, in all instances that such Liens are
limited to the assets that are the subject of the relevant agreement, program,
order or contract and improvements, additions and accessions thereto, and
proceeds of any of the foregoing;

 

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

 

(24)         Liens
encumbering assets under construction (and improvements, additions and
accessions thereto and proceeds of any of the foregoing) arising from progress
or partial payments by a customer of the Company or its Restricted Subsidiaries
relating to such assets;

 

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

 

(26)         Liens arising
from the deposit of funds or securities in trust for the purpose of decreasing
or defeasing Indebtedness so long as such deposit of funds or securities and
such decreasing or defeasing of Indebtedness are permitted under Section 6.08
of this First Supplemental Indenture; and

 

31

 

(27)         Liens securing
Indebtedness (other than Subordinated Obligations and Guarantor Subordinated
Obligations) and other unsubordinated obligations in an aggregate amount
outstanding at any one time not to exceed $15.0 million.

 

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

 

“Preferred
Stock,” as applied to the Capital Stock of any corporation,
means Capital Stock of any class or classes (however designated) which is preferred
as to the payment of dividends, or as to the distribution of assets upon any
voluntary or involuntary liquidation or dissolution of such corporation, over
shares of Capital Stock of any other class of such corporation.

 

“Production
Payments and Reserve Sales” means the grant or transfer by the
Company or a Restricted Subsidiary to any Person of a royalty, overriding
royalty, net profits interest, production payment (including Volumetric
Production Payments and Dollar-Denominated Production Payments), partnership or
other interest in oil and 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 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
the Oil and Gas Business, including any such grants or transfers pursuant to
incentive compensation programs on terms that are reasonably customary in the
Oil and Gas Business for geologists, geophysicists or other providers of
technical services to the Company or a Restricted Subsidiary.

 

“Prospectus
Supplement” means the base prospectus, as amended dated February 26,
2009 contained in the Company’s Registration Statement on Form S-3, as
supplemented by the prospectus supplement dated May 21, 2009 with respect
to the Notes.

 

“Qualified
Proceeds” means any of the following or any combination thereof:
(1) Net Cash Proceeds, (2) Cash Equivalents, (3) assets that are
used or useful in a Related Business and (4) the Capital Stock of any
Person engaged in a Related Business that becomes a Restricted Subsidiary of
the Company or merges with or into the Company or a Restricted Subsidiary of
the Company.

 

“Rating
Agencies” means Standard & Poor’s Ratings Group, Inc.
and Moody’s Investors Service, Inc. or if Standard & Poor’s
Ratings Group, Inc. or Moody’s Investors Service, Inc. or both shall
not make a rating on the Notes publicly available, a nationally recognized
statistical rating agency or agencies, as the case may be, selected by the
Company (as certified by a resolution of the Board of Directors) which shall be
substituted for Standard & Poor’s Ratings Group, Inc. or Moody’s
Investors Service, Inc. or both, as the case may be.

 

“Receivable”
means a right to receive payment arising from a sale or lease of goods or the
performance of services by a Person pursuant to an arrangement with another
Person 

 

32

 

pursuant
to which such other Person is obligated to pay for goods or services under
terms that permit the purchase of such goods and services on credit and shall
include, in any event, any items of property that would be classified as an “account,” “chattel paper,”
“payment intangible” or “instrument” under the Uniform Commercial Code as in effect
in the State of New York and any “supporting obligations”
as so defined.

 

“Receivables
Fees” means any fees or interest paid to purchasers or lenders
providing the financing in connection with a securitization transaction,
factoring agreement or other similar agreement, including any such amounts paid
by discounting the face amount of Receivables or participations therein
transferred in connection with a securitization transaction, factoring
agreement or other similar arrangement, regardless of whether any such
transaction is structured as on-balance sheet or off-balance sheet or through a
Restricted Subsidiary or an Unrestricted Subsidiary.

 

“Refinancing
Indebtedness” means Indebtedness that is Incurred to refund,
refinance, replace, exchange, renew, repay or extend (including pursuant to any
defeasance or discharge mechanism) (collectively, “refinance”;
“refinances” and “refinanced”
shall each have a correlative meaning) any Indebtedness existing on the Issue
Date or Incurred in compliance with the Indenture (including Indebtedness of
the Company that refinances Indebtedness of any Restricted Subsidiary and
Indebtedness of any Restricted Subsidiary that refinances Indebtedness of
another Restricted Subsidiary) including Indebtedness that refinances
Refinancing Indebtedness, provided, however,
that:

 

(1)           (a) if the Stated
Maturity of the Indebtedness being refinanced is earlier than the Stated
Maturity of the Notes, the Refinancing Indebtedness has a Stated Maturity no
earlier than the Stated Maturity of the Indebtedness being refinanced or (b) if
the Stated Maturity of the Indebtedness being refinanced is later than the
Stated Maturity of the Notes, the Refinancing Indebtedness has a Stated
Maturity at least 91 days later than the Stated Maturity of the Notes;

 

(2)           the Refinancing Indebtedness
has an Average Life at the time such Refinancing Indebtedness is Incurred that
is equal to or greater than the Average Life of the Indebtedness being
refinanced;

 

(3)           such Refinancing
Indebtedness is Incurred in an aggregate principal amount (or if issued with
original issue discount, an aggregate issue price) that is equal to or less
than the sum of the aggregate principal amount (or if issued with original
issue discount, the aggregate accreted value) then outstanding of the
Indebtedness being refinanced (plus, without duplication, any additional
Indebtedness Incurred to pay interest or premiums required by the instruments
governing such existing Indebtedness and costs and fees Incurred in connection
therewith); and

 

(4)           if the Indebtedness being
refinanced is subordinated in right of payment to the Notes or the Subsidiary
Guarantees, such Refinancing Indebtedness is subordinated in right of payment
to the Notes or the Subsidiary Guarantees on terms at least as favorable to the
Holders as those contained in the documentation governing the Indebtedness
being refinanced.

 

33

 

“Related
Assets” means steam, electricity, by-products of the utilization
of Hydrocarbons, products produced in association with Hydrocarbons, minerals,
and other assets commonly created, recovered or produced in the course of the
conduct of any Related Business.

 

“Related
Business” means (1) any business which is the same as or
related, ancillary or complementary to any of the businesses of the Company and
its Restricted Subsidiaries on the Issue Date, (2) the Oil and Gas
Business and (3) the business of acquiring, exploiting, developing,
producing, operating, gathering, marketing, treating, processing, storing,
refining, selling and transporting Related Assets.

 

“Restricted
Investment” means any Investment other than a Permitted
Investment.

 

“Restricted
Subsidiary” means any Subsidiary of the Company other than an
Unrestricted Subsidiary.

 

“Sale/Leaseback
Transaction” means an arrangement relating to property now owned
or hereafter acquired whereby the Company or a Restricted Subsidiary transfers
such property to a Person and the Company or a Restricted Subsidiary leases it
from such Person.

 

 “Securities Act”
means the Securities Act of 1933, as amended, and the rules and
regulations of the Commission promulgated thereunder.

 

“Securities
Custodian” means the custodian with respect to the Global
Security (as appointed by DTC), or any successor Person thereto and shall
initially be the Trustee.

 

“Senior
Credit Facility” means the Amended and Restated Credit Agreement
dated as of July 15, 2008 among the Company, Wells Fargo Bank, National
Association, as Administrative Agent, and the lenders parties thereto from time
to time, as the same may be amended, restated, modified, renewed, refunded,
replaced or refinanced in whole or in part from time to time, with the same or
different agents or lenders (including increasing the amount loaned or the
aggregate commitments of the lenders thereunder, provided
that such additional Indebtedness is Incurred in accordance with Section 6.06
of this First Supplemental Indenture); provided that a
Senior Credit Facility shall not (1) include Indebtedness issued, created
or Incurred pursuant to a registered offering of securities under the
Securities Act or a private placement of securities (including under Rule 144A
or Regulation S) pursuant to an exemption from the registration requirements of
the Securities Act or (2) relate to Subordinated Obligations.

 

“Significant
Subsidiary” means any Restricted Subsidiary that would be a “Significant Subsidiary” of the Company within the meaning of
Rule 1-02 under Regulation S-X promulgated by the Commission.

 

“Start
Date” means October 24, 2006.

 

“Stated
Maturity” means, with respect to any security, the date
specified in such security as the fixed date on which the payment of principal
of such security is due and payable, including pursuant to any mandatory
redemption provision, but shall not include any contingent obligations to
repay, redeem or repurchase any such principal prior to the date originally
scheduled for the payment thereof.

 

34

 

“Subordinated
Obligation” means any Indebtedness of the Company (whether
outstanding on the Issue Date or thereafter Incurred) which is subordinated in
right of payment to the Notes pursuant to a written agreement.

 

“Subsidiary”
of any Person means (a) any corporation or other business entity (other
than a legal partnership, limited liability company or similar entity) of which
more than 50% of the total ordinary voting power of shares of Capital Stock
entitled (without regard to the occurrence of any contingency) to vote in the
election of directors, managers or trustees thereof (or persons performing
similar functions) or (b) any legal partnership, limited liability company
or similar entity of which more than 50% of the capital accounts, distribution
rights, total equity and voting interests or general or limited partnership
interests, as applicable, is, in the case of clauses (a) and (b),
at the time owned or controlled, directly or indirectly, by (1) such Person,
(2) such Person and one or more Subsidiaries of such Person or (3) one
or more Subsidiaries of such Person. Unless otherwise specified herein, each
reference to a Subsidiary shall refer to a Subsidiary of the Company.

 

“Subsidiary
Guarantee” means, individually, any Guarantee of payment of the
Notes by a Subsidiary Guarantor pursuant to the terms of the Indenture and any
supplemental indenture thereto, and, collectively, all such Guarantees. Each
such Subsidiary Guarantee shall be in the form prescribed by the Indenture,
including Article Nine of this First Supplemental Indenture.

 

“Subsidiary
Guarantor” means any Restricted Subsidiary that provides a
Subsidiary Guarantee after the Issue Date in accordance with the Indenture; provided that upon release or discharge of such Restricted
Subsidiary from its Subsidiary Guarantee in accordance with the Indenture, such
Restricted Subsidiary ceases to be a Subsidiary Guarantor.

 

“Treasury
Rate” means the yield to maturity at the time of computation of
United States Treasury securities with a constant maturity (as compiled and
published in the most recent Federal Reserve Statistical Release H.15 (519)
which 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 the maturity date of the Notes; provided, however, that if the period from the redemption
date to such maturity date is not equal to the constant maturity of a United
States Treasury security for which a weekly average yield is given, the
Treasury Rate shall be obtained by linear interpolation (calculated to the
nearest one-twelfth of a year) from the weekly average yields of United States
Treasury securities for which such yields are given, except that if the period
from the redemption date to such maturity date is less than one year, the
weekly average yield on actually traded United States Treasury securities
adjusted to a constant maturity of one year shall be used.

 

“Unrestricted Subsidiary”
means:

 

(1)           any Subsidiary of the
Company that at the time of determination shall be designated an Unrestricted
Subsidiary by the Board of Directors of the Company in the manner provided
below; and

 

(2)           any Subsidiary of an
Unrestricted Subsidiary.

 

35

 

The Board of Directors of
the Company may designate any Subsidiary of the Company (including any newly
acquired or newly formed Subsidiary or a Person becoming a Subsidiary through
merger or consolidation or Investment therein) to be an Unrestricted Subsidiary
only if:

 

(1)           such Subsidiary
and its Subsidiaries do not own any Capital Stock or Indebtedness of or have
any Investment in, or own or hold any Lien on any property of, any other
Subsidiary of the Company which is not a Subsidiary of the Subsidiary to be so
designated or otherwise an Unrestricted Subsidiary;

 

(2)           all the
Indebtedness of such Subsidiary and its Subsidiaries shall, at the date of
designation, and shall at all times thereafter, consist of Non-Recourse Debt;

 

(3)           such
designation and the Investment of the Company in such Subsidiary complies with Section 6.08
of this First Supplemental Indenture;

 

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

 

(5)           such Subsidiary
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
Capital Stock of such Person; 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

 

(6)           on the date
such Subsidiary is designated an Unrestricted Subsidiary, such Subsidiary is
not a party to any agreement, contract, arrangement or understanding with the
Company or any Restricted Subsidiary with terms substantially less favorable to
the Company than those that might have been obtained from Persons who are not
Affiliates of the Company.

 

Any such designation by the
Board of Directors of the Company shall be evidenced to the Trustee by filing
with the Trustee a resolution of the Board of Directors of the Company giving
effect to such designation and an Officers’ Certificate certifying that such
designation complies with the foregoing conditions. If, at any time, any
Unrestricted Subsidiary would fail to meet the foregoing requirements as an
Unrestricted Subsidiary, it shall thereafter cease to be an Unrestricted
Subsidiary for purposes of the Indenture and any Indebtedness of such
Subsidiary shall be deemed to be Incurred as of such date.

 

The Board of Directors of
the Company may designate any Unrestricted Subsidiary to be a Restricted
Subsidiary; provided that immediately after giving
effect to such designation, no Default or Event of Default shall have occurred
and be continuing or would occur as a consequence thereof and the Company could
Incur at least $1.00 of additional Indebtedness pursuant to Section 6.06(a) of
this First Supplemental Indenture on a pro forma basis taking into account such
designation.

 

36

 

“U.S.
Government Obligations” means securities that are (a) direct
obligations of the United States of America for the timely payment of which its
full faith and credit is pledged or (b) obligations of a Person controlled
or supervised by and acting as an agency or instrumentality of the United
States of America the timely payment of which is unconditionally guaranteed as
a full faith and credit obligation of the United States of America, which, in
either case, are not callable or redeemable at the option of the issuer
thereof, and shall also include a depositary receipt issued by a bank (as
defined in Section 3(a)(2) of the Securities Act), as custodian with
respect to any such U.S. Government Obligations or a specific payment of principal
of or interest on any such U.S. Government Obligations held by such custodian
for the account of the Holder of such depositary receipt; provided
that (except as required by law) such custodian is not authorized to make any
deduction from the amount payable to the Holder of such depositary receipt from
any amount received by the custodian in respect of the U.S. Government
Obligations or the specific payment of principal of or interest on the U.S.
Government Obligations evidenced by such depositary receipt.

 

“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 a Person means all classes of Capital Stock of such
Person then outstanding and normally entitled to vote in the election of
directors, managers or trustees, as applicable.

 

“Wholly
Owned Subsidiary” means a Restricted Subsidiary, all of the
Capital Stock of which (other than Foreign Required Minority Shares) is owned
by the Company or another Wholly Owned Subsidiary.

 

SECTION 2.03              Other
Definitions.

 

	
  Term

  	
   

  	
  Defined
  in Section

  	
   

  
	
  “Additional Notes”

  	
   

  	
  1.01

  	
   

  
	
  “Affiliate Transaction”

  	
   

  	
  6.12

  	
   

  
	
  “Agent Members”

  	
   

  	
  1.02

  	
   

  
	
  “Asset Disposition Offer”

  	
   

  	
  6.11(a)

  	
   

  
	
  “Asset Disposition Offer Amount”

  	
   

  	
  6.11(b)

  	
   

  
	
  “Asset Disposition Offer Period”

  	
   

  	
  6.11(b)

  	
   

  
	
  “Asset Disposition Purchase Date”

  	
   

  	
  6.11(b)

  	
   

  
	
  “Change of Control Payment”

  	
   

  	
  6.14(1)

  	
   

  
	
  “Excess Proceeds”

  	
   

  	
  6.11

  	
   

  
	
  “Funding Guarantor”

  	
   

  	
  9.04

  	
   

  
	
  “General Partner”

  	
   

  	
  2.02
  (definition of “Indebtedness”)

  	
   

  
	
  “Joint Venture”

  	
   

  	
  2.02
  (definition of “Indebtedness”)

  	
   

  
	
  “Legal Defeasance”

  	
   

  	
  8.02

  	
   

  
	
  “Obligations”

  	
   

  	
  9.01

  	
   

  
	
  “Pari Passu Notes”

  	
   

  	
  6.11(a)

  	
   

  
	
  “Payment Default”

  	
   

  	
  3.02(6)(a)

  	
   

  
	
  “Qualifying SLB”

  	
   

  	
  2.02
  (clause (20) of the definition of “Asset Disposition”)

  	
   

  

 

37

 

	
  Term

  	
   

  	
  Defined
  in Section

  	
   

  
	
  “Reinstatement Date”

  	
   

  	
  6.05

  	
   

  
	
  “Restricted Payment”

  	
   

  	
  6.08(a)

  	
   

  
	
  “Successor Company”

  	
   

  	
  4.02(1)

  	
   

  
	
  “Suspended Covenants”

  	
   

  	
  6.05

  	
   

  
	
  “Suspension Period”

  	
   

  	
  6.05

  	
   

  

 

ARTICLE THREE

EVENTS OF DEFAULT WITH RESPECT TO THE NOTES

 

SECTION 3.01              Original
Indenture

 

Sections 501, 502 and 513 of
the Original Indenture shall not apply to the Notes; and, insofar as relating
to the Notes, any reference to Section 501, 502 or 513 in the Original
Indenture shall instead be deemed to refer to Section 3.02, 3.03
or 3.04, respectively, of this First Supplemental Indenture.

 

SECTION 3.02              Events
of Default

 

“Event
of Default,” whenever used in the Original Indenture or this
First Supplemental Indenture with respect to the Notes, means any one of the
following events:

 

(1)           default in any payment of
interest, including Additional Interest, on any Note when due, continued for 30
days;

 

(2)           default in the payment of
principal of or premium, if any, on any Note when due at its Stated Maturity,
upon optional redemption, upon required repurchase, upon declaration or
otherwise;

 

(3)           failure by the Company or
any Subsidiary Guarantor to comply with its obligations under Article Four
of this First Supplemental Indenture;

 

(4)           failure by the Company to
comply for 30 days after notice as provided below with any of its obligations
under Sections 6.06, 6.08, 6.09, 6.10, 6.11,
6.12, 6.13, 6.14, 6.16 or 6.17 of this First
Supplemental Indenture (in each case, other than a failure to purchase Notes
which constitutes an Event of Default under clause (2) above);

 

(5)           (a) failure by the
Company to comply with Section 6.15 of this First Supplemental
Indenture for 180 days (and, to the extent Section 314(a) of the TIA
is deemed to be a part of the Indenture pursuant to Section 318 of the TIA,
failure by the Company to comply with such deemed covenant for such period of
time as is necessary such that such period ends at the end of such 180-day
period); or (b) failure by the Company to comply for 60 days after notice
as provided below with its other agreements contained in the Indenture;

 

(6)           default under any mortgage,
indenture or instrument under which there may be issued or by which there may
be secured or evidenced any Indebtedness for 

 

38

 

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),
other than Indebtedness owed to the Company or a Restricted Subsidiary, whether
such Indebtedness or Guarantee now exists, or is created after the Issue Date,
which default:

 

(a)           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 (“Payment Default”); or

 

(b)           results in the acceleration
of such Indebtedness prior to its 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 $25.0 million or
more;

 

(7)           (a)            the Company or
any Significant Subsidiary or a group of Restricted Subsidiaries that, taken
together (as of the latest audited consolidated financial statements for the
Company and its Restricted Subsidiaries), would constitute a Significant
Subsidiary pursuant to or within the meaning of any Bankruptcy Law:

 

(i)             commences a voluntary case
or proceeding;

 

(ii)            consents to the entry of
judgment, decree or order for relief against it in an involuntary case or
proceeding;

 

(iii)           consents to the appointment
of a Custodian of it or for any substantial part of its property;

 

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

 

(v)            consents to or acquiesces in
the institution of a bankruptcy or an insolvency proceeding against it; or

 

(vi)           takes any corporate action
to authorize or effect any of the foregoing;

 

or takes any comparable action under any
foreign laws relating to insolvency; or

 

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

 

(i)             is for relief against the
Company or any Significant Subsidiary or a group of Restricted Subsidiaries
that, taken together (as of the latest audited consolidated financial
statements for the Company 

 

39

 

and its Restricted
Subsidiaries), would constitute a Significant Subsidiary in an involuntary
case;

 

(ii)            appoints a Custodian of the
Company or any Significant Subsidiary or a group of Restricted Subsidiaries
that, taken together (as of the latest audited consolidated financial
statements for the Company and its Restricted Subsidiaries), would constitute a
Significant Subsidiary or for any substantial part of its property; or

 

(iii)           orders the winding up or
liquidation of the Company or any Significant Subsidiary or a group of
Restricted Subsidiaries that, taken together (as of the latest audited
consolidated financial statements for the Company and its Restricted
Subsidiaries) would constitute a Significant Subsidiary;

 

or any similar relief is granted under any
foreign laws and the order, decree or relief remains unstayed and in effect for
60 days;

 

(8)           failure by the Company or
any Significant Subsidiary or group of Restricted Subsidiaries that, taken
together (as of the latest audited consolidated financial statements for the
Company and its Restricted Subsidiaries), would constitute a Significant
Subsidiary to pay final judgments aggregating in excess of $25.0 million (net
of any amounts covered by insurance with a reputable and creditworthy insurance
company that has not disclaimed liability therefor in writing), which judgments
are not paid, discharged or stayed for a period of 60 days; or

 

(9)           (a) any Subsidiary
Guarantee of a Significant Subsidiary or group of Restricted Subsidiaries that,
taken together (as of the latest audited consolidated financial statements for
the Company and its Restricted Subsidiaries), would constitute a Significant
Subsidiary (i) ceases to be in full force and effect (except as
contemplated by the terms of the Indenture) for 5 Business Days after notice as
provided below or (ii) is declared null and void in a judicial proceeding
or (b) any Subsidiary Guarantor that is a Significant Subsidiary or group
of Subsidiary Guarantors that taken together as of the latest audited
consolidated financial statements of the Company and its Restricted
Subsidiaries would constitute a Significant Subsidiary denies or disaffirms its
obligations under the Indenture or its Subsidiary Guarantee.

 

However, a Default under clauses (4),
(5)(b) and (9)(a)(i) of this Section 3.02
shall not constitute an Event of Default until the Trustee or the Holders of
25% in principal amount of the outstanding Notes notify the Company of the
Default and the Company does not cure such Default within the time specified in
clauses (4), (5)(b) and (9)(a)(i) of this Section 3.02
after receipt of such notice.

 

40

 

During the continuance of a
Default under clause (5)(a) above of this Section 3.02,
the interest rate on the Notes shall increase by the Additional Interest.

 

SECTION 3.03              Acceleration

 

With respect to the Notes,
if an Event of Default (other than an Event of Default described in clause (7) of
Section 3.02 of this First Supplemental Indenture) occurs and is
continuing, the Trustee by notice to the Company, or the Holders of at least
25% in principal amount of the outstanding Notes by notice to the Company and
the Trustee, may, and the Trustee at the request of such Holders shall, declare
the principal of, premium, if any, and accrued and unpaid interest, if any, on
all the Notes to be due and payable. Upon such a declaration, such principal,
premium and accrued and unpaid interest shall be immediately due and payable.
In the event of a declaration of acceleration of the Notes because an Event of
Default described in clause (6) of Section 3.02 of
this First Supplemental Indenture has occurred and is continuing, the declaration
of acceleration of the Notes shall be automatically annulled if the default
triggering such Event of Default pursuant to clause (6) shall
be remedied or cured by the Company or a Restricted Subsidiary or waived by the
Holders of the relevant Indebtedness within 20 days after the declaration of
acceleration with respect thereto and if (1) the annulment of the
acceleration of the Notes would not conflict with any judgment or decree of a
court of competent jurisdiction and (2) all existing Events of Default,
except nonpayment of principal, premium or interest on the Notes that became
due solely because of the acceleration of the Notes, have been cured or waived.
If an Event of Default described in clause (7) of Section 3.02
of this First Supplemental Indenture occurs and is continuing, the principal
of, premium, if any, and accrued and unpaid interest on all the Notes shall
become and be immediately due and payable without any declaration or other act
on the part of the Trustee or any Holders. The Holders of a majority in
principal amount of the outstanding Notes may waive all past defaults (except
with respect to nonpayment of principal, premium or interest) and rescind any
such acceleration with respect to the Notes and its consequences if (1) rescission
would not conflict with any judgment or decree of a court of competent
jurisdiction and (2) all existing Events of Default, other than the
nonpayment of the principal of, premium, if any, and interest on the Notes that
have become due solely by such declaration of acceleration, have been cured or
waived.

 

SECTION 3.04              Control
by Holders

 

Subject to Section 509
of the Original Indenture, with respect to the Notes, the Holders of a majority
in principal amount of the outstanding Notes may direct the time, method and
place of conducting any proceeding for any remedy available to the Trustee or
of exercising any trust or power conferred on the Trustee, provided
that the Trustee may refuse to follow any direction:

 

(1)           that conflicts with law or
the Indenture, and

 

(2)           subject to Sections 601 and
602 of the Original Indenture, that the Trustee determines is unduly
prejudicial to the rights of other Holders or would involve the Trustee in
personal liability;

 

provided, however, that the
Trustee may take any other action deemed proper by the Trustee that is not
inconsistent with such direction. Prior to taking any action hereunder, the
Trustee shall be 

 

41

 

entitled to indemnification
satisfactory to it in its sole discretion against all losses and expenses
caused by taking or not taking such action.

 

ARTICLE FOUR

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER

OR LEASE WITH RESPECT TO THE NOTES

 

SECTION 4.01              Original
Indenture

 

Article Eight of the
Original Indenture shall not apply to the Notes.

 

SECTION 4.02              Company
May Consolidate, Etc., Only on Certain Terms

 

With respect to the Notes,
the Company shall not consolidate with or merge with or into, or convey,
transfer or lease all or substantially all its assets to, any Person, unless:

 

(1)           the resulting, surviving or
transferee Person (the “Successor Company”)
shall be a corporation organized and existing under the laws of the United
States of America, any State of the United States or the District of Columbia
and the Successor Company (if not the Company) shall expressly assume, by
supplemental indenture, executed and delivered to the Trustee, in form
satisfactory to the Trustee, all the obligations of the Company under the Notes
and the Indenture;

 

(2)           immediately after giving
effect to such transaction (and treating any Indebtedness that becomes an
obligation of the Successor Company or any Subsidiary of the Successor Company
as a result of such transaction as having been Incurred by the Successor
Company or such Subsidiary at the time of such transaction), no Default or
Event of Default shall have occurred and be continuing;

 

(3)           immediately after giving
effect to such transaction, the Successor Company would be able to Incur at
least $1.00 of additional Indebtedness pursuant to Section 6.06(a) of
this First Supplemental Indenture or the Consolidated Coverage Ratio for the
Successor Company and its Restricted Subsidiaries would be greater than such
ratio for the Company and its Restricted Subsidiaries immediately prior to such
transaction;

 

(4)           each Subsidiary Guarantor
(unless it is the other party to the transactions above, in which case clause (1) of
this Section 4.02 shall apply or unless the Company is the
Successor Company and such Subsidiary Guarantor was a Subsidiary Guarantor
immediately prior to such transaction) shall have by supplemental indenture
confirmed that its Subsidiary Guarantee shall apply to such Person’s
obligations in respect of the Indenture and the Notes; and

 

(5)           the Company shall have
delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel,
together stating that such consolidation, merger or transfer and such
supplemental indenture (if any) comply with the Indenture.

 

42

 

For purposes of this Section 4.02,
the sale, lease, conveyance, assignment, transfer, or other disposition of all
or substantially all of the properties and assets of one or more Subsidiaries
of the Company, which properties and assets, if held by the Company instead of
such Subsidiaries, would constitute all or substantially all of the properties
and assets of the Company on a consolidated basis, shall be deemed to be the
transfer of all or substantially all of the properties and assets of the
Company.

 

Notwithstanding the
preceding clause (3) of this Section 4.02, (a) any
Restricted Subsidiary may consolidate with, merge into or transfer all or part
of its properties and assets to the Company or any Subsidiary Guarantor and (b) the
Company may merge with an Affiliate incorporated solely for the purpose of
reincorporating the Company in another jurisdiction to realize tax benefits; provided that, in the case of a Restricted Subsidiary that
merges into the Company or any Subsidiary Guarantor, the Company shall not be
required to comply with the preceding clause (5) of this Section 4.02.

 

SECTION 4.03              Successor
Substituted

 

With respect to the Notes,
upon any consolidation of the Company with, or merger of the Company into, any
other Person or any conveyance, transfer or lease of all or substantially all
its assets in accordance with Section 4.02 of this First
Supplemental Indenture, the successor Person formed by such consolidation or
into which the Company is merged or to which such conveyance, transfer or lease
is made shall succeed to, and be substituted for, and may exercise every right
and power of, the Company under the Indenture with the same effect as if such
successor Person had been named as the Company herein, and the predecessor
Company shall be released from its obligations under the Indenture, but, in the
case of a lease of all or substantially all its assets, the predecessor Company
shall not be released from the obligation to pay the principal of and interest
on the Notes.

 

SECTION 4.04              Subsidiary
Guarantors May Consolidate, Etc., Only on Certain Terms

 

With respect to the Notes,
the Company shall not permit any Subsidiary Guarantor to consolidate with,
merge with or into any Person (other than the Company or another Subsidiary
Guarantor) and shall not permit the conveyance, transfer or lease of all or
substantially all of the assets of any Subsidiary Guarantor (other than to the
Company or another Subsidiary Guarantor) unless:

 

(1)           (a) if such entity
remains a Subsidiary Guarantor, the resulting, surviving or transferee Person
shall be a corporation, partnership, trust or limited liability company
organized and existing under the laws of the United States of America, any
State of the United States or the District of Columbia and shall have by
supplemental indenture confirmed that its Subsidiary Guarantee shall apply to
such Person’s obligations in respect of the Indenture and the Notes; (b) immediately
after giving effect to such transaction (and treating any Indebtedness that
becomes an obligation of the resulting, surviving or transferee Person or any
Restricted Subsidiary as a result of such transaction as having been Incurred
by such Person or such Restricted Subsidiary at the time of such transaction),
no Default or Event of Default shall have occurred and be 

 

43

 

continuing;
and (c) the Company shall have delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, together stating that such
consolidation, merger or transfer and such supplemental indenture (if any)
comply with the Indenture; and

 

(2)           the transaction is made in
compliance with Section 6.11 of this First Supplemental Indenture
(it being understood that only such portion of the Net Available Cash as is
required to be applied on the date of such transaction in accordance with the
terms of the Indenture needs to be applied in accordance therewith at such
time), Section 6.13 of this First Supplemental Indenture and this Article Four.

 

ARTICLE FIVE

SUPPLEMENTAL INDENTURES WITH RESPECT TO THE NOTES

 

SECTION 5.01              Original
Indenture

 

Sections 901 and 902 of the
Original Indenture shall not apply to the Notes; and, insofar as relating to
the Notes, any reference in the Original Indenture to Sections 901 or 902
thereof shall refer instead to Section 5.02 or Section 5.03 of this
First Supplemental Indenture.  Any
reference in the Original Indenture to Article Nine thereof shall be
deemed to refer to such Article Nine as modified to include Sections 5.02
and 5.03 hereof in lieu of Sections 901 and 902 of the Original Indenture.

 

SECTION 5.02              Supplemental
Indentures Without Consent of Holders

 

With respect to the Notes,
without the consent of any Holder, the Company, any Subsidiary Guarantors and
the Trustee may amend the Indenture and the Notes to:

 

(1)           cure any ambiguity,
omission, defect or inconsistency;

 

(2)           provide for the assumption
by a successor Person of the obligations of the Company or any Subsidiary
Guarantor under the Indenture;

 

(3)           provide for uncertificated
Notes in addition to or in place of certificated Notes (provided
that the uncertificated Notes are issued in registered form for purposes of Section 163(f) of
the Code, or in a manner such that the uncertificated Notes are described in Section 163(f) (2) (B) of
the Code);

 

(4)           add Guarantees with respect
to the Notes or release a Subsidiary Guarantor from its obligations under its
Subsidiary Guarantee or the Indenture in accordance with the applicable
provisions of the Indenture;

 

(5)           secure the Notes;

 

(6)           add to the covenants of the
Company for the benefit of the Holders or surrender any right or power
conferred upon the Company;

 

(7)           make any change that does
not adversely affect the rights of any Holder;

 

44

 

(8)           comply with any requirement
of the Commission in connection with the qualification of the Indenture under
the Trust Indenture Act;

 

(9)           provide for the appointment
of a successor Trustee; provided that
the successor Trustee is otherwise qualified and eligible to act as such under
the terms of the Indenture; or

 

(10)         conform the text of the
Indenture, the Notes or the Subsidiary Guarantees to any provision of the “Description
of Notes” contained in the Prospectus Supplement to the extent that such
provision in the “Description of Notes” contained in the Prospectus Supplement
is intended to be a verbatim recitation of a provision of the Indenture, the
Notes or the Subsidiary Guarantees.

 

After an amendment under
this Section 5.02 becomes effective, the Company shall mail to
Holders a notice briefly describing such amendment. The failure to give such
notice to all Holders, or any defect therein, shall not impair or affect the
validity of an amendment under this Section 5.02.

 

SECTION 5.03              Supplemental
Indentures With Consent of Holders

 

The Company, any Subsidiary
Guarantors and the Trustee may amend or supplement the Indenture or the Notes
without notice to any Holder but with the written consent of the Holders of at
least a majority in principal amount of the Notes then outstanding (including
without limitation, consents obtained in connection with a purchase of, or
tender offer or exchange offer for, Notes) and, subject to the exceptions set
forth in Section 514 of the Original Indenture, any past default or
compliance with any provisions of the Indenture may be waived with respect to
the Notes with the consent of the Holders of a majority in principal amount of
the Notes then outstanding (including, without limitation, consents obtained in
connection with a purchase of, or tender offer or exchange offer for, Notes).
However, without the consent of each Holder affected, an amendment, supplement
or waiver may not:

 

(1)           reduce the amount of Notes
whose Holders must consent to an amendment;

 

(2)           reduce the stated rate of or
extend the stated time for payment of interest on any Note;

 

(3)           reduce the principal of or
extend the Stated Maturity of any Note;

 

(4)           reduce the premium payable
upon the redemption or repurchase of any Note or change the time at which any
Note may be redeemed or repurchased pursuant to Sections 6.11, 6.14
or 7.05 of this First Supplemental Indenture whether through an
amendment or waiver of provisions in the covenants, definitions or otherwise
(except amendments to the definitions of “Change of Control” and “Permitted
Holder”);

 

(5)           make any Note payable in
money other than that stated in the Note;

 

45

 

(6)           impair the right of any
Holder to receive payment of principal, premium, if any, and interest on such Holder’s
Notes on or after the due dates therefor or to institute suit for the
enforcement of any payment on or with respect to such Holder’s Notes;

 

(7)           make any change in the
amendment provisions which require each Holder’s consent or in the waiver provisions;

 

(8)           modify the ranking of the
Notes in any manner that adversely affects the rights of any Holder of Notes;
or

 

(9)           modify the Subsidiary
Guarantees in any manner adverse to the Holders of the Notes.

 

It shall not be necessary
for the consent of the Holders under this Section 5.03 to approve
the particular form of any proposed amendment, but it shall be sufficient if
such consent approves the substance thereof. A consent to any amendment or
waiver under the Indenture by any Holder of the Notes given in connection with
a tender of such Holder’s Notes shall not be rendered invalid by such tender.

 

After an amendment under
this Section 5.03 becomes effective, the Company shall mail to
Holders a notice briefly describing such amendment. The failure to give such
notice to all Holders, or any defect therein, shall not impair or affect the
validity of an amendment under this Section 5.03.

 

ARTICLE SIX

COVENANTS WITH RESPECT TO THE NOTES

 

SECTION 6.01              Original
Indenture

 

(a)           Sections
1001, 1005 and 1007 of the Original Indenture shall not apply to the Notes.

 

(b)           The last
word of Section 1008 of the Original Indenture shall be deleted and
replaced with the word “amendment”.

 

(c)           With
respect to the Notes, the references in Section 1009 of the Original
Indenture to (1) Section 901(2) shall also include Section 5.02(6) of
this First Supplemental Indenture, and (2) Section 1005 of the
Original Indenture shall be amended to refer to Section 6.03 of
this First Supplemental Indenture.

 

SECTION 6.02              Payment
of Principal, Premium and Interest

 

The Company covenants and
agrees for the benefit of the Notes that it shall duly and punctually pay the
principal of and any premium and interest on the Notes in accordance with the
terms of the Notes and the Indenture.

 

46

 

The Company shall pay
interest on overdue principal at the rate specified therefor in the Notes, and
it shall pay interest on overdue installments of interest at the same rate to
the extent lawful.

 

SECTION 6.03              Existence

 

Subject to Article Four
and Section 9.02 of this First Supplemental Indenture, the Company
and each of the Subsidiary Guarantors shall do or cause to be done all things
necessary to preserve and keep in full force and effect its corporate existence
and that of each Restricted Subsidiary and the corporate rights (charter and
statutory), licenses and franchises of the Company and each Restricted
Subsidiary; provided, however, that the Company
shall not be required to preserve any such existence (except the Company),
right, license or franchise if the Board of Directors of the Company shall
determine that the preservation thereof is no longer desirable in the conduct
of the business of the Company and each of its Restricted Subsidiaries, taken
as a whole, and that the loss thereof would not have a material adverse effect
on the ability of the Company to perform its obligations under the Notes or the
Indenture, provided, further, the Company and each
Restricted Subsidiary may merge in accordance with Article Four and
Section 9.02 of this First Supplemental Indenture.

 

SECTION 6.04              Statement
by Officers as to Default

 

The Company shall deliver to
the Trustee, as soon as possible and in any event within thirty days after the
Company becomes aware of the occurrence of any Event of Default or an event
which, with notice or the lapse of time or both, would constitute a certain
Default, an Officers’ Certificate setting forth the details of such Event of
Default or default and the action which the Company is taking or proposing to
take with respect thereto.

 

SECTION 6.05              Effectiveness
of Covenants

 

Following the first day on
which:

 

(a)           the Notes
have an Investment Grade Rating from both of the Ratings Agencies; and

 

(b)           no Default
has occurred and is continuing under the Indenture;

 

the Company and its
Restricted Subsidiaries shall not be subject to Sections 6.06, 6.08,
6.10, 6.11, 6.12, 6.13, 6.17, and clause (3) of
Section 4.02 of this First Supplemental Indenture (collectively,
the “Suspended Covenants”). If at any
time the Notes’ credit rating is downgraded from an Investment Grade Rating by
any Rating Agency or a Default or Event of Default occurs and is continuing,
then the Suspended Covenants shall thereafter be reinstated as if such
covenants had never been suspended (the “Reinstatement Date”)
and thereafter be applicable pursuant to the terms of the Indenture (including
in connection with performing any calculation or assessment to determine
compliance with the terms of the Indenture), unless and until the Notes
subsequently attain an Investment Grade Rating (in which event the Suspended
Covenants shall no longer be in effect for such time that the Notes maintain an
Investment Grade Rating and no Default or Event of Default has occurred and is
continuing);

 

47

 

provided, however, that no
Default, Event of Default or breach of any kind shall be deemed to exist under
the Indenture, the Notes or the Subsidiary Guarantees with respect to the
Suspended Covenants based on, and none of the Company or any of its Subsidiaries
shall bear any liability for, any actions taken or events occurring after the
Notes attain an Investment Grade Rating and before any reinstatement of such
Suspended Covenants as provided above, or any actions taken at any time
pursuant to any contractual obligation arising prior to such reinstatement,
regardless of whether such actions or events would have been permitted if the
applicable Suspended Covenants remained in effect during such period. The
period of time between the date of suspension of the covenants and the
Reinstatement Date is referred to as the “Suspension Period.”

 

On the Reinstatement Date,
all Indebtedness Incurred during the Suspension Period shall be classified to
have been Incurred pursuant to Section 6.06(a) of this First
Supplemental Indenture or one of the clauses set forth in Section 6.06(b) of
this First Supplemental Indenture (to the extent such Indebtedness would be
permitted to be Incurred thereunder as of the Reinstatement Date and after
giving effect to Indebtedness Incurred prior to the Suspension Period and
outstanding on the Reinstatement Date). To the extent such Indebtedness would
not be so permitted to be Incurred pursuant to the Section 6.06(a) or
(b) of this First Supplemental Indenture, such Indebtedness shall
be deemed to have been outstanding on the Issue Date, so that it is classified
as permitted under clause (4)(b) of Section 6.06(b) of
this First Supplemental Indenture. Calculations made after the Reinstatement
Date of the amount available to be made as Restricted Payments under Section 6.08
of this First Supplemental Indenture shall be made as though Section 6.08
of this First Supplemental Indenture had been in effect since the Issue Date
and throughout the Suspension Period. Accordingly, Restricted Payments made
during the Suspension Period shall reduce the amount available to be made as
Restricted Payments under Section 6.08(a) of this First
Supplemental Indenture.

 

During any period when the
Suspended Covenants are suspended, the Board of Directors of the Company may
not designate any of the Company’s Subsidiaries as Unrestricted Subsidiaries
pursuant to the Indenture.

 

SECTION 6.06              Limitation
on Indebtedness

 

(a)                                  The Company shall not, and shall not permit any of its
Restricted Subsidiaries to, Incur any Indebtedness (including Acquired
Indebtedness); provided, however, that the
Company and any Subsidiary Guarantor may Incur Indebtedness if on the date
thereof:

 

(1)           the Consolidated Coverage Ratio for
the Company and its Restricted Subsidiaries is at least 2.50 to 1.00; and

 

(2)           no Default or Event of Default shall
have occurred or be continuing or would occur as a consequence of Incurring the
Indebtedness or transactions relating to such Incurrence.

 

(b)                                 Section 6.06(a) of
this First Supplemental Indenture shall not prohibit the Incurrence of the
following Indebtedness:

 

48

 

(1)                                  Indebtedness of the Company or any Subsidiary Guarantor
Incurred pursuant to Credit Facilities in an aggregate amount outstanding at
any time up to the greater of (a) $1.0 billion and (b) 30% of
Adjusted Consolidated Net Tangible Assets determined as of the date of the
Incurrence of such Indebtedness;

 

(2)                                  Guarantees by (a) the Company or Subsidiary Guarantors
of Indebtedness Incurred by the Company or a Subsidiary Guarantor in accordance
with the provisions of the Indenture; provided that
in the event such Indebtedness that is being Guaranteed is a Subordinated
Obligation or a Guarantor Subordinated Obligation, then the related Guarantee
shall be subordinated in right of payment to the Notes or the Subsidiary
Guarantee, as the case may be, and (b) Non-Guarantor Restricted
Subsidiaries of Indebtedness Incurred by Non-Guarantor Restricted Subsidiaries
in accordance with the provisions of the Indenture;

 

(3)                                  Indebtedness of the Company owing to and held by any
Restricted Subsidiary or Indebtedness of a Restricted Subsidiary owing to and
held by the Company or any Restricted Subsidiary; provided,
however,

 

(A)          if the Company is the obligor on such
Indebtedness, such Indebtedness is expressly subordinated to the prior payment
in full in cash of all obligations with respect to the Notes;

 

(B)           if a Subsidiary Guarantor is the
obligor on such Indebtedness and the Company or a Subsidiary Guarantor is not
the obligee, such Indebtedness is subordinated in right of payment to the
Subsidiary Guarantee of such Subsidiary Guarantor; and

 

(C)           (i) any subsequent issuance or
transfer of Capital Stock or any other event which results in any such
Indebtedness being beneficially 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 other than the Company or a Restricted
Subsidiary of the Company shall be deemed, in each case, to constitute an
Incurrence of such Indebtedness by the Company or such Subsidiary, as the case
may be.

 

(4)                                  Indebtedness represented by (a) the Notes issued on the
Issue Date and the Subsidiary Guarantees, (b) any Indebtedness (other than
the Indebtedness described in clauses (1), (2), (3), (6),
(8), (9) and (10) of this Section 6.06(b))
outstanding on the Issue Date and (c) any Refinancing Indebtedness
Incurred in respect of any Indebtedness described in this clause (4) or
clause (5) of this Section 6.06(b) or
Incurred pursuant to Section 6.06(a) of this First
Supplemental Indenture;

 

(5)                                  Indebtedness of a Restricted Subsidiary Incurred and
outstanding on the date on which such Restricted Subsidiary was acquired by, or
merged into, the Company or any Restricted Subsidiary or such Restricted
Subsidiary was designated as such (other than Indebtedness Incurred (a) to
provide all or any portion of the funds utilized to consummate the transaction
or series of related transactions pursuant to which such

 

49

 

Restricted Subsidiary became a
Restricted Subsidiary or was otherwise acquired by the Company or (b) otherwise
in connection with, or in contemplation of, such acquisition); provided, however, that at the time such Restricted
Subsidiary is so acquired, merged or designated, the Company would have been
able to Incur $1.00 of additional Indebtedness pursuant to Section 6.06(a) of
this First Supplemental Indenture after giving effect to the Incurrence of such
Indebtedness pursuant to this clause (5);

 

(6)           Indebtedness under Hedging
Obligations that are Incurred in the ordinary course of business (and not for
speculative purposes) (a) for the purpose of fixing or hedging interest
rate risk with respect to any Indebtedness permitted under the Indenture; (b) for
the purpose of fixing or hedging currency exchange rate risk with respect to
any currency exchanges; or (c) for the purpose of fixing or hedging
commodity price risk with respect to any commodities;

 

(7)           the Incurrence by the Company or any
of its Restricted Subsidiaries of Indebtedness represented by Capitalized Lease
Obligations, mortgage financings, purchase money obligations or other payments,
in each case Incurred to finance all or any part of the purchase price or cost
of construction or improvement of assets or property (other than Capital Stock
or other Investments) acquired, constructed or improved by the Company or such
Restricted Subsidiary and related financing costs, and Attributable Indebtedness,
and all Refinancing Indebtedness Incurred to refund, defease, renew, extend,
refinance or replace any Indebtedness Incurred pursuant to this clause (7),
in an aggregate principal amount not to exceed $25.0 million at any time
outstanding;

 

(8)           Indebtedness Incurred in respect of
workers’ compensation claims, self-insurance obligations, performance, surety
and similar bonds and completion guarantees provided by the Company or a
Restricted Subsidiary in the ordinary course of business;

 

(9)           Indebtedness arising from agreements
of the Company or a Restricted Subsidiary providing for indemnification,
adjustment of purchase price or similar obligations, in each case, Incurred or
assumed in connection with the acquisition or disposition of any business,
assets or Capital Stock of a Restricted Subsidiary or any business or assets of
the Company and Refinancing Indebtedness Incurred with the same counterparty in
respect thereof, provided that the maximum
aggregate liability in respect of all such Indebtedness shall at no time exceed
the gross proceeds actually paid or received by the Company and its Restricted
Subsidiaries in connection with such acquisition or disposition;

 

(10)         Indebtedness arising from the honoring
by a bank or other financial institution of a check, draft or similar
instrument (except in the case of daylight overdrafts) drawn against
insufficient funds or in respect of cash management services provided by a bank
or other financial institution, each in the ordinary course of business, provided, however, that such Indebtedness is extinguished
within five Business Days of Incurrence;

 

(11)         Indebtedness in respect of the
financing of insurance premiums with the providers of such insurance or their
Affiliates in the ordinary course of business;

 

50

 

(12)         for the avoidance of doubt, in-kind
obligations relating to net oil or natural gas balancing positions arising in
the ordinary course of business; and

 

(13)         in addition to the items referred to in
clauses (1) through (12) above, Indebtedness of the
Company and its Restricted Subsidiaries in an aggregate outstanding principal
amount which, when taken together with the principal amount of all other
Indebtedness Incurred pursuant to this clause (13) and then
outstanding, shall not exceed $20.0 million at any time outstanding.

 

The Company shall not Incur
any Indebtedness under the preceding paragraph if the proceeds thereof are
used, directly or indirectly, to refinance any Subordinated Obligations of the
Company unless such Indebtedness shall be subordinated to the Notes to at least
the same extent as such Subordinated Obligations. No Subsidiary Guarantor shall
Incur any Indebtedness under the preceding paragraph if the proceeds thereof
are used, directly or indirectly, to refinance any Guarantor Subordinated
Obligations of such Subsidiary Guarantor unless such Indebtedness shall be
subordinated to the obligations of such Subsidiary Guarantor under its
Subsidiary Guarantee to at least the same extent as such Guarantor Subordinated
Obligations.  No Restricted Subsidiary
(other than a Subsidiary Guarantor) may Incur any Indebtedness if the proceeds
are used to refinance Indebtedness of the Company or a Subsidiary Guarantor.

 

(c)                                  For purposes of determining compliance with, and the
outstanding principal amount of any particular Indebtedness Incurred pursuant
to and in compliance with, this Section 6.06:

 

(1)           in the event that Indebtedness meets
the criteria of more than one of the types of Indebtedness described in this Section 6.06,
the Company, in its sole discretion, shall classify such item of Indebtedness
on the date of Incurrence and may from time to time re-classify such item of
Indebtedness in any manner that complies with this Section 6.06 and
only be required to include the amount and type of such Indebtedness in one of
such clauses; provided that all Indebtedness
outstanding on the Issue Date under the Senior Credit Facility shall be deemed
Incurred under clause (1) of Section 6.06(b) and
not Section 6.06(a) of this First Supplemental Indenture or clause (4) of
Section 6.06(b);

 

(2)           Guarantees of, or obligations in
respect of letters of credit relating to, Indebtedness which is otherwise
included in the determination of a particular amount of Indebtedness shall not
be included;

 

(3)           if obligations in respect of letters
of credit are Incurred pursuant to a Credit Facility and are being treated as
Incurred pursuant to clause (1) of Section 6.06(b) and
the letters of credit relate to other Indebtedness, then such other
Indebtedness shall not be included;

 

(4)           the principal amount of any
Disqualified Stock of the Company or a Restricted Subsidiary, or Preferred
Stock of a Restricted Subsidiary that is not a Subsidiary Guarantor, shall be
equal to the greater of the maximum mandatory

 

51

 

redemption or repurchase price (not
including, in either case, any redemption or repurchase premium) or the
liquidation preference thereof;

 

(5)           Indebtedness permitted by this Section 6.06
need not be permitted solely by reference to one provision permitting such
Indebtedness but may be permitted in part by one such provision and in part by
one or more other provisions of this Section 6.06 permitting such
Indebtedness;

 

(6)           the principal amount of any
Indebtedness outstanding in connection with a securitization transaction or
series of securitization transactions is the amount of obligations outstanding
under the legal documents entered into as part of such transaction that would
be characterized as principal if such transaction were structured as a secured
lending transaction rather than as a purchase relating to such transaction; and

 

(7)           the amount of Indebtedness issued at
a price that is less than the principal amount thereof shall be equal to the
amount of the liability in respect thereof determined in accordance with GAAP.

 

Accrual of interest, accrual
of dividends, the accretion of accreted value, the payment of interest in the
form of additional Indebtedness, the payment of dividends in the form of
additional shares of Preferred Stock or Disqualified Stock and the incurrence
of unrealized losses or charges in respect of Hedging Obligations (including
those resulting from the application of FAS 133 and similar provisions), in
each case shall be deemed not to be Incurrences of Indebtedness for purposes of
this Section 6.06. The amount of any Indebtedness outstanding as of
any date shall be (i) the accreted value thereof in the case of any
Indebtedness issued with original issue discount and (ii) the principal
amount or liquidation preference thereof, together with any interest thereon
that is more than 30 days past due, in the case of any other Indebtedness.

 

In addition, the Company
shall not permit any of its Unrestricted Subsidiaries to Incur any Indebtedness
or issue any shares of Disqualified Stock, other than Non Recourse Debt. If at
any time an Unrestricted Subsidiary becomes a Restricted Subsidiary, any
Indebtedness of such Subsidiary shall be deemed to be Incurred by a Restricted
Subsidiary as of such date (and, if such Indebtedness is not permitted to be
Incurred as of such date under this Section 6.06, the Company shall
be in Default of this Section 6.06).

 

For purposes of determining
compliance with any U.S. dollar denominated restriction on the Incurrence of
Indebtedness, the U.S. dollar equivalent principal amount of Indebtedness
denominated in a foreign currency shall be calculated based on the relevant
currency exchange rate in effect on the date such Indebtedness was Incurred, in
the case of term Indebtedness, or first committed, in the case of revolving
credit Indebtedness; provided that
if such Indebtedness is Incurred to refinance other Indebtedness denominated in
a foreign currency, and such refinancing would cause the applicable U.S.
dollar-denominated restriction to be exceeded if calculated at the relevant
currency exchange rate in effect on the date of such refinancing, such U.S.
dollar-denominated restriction shall be deemed not to have been exceeded so long
as the principal amount of such refinancing Indebtedness does not exceed the
principal amount of such Indebtedness being refinanced. Notwithstanding any
other provision of this Section 6.06, the

 

52

 

maximum
amount of Indebtedness that the Company may Incur pursuant to this Section 6.06
shall not be deemed to be exceeded solely as a result of fluctuations in the
exchange rate of currencies. The principal amount of any Indebtedness Incurred
to refinance other Indebtedness, if Incurred in a different currency from the
Indebtedness being refinanced, shall be calculated based on the currency
exchange rate applicable to the currencies in which such Refinancing
Indebtedness is denominated that is in effect on the date of such refinancing.

 

SECTION 6.07              Calculation of Original Issue Discount

 

The Company shall file with
the Trustee within 30 days of the end of each calendar year (i) a written
notice specifying the amount of original issue discount (including daily rates
and accrual periods) accrued on the Notes as of the end of such year and (ii) such
other specific information relating to such original issue discount as may be
required under the Code.

 

SECTION 6.08              Limitation
on Restricted Payments

 

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

 

(1)                                  declare or pay any dividend or make any distribution (whether
made in cash, securities or other property) on or in respect of its Capital
Stock (including any payment in connection with any merger or consolidation
involving the Company or any of its Restricted Subsidiaries) except:

 

(A)          dividends or distributions payable in
Capital Stock of the Company (other than Disqualified Stock); and

 

(B)           dividends or distributions payable to
the Company or another Restricted Subsidiary (and if such Restricted Subsidiary
is not a Wholly Owned Subsidiary, to its other holders of common Capital Stock
on a pro rata basis);

 

(2)                                  purchase, redeem, retire or otherwise acquire for value any
Capital Stock of the Company or any direct or indirect parent of the Company
held by Persons other than the Company or a Restricted Subsidiary (other than
in exchange for Capital Stock of the Company (other than Disqualified Stock));

 

(3)                                  purchase, repurchase, redeem, defease or otherwise acquire or
retire for value, prior to scheduled maturity, scheduled repayment or scheduled
sinking fund payment, any Subordinated Obligations or Guarantor Subordinated
Obligations (other than (a) Indebtedness of the Company owing to and held
by any Subsidiary Guarantor or Indebtedness of a Subsidiary Guarantor owing to
and held by the Company or any other Subsidiary Guarantor permitted under clause (3) of
Section 6.06(b) of this First Supplemental Indenture or (b) the
purchase, repurchase, redemption, defeasance or other acquisition or retirement
of Subordinated Obligations or Guarantor Subordinated Obligations in
anticipation of satisfying a sinking fund obligation, principal installment or
final maturity, in each case due within one year of the date of purchase,
repurchase, redemption, defeasance or other acquisition or retirement); or

 

53

 

(4)                                  make any Restricted Investment in any Person;

 

(any such dividend, distribution,
purchase, redemption, repurchase, defeasance, other acquisition, retirement or
Restricted Investment referred to in clauses (1) through (4) above
shall be referred to herein as a “Restricted Payment”),
if at the time the Company or such Restricted Subsidiary makes such Restricted
Payment:

 

(A)                              a Default shall have occurred and be continuing (or would
result therefrom); or

 

(B)                                the Company is not able to Incur $1.00 of additional
Indebtedness pursuant to Section 6.06(a) of this First
Supplemental Indenture after giving effect, on a pro forma basis, to such
Restricted Payment as if such Restricted Payment and the use of proceeds
thereof had been made at the beginning of the applicable four-quarter period;
or

 

(C)                                the aggregate amount of such Restricted Payment and all other
Restricted Payments declared or made subsequent to the Start Date (except as
excluded by other provisions of this Section 6.08) would exceed the
sum of (all such calculations being made as if this covenant had been in effect
as of the Start Date and at all times thereafter):

 

(i)            50% of Consolidated Net Income for
the period (treated as one accounting period) from the beginning of the fiscal
quarter prior to the quarter in which the Start Date occured to the end of the
most recent fiscal quarter ending prior to the date of such Restricted Payment
for which financial statements are in existence (or, in case such Consolidated
Net Income is a deficit, minus 100% of such deficit); plus

 

(ii)           100% of the aggregate fair market
value of Qualified Proceeds received by the Company or any Subsidiary Guarantor
from the issue or sale of its Capital Stock (other than Disqualified Stock) or
other capital contributions subsequent to the Start Date (other than Qualified
Proceeds received from an issuance or sale of such Capital Stock to a
Subsidiary of the Company or an employee stock ownership plan, option plan or
similar trust to the extent such sale to an employee stock ownership plan or
similar trust is financed by loans from or Guaranteed by the Company or any
Restricted Subsidiary unless such loans have been repaid with cash on or prior
to the date of determination) excluding in any event Qualified Proceeds to the
extent used as consideration for Permitted Investments pursuant to clause (17)
of the definition of “Permitted Investments”; plus

 

(iii)          the amount by which Indebtedness of
the Company or its Restricted Subsidiaries is reduced on the Company’s balance
sheet upon the conversion or exchange (other than by a Subsidiary of the
Company) subsequent to the Start Date of any Indebtedness of the Company or its

 

54

 

Restricted Subsidiaries convertible
or exchangeable for Capital Stock (other than Disqualified Stock) of the
Company (less the amount of any cash, or the fair market value of any other
property, distributed by the Company upon such conversion or exchange); plus

 

(iv)                              the amount equal to the net reduction in Restricted
Investments made by the Company or any of its Restricted Subsidiaries in any
Person resulting from:

 

(A)          repurchases or redemptions of such
Restricted Investments by such Person, proceeds realized upon the sale of such
Restricted Investment to an unaffiliated purchaser, repayments of loans or
advances or other transfers of assets (including by way of dividend or
distribution) by such Person to the Company or any Restricted Subsidiary (other
than for reimbursement of tax payments) and to the extent not otherwise already
included releases or reductions of Guarantees; or

 

(B)           the redesignation of Unrestricted
Subsidiaries as Restricted Subsidiaries or the merger or consolidation of an
Unrestricted Subsidiary with and into the Company or any of its Restricted
Subsidiaries (valued in each case as provided in the definition of “Investment”)
not to exceed the amount of Investments previously made by the Company or any
Restricted Subsidiary in such Unrestricted Subsidiary,

 

which amount in each case
under this clause (iv) was included in the calculation of the
amount of Restricted Payments; provided, however,
that no amount shall be included under this clause (iv) to the
extent it is already included in Consolidated Net Income.

 

(b)                                 The provisions of Section 6.08(a) of this
First Supplemental Indenture shall not prohibit:

 

(1)                                  any purchase, repurchase, redemption, defeasance or other
acquisition or retirement of Capital Stock, Disqualified Stock or Subordinated
Obligations of the Company or Guarantor Subordinated Obligations of any
Subsidiary Guarantor made by conversion into or exchange for, or out of the
proceeds of the substantially concurrent sale of, Capital Stock of the Company
(other than Disqualified Stock and other than Capital Stock issued or sold to a
Subsidiary or an employee stock ownership plan or similar trust to the extent
such sale to an employee stock ownership plan or similar trust is financed by
loans from or Guaranteed by the Company or any Restricted Subsidiary unless
such loans have been repaid with cash on or prior to the date of
determination); provided, however, that the
amount of such Restricted Payments shall be excluded in subsequent calculations
of the amount of Restricted Payments; provided, further,
that the Qualified Proceeds from such sale of Capital Stock (to the extent so
used) shall be excluded from clause (C)(ii) of Section 6.08(a) of
this First Supplemental Indenture;

 

55

 

(2)                                  any purchase, repurchase, redemption, defeasance or other
acquisition or retirement of Subordinated Obligations of the Company or Guarantor
Subordinated Obligations of any Subsidiary Guarantor made by exchange for, or
out of the proceeds of the substantially concurrent sale or Incurrence of,
Subordinated Obligations of the Company or any purchase, repurchase,
redemption, defeasance or other acquisition or retirement of Guarantor
Subordinated Obligations made by exchange for or out of the proceeds of the
substantially concurrent sale or Incurrence of Guarantor Subordinated
Obligations that, in each case, is permitted to be Incurred pursuant to Section 6.06
of this First Supplemental Indenture and that, if Incurred under Section 6.06(b) of
this First Supplemental Indenture, in each case constitutes Refinancing
Indebtedness; provided, however, that the
amount of such Restricted Payments shall be excluded in subsequent calculations
of the amount of Restricted Payments;

 

(3)                                  any purchase, repurchase, redemption, defeasance or other
acquisition or retirement of Disqualified Stock of the Company or a Restricted
Subsidiary made by exchange for or out of the proceeds of the substantially
concurrent sale of Disqualified Stock of the Company or such Restricted
Subsidiary, as the case may be, that, in each case, is permitted to be Incurred
pursuant to Section 6.06 of this First Supplemental Indenture and
that in each case constitutes Refinancing Indebtedness; provided,
however, that the amount of such Restricted Payments shall be
excluded in subsequent calculations of the amount of Restricted Payments;

 

(4)                                  dividends paid within 60 days after the date of declaration
if at such date of declaration such dividend would have complied with this
provision; provided, however, that from and after
the date of payment thereof the amount of such Restricted Payments shall be
included in subsequent calculations of the amount of Restricted Payments;

 

(5)                                  so long as no Default or Event of Default has occurred and is
continuing,

 

(A)          the repurchase, redemption or other
acquisition or retirement for value of Capital Stock of the Company or any
direct or indirect parent of the Company held by any existing or former
employees or directors of the Company or any Subsidiary of the Company or their
assigns, estates or heirs, in each case in connection with the repurchase
provisions under employee stock option or stock purchase agreements or other
compensation-related agreements; provided that
such Capital Stock was received for services related to, or for the benefit of,
the Company and its Subsidiaries; and provided further
that such repurchases, redemptions, acquisitions and retirements pursuant to
this clause shall not exceed $2.0 million in the aggregate during any calendar
year and $5.0 million in the aggregate for all such redemptions and
repurchases, plus in each case, to the extent not previously applied, the
amount of any capital contributions to the Company as a result of sales of
Capital Stock of the Company or any direct or indirect parent of the Company to
such Persons (provided, however, that the
Qualified Proceeds from such sale of Capital Stock (to the extent so used)
shall be excluded from clause (C)(ii) of Section 6.08(a) of
this First Supplemental

 

56

 

Indenture), plus the amount of any “key
man” insurance proceeds received by the Company or any Restricted Subsidiary to
the extent not previously applied; and

 

(B)           loans or advances to, and Guarantees
of obligations of, employees, officers or directors of the Company or any
Subsidiary of the Company the proceeds of which are used to purchase Capital
Stock of the Company or any direct or indirect parent of the Company, in an
aggregate amount not in excess of $2.0 million with respect to all loans or
advances made since the Start Date (without giving effect to the forgiveness of
any such loan); provided, however, that the
Company and its Subsidiaries shall comply in all material respects with the
provisions of the Sarbanes Oxley Act of 2002 and the rules and regulations
promulgated in connection therewith relating to the provision of any such loans
and advances as if the Company had filed a registration statement with the
Commission;

 

provided, however, that the amount of such Restricted Payments
shall be excluded in subsequent calculations of the amount of Restricted
Payments;

 

(6)                                  so long as no Default or Event of Default has occurred and is
continuing, the declaration and payment of dividends to holders of any class or
series of Disqualified Stock of the Company issued in accordance with the terms
of the Indenture to the extent such dividends are included in the definition of
“Consolidated Interest Expense;” provided, however,
that the amount of such Restricted Payments shall be excluded in subsequent
calculations of the amount of Restricted Payments;

 

(7)                                  repurchases of Capital Stock deemed to occur upon the
exercise of stock options, warrants or other convertible securities if such
Capital Stock represents a portion of the exercise price thereof; provided, however, that the amount of such Restricted
Payments shall be excluded in subsequent calculations of the amount of Restricted
Payments;

 

(8)                                  the purchase, repurchase, redemption, defeasance or other
acquisition or retirement for value of any Subordinated Obligation or Guarantor
Subordinated Obligation (A) at a purchase price not greater than 101% of
the principal amount of such Subordinated Obligation or Guarantor Subordinated
Obligation in the event of a Change of Control in accordance with provisions
similar to Section 6.14 of this First Supplemental Indenture or (B) at
a purchase price not greater than 100% of the principal amount thereof in
accordance with provisions similar to Section 6.11 of this First
Supplemental Indenture; provided that,
prior to or simultaneously with such purchase, repurchase, redemption,
defeasance or other acquisition or retirement, the Company (or a third party,
in the case of a Change of Control Offer) has made the Change of Control Offer
or Asset Disposition Offer, as applicable, as provided in such covenant with
respect to the Notes and has completed the repurchase of all Notes validly tendered
for payment in connection with such Change of Control Offer or Asset
Disposition Offer; provided, however,
that the amount of such Restricted Payments shall be included in subsequent
calculations of the amount of Restricted Payments;

 

57

 

(9)           (A) so long as no Event of
Default described under clauses (1) or (2) thereof
has occurred and is continuing, the declaration of dividends to holders of
Common Stock of the Company of up to $10.0 million in the aggregate for all
such dividends and the subsequent payment of such dividends and (B) so
long as no Default or Event of Default has occurred and is continuing, the
declaration of dividends to holders of Common Stock of the Company of up to
$0.36 per share per calendar year (but in no event in excess of $20.0 million
in the aggregate during any calendar year pursuant to this clause (9))
and the subsequent payment of such dividends; provided,
however, that in each case the amount of such Restricted Payments
shall be included in subsequent calculations of the amount of Restricted
Payments;

 

(10)         so long as no Default or Event of
Default has occurred and is continuing, repurchases of Common Stock pursuant to
a previously announced share repurchase program for up to an aggregate purchase
price after the Issue Date of $25.0 million; provided,
however, that the amount of such Restricted Payments shall be
included in subsequent calculations of the amount of Restricted Payments;

 

(11)         for avoidance of doubt, payments
pursuant to any customary tax sharing or tax indemnification arrangement; provided, however, that the amount of such payments shall be
excluded in subsequent calculations of the amount of Restricted Payments;

 

(12)         the payment of cash in lieu of issuance
of fractional shares of Capital Stock in connection with any transaction
otherwise permitted under this Section 6.08; provided,
however, that the amount of such Restricted Payments shall be
included in subsequent calculations of the amount of Restricted Payments;

 

(13)         payments to dissenting stockholders not
to exceed $5.0 million (A) pursuant to applicable law or (B) in
connection with the settlement or other satisfaction of legal claims made
pursuant to or in connection with a consolidation, merger or transfer of assets
in connection with a transaction that is not prohibited by the Indenture; provided, however, that such payments shall be included in
subsequent calculations of the amount of Restricted Payments; and

 

(14)         so long as no Default or Event of
Default has occurred and is continuing, Restricted Payments in an aggregate
amount not to exceed $30.0 million; provided, however,
that the amount of such Restricted Payments shall be included in subsequent
calculations of the amount of Restricted Payments.

 

The amount of all Restricted
Payments (other than cash) shall be the fair market value on the date of such
Restricted Payment of the asset(s) or securities proposed to be paid,
transferred or issued by the Company or such Restricted Subsidiary, as the case
may be, pursuant to such Restricted Payment. The fair market value of any cash
Restricted Payment shall be its face amount and any non-cash Restricted Payment
(i) of less than $5.0 million shall be determined conclusively by an
executive officer of the Company acting in good faith whose certification with
respect thereto shall be delivered to the Trustee or (ii) of $5.0 million
or more shall be determined conclusively by the Board of Directors of the
Company acting in good faith whose resolution with respect thereto shall be
delivered to the Trustee, such determination to be based

 

58

 

upon
an opinion or appraisal issued by an accounting, appraisal or investment
banking firm of national standing if such fair market value is estimated in
good faith by the Board of Directors of the Company to exceed $25.0 million.
Not later than the date of making any Restricted Payment, the Company shall
deliver to the Trustee an Officers’ Certificate stating that such Restricted
Payment is permitted and setting forth the basis upon which the calculations
required by this Section 6.08 were computed, together with a copy
of any fairness opinion or appraisal required by the Indenture.

 

SECTION 6.09              Limitation
on Liens

 

The Company shall not, and
shall not permit any of its Restricted Subsidiaries to, directly or indirectly,
create, Incur or suffer to exist any Lien (other than Permitted Liens) upon any
of its property or assets (including Capital Stock of Subsidiaries), whether
owned on the Issue Date or acquired after that date, which Lien is securing any
Indebtedness, unless contemporaneously with the Incurrence of such Liens
effective provision is made to secure the Indebtedness due under the Indenture
and the Notes and, in respect of Liens on any Restricted Subsidiary’s property
or assets, any Subsidiary Guarantee of such Restricted Subsidiary, with Liens
on such property or assets (1) in the case of unsubordinated Indebtedness,
that rank equally and ratably with, or senior in priority to, the Liens
securing such other Indebtedness, and (2) in the case of Subordinated
Obligations or Guarantor Subordinated Obligations, that rank senior in priority
to the Liens securing such other Indebtedness, in each case for so long as such
other Indebtedness is so secured.

 

SECTION 6.10              Limitation
on Restrictions on Distributions from Restricted Subsidiaries

 

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

 

(1)           pay dividends or make any other
distributions on its Capital Stock or pay any Indebtedness or other obligations
owed to the Company or any Restricted Subsidiary (it being understood that the
priority of any Preferred Stock in receiving dividends or liquidating
distributions prior to dividends or liquidating distributions being paid on
Common Stock shall not be deemed a restriction on the ability to make
distributions on Capital Stock);

 

(2)           make any loans or advances to the
Company or any Restricted Subsidiary (it being understood that the
subordination of loans or advances made to the Company or any Restricted
Subsidiary to other Indebtedness Incurred by the Company or any Restricted Subsidiary
shall not be deemed a restriction on the ability to make loans or advances); or

 

(3)           transfer any of its property or
assets to the Company or any Restricted Subsidiary (it being understood that
such transfers shall not include any type of transfer described in clause (1) or
(2) above).

 

(b)                                 Section 6.10(a) of
this First Supplemental Indenture shall not prohibit:

 

59

 

(1)           any encumbrance or restriction
pursuant to an agreement in effect at or entered into on the Issue Date,
including, without limitation, the Indenture, the Notes and the Senior Credit
Facility (and related documentation) in effect on such date;

 

(2)           any encumbrance or restriction with
respect to a Restricted Subsidiary pursuant to any Capital Stock or agreement
(including an agreement relating to any Capital Stock or Indebtedness) Incurred
by a Restricted Subsidiary on or before the date on which such Restricted
Subsidiary became a Restricted Subsidiary or was merged with or into or consolidated
with or was acquired by the Company or a Restricted Subsidiary (other than
Capital Stock or Indebtedness Incurred as consideration in, or to provide all
or any portion of the funds utilized to consummate, the transaction or series
of related transactions pursuant to which such Restricted Subsidiary became a
Restricted Subsidiary or was acquired by the Company or in contemplation of the
transaction) and outstanding on such date provided, that
any such encumbrance or restriction shall not extend to any assets or property
of the Company or any other Restricted Subsidiary other than the assets and
property so acquired and all improvements, additions and accessions thereto and
products and proceeds thereof, and that, in the case of Indebtedness, was permitted
to be Incurred pursuant to the Indenture;

 

(3)           any encumbrance or restriction with
respect to a Restricted Subsidiary pursuant to an agreement effecting a
refunding, replacement or refinancing, in whole or in part, of Indebtedness
Incurred pursuant to an agreement referred to in clause (1) or
(2) of this Section 6.10(b) or this clause (3) or
contained in any amendment, restatement, modification, renewal, supplement,
refunding, replacement or refinancing of an agreement referred to in clause (1) or
(2) of this Section 6.10(b) or this clause (3);
provided, however, that the encumbrances
and restrictions with respect to such Restricted Subsidiary contained in any
such agreement are not materially less favorable, taken as a whole, to the
Holders of the Notes than the encumbrances and restrictions contained in such
agreements referred to in clauses (1) or (2) of
this Section 6.10(b) on the Issue Date or the date such
Restricted Subsidiary became a Restricted Subsidiary or was merged into a
Restricted Subsidiary, whichever is applicable;

 

(4)           in the case of clause (3) of
Section 6.10(a) of this First Supplemental Indenture,
encumbrances and restrictions in agreements governing Liens permitted to be
incurred under the provisions of Section 6.09 of this First Supplemental
Indenture;

 

(5)           (i) purchase money obligations
for property acquired in the ordinary course of business and (ii) Capitalized
Lease Obligations permitted under the Indenture, in each case, that impose
encumbrances or restrictions of the nature described in clause(3) of
Section 6.10(a) of this First Supplemental Indenture on the
property so acquired;

 

(6)           any restriction with respect to a
Restricted Subsidiary (or any of its property or assets) imposed pursuant to an
agreement entered into for the direct or indirect sale or disposition of the
Capital Stock or assets of such Restricted Subsidiary (or the property or
assets that are subject to such restriction) pending the closing of such sale
or disposition;

 

60

 

(7)           any customary encumbrances or
restrictions imposed pursuant to any agreement constituting a Permitted
Business Investment;

 

(8)           restrictions on cash or other
deposits and net worth provisions in leases and other agreements entered into
by the Company or any Restricted Subsidiary in the ordinary course of business;

 

(9)           encumbrances or restrictions arising
or existing by reason of applicable law or any applicable rule, regulation or
order;

 

(10)         encumbrances or restrictions contained
in Credit Facilities, indentures, other debt agreements and Hedging Obligations
Incurred by the Company or any Restricted Subsidiary or Preferred Stock issued
by Restricted Subsidiaries subsequent to the Issue Date and permitted pursuant
to Section 6.06 of this First Supplemental Indenture; provided that such encumbrances and restrictions contained
in any such agreement or instrument shall not materially affect the Company’s
ability to make anticipated principal or interest payments on the Notes (as
determined by the Board of Directors of the Company);

 

(11)         customary supermajority voting
provisions and other similar provisions contained in corporate charters,
bylaws, stockholders’ agreements, limited liability company agreements,
partnership agreements, joint venture agreements and other similar agreements;

 

(12)         encumbrances and restrictions contained
in contracts entered into in the ordinary course of business, not relating to
any Indebtedness, and that do not, individually or in the aggregate, detract
from the value of property or assets of the Company or any Restricted
Subsidiary or the ability of the Company or such Restricted Subsidiary to
realize such value, or to make any distributions relating to such property or
assets in each case in any material respect; and

 

(13)         restrictions on the transfer of
property or assets required by any regulatory authority having jurisdiction
over the Company or any Restricted Subsidiary or any of their businesses.

 

SECTION 6.11              Limitation
on Sales of Assets and Subsidiary Stock

 

(a)                                  The Company shall not, and shall not permit any of its
Restricted Subsidiaries to, make any Asset Disposition unless:

 

(1)           the Company or such Restricted
Subsidiary, as the case may be, receives consideration at least equal to the
fair market value (such fair market value to be determined on the date of
contractually agreeing to such Asset Disposition), as determined in good faith
by the Board of Directors (including as to the value of all non-cash
consideration), of the shares and assets subject to such Asset Disposition;

 

61

 

(2)                                  at least 75% of the consideration from such Asset Disposition
received by the Company or such Restricted Subsidiary, as the case may be, is
in the form of cash or Cash Equivalents; and

 

(3)                                  an amount equal to 100% of the Net Available Cash from such
Asset Disposition is applied by the Company or such Restricted Subsidiary, as
the case may be:

 

(A)          to the extent the Company or any
Restricted Subsidiary, as the case may be, elects or is required to do so, to
prepay, repay, redeem, defease or purchase Indebtedness of the Company or a
Restricted Subsidiary (other than Capital Stock, Disqualified Stock,
Subordinated Obligations, Guarantor Subordinated Obligations or Indebtedness
owed to the Company or an Affiliate of the Company) within 330 days from the
later of the date of such Asset Disposition or the receipt of such Net
Available Cash; provided, however, that, in
connection with any prepayment, repayment, redemption, defeasance or purchase
of Indebtedness pursuant to this clause (3)(A), the Company or such
Restricted Subsidiary shall retire such Indebtedness and shall cause the
related commitment (if any) to be permanently reduced in an amount equal to the
principal amount so prepaid, repaid, redeemed, defeased or purchased; and

 

(B)           to the extent the Company or such
Restricted Subsidiary elects, to invest in Additional Assets within 330 days
from the later of the date of such Asset Disposition or the receipt of such Net
Available Cash;

 

provided that pending the final application of any such Net
Available Cash in accordance with clause (3)(A) or clause (3)(B) of
this Section 6.11(a), the Company and its Restricted Subsidiaries
may temporarily reduce Indebtedness or otherwise invest such Net Available Cash
in any manner not prohibited by the Indenture.

 

Any Net Available Cash from
Asset Dispositions that is not applied or invested as provided in the preceding
paragraph shall be deemed to constitute “Excess Proceeds.” On the 331st day after
an Asset Disposition, if the aggregate amount of Excess Proceeds exceeds $20.0
million, the Company shall be required to (and may, in satisfaction of such
requirement, at any time prior to such day) make an offer (an “Asset Disposition Offer”) to all Holders
of Notes and to the extent required by the terms of other Pari Passu
Indebtedness, to all Holders of other Pari Passu Indebtedness outstanding with
similar provisions requiring the Company to make an offer to purchase such Pari
Passu Indebtedness with the proceeds from any Asset Disposition (“Pari Passu Notes”), to purchase the
maximum principal amount of Notes and any such Pari Passu Notes to which the
Asset Disposition Offer applies that may be purchased out of the Excess
Proceeds, at an offer price in cash in an amount equal to 100% of the principal
amount of the Notes and Pari Passu Notes plus accrued and unpaid interest to
the date of purchase, in accordance with the procedures set forth in the
Indenture or the agreements governing the Pari Passu Notes, as applicable, in
each case in denominations of $2,000 and larger integral multiples of $1,000.
To the extent that the aggregate amount of Notes and Pari Passu Notes so
validly tendered and not properly withdrawn pursuant to an Asset Disposition Offer
is less than the Excess Proceeds, the Company may use any remaining Excess
Proceeds for general corporate

 

62

 

purposes,
subject to other covenants contained in the Indenture. If the aggregate
principal amount of Notes surrendered by Holders thereof and other Pari Passu
Notes surrendered by Holders or lenders, collectively, exceeds the amount of
Excess Proceeds, the Trustee shall select the Notes and Pari Passu Notes to be
purchased on a pro rata basis on the basis of the aggregate principal amount of
tendered Notes and Pari Passu Notes. Upon completion of such Asset Disposition
Offer, the amount of Excess Proceeds shall be reset at zero.

 

(b)           The Asset
Disposition Offer shall remain open for a period of 20 Business Days following
its commencement, except to the extent that a longer period is required by
applicable law (the “Asset Disposition Offer
Period”). No later than five Business Days after the termination
of the Asset Disposition Offer Period (the “Asset
Disposition Purchase Date”), the Company shall purchase the
principal amount of Notes and Pari Passu Notes required to be purchased
pursuant to this Section 6.11 (the “Asset
Disposition Offer Amount”) or, if less than the Asset
Disposition Offer Amount has been so validly tendered, all Notes and Pari Passu
Notes validly tendered in response to the Asset Disposition Offer.

 

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

 

On or before the Asset
Disposition Purchase Date, the Company shall, to the extent lawful, accept for
payment, on a pro rata basis to the extent necessary, the Asset Disposition
Offer Amount of Notes and Pari Passu Notes or portions of Notes and Pari Passu
Notes so validly tendered and not properly withdrawn pursuant to the Asset
Disposition Offer, or if less than the Asset Disposition Offer Amount has been
validly tendered and not properly withdrawn, all Notes and Pari Passu Notes so
validly tendered and not properly withdrawn, in each case in integral multiples
of $1,000. The Company shall deliver to the Trustee 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 6.11 and, in
addition, the Company shall deliver all certificates and notes required, if
any, by the agreements governing the Pari Passu Notes. The Company or the
Paying Agent, as the case may be, shall promptly (but in any case not later
than five Business Days after the termination of the Asset Disposition Offer
Period) mail or deliver to each tendering Holder of Notes or Holder or lender
of Pari Passu Notes, as the case may be, an amount equal to the purchase price
of the Notes or Pari Passu Notes so validly tendered and not properly withdrawn
by such Holder or lender, as the case may be, and accepted by the Company for
purchase, and the Company shall promptly issue a new Note, and the Trustee,
upon delivery of an Officers’ Certificate from the Company, shall authenticate
and mail or deliver such new Note to such Holder, in a principal amount equal
to any unpurchased portion of the Note surrendered; provided
that each such new Note shall be in a principal amount of $2,000 or a larger
integral multiple of $1,000. In addition, the Company shall take any and all
other actions required by the agreements governing the Pari Passu Notes. 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 Disposition Offer on the Asset Disposition Purchase Date.

 

63

 

(c)                                  For the purposes of clause (2) of Section 6.11(a) of
this First Supplemental Indenture only, the following shall be deemed to be
cash:

 

(1)           the release of the Company and its
Restricted Subsidiaries from all liability on Indebtedness (other than
Subordinated Obligations or Disqualified Stock) of the Company or Indebtedness
of a Restricted Subsidiary (other than Guarantor Subordinated Obligations or
Disqualified Stock of any Subsidiary Guarantor) in connection with such Asset
Disposition, whether by assumption and release, satisfaction and discharge, or
otherwise (in which case the Company shall, without further action, be deemed
to have applied such deemed cash to Indebtedness in accordance with clause (3)(A) of
Section 6.11(a) of this First Supplemental Indenture); and

 

(2)           securities, notes or other
obligations received by the Company or any Restricted Subsidiary from the
transferee that are promptly converted by the Company or such Restricted
Subsidiary into cash or Cash Equivalents.

 

(d)                                 The Company shall not, and shall not permit any Restricted
Subsidiary to, engage in any Asset Swaps, unless:

 

(1)           at the time of entering into such
Asset Swap and immediately after giving effect to such Asset Swap, no Default
or Event of Default shall have occurred and be continuing or would occur as a
consequence thereof;

 

(2)           in the event such Asset Swap involves
the transfer by the Company or any Restricted Subsidiary of assets having an
aggregate fair market value, as determined by the Board of Directors of the
Company in good faith, in excess of $10.0 million, the terms of such Asset Swap
have been approved by a majority of the members of the Board of Directors of
the Company; and

 

(3)           in the event such Asset Swap involves
the transfer by the Company or any Restricted Subsidiary of assets having an
aggregate fair market value, as determined by the Board of Directors of the
Company in good faith, in excess of $25.0 million, the terms of such Asset Swap
have been approved by a majority of the independent members of the Board of
Directors of the Company.

 

(e)                                  The Company shall comply, to the extent applicable, with the
requirements of Rule 14e-1 under the Exchange Act and any other securities
laws or regulations in connection with the repurchase of Notes pursuant to this
Section 6.11. To the extent that the provisions of any securities
laws or regulations conflict with provisions of this Section 6.11,
the Company shall comply with the applicable securities laws and regulations
and shall not be deemed to have breached its obligations under the Indenture by
virtue of any conflict.

 

SECTION 6.12              Limitation
on Affiliate Transactions

 

(a)                                  The Company shall not, and shall not permit any of its
Restricted Subsidiaries to, directly or indirectly, enter into or conduct any
transaction (including the purchase, sale, lease or exchange of any property or
the rendering of any service) with any Affiliate of the Company (an “Affiliate Transaction”) unless:

 

64

 

(1)           the terms of such Affiliate
Transaction are no less favorable to the Company or such Restricted Subsidiary,
as the case may be, than those that could be obtained in a comparable
transaction at the time of such transaction in arm’s-length dealings with a
Person who is not such an Affiliate;

 

(2)           in the event such Affiliate
Transaction involves an aggregate consideration in excess of $10.0 million, the
terms of such transaction have been approved by a majority of the members of
the Board of Directors of the Company and by a majority of the members of such
Board having no personal stake in such transaction, if any (and such majority
or majorities, as the case may be, determines that such Affiliate Transaction
satisfies the criteria in clause (1) of this Section 6.12(a));
and

 

(3)           in the event such Affiliate
Transaction involves an aggregate consideration in excess of $25.0 million, the
Company has received a written opinion from an independent investment banking,
accounting or appraisal firm of nationally recognized standing that such
Affiliate Transaction is fair to the Company or not materially less favorable
than those that might reasonably have been obtained in a comparable transaction
at such time on an arm’s-length basis from a Person that is not an Affiliate.

 

(b)                                 Section 6.12(a) of
this First Supplemental Indenture shall not apply to:

 

(1)           any Restricted Payment (other than a Restricted
Investment) and Permitted Investments (other than pursuant to clauses (1),
(2), (11), (13) and (14) of the definition of “Permitted
Investments”) permitted to be made pursuant to the Indenture;

 

(2)           any issuance of securities, or other
payments, awards or grants in cash, securities or otherwise pursuant to, or the
funding of, employment agreements and other compensation arrangements, options
to purchase Capital Stock of the Company, restricted stock plans, long-term
incentive plans, stock appreciation rights plans, participation plans or
similar employee benefits plans and/or indemnity provided on behalf of
officers, directors and employees approved by the Board of Directors of the
Company;

 

(3)           the payment of customary fees paid
to, and indemnity provided on behalf of, directors of the Company or any
Restricted Subsidiary;

 

(4)           loans or advances to employees,
officers or directors of the Company or any Restricted Subsidiary in the
ordinary course of business in an aggregate amount not in excess of $2.0
million with respect to all loans or advances made since the Issue Date
(without giving effect to the forgiveness of any such loan); provided, however, that the Company and its Subsidiaries
shall comply in all material respects with the provisions of the Sarbanes Oxley
Act of 2002 and the rules and regulations promulgated in connection
therewith relating to the provision of any such loans and advances as if the
Company had filed a registration statement with the Commission;

 

(5)           any transaction between the Company
and a Restricted Subsidiary or between Restricted Subsidiaries and Guarantees
issued by the Company or a Restricted

 

65

 

Subsidiary for the benefit of the
Company or a Restricted Subsidiary, as the case may be, in accordance with Section 6.06
of this First Supplemental Indenture;

 

(6)           the existence of, and the performance
of obligations of the Company or any of its Restricted Subsidiaries under the
terms of any agreement to which the Company or any of its Restricted
Subsidiaries is a party as of or on the Issue Date and identified on Schedule 1
hereto, as these agreements may be amended, modified, supplemented, extended or
renewed from time to time; provided, however,
that any future amendment, modification, supplement, extension or renewal
entered into after the Issue Date shall be permitted to the extent that its
terms, taken as a whole, are not materially more disadvantageous to the Holders
of the Notes than the terms of the agreements in effect on the Issue Date;

 

(7)           transactions with customers, clients,
suppliers or purchasers or sellers of goods or services, including Eagle Creek
Mining & Drilling, Inc., in each case in the ordinary course of
the business of the Company and its Restricted Subsidiaries and otherwise in
compliance with the terms of the Indenture; provided that
in the reasonable determination of the members of the Board of Directors or
senior management of the Company, such transactions are 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

 

(8)           any issuance or sale of Capital Stock
(other than Disqualified Stock) to Affiliates of the Company and the granting
of registration and other customary rights in connection therewith.

 

SECTION 6.13              Limitation
on Sale of Capital Stock of Restricted Subsidiaries

 

The Company shall not, and
shall not permit any Restricted Subsidiary to, transfer, convey, sell, lease or
otherwise dispose of any Voting Stock of any Restricted Subsidiary or, with
respect to a Restricted Subsidiary, to issue any of the Voting Stock of a
Restricted Subsidiary (other than, if necessary, shares of its Voting Stock
constituting Foreign Required Minority Shares) to any Person except:

 

(1)           to the Company or a Wholly Owned
Subsidiary;

 

(2)           the granting of Liens permitted under
Section 6.09 of this First Supplemental Indenture; and

 

(3)           in compliance with Section 6.11
of this First Supplemental Indenture and immediately after giving effect to
such issuance or sale, such Restricted Subsidiary would continue to be a
Restricted Subsidiary.

 

Notwithstanding the
preceding paragraph, the Company and its Restricted Subsidiaries may sell all
the Voting Stock of a Restricted Subsidiary as long as the Company or its
Restricted Subsidiaries comply with the terms of Section 6.11 of
this First Supplemental Indenture.

 

66

 

SECTION 6.14              Change
of Control

 

If a Change of Control
occurs, unless the Company has exercised its right to redeem all of the Notes
pursuant to Section 7.05 of this First Supplemental Indenture, each
Holder of Notes shall have the right to require the Company to repurchase all
or any part (equal to $2,000 or larger integral multiples of $1,000) of such
Holder’s Notes at a purchase price in cash equal to 101% of the principal
amount of the Notes plus accrued and unpaid interest, if any, to the date of
purchase (subject to the right of Holders of record on the relevant record date
to receive interest due on the relevant Interest Payment Date).

 

Within 30 days following any
Change of Control, unless the Company has given irrevocable notice that it shall
exercise its right to redeem all of the Notes pursuant to Section 7.05
of this First Supplemental Indenture, the Company shall mail a notice (the “Change of Control Offer”) to each
Holder, with a copy to the Trustee, stating:

 

(1)           that a Change of Control has occurred
and that such Holder has the right to require the Company to purchase such
Holder’s Notes at a purchase price in cash equal to 101% of the principal
amount of such Notes plus accrued and unpaid interest, if any, to the date of
purchase (subject to the right of Holders of record on a record date to receive
interest on the relevant interest payment date) (the “Change
of Control Payment”);

 

(2)           the repurchase date (which shall be
no earlier than 30 days nor later than 60 days from the date such notice is
mailed) (the “Change of Control Payment Date”);
and

 

(3)           the procedures determined by the
Company, consistent with the Indenture, that a Holder must follow in order to
have its Notes repurchased.

 

On the Change of Control
Payment Date, the Company shall, to the extent lawful:

 

(1)           accept for payment all Notes or portions of Notes (of
$2,000 or larger integral multiples of $1,000) 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 so tendered;
and

 

(3)           deliver or cause to be delivered to the Trustee any
definitive Notes so 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 shall
promptly mail (or cause to be transferred by book entry) to each Holder of
Notes so tendered the Change of Control Payment for such Notes, and the Trustee
shall 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; provided that
each such new Note shall be in a principal amount of $2,000 or larger integral
multiples of $1,000.

 

67

 

If the Change of Control
Payment Date is on or after a Regular Record Date and on or before the related
Interest Payment Date, any accrued and unpaid interest, if any, shall be paid
on the relevant Interest Payment Date to the Person in whose name a Note is
registered at the close of business on such Regular Record Date, and no
additional interest shall be payable to Holders who tender pursuant to the
Change of Control Offer.

 

The Company shall not be
required to make a Change of Control Offer following a Change of Control if a
third party makes the Change of Control Offer in the manner, at the times and
otherwise in compliance with the requirements set forth in the Indenture
applicable to a Change of Control Offer made by the Company and purchases all
Notes validly tendered and not withdrawn under such Change of Control Offer.

 

The Company shall comply, to
the extent applicable, with the requirements of Rule 14e-1 under the
Exchange Act and any other securities laws or regulations in connection with
the repurchase of Notes pursuant to this Section 6.14. To the
extent that the provisions of any securities laws or regulations conflict with
provisions of the Indenture, the Company shall comply with the applicable
securities laws and regulations and shall not be deemed to have breached this Section 6.14
by virtue of the conflict.

 

SECTION 6.15              Commission
Reports

 

Notwithstanding that the
Company may not be subject to the reporting requirements of Section 13 or
15(d) of the Exchange Act, to the extent permitted by the Exchange Act,
the Company shall file with the Commission, and make available to the Trustee
and the registered Holders of the Notes, the annual reports and the
information, documents and other reports (or copies of such portions of any of
the foregoing as the Commission may by rules and regulations prescribe)
that are specified in Sections 13 and 15(d) of the Exchange Act with
respect to U.S. issuers, in each case not later than 60 days after the final
due dates therefor specified therein or in the relevant forms (after giving
effect to any cure period specified therein). For the avoidance of doubt, no
Default shall be deemed to occur under the Indenture with respect to the Notes
until the expiration of such 60-day period.

 

In the event that the
Company is not permitted to file such reports, documents and information with
the Commission pursuant to the Exchange Act, the Company shall nevertheless
make available such Exchange Act information to the Trustee and the Holders of
the Notes as if the Company were subject to the reporting requirements of Section 13
or 15(d) of the Exchange Act, in each case not later than 60 days after
the final due dates therefor specified therein or in the relevant forms (after
giving effect to any cure period specified therein). For the avoidance of
doubt, no Default shall be deemed to occur under the Indenture with respect to
the Notes until the expiration of such 60-day period.

 

If the Company has
designated any of its Subsidiaries as Unrestricted Subsidiaries, then the quarterly
and annual financial information required by this Section 6.15
shall include a reasonably detailed presentation, either on the face of the
financial statements or in the footnotes to the financial statements and in
Management’s Discussion and Analysis of Results of Operations and Financial
Condition, of the financial condition and results of operations of the Company
and its Restricted Subsidiaries.

 

68

 

In the event that any direct
or indirect parent company of the Company becomes a guarantor of the Notes, the
Company may satisfy its obligations under this Section 6.15 by
furnishing financial information relating to such parent; provided
that (a) such financial statements are accompanied by consolidating
financial information for such parent, the Company, the Subsidiary Guarantors
and the Subsidiaries of the Company that are not Subsidiary Guarantors in the
manner prescribed by the Commission and (b) such parent is not engaged in
any business in any material respect other than incidental to its ownership,
directly or indirectly, of the Capital Stock of the Company.

 

Pursuant to Section 3.02(5)(a) of
this First Supplemental Indenture, a Default under this Section 6.15
is subject to a 180-day cure period. During such cure period, the interest rate
on the Notes shall increase by the Additional Interest.

 

SECTION 6.16              Future
Subsidiary Guarantors

 

After the Issue Date, the
Company shall cause each Restricted Subsidiary (other than a Foreign
Subsidiary) that Guarantees any Indebtedness of the Company or any Subsidiary
Guarantor to execute and deliver to the Trustee a Subsidiary Guarantee pursuant
to which such Subsidiary Guarantor shall unconditionally Guarantee, on a joint
and several basis, the full and prompt payment of the principal of, premium, if
any and interest on the Notes.

 

SECTION 6.17              Limitation
on Lines of Business

 

The Company shall not, and
shall not permit any Restricted Subsidiary to, engage in any business as a
primary line of business other than a Related Business.

 

ARTICLE SEVEN

REDEMPTION OF NOTES

 

SECTION 7.01              Original
Indenture

 

Sections 1103, 1106 and 1108
of the Original Indenture shall not apply to the Notes; and, insofar as
relating to the Notes, any reference in the Original Indenture to Sections
1103, 1106 or 1108 thereof shall be deemed to refer to Sections 7.02,
7.03 or 7.04, respectively, of this First Supplemental Indenture.

 

SECTION 7.02              Selection
by Trustee of Notes to Be Redeemed

 

If less than all the Notes
are to be redeemed at any time pursuant to an optional redemption, the
particular Notes to be redeemed shall be selected not more than 60 days prior
to the Redemption Date by the Trustee, from the outstanding Notes not
previously called for redemption, in compliance with the requirements of the
principal national securities exchange, if any, on which such Notes are listed,
or, if such Notes are not so listed, on a pro rata basis, by lot or by such
other method as the Trustee in its sole discretion shall deem fair and appropriate
(and in such manner as complies with applicable legal requirements) and which
may provide for the selection for redemption of portions of the principal of
the Notes; provided, however, that no such partial
redemption shall reduce the portion of the principal amount of a Note not
redeemed to less than $2,000.

 

69

 

The Trustee shall promptly
notify the Company in writing of the Notes selected for redemption as aforesaid
and, in case of any Notes selected for partial redemption as aforesaid, the
principal amount thereof to be redeemed.

 

For all purposes of the
Indenture, unless the context otherwise requires, all provisions relating to
the redemption of Notes shall relate, in the case of any Notes redeemed or to
be redeemed only in part, to the portion of the principal amount of such Notes
which has been or is to be redeemed. If the Company shall so direct, Notes
registered in the name of the Company, any Affiliate or any Subsidiary thereof
shall not be included in the Notes selected for redemption.

 

SECTION 7.03              Notes
Payable on Redemption Date

 

Notice of redemption having
been given as aforesaid, the Notes so to be redeemed shall, on the Redemption
Date, become due and payable at the Redemption Price therein specified, and
from and after such date (unless the Company shall default in the payment of
the Redemption Price and accrued interest) such Notes shall cease to bear
interest. Upon surrender of any such Note for redemption in accordance with
said notice, such Note shall be paid by the Company at the Redemption Price,
together with accrued interest to (but excluding) the Redemption Date; provided, however, that, if the Redemption Date is on or
after a Regular Record Date and on or before the related Interest Payment Date,
the accrued and unpaid interest, if any, shall be paid to the Person in whose
name the Note is registered at the close of business on such Regular Record
Date, and no additional interest shall be payable to Holders whose Notes shall
be subject to redemption by the Company.

 

If any Note called for
redemption shall not be so paid upon surrender thereof for redemption, the
principal and any premium shall, until paid, bear interest from the Redemption
Date at the rate prescribed therefor in the Note.

 

SECTION 7.04              Other
Mandatory Redemption

 

The Company is not required
to make mandatory redemption or sinking fund payments with respect to the
Notes. Under certain circumstances, the Company may be required to offer to
purchase Notes as described under Sections 6.11 and 6.14.
The Company may, at any time and from time to time, purchase Notes in the open
market or otherwise.

 

SECTION 7.05              Optional
Redemption

 

(a)           Except as
described in subsection (b) below, the Notes are not
redeemable at the option of the Company prior to maturity.

 

(b)           The Notes
may be redeemed, in whole or in part, at any time at the option of the Company
upon not less than 30 nor more than 60 days’ prior notice mailed by first-class
mail to each Holder of Notes at its registered address, at a Redemption Price
equal to 100% of the principal amount of the Notes redeemed plus the Applicable
Premium plus accrued and unpaid interest, if any, to the Redemption Date
(subject to the right of Holders of record on the relevant Regular Record Date
to receive interest due on the relevant Interest Payment Date).

 

70

 

ARTICLE EIGHT

DEFEASANCE AND COVENANT DEFEASANCE

WITH RESPECT TO THE NOTES

 

SECTION 8.01              Original
Indenture

 

Article Twelve of the
Original Indenture shall not apply to the Notes.

 

SECTION 8.02              Discharge
of Liability on Notes; Defeasance

 

(a)           Subject to
Sections 8.02(b) and 8.03 of this First Supplemental
Indenture, the Company at any time may terminate (i) all its obligations
under the Notes and the Indenture and all obligations of the Subsidiary
Guarantors under the Subsidiary Guarantees and the Indenture (“legal defeasance”), and after giving
effect to such legal defeasance, any omission to comply with such obligations
shall no longer constitute a Default or Event of Default or (ii) its
obligations under clause (3) of Section 4.02 of
this First Supplemental Indenture and Sections 6.06, 6.08, 6.09,
6.10, 6.11, 6.12, 6.13, 6.14, 6.15, 6.16
or 6.17 of this First Supplemental Indenture and Section 1006 of
the Original Indenture and the Company may omit to comply with and shall have
no liability in respect of any term, condition or limitation set forth in any
such covenant, whether directly or indirectly, by reason of any reference
elsewhere herein to any such covenant or by reason of any reference in any such
covenant to any other provision herein or in any other document and such
omission to comply with such covenants shall no longer constitute a Default or
an Event of Default under clauses (3), (4) and (5) of
Section 3.02 of this First Supplemental Indenture and the operation
of clauses (6), (7) (but only with respect to a
Significant Subsidiary or group of Restricted Subsidiaries that would
constitute a Significant Subsidiary), (8) and (9) of Section 3.02
of this First Supplemental Indenture, and the events specified in such Sections
shall no longer constitute an Event of Default (clause (ii) being
referred to as the “covenant defeasance”), but
except as specified above, the remainder of the Indenture and the Notes shall
be unaffected thereby. The Company may exercise its legal defeasance option
notwithstanding its prior exercise of its covenant defeasance option.

 

If the Company exercises its
legal defeasance option, payment of the Notes may not be accelerated because of
an Event of Default with respect to the Notes, and the Subsidiary Guarantees in
effect at such time shall terminate. If the Company exercises its covenant
defeasance option, payment of the Notes may not be accelerated because of an
Event of Default specified in clauses (3) (as such clause relates to Section 4.02(3)),
(4) (as such clause relates to Sections 6.06, 6.08,
6.09, 6.10, 6.11, 6.12, 6.13, 6.14, 6.16
or 6.17 of this First Supplemental Indenture), (5), (6), (7) (but
only with respect to a Significant Subsidiary or group of Restricted
Subsidiaries that would constitute a Significant Subsidiary), (8) and
(9) of Section 3.02 of this First Supplemental
Indenture.

 

Upon satisfaction of the
conditions set forth herein and upon request of the Company, the Trustee shall
acknowledge in writing the discharge of those obligations that the Company
terminates.

 

(b)           Notwithstanding
the provisions of Article Four of the Original Indenture and Section 8.02(a) of
this First Supplemental Indenture, following legal defeasance the Company’s

 

71

 

obligations in Sections 304, 305, 306, 309, 607, 608, 1001
(to the extent of the legal defeasance trust), 1002 and 1003 of the Original
Indenture and Sections 6.03,  6.04 and 6.07 and Article Eight
of this First Supplemental Indenture shall survive until the Notes have been
paid in full. Thereafter, the Company’s obligations in Sections 607 of the
Original Indenture and Sections 8.04, 8.06 and 8.07
of this First Supplemental Indenture shall survive.

 

SECTION 8.03              Conditions
to Defeasance

 

The Company may exercise its
legal defeasance option or its covenant defeasance option only if:

 

(a)           the
Company irrevocably deposits in trust with the Trustee for the benefit of the
Holders money in U.S. dollars or U.S. Government Obligations or a combination
thereof for the payment of principal, premium, if any, and interest on the
Notes to maturity or redemption, as the case may be;

 

(b)           the
Company delivers to the Trustee a certificate from a nationally recognized firm
of independent accountants expressing their opinion (or if nationally
recognized independent accounting firms no longer routinely express such
opinions, a certificate from the chief financial officer of the Company
expressing his or her opinion) that the payments of principal and interest when
due and without reinvestment on the deposited U.S. Government Obligations plus
any deposited money without investment shall provide cash at such times and in
such amounts as shall be sufficient to pay principal, premium, if any, and
interest when due on all the Notes to maturity;

 

(c)           no Default
or Event of Default shall have occurred and be continuing on the date of such
deposit (other than Defaults and Events of Default arising out of the
incurrence of Indebtedness used to fund such deposit) or, with respect to the
Company under clause (7) of Section 3.02 of this
First Supplemental Indenture, on the 123rd day after such date of deposit;

 

(d)           such legal
defeasance or covenant defeasance shall not result in a breach or violation of,
or constitute a Default under, the Indenture or any other material agreement or
instrument to which the Company or any of its Subsidiaries is a party or by
which the Company or any of its Subsidiaries is bound;

 

(e)           the
Company shall have delivered to the Trustee an Opinion of Counsel (subject to
customary assumptions and exclusions) to the effect that, assuming no
intervening bankruptcy of the Company between the date of deposit and the 123rd
day following the deposit and that no Holder of the Notes is an insider of the
Company within the meaning of the Bankruptcy Law, after the 123rd day following
the deposit, the trust funds shall not be subject to the effect of any
applicable bankruptcy, insolvency, reorganization or similar laws affecting
creditors’ right generally;

 

(f)            the
Company delivers to the Trustee an Opinion of Counsel (subject to customary
assumptions and exclusions) to the effect that the trust resulting from the
deposit does not constitute, or is qualified as, a regulated investment company
under the Investment Company Act of 1940;

 

72

 

(g)           in the
case of legal defeasance, the Company shall have delivered to the Trustee an
Opinion of Counsel (subject to customary assumptions and exclusions) in the
United States stating that (i) the Company has received from, or there has
been published by, the Internal Revenue Service a ruling, or (ii) since
the date of this First Supplemental 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 shall not
recognize income, gain or loss for Federal income tax purposes as a result of
such 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;

 

(h)           in the
case of covenant defeasance, the Company shall have delivered to the Trustee an
Opinion of Counsel (subject to customary assumptions and exclusions) in the
United States to the effect that the Holders shall not recognize income, gain
or loss for Federal income tax purposes as a result of such deposit and
covenant defeasance and shall be subject to Federal income tax on the same
amount, in the same manner and at the same times as would have been the case if
such deposit and covenant defeasance had not occurred; and

 

(i)            the
Company delivers to the Trustee an Officers’ Certificate and an Opinion of
Counsel, together stating that all conditions precedent to the defeasance and
discharge of the Notes and the Indenture as contemplated by this Article Eight
have been complied with.

 

SECTION 8.04              Application
of Trust Money

 

The Trustee shall hold in
trust money or U.S. Government Obligations deposited with it pursuant to this Article Eight.
It shall apply the deposited money and the money from U.S. Government
Obligations through the Paying Agent and in accordance with the Indenture to
the payment of principal of and interest on the Notes.

 

SECTION 8.05              Repayment
to Company

 

The Trustee and the Paying
Agent shall promptly turn over to the Company upon request any excess money,
U.S. Government Obligations or securities held by them upon payment of all the
obligations under the Indenture.

 

Subject to any applicable
abandoned property law, the Trustee and the Paying Agent shall pay to the
Company upon request any money held by them for the payment of principal of or
interest on the Notes that remains unclaimed for two years, and, thereafter,
Holders entitled to the money must look to the Company for payment as general
creditors.

 

SECTION 8.06              Indemnity
for U.S. Government Obligations

 

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

 

73

 

SECTION 8.07              Reinstatement

 

If the Trustee or Paying
Agent is unable to apply any money or U.S. Government Obligations in accordance
with this Article Eight by reason of any legal proceeding or by
reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, the
obligations of the Company and the Subsidiary Guarantors under the Indenture
and the Notes shall be revived and reinstated as though no deposit had occurred
pursuant to this Article Eight until such time as the Trustee or
Paying Agent is permitted to apply all such money or U.S. Government
Obligations in accordance with this Article Eight; provided, however, that, if the Company has made any payment
of interest on or principal of any Notes because of the reinstatement of its
obligations, the Company shall be subrogated to the rights of the Holders of
such Notes to receive such payment from the money or U.S. Government
Obligations held by the Trustee or Paying Agent.

 

ARTICLE NINE

SUBSIDIARY GUARANTEE

 

SECTION 9.01              Subsidiary
Guarantee

 

Each Subsidiary Guarantor
hereby fully, unconditionally and irrevocably guarantees, as primary obligor
and not merely as surety, jointly and severally with each other Subsidiary
Guarantor, to each Holder of the Notes and the Trustee the full and punctual
payment when due, whether at maturity, by acceleration, by redemption or
otherwise, of the principal of, premium, if any, and interest on the Notes and
all other monetary obligations of the Company under the Indenture (all the
foregoing being hereinafter collectively called the “Obligations”).
Each Subsidiary Guarantor further agrees (to the extent permitted by law) that
the Obligations may be extended or renewed, in whole or in part, without notice
or further assent from it, and that it shall remain bound under this Article Nine
notwithstanding any extension or renewal of any Obligation.

 

Each Subsidiary Guarantor
waives presentation to, demand of payment from and protest to the Company of
any of the Obligations and also waives notice of protest for nonpayment. Each
Subsidiary Guarantor waives notice of any default under the Notes or the
Obligations. The obligations of each Subsidiary Guarantor hereunder shall not
be affected by (a) the failure of any Holder to assert any claim or demand
or to enforce any right or remedy against the Company or any other Person under
the Indenture, the Notes or any other agreement or otherwise; (b) any
extension or renewal of any thereof; (c) any rescission, waiver, amendment
or modification of any of the terms or provisions of the Indenture, the Notes
or any other agreement; (d) the release of any security held by any Holder
or the Trustee for the Obligations or any of them; (e) the failure of any
Holder to exercise any right or remedy against any other Subsidiary Guarantor;
or (f) any change in the ownership of the Company.

 

Each Subsidiary Guarantor
further agrees that its Subsidiary Guarantee herein constitutes a Guarantee of
payment when due (and not a Guarantee of collection) and waives any right to
require that any resort be had by any Holder to any security held for payment
of the Obligations.

 

74

 

Except as expressly set
forth in Sections 8.02(a), 9.02 and 9.03 of this
First Supplemental Indenture, the obligations of each Subsidiary Guarantor
hereunder shall not be subject to any reduction, limitation, impairment or
termination for any reason (other than payment of the Obligations in full),
including any claim of waiver, release, surrender, alteration or compromise,
and shall not be subject to any defense of setoff, counterclaim, recoupment or
termination whatsoever or by reason of the invalidity, illegality or
unenforceability of the Obligations or otherwise. Without limiting the
generality of the foregoing, the obligations of each Subsidiary Guarantor
herein shall not be discharged or impaired or otherwise affected by the failure
of any Holder to assert any claim or demand or to enforce any remedy under the
Indenture, the Notes or any other agreement, by any waiver or modification of
any thereof, by any default, failure or delay, willful or otherwise, in the
performance of the Obligations, or by any other act or thing or omission or
delay to do any other act or thing which may or might in any manner or to any
extent vary the risk of any Subsidiary Guarantor or would otherwise operate as
a discharge of such Subsidiary Guarantor as a matter of law or equity.

 

Each Subsidiary Guarantor
further agrees that its Subsidiary Guarantee herein shall continue to be
effective or be reinstated, as the case may be, if at any time payment, or any
part thereof, of principal of or interest on any of the Obligations is
rescinded or must otherwise be restored by any Holder upon the bankruptcy or
reorganization of the Company or otherwise.

 

In furtherance of the
foregoing and not in limitation of any other right which any Holder has at law
or in equity against any Subsidiary Guarantor by virtue hereof, upon the
failure of the Company to pay any of the Obligations when and as the same shall
become due, whether at maturity, by acceleration, by redemption or otherwise,
each Subsidiary Guarantor hereby promises to and shall, upon receipt of written
demand by the Trustee, forthwith pay, or cause to be paid, in cash, to the
Holders an amount equal to the sum of (i) the unpaid amount of such
Obligations then due and owing and (ii) accrued and unpaid interest on
such Obligations then due and owing (but only to the extent not prohibited by
law) and except as provided in Section 9.03 of this First
Supplemental Indenture.

 

Each Subsidiary Guarantor
further agrees that, as between such Subsidiary Guarantor, on the one hand, and
the Holders, on the other hand, (x) the maturity of the Obligations
guaranteed hereby may be accelerated as provided in the Indenture for the
purposes of its Subsidiary Guarantee herein, notwithstanding any stay,
injunction or other prohibition preventing such acceleration in respect of the
Obligations guaranteed hereby and (y) in the event of any such declaration
of acceleration of such Obligations, such Obligations (whether or not due and
payable) shall forthwith become due and payable by the Subsidiary Guarantor for
the purposes of this Subsidiary Guarantee.

 

Each Subsidiary Guarantor
also agrees to pay any and all reasonable costs and expenses (including
reasonable attorneys’ fees) incurred by the Trustee or the Holders in enforcing
any rights under this Section 9.01.

 

SECTION 9.02              Termination,
Release and Discharge

 

(a)           Subject to
Section 6.11 and Article Four of this First
Supplemental Indenture, each Subsidiary Guarantor may consolidate with or merge
into or sell all or substantially all of its

 

75

 

property and assets to the Company, another Subsidiary
Guarantor or a Person other than the Company or another Subsidiary Guarantor
(whether or not Affiliated with the Subsidiary Guarantor).

 

(b)                                 Notwithstanding the foregoing and the other provisions of the
Indenture, in the event a Subsidiary Guarantor is sold or disposed of (whether
by merger, consolidation, the sale of its Capital Stock or the sale of all or
substantially all of its assets (other than by lease) and whether or not the
Subsidiary Guarantor is the surviving corporation in such transaction) to a
Person which is not the Company or a Restricted Subsidiary, such Subsidiary
Guarantor shall be released from its obligations under its Subsidiary Guarantee
if:

 

(1)           the sale or other disposition is in
compliance with the Indenture, including Section 6.11 of this First
Supplemental Indenture (it being understood that only such portion of the Net
Available Cash as is required to be applied on or before the date of such
release in accordance with the terms of the Indenture needs to be applied in
accordance therewith at such time), Section 6.13 and Article Four
of this First Supplemental Indenture; and

 

(2)           all the obligations of such
Subsidiary Guarantor under all Indebtedness of the Company and all Subsidiary
Guarantors terminate upon consummation of such transaction.

 

(c)                                  A Subsidiary Guarantor shall be deemed released and relieved
of its obligations under the Indenture and its Subsidiary Guarantee without any
further action required on the part of the Company or such Subsidiary Guarantor
upon the designation of such Subsidiary Guarantor as an Unrestricted Subsidiary
in accordance with the terms of the Indenture or in connection with any legal
defeasance of the Notes or upon satisfaction and discharge of the Indenture,
each in accordance with the provisions of the Indenture.

 

SECTION 9.03              Limitation
of Subsidiary Guarantors’ Liability

 

Each Subsidiary Guarantor,
and by its acceptance hereof each Holder, hereby confirms that it is the
intention of all such parties that the guarantee by such Subsidiary Guarantor
pursuant to its Subsidiary Guarantee not constitute a fraudulent transfer or
conveyance for purposes of the Federal Bankruptcy Code, the Uniform Fraudulent
Conveyance Act, the Uniform Fraudulent Transfer Act or any similar Federal or
state law. To effectuate the foregoing intention, the Holders and each
Subsidiary Guarantor hereby irrevocably agree that the obligations of each
Subsidiary Guarantor shall be limited to the maximum amount as shall, after
giving effect to all other contingent and fixed liabilities of such Subsidiary
Guarantor (including, without limitation, any guarantees under the Senior
Credit Facility) and after giving effect to any collections from or payments
made by or on behalf of any other Subsidiary Guarantor in respect of the
obligations of such other Subsidiary Guarantor under its Subsidiary Guarantee
or pursuant to Section 9.04 of this First Supplemental Indenture,
result in the obligations of such Subsidiary Guarantor under its Subsidiary
Guarantee not constituting a fraudulent conveyance or fraudulent transfer under
Federal or state law. This Section 9.03 is for the benefit of the
creditors of each Subsidiary Guarantor.

 

76

 

SECTION 9.04              Contribution

 

In order to provide for just
and equitable contribution among the Subsidiary Guarantors, the Subsidiary
Guarantors agree, that in the event any payment or distribution is made by any
Subsidiary Guarantor (a “Funding Guarantor”) under its Subsidiary Guarantee,
such Funding Guarantor shall be entitled to a contribution from each other
Subsidiary Guarantor (if any) in a pro rata amount based on the Adjusted Net
Assets of each Subsidiary Guarantor (including the Funding Guarantor) for all
payments, damages and expenses incurred by that Funding Guarantor in
discharging the Company’s obligations with respect to the Notes or any other
Subsidiary Guarantor’s obligations with respect to its Subsidiary Guarantee.

 

ARTICLE TEN

MISCELLANEOUS PROVISIONS WITH RESPECT TO THE NOTES

 

SECTION 10.01            Effect
of Headings and Table of Contents

 

The Article and Section headings
herein and the Table of Contents are for convenience only and shall not affect
the construction hereof.

 

SECTION 10.02            Successors
and Assigns

 

All covenants and agreements
in this First Supplemental Indenture by the Company shall bind its successors
and assigns, whether so expressed or not.

 

SECTION 10.03            Separability
Clause.

 

In case any provision in
this First Supplemental Indenture or in the Notes shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

 

SECTION 10.04            Governing
Law

 

THE INTERNAL LAW OF THE
STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS FIRST SUPPLEMENTAL
INDENTURE AND THE NOTES.

 

SECTION 10.05            No
Adverse Interpretation of Other Agreements

 

This First Supplemental
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, other than
the Original Indenture. Other than the Original Indenture, no such indenture,
loan or debt agreement may be used to interpret this First Supplemental
Indenture.

 

SECTION 10.06            Counterparts

 

The parties may sign any
number of copies of this First Supplemental Indenture. Each signed copy shall
be an original, but all of them together represent the same agreement.

 

77

 

SECTION 10.07                                     Notices

 

Section 105(2) of
the Original Indenture is amended by deleting the words “Chief Financial
Officer” therefrom and replacing them with the words “Corporate Secretary”.

 

[Signature page follows]

 

78

 

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

 

	
   

  	
  BERRY PETROLEUM COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ David D. Wolf

  
	
   

  	
  Name: 

  	
  David D. Wolf

  
	
   

  	
  Title:

  	
  Executive Vice President and Chief Financial
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK, NATIONAL
  ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Maddy Hall

  
	
   

  	
  Name: 

  	
  Maddy Hall

  
	
   

  	
  Title:

  	
  Vice President

  

 

79

 

EXHIBIT A

 

[FORM OF FACE OF NOTE]

 

[Global Legend and Depository Legend, if
applicable]

 

THIS SECURITY IS BEING
ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR UNITED STATES FEDERAL INCOME TAX
PURPOSES.  FOR INFORMATION REGARDING THE
ISSUE PRICE, THE TOTAL AMOUNT OF ORIGINAL ISSUE DISCOUNT, THE ISSUE DATE, AND
THE YIELD TO MATURITY OF THIS SECURITY, PLEASE CONTACT BERRY PETROLEUM
COMPANY, 1999 BROADWAY, SUITE 3700, DENVER COLORADO, ATTENTION: CHIEF FINANCIAL
OFFICER.

 

	
  No. [    ]

  	
   

  	
  Principal Amount
  $[    ]

  
	
   

  	
   

  
	
  CUSIP NO.
  [    ]

  	
   

  

 

BERRY PETROLEUM COMPANY

 

101⁄4% Senior Notes due 2014

 

BERRY PETROLEUM COMPANY, a
Delaware corporation, promises to pay to
[                        ]
or registered assigns, the principal sum of
[                    ]
Dollars or such greater or lesser amount as may be indicated on Schedule A
hereto on June 1, 2014.

 

Interest
Payment Dates:                                              June 1 and
December 1, commencing December 1, 2009

 

Regular
Record Dates:                                                      May 15 and
November 15

 

Additional provisions of
this Note are set forth on the other side of this Note.

 

Date:
[              ]

 

	
   

  	
  BERRY PETROLEUM COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

	
  TRUSTEE’S CERTIFICATE OF AUTHENTICATION

  	
   

  	
   

  
	
  WELLS FARGO BANK, NATIONAL ASSOCIATION

  	
   

  	
   

  
	
  as Trustee, certifies that this is one of the
  Securities of the series designated therein referred to in the
  within-mentioned Indenture.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized
  Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

A-1

 

[FORM OF REVERSE SIDE OF NOTE]

 

101⁄4% Senior Notes due 2014

 

1.                                       Interest

 

BERRY PETROLEUM COMPANY, a
Delaware corporation (such corporation, and its successors and assigns under
the Indenture hereinafter referred to, being herein called the “Company”), promises to pay interest
on the principal amount of this Note at the rate per annum shown above.

 

The Company will pay
interest semiannually on June 1 and December 1 of each year,
commencing December 1, 2009. Interest on this Note will accrue from the
most recent date to which interest has been paid on this Note or, if no
interest has been paid, from May 27, 2009. The Company shall pay interest
on overdue principal or premium, if any (plus interest on such interest to the
extent lawful), at the rate borne by the Notes to the extent lawful. Interest
will be computed on the basis of a 360-day year of twelve 30-day months.

 

If the Company shall fail to
comply with Section 6.15 of the First Supplemental Indenture for 180 days,
the annual interest rate borne by the Notes shall be increased from the rate
shown above by 0.50% per annum until such Default is cured or waived.

 

2.                                       Method of
Payment

 

By no later than 10:00 a.m.
(New York City time) on the date on which any principal of or interest on any
Note is due and payable, the Company shall irrevocably deposit with the Trustee
or the Paying Agent money sufficient to pay such principal, premium, if any,
and/or interest. The Company will pay interest (except Defaulted Interest) to
the Persons who are registered Holders of Notes at the close of business on the
May 15 or November 15 next preceding the Interest Payment Date even
if Notes are cancelled, repurchased or redeemed after the Regular Record Date
and on or before the Interest Payment Date. Holders must surrender Notes to a
Paying Agent to collect principal payments. The Company will pay principal and
interest in money of the United States that at the time of payment is legal
tender for payment of public and private debts. Payments in respect of Notes
represented by a Global Security (including principal, premium, if any, and
interest) will be made by the transfer of immediately available funds to the
accounts specified by The Depository Trust Company. The Company shall make all
payments in respect of a Definitive Security (including principal, premium, if
any, and interest) at the office or agency of the Company maintained for such
purpose in The City of New York, if any, or at such other office or agency of
the Company as may be maintained for such purpose pursuant to the Indenture; provided, however, that, at the option of the Company, each
installment of interest may be paid by (i) check mailed to addresses of
the Persons entitled thereto as such addresses shall appear on the Note
Register or (ii) wire transfer to an account located in the United States
maintained by the payee.

 

3.                                       Paying Agent
and Registrar

 

Initially, Wells Fargo Bank,
National Association will act as Trustee, Paying Agent and Registrar. The
Company may appoint and change any Paying Agent, Registrar or co-registrar 

 

A-2

 

without
notice to any Holder. The Company or any of its Subsidiaries may act as Paying
Agent, Registrar or co-registrar.

 

4.                                       Indenture

 

The Company issued the Notes
under an Indenture dated as of June 15, 2006 (the “Original
Indenture”), between the Company and Wells Fargo Bank, National
Association, as trustee (the “Trustee”),
as supplemented by the First Supplemental Indenture dated as of May 27,
2009 (the “First Supplemental Indenture”
and, together with the Original Indenture, as it may be further amended or
supplemented from time to time in accordance with the terms thereof, the “Indenture”) between the Company and
the Trustee. The terms of the Notes include those stated in the Indenture and
those made part of the Indenture by reference to the Trust Indenture Act of
1939 (15 U.S.C.§§ 77aaa-77bbbb) as in effect on the date of the Indenture (the “Trust Indenture Act”; provided, however, that in the event the Trust Indenture Act
is amended after such date, “Trust Indenture Act” shall mean, to the extent
required by any such amendment, the Trust Indenture Act of 1939 as so amended).
Capitalized terms used herein and not defined herein have the meanings ascribed
thereto in the Indenture. The Notes are subject to all such terms, and Holders
are referred to the Indenture and the Trust Indenture Act for a statement of
those terms.

 

The Notes are general
unsecured senior obligations of the Company. The aggregate principal amount of
securities that may be authenticated and delivered under the Indenture is
unlimited. This Note is one of the 101⁄4% Senior Notes due 2014 referred to in
the Indenture (the “Notes”). The Notes include (i) $325,000,000
aggregate principal amount of the Notes issued under the Indenture on May 27,
2009 and (ii) if and when issued, additional Notes that may be issued from
time to time under the Indenture subsequent to May 27, 2009 (herein called
“Additional Notes”). The Notes and
any Additional Notes will be treated as a single class of securities under the
Indenture.

 

5.                                       Reserved

 

6.                                       Subsidiary
Guarantees

 

This Note is guaranteed by
the Persons, if any, specified as Subsidiary Guarantors in the Indenture to the
extent provided in the Indenture.

 

7.                                       Redemption

 

Except as described below,
the Notes are not redeemable at the option of the Company prior to maturity.

 

The Notes may be redeemed,
in whole or in part, at any time at the option of the Company upon not less
than 30 nor more than 60 days’ prior notice mailed by first-class mail to each
Holder of Notes at its registered address, at a Redemption Price equal to 100%
of the principal amount of the Notes redeemed plus the Applicable Premium plus
accrued and unpaid interest, if any, to the Redemption Date (subject to the
right of Holders of record on the relevant Regular Record Date to receive
interest due on the relevant Interest Payment Date).

 

A-3

 

8.                                       Repurchase
Provisions

 

(a)                                  If a Change of
Control occurs, each Holder of Notes will have the right to require the Company
to repurchase all or any part (equal to $2,000 or a larger integral multiple
thereof) of the Notes of such Holder at a purchase price in cash equal to 101%
of the principal amount thereof, plus accrued and unpaid interest, if any, to
the date of repurchase (subject to the right of Holders of record on the
relevant Regular Record Date to receive interest due on the relevant Interest
Payment Date) as provided in, and subject to the terms of, the Indenture.

 

(b)                                 In the event of
an Asset Disposition that requires the purchase of Notes pursuant to Section 6.11
of the First Supplemental Indenture, the Company will be required to apply such
Excess Proceeds to the repayment of the Notes and any Pari Passu Notes in
accordance with the procedures set forth in Section 6.11 of the First
Supplemental Indenture.

 

9.                                       Denominations;
Transfer; Exchange

 

The Notes are in registered
form without coupons in denominations of principal amount of $2,000 and larger
integral multiples of $1,000. A Holder may transfer or exchange Notes in
accordance with the Indenture. The Registrar may require a Holder, among other
things, to furnish appropriate endorsements or transfer documents and to pay
any taxes and fees required by law or permitted by the Indenture. The Registrar
need not register the transfer of or exchange of any Note for a period beginning
(i) 15 days before the selection of Notes to be repurchased or redeemed
and ending at the close of business on the day of such selection (except, in
the case of Notes to be redeemed in part, the portion of the Note not to be
redeemed) or (ii) 15 days before an Interest Payment Date and ending on
such Interest Payment Date.

 

10.                                 Persons Deemed
Owners

 

The registered Holder of
this Note may be treated as the owner of it for all purposes.

 

11.                                 Unclaimed Money

 

If money for the payment of
principal or interest remains unclaimed for two years, the Trustee or Paying
Agent shall pay the money back to the Company at its request unless an
abandoned property law designates another Person. After any such payment,
Holders entitled to the money must look only to the Company and not to the
Trustee for payment.

 

12.                                 Defeasance

 

Subject to certain
conditions set forth in the Indenture, the Company at any time may terminate
some or all of its obligations under the Notes and the Indenture if the Company
deposits with the Trustee money or U.S. Government Obligations for the payment
of principal and interest on the Notes to redemption or maturity, as the case
may be.

 

13.                                 Amendment,
Supplement, Waiver

 

Subject to certain
exceptions set forth in the Indenture, (i) the Indenture and the Notes may
be amended or supplemented by the Company, any Subsidiary Guarantors and the
Trustee 

 

A-4

 

with
the written consent of the Holders of at least a majority in principal amount
of the then outstanding Notes and (ii) any default (other than with
respect to nonpayment or in respect of a provision that cannot be amended
without the written consent of each Holder affected) or noncompliance with any
provision may be waived with the written consent of the Holders of a majority
in principal amount of the then outstanding Notes. Subject to certain
exceptions set forth in the Indenture, without the consent of any Holder, the
Company, any Subsidiary Guarantors and the Trustee may amend or supplement the Indenture
and the Notes to (each of which are more specially described in the Indenture):
cure any ambiguity, omission, defect or inconsistency; comply with Article Four
of the First Supplemental Indenture in respect of the assumption by a Successor
Company of the obligations of the Company or the assumption by a successor
Person of the obligations of any Subsidiary Guarantor under the Indenture;
provide for uncertificated Notes in addition to or in place of certificated
Notes; add Guarantees with respect to the Notes or release a Subsidiary
Guarantor from its obligations under its Subsidiary Guarantee or the Indenture
in accordance with the applicable provisions of the Indenture; secure the
Notes; add to the covenants of the Company for the benefit of the Holders of
the Notes or surrender any right or power conferred upon the Company; make any
change that does not adversely affect the rights of any Holder of Notes; comply
with any requirement of the Commission in connection with the qualification of
the Indenture under the TIA; or conform the text of the Indenture, the Notes or
the Subsidiary Guarantees to any provision of the “Description of notes”
contained in the Prospectus Supplement to the extent that such provision in the
“Description of notes” contained in the Prospectus Supplement is intended to be
a verbatim recitation of a provision of the Indenture, the Notes or the
Subsidiary Guarantees.

 

14.                                 Defaults and
Remedies

 

If an Event of Default
(other than an Event of Default relating to specified bankruptcy covenants)
occurs and is continuing, the Trustee by notice to the Company, or the Holders
of at least 25% in principal amount of the outstanding Notes by notice to the
Company and the Trustee, may, and the Trustee at the request of such Holders
will, declare all the Notes to be due and payable immediately, as provided more
fully in the Indenture. If an Event of Default relating to specified bankruptcy
covenants occurs and is continuing, the principal of, premium, if any, and
accrued and unpaid interest on all the Notes will become and be immediately due
and payable without any declaration or other act on the part of the Trustee or
any Holders, as provided more fully in the Indenture.

 

Holders may not enforce the
Indenture or the Notes except as provided in the Indenture. The Trustee may
refuse to enforce the Indenture or the Notes unless it receives reasonable
indemnity or security. Subject to certain limitations, Holders of a majority in
principal amount of the Notes may direct the Trustee in its exercise of any
trust or power. The Trustee may withhold from Holders notice of any continuing
Default or Event of Default (except a Default or Event of Default in payment of
principal or interest) if it determines that withholding notice is in their
interest.

 

15.                                 Trustee
Dealings with the Company

 

Subject to certain
limitations set forth in the Indenture, the Trustee under the Indenture, in its
individual or any other capacity, may become the owner or pledgee of Notes and
may 

 

A-5

 

otherwise
deal with and collect obligations owed to it by the Company or its Affiliates
and may otherwise deal with the Company or its affiliates with the same rights
it would have if it were not Trustee.

 

16.                                 No Recourse
Against Others

 

No director, officer,
employee, incorporator or stockholder of the Company or any Subsidiary
Guarantor, as such, shall have any liability for any obligations of the Company
under the Notes, the Indenture or the Subsidiary Guarantees 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 issuance of the Notes.

 

17.                                 Authentication

 

This Note shall not be valid
until an authorized signatory of the Trustee (or an authenticating agent acting
on its behalf) manually signs the certificate of authentication on the other
side of this Note.

 

18.                                 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 entirety), JT TEN (= joint tenants with
rights of survivorship and not as tenants in common), CUST (= custodian) and
U/G/M/A (= Uniform Gift to Minors Act).

 

19.                                 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 has directed
the Trustee to 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.

 

20.                                 Governing Law

 

This Note shall be governed
by, and construed in accordance with, the laws of the State of New York.

 

The Company will furnish to
any Holder upon written request and without charge to the Holder a copy of the
Indenture, which has in it the text of this Note. Requests may be made to:

 

	
   

  	
  BERRY PETROLEUM COMPANY

  	
   

  
	
   

  	
  1999 Broadway, Suite 3700

  	
   

  
	
   

  	
  Denver Colorado 80202

  	
   

  
	
   

  	
  Attention: Corporate Secretary

  	
   

  

 

A-6

 

ASSIGNMENT FORM

 

To assign this Note, fill in
the form below:

 

I or we assign and transfer
this Note to

 

______________________________________________________

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

 

____________________________________________

(Insert assignee’s soc. sec. or tax I.D. No.)

 

and irrevocably appoint                           
agent to transfer this Note on the books of the Company. The agent may
substitute another to act for him.

 

Date: __________________
Your Signature _______________________________________________________________________

 

Signature Guarantee:
__________________________________________________________________________________________

(Signature must be
guaranteed)

 

Sign exactly as your name
appears on the other side of this Note.

 

The signature(s) should
be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved
signature guarantee medallion program), pursuant to S.E.C. Rule 17Ad-15.

 

A-7

 

[TO BE ATTACHED TO GLOBAL SECURITIES]

 

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL
SECURITY

 

The following increases or decreases in this
Global Security have been made:

 

	
  Date of

  Exchange

  	
   

  	
  Amount of decrease in

  Principal Amount of

  this Global Security

  	
   

  	
  Amount of increase in

  Principal Amount of

  this Global Security

  	
   

  	
  Principal Amount of

  this Global Security

  following such

  decrease or increase

  	
   

  	
  Signature of authorized

  signatory of Trustee or

  Securities Custodian

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-8

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you want to elect to have
this Note purchased by the Company pursuant to Section 6.11 or 6.14 of the
First Supplemental Indenture, check either box:

 

	
   

  	
  o

  	
   

  	
  o

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.11

  	
   

  	
  6.14

  

 

If you want to elect to have
only part of this Note purchased by the Company pursuant to Section 6.11
or 6.14 of the First Supplemental Indenture, state the amount in principal
amount (must be integral multiple of $1,000): $                            

 

Date: __________________  Your
Signature:  ______________________________________________________________________

(Sign exactly as your name
appears on the other side of the Note)                   

 

Signature Guarantee: __________________________________________________________________________________________

(Signature must be
guaranteed)

 

The signature(s) should
be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved
signature guarantee medallion program), pursuant to S.E.C. Rule 17Ad-15.

 

A-9

 

EXHIBIT B

 

FORM OF
SUPPLEMENTAL INDENTURE FOR SUBSIDIARY GUARANTORS

 

This Supplemental Indenture,
dated as
                ,
20     of (this “Supplemental Indenture”),
among [name of future Subsidiary Guarantor] (the “Guarantor”),
Berry Petroleum Company (together with its successors and assigns, the “Company”), each other then existing
Subsidiary Guarantor under the Indenture referred to below, and WELLS FARGO
BANK, NATIONAL ASSOCIATION, as Trustee under the Indenture referred to below.

 

W
I T N E S S E T H:

 

WHEREAS, the Company and the
Trustee have heretofore executed and delivered an Indenture dated as of June 15,
2006 (the “Original Indenture”), as
supplemented by the First Supplemental Indenture dated as of May 27, 2009
(the “First Supplemental Indenture,”
together with the Original Indenture, and as further amended, supplemented,
waived or otherwise modified, the “Indenture”),
providing for the issuance of an unlimited principal amount of the Company’s
101⁄4% Senior Notes due 2014 (the “Notes”);

 

WHEREAS, Section 6.16
of the First Supplemental Indenture provides that after the Issue Date the
Company is required to cause each Restricted Subsidiary (other than a Foreign
Subsidiary) that Guarantees any Indebtedness of the Company or any Subsidiary
Guarantor to execute and deliver to the Trustee a Supplemental Indenture
pursuant to which such Subsidiary Guarantor will unconditionally Guarantee, on
a joint and several basis with the other Subsidiary Guarantors, the full and
prompt payment of the principal of, premium, if any, and interest on the Notes;
and

 

WHEREAS, pursuant to Section 5.02
of the First Supplemental Indenture, the Company, the Subsidiary Guarantors and
the Trustee are authorized to execute and deliver this Supplemental Indenture
to amend the Indenture, without the consent of any Holder;

 

NOW, THEREFORE, in
consideration of the foregoing and for other good and valuable consideration,
the receipt of which is hereby acknowledged, the Guarantor, the Company, the
other Subsidiary Guarantors and the Trustee mutually covenant and agree for the
equal and ratable benefit of the Holders of the Notes as follows:

 

ARTICLE I

Definitions

 

SECTION 1.1         Defined Terms. As used in this
Supplemental Indenture, terms defined in the Indenture or in the preamble or
recital hereto are used herein as therein defined. The words “herein,” “hereof”
and “hereby” and other words of similar import used in this Supplemental
Indenture refer to this Supplemental Indenture as a whole and not to any
particular section hereof.

 

B-1

 

ARTICLE II

Agreement to be Bound; Guarantee

 

SECTION 2.1         Agreement to be Bound. The
Guarantor hereby becomes a party to the Indenture, as a Subsidiary Guarantor
and as such will have all of the rights and be subject to all of the
obligations and agreements of a Subsidiary Guarantor under the Indenture. The
Guarantor agrees to be bound by all of the provisions of the Indenture
applicable to a Subsidiary Guarantor and to perform all of the obligations and
agreements of a Subsidiary Guarantor under the Indenture, on a joint and
several basis with the Subsidiary Guarantors parties hereto and thereto, with
the same force and effect as if originally named as a Subsidiary Guarantor
therein and as if such party executed the Indenture on the date thereof.

 

SECTION 2.2         Guarantee. The Guarantor hereby
fully, unconditionally and irrevocably guarantees, as primary obligor and not
merely as surety, jointly and severally with each other Subsidiary Guarantor,
to each Holder of the Notes and the Trustee, the full and punctual payment when
due, whether at maturity, by acceleration, by redemption or otherwise, of the
Obligations pursuant to Article Nine of the First Supplemental Indenture.

 

ARTICLE III

Miscellaneous

 

SECTION 3.1         Notices. All notices and other
communications to the Guarantor shall be given as provided in the Indenture to
the Guarantor, at its address set forth below, with a copy to the Company as
provided in the Indenture for notices to the Company.

 

SECTION 3.2         GOVERNING LAW. THE INTERNAL LAW
OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL
INDENTURE.

 

SECTION 3.3         Severability Clause. In case any
provision in this Supplemental Indenture shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

 

SECTION 3.4         Ratification of Indenture;
Supplemental Indentures Part of Indenture. Except as expressly amended
hereby, the Indenture is in all respects ratified and confirmed and all the
terms, conditions and provisions thereof shall remain in full force and effect.
This Supplemental Indenture shall form a part of the Indenture for all
purposes, and every Holder of Notes heretofore or hereafter authenticated and
delivered shall be bound hereby. The Trustee makes no representation or
warranty as to the validity or sufficiency of this Supplemental Indenture.

 

SECTION 3.5         Counterparts. The parties may
sign any number of copies of this Supplemental Indenture. Each signed copy
shall be an original, but all of them together represent the same agreement.

 

SECTION 3.6         Headings. The headings of the
Articles and the sections in this Supplemental Indenture are for convenience of
reference only and shall not be deemed to alter or affect the meaning or
interpretation of any provisions hereof.

 

B-2

 

[Signature page follows]

 

B-3

 

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

 

	
   

  	
  [SUBSIDIARY GUARANTOR],

  
	
   

  	
  as a Subsidiary Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BERRY PETROLEUM COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK, NATIONAL
  ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

B-4

 

SCHEDULE 1

 

EXISTING AFFILIATE TRANSACTIONS

 

None

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