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Exhibit 4.01    
  

QUESTAR
MARKET RESOURCES, INC. 

(a
Utah corporation) 

$200,000,000
7% Notes due 2007 

PURCHASE
AGREEMENT 

Dated:
January 9, 2002 

 
 
 

Table of Contents    
  

	 
	 	 
	 	Page

	SECTION 1.	 	Representations and Warranties.	 	2
	

SECTION 2.	
 	

Sale and Delivery to Initial Purchasers; Closing.	
 	

5
	

SECTION 3.	
 	

Covenants of the Company	
 	

6
	

SECTION 4.	
 	

Payment of Expenses.	
 	

7
	

SECTION 5.	
 	

Conditions of Initial Purchasers' Obligations	
 	

9
	

SECTION 6.	
 	

Subsequent Offers and Resales of the Securities.	
 	

13
	

SECTION 7.	
 	

Indemnification.	
 	

14
	

SECTION 8.	
 	

Contribution	
 	

16
	

SECTION 9.	
 	

Representations, Warranties and Agreements to Survive Delivery	
 	

17
	

SECTION 10.	
 	

Termination of Agreement.	
 	

17
	

SECTION 11.	
 	

Default by One or More of the Initial Purchasers	
 	

18
	

SECTION 12.	
 	

Notices	
 	

18
	

SECTION 13.	
 	

Parties	
 	

19
	

SECTION 14.	
 	

Governing Law and Time	
 	

19
	

SECTION 15.	
 	

Effect of Headings	
 	

19
	

SCHEDULES	
 	

 
	Schedule A—List of Initial Purchasers	 	Sch. A-1
	Schedule B—Pricing Information	 	Sch. B-1
	Schedule C—List of Subsidiaries	 	Sch. C-1

i

QUESTAR MARKET RESOURCES, INC. 

(a
Utah corporation) 

$200,000,000

7%
Notes due 2007 

PURCHASE
AGREEMENT 

January 9,
2002 

BANC
OF AMERICA SECURITIES LLC

MERRILL LYNCH & CO.

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

as Representatives of the several Initial Purchasers
 c/o    Merrill Lynch & Co.

        Merrill Lynch, Pierce, Fenner & Smith Incorporated

Four World Financial Center

New York, New York 10080 

Ladies
and Gentlemen: 

        Questar
Market Resources, Inc., a Utah corporation (the "Company"), confirms its agreement with Banc of America Securities LLC ("Banc of America"), Merrill
Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated ("Merrill Lynch") and each of the other Initial Purchasers named in Schedule A hereto (collectively, the
"Initial Purchasers", which term shall also include any initial purchaser substituted as hereinafter provided in Section 11 hereof), for whom Banc of America and Merrill Lynch are acting as
representatives (in such capacity, the "Representatives"), with respect to the issue and sale by the Company and the purchase by the Initial Purchasers, acting severally and not jointly, of the
respective principal amounts set forth in Schedule A of $200,000,000 aggregate principal amount of the Company's 7% Notes due 2007 (the "Securities"). The Securities are to be issued pursuant
to an indenture dated as of March 1, 2001 (the "Indenture") between the Company and Bank
One, NA, as trustee (the "Trustee"). The term "Indenture," as used herein, includes the Officer's Certificate (as defined in the Indenture) establishing the form and terms of the Securities pursuant
to Sections 201 and 301 of the Indenture. Securities issued in book-entry form will be issued to Cede & Co. as nominee of The Depository Trust Company ("DTC") pursuant
to a letter agreement, to be dated as of the Closing Time (as defined in Section 2(b) hereof) (the "DTC Agreement"), among the Company, the Trustee and DTC. 

        The
Company understands that the Initial Purchasers propose to make an offering of the Securities on the terms and in the manner set forth herein and agrees that the Initial Purchasers
may resell, subject to the conditions set forth herein, all or a portion of the Securities to purchasers ("Subsequent Purchasers") at any time after this Agreement has been executed and delivered. The
Securities are to be offered and sold through the Initial Purchasers without being registered under the Securities Act of 1933, as amended (the "1933 Act"), in reliance upon exemptions therefrom.
Pursuant to the terms of the Securities and the Indenture, investors that acquire Securities may only resell or otherwise transfer such Securities if such Securities are hereafter registered under the
1933 Act or if an exemption from the registration requirements of the 1933 Act is available (including the exemption afforded by Rule 144A ("Rule 144A") of the rules and regulations
promulgated under the 1933 Act by the Securities and Exchange Commission (the "Commission") (the "1933 Act Regulations")). 

        The
Company has prepared and delivered to each Initial Purchaser copies of a preliminary offering memorandum dated December 5, 2001 (the "Preliminary Offering Memorandum") and has
prepared and will deliver to each Initial Purchaser, on the date hereof or the next succeeding day, copies of a final offering memorandum dated January 9, 2002 (the "Final Offering
Memorandum"), each for use by such Initial Purchaser in connection with its solicitation of purchases of, or offering of, the Securities. "Offering Memorandum" means, with respect to any date or time
referred to in this 

 

Agreement, the most recent offering memorandum (whether the Preliminary Offering Memorandum or the Final Offering Memorandum, or any amendment or supplement to either such document), including
exhibits thereto and any documents incorporated therein by reference, which has been prepared and delivered by the Company to the Initial Purchasers in connection with their solicitation of purchases
of, or offering of, the Securities. 

        All
references in this Agreement to financial statements and schedules and other information which is "contained," "included" or "stated" in the Offering Memorandum (or other references
of like import) shall be deemed to mean and include all such financial statements and schedules and other information which is incorporated by reference in the Offering Memorandum; and all references
in this Agreement to amendments or supplements to the Offering Memorandum shall be deemed to mean and include the filing of any document under the Securities Exchange Act of 1934, as amended (the
"1934 Act"), which is incorporated by reference in the Offering Memorandum. 

        SECTION 1.    Representations and Warranties.    

        (a)    Representations and Warranties by the Company.    The Company represents and warrants to each Initial Purchaser
as of the date hereof, as of the Closing Time referred to in Section 2(b) hereof, and agrees with each Initial Purchaser, as follows: 

        (i)    Offering Memorandum.    The Offering Memorandum does not, and at the Closing Time will not, include an untrue
statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided
that this representation, warranty and agreement shall not apply to statements in or omissions from the Offering Memorandum made in reliance upon and in conformity with information furnished to the
Company in writing by any Initial Purchaser expressly for use in the Offering Memorandum. 

        (ii)    Incorporated Documents.    The Offering Memorandum as delivered from time to time shall incorporate by
reference the most recent Annual Report of the Company on Form 10-K filed with the Commission and each Quarterly Report of the Company on Form 10-Q and each
Current Report of the Company on Form 8-K filed with the Commission since the filing of the end of the fiscal year to which such Annual Report relates. The documents incorporated or
deemed to be incorporated by reference in the Offering Memorandum at the time they were or hereafter are filed with the Commission complied and will comply in all material respects with the
requirements of the 1934 Act and the rules and regulations of the Commission thereunder (the "1934 Act Regulations"), and, when read together with the other information in the Offering Memorandum, at
the time the Offering Memorandum was issued and at the Closing Time, did not and will not include an untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading. 

        (iii)    Accountants.    The accountants who certified the financial statements and supporting schedules included in
the Offering Memorandum are, to the best knowledge of the Company, independent public accountants as required by the 1933 Act and the 1933 Act Regulations. 

        (iv)    Financial Statements.    The financial statements included in the Offering Memorandum present fairly the
financial position of the Company and its consolidated subsidiaries as at the dates indicated and the results of their operations for the periods specified; except as otherwise stated in the Offering
Memorandum, such financial statements have been prepared in conformity with generally accepted accounting principles, applied on a consistent basis, and the supporting schedules included in the
Offering Memorandum present fairly the information required to be stated therein. The selected financial data and the 

2

 

summary financial information included in the Offering Memorandum present fairly the information shown therein and have been compiled on a basis consistent with that of the audited financial
statements included in the Offering Memorandum. The pro forma financial statements of the Company and its subsidiaries and the related notes thereto included in the Offering Memorandum present fairly
the information shown therein, have been prepared in accordance with the Commission's rules and guidelines with respect to pro forma financial statements and have been properly compiled on the bases
described therein, and the assumptions used in the preparation thereof are reasonable and the adjustments used therein are appropriate to give effect to the transactions and circumstances referred to
therein. 

        (v)    Material Changes or Material Transactions.    Since the respective dates as of which information is given in
the Offering Memorandum, except as otherwise stated therein, (a) there has been no material adverse change in the condition, financial or otherwise, or in the earnings, business affairs or
business prospects of the Company and its subsidiaries considered as one enterprise, whether or not arising in the ordinary course of business (a "Material Adverse Effect"), (b) there have been
no transactions entered into by the Company or any of its subsidiaries, other than those in the ordinary course of business, which are material with respect to the Company and its subsidiaries
considered as one enterprise, and (c) except for the regular dividends, there has been no dividend or distribution of any kind declared, paid or made by the Company on any class of its capital
stock. 

        (vi)    Due Incorporation and Qualification.    The Company has been duly incorporated and is validly existing as a
corporation in good standing under the laws of the State of Utah with corporate power and authority to own, lease and operate its properties and to conduct its business as described in the Offering
Memorandum; and the Company is duly qualified as a foreign corporation to transact business and is in good standing in each jurisdiction in which such qualification is required, whether by reason of
the ownership or leasing of property or the conduct of business, except where the failure to so qualify or be in good standing would not result in a Material Adverse Effect. 

        (vii)    Subsidiaries.    Each subsidiary of the Company has been duly incorporated and is validly existing as a
corporation in good standing under the laws of the jurisdiction of its incorporation, has corporate power and authority to own, lease and operate its properties and to conduct its business as
described in the Offering Memorandum and is duly qualified as a foreign corporation to transact business and is in good standing in each jurisdiction in which such qualification is required, whether
by reason of the ownership of property or the conduct of business, except where the failure to so qualify or be in good standing would not have a Material Adverse Effect; and all of the issued and
outstanding capital stock of each subsidiary has been duly authorized and validly issued, is fully paid and nonassessable and is owned by the Company, directly or through subsidiaries, free and clear
of any security interest, mortgage, pledge, lien, encumbrance, claim or equity. 

        (viii)    Capital Stock.    The shares of issued and outstanding common stock of the Company have been duly authorized
and validly issued and are fully paid and nonassessable. 

        (ix)    Authorization of Agreement.    This Agreement has been duly authorized, executed and delivered by the Company. 

        (x)    Authorization and Validity of the Indenture and the Securities.    The Securities have been duly authorized
and, at the Closing Time, will have been duly executed by the Company and, when authenticated, issued and delivered in the manner provided for in the Indenture and delivered against payment of the
purchase price therefor as provided in this Agreement, will constitute valid and legally binding obligations of the Company, enforceable against the Company in accordance with their terms, subject to
bankruptcy, insolvency, fraudulent 

3

 

transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors' rights and general equitable principles, and will be entitled to the benefits
provided by the Indenture, which has been duly authorized, executed and delivered by the Company and has been duly qualified under the 1939 Act in connection with the offering of the $150,000,000
71/2% Notes due 2011 of the Company on March 1, 2001 and constitutes a valid and legally binding instrument of the Company, enforceable against the Company in accordance with its
terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors' rights and general equitable
principles; and the Securities and the Indenture conform to the respective descriptions thereof in the Offering Memorandum. 

        (xi)    No Defaults; Regulatory Approvals.    Neither the Company nor any of its subsidiaries is in violation of its
charter or in default in the performance or observance of any obligation, agreement, covenant or condition contained in any contract, indenture, mortgage, loan agreement, note, lease or other
instrument to which the Company or any of its subsidiaries is a party or by which it or any of them may be bound, or to which any of the property or assets of the Company or any of its subsidiaries is
subject which violations or defaults in the aggregate would have a Material Adverse Effect; and the execution and delivery of this Agreement and the Registration Rights Agreement by and among the
Company and the Initial Purchasers dated January 9, 2002 (the "Registration Rights Agreement") and the consummation of the transactions contemplated herein and therein have been duly authorized
by all necessary corporate action and will not conflict with or constitute a breach of, or a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any property
or assets of the Company or any of its subsidiaries, except as expressly contemplated in the Indenture or except as would not have a material adverse effect, pursuant to any contract, indenture,
mortgage, loan agreement, note, lease or other instrument to which the Company or any of its subsidiaries is a party or by which it or any of them may be bound, or to which any of the property or
assets of the Company or any of its subsidiaries is subject, nor will such action result in any violation of the provisions of the charter or bylaws of the Company or any applicable law,
administrative regulation or administrative or court decree. 

        (xii)    Legal Proceedings; Contracts.    There is no action, suit or proceeding before or brought by any court or
governmental agency or body, domestic or foreign, now pending, or, to the knowledge of the Company, threatened, against the Company or any of its subsidiaries, which is required to be disclosed in the
Offering Memorandum (other than as disclosed therein) or which would reasonably be expected to: (A) result in a Material Adverse Effect; or (B) materially and adversely affect the
properties or assets thereof or the consummation of the transactions contemplated by this Agreement or the performance by the Company of its obligation hereunder. All pending legal or governmental
proceedings to which the Company or any of its subsidiaries is a party or which any of their respective property is subject which are not described directly or by reference in the Offering Memorandum,
including ordinary routine litigation incidental to the business, considered in the aggregate, would not reasonably be expected to cause a Material Adverse Effect. 

        (xiii)    No Governmental Authorization.    No authorization, approval or consent of any court or governmental
authority or agency is necessary in connection with the sale of the Securities hereunder, except such as have been obtained. 

        (xiv)    Possession of Permits.    The Company and its subsidiaries possess such valid franchises, certificates of
convenience and necessity, easements, rights-of-way, operating rights, licenses, permits, consents, authorizations and orders of governmental political subdivisions or
regulatory authorities as are necessary to conduct the business now operated by them, except those the failure of which to possess would not have a Material Adverse Effect, and neither 

4

 

the Company nor any of its subsidiaries has received any notice of proceedings relating to the revocation or modification thereof which, singly or in the aggregate, if the subject of an unfavorable
decision, ruling or finding would have a Material Adverse Effect. 

        (xv)    Investment Company Act.    Neither the Company nor any of its subsidiaries is regulated or required to be
registered as an "investment company" under the Investment Company Act of 1940, as amended (the "1940 Act"). 

        (xvi)    Ratings.    The Securities are rated Baa2 by Moody's Investors Service, Inc. and BBB+ by
Standard & Poor's Ratings Services, or such other rating as to which the Company shall have most recently notified the Initial Purchasers pursuant to Section 5(h) hereof. 

        (xvii)    Similar Offerings.    Neither the Company nor any of its affiliates, as such term is defined in
Rule 501(b) under the 1933 Act (each, an "Affiliate"), has, directly or indirectly, solicited any offer to buy, sold or offered to sell or otherwise negotiated in respect of, or will solicit
any offer to buy, sell or offer to sell or otherwise negotiate in respect of, in the United States or to any United States citizen or resident, any security which is or would be integrated with the
sale of the Securities in a manner that would require the offered Securities to be registered under the 1933 Act. 

        (xviii)    Rule 144A Eligibility.    The Securities are eligible for resale pursuant to Rule 144A and
will not be, at the Closing Time, of the same class as securities listed on a national securities exchange registered under Section 6 of the 1934 Act, or quoted in a U.S. automated interdealer
quotation system. 

        (xix)    No General Solicitation.    None of the Company, its Affiliates or any person acting on its or any of their
behalf (other than the Initial Purchasers, as to whom the Company makes no representation) has engaged or will engage, in connection with the offering of the offered Securities, in any form of general
solicitation or general advertising within the meaning of Rule 502(c) under the 1933 Act. 

        (xx)    No Registration Required.    Subject to compliance by the Initial Purchasers with the representations and
warranties set forth in Section 2 and the procedures set forth in Section 6 hereof, it is not necessary in connection with the offer, sale and delivery of the offered Securities to the
Initial Purchasers and to each Subsequent Purchaser in the manner contemplated by this Agreement and the Offering Memorandum to register the Securities under the 1933 Act or to qualify the Indenture
under the Trust Indenture Act of 1939, as amended (the "1939 Act"). 

        (xxi)    Authorization of Registration Rights Agreement.    The Registration Rights Agreement has been duly
authorized, executed and delivered by the Company and constitutes a valid and legally binding agreement of the Company, enforceable against the Company in accordance with its terms, subject to
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors' rights and general equitable principles; and the
Registration Rights Agreement conforms to the description thereof in the Offering Memorandum. 

        (b)    Additional Certifications.    Any certificate signed by any director or officer of the Company and delivered to
the Representatives or to counsel for the Initial Purchasers shall be deemed a representation and warranty by the Company to the Initial Purchasers as to the matters covered thereby. 

        SECTION 2.    Sale and Delivery to Initial Purchasers; Closing.    

        (a)    Securities.    On the basis of the representations and warranties herein contained and subject to the terms and
conditions herein set forth, the Company agrees to sell to each Initial 

5

 

Purchaser, severally and not jointly, and each Initial Purchaser, severally and not jointly, agrees to purchase from the Company, at the price set forth in Schedule B, the aggregate principal
amount of Securities set forth in Schedule A opposite the name of such Initial Purchasers, plus any additional principal amount of Securities which such Initial Purchasers may become obligated
to purchase pursuant to the provisions of Section 11 hereof. 

        (b)    Payment.    Payment of the purchase price for, and delivery of certificates for, the Securities shall be made
at the offices of Skadden, Arps, Slate, Meagher & Flom LLP, Four Times Square, New York, NY 10036, or at such other place as shall be agreed upon by the Representatives and the Company,
at 10:00 A.M. on the third business day after the date hereof (unless postponed in accordance with the provisions of Section 11), or such other time not later than ten business days
after such date as shall be agreed upon by the Representatives and the Company (such time and date of payment and delivery being herein called "Closing Time"). 

        Payment
shall be made to the Company by wire transfer of immediately available funds to a bank account designated by the Company, against delivery to the Representatives for the
respective accounts of the Initial Purchasers of certificates for the Securities to be purchased by them. It is understood that each Initial Purchaser has authorized the Representatives, for its
account, to accept delivery of, receipt for, and make payment of the purchase price for, the Securities which it has agreed to purchase. Banc of America and Merrill Lynch, not as representatives of
the Initial Purchasers, may (but shall not be obligated to) make payment of the purchase price for the Securities to be purchased by any Initial Purchaser whose funds have not been received by Closing
Time, but such payment shall not relieve such Initial Purchaser from its obligations hereunder. 

        (c)    Denominations; Registration.    Certificates for the Securities shall be in such denominations ($1,000 or
integral multiples thereof) and registered in such names as the Initial Purchasers may request in writing at least one full business day before Closing Time. The Securities will be made available for
examination and packaging by the Initial Purchasers in The City of New York not later than 10:00 A.M. on the last business day prior to Closing Time. 

        SECTION 3.    Covenants of the Company.    The Company covenants with each Initial Purchaser as follows: 

        (a)    Offering Memorandum.    The Company, as promptly as possible, will furnish to each Initial Purchaser, without
charge, such number of copies of the Offering Memorandum and any amendments and supplements thereto and documents incorporated by reference therein as such Initial Purchaser may reasonably request. 

        (b)    Notice and Effect of Material Events.    The Company will immediately notify each Initial Purchaser, and
confirm such notice in writing, of (x) any filing made by the Company of information relating to the offering of the Securities with any securities exchange or any other regulatory body in the
United States or any other jurisdiction, and (y) prior to the completion of the placement of the Offered Securities by the Initial Purchasers as evidenced by a notice in writing from the
Initial Purchasers to the Company, any material changes in or affecting the condition, financial or otherwise, or the earnings, business affairs or business prospects of the Company and its
subsidiaries considered as one enterprise which (i) make any statement in the Offering Memorandum false or misleading or (ii) are not disclosed in the Offering Memorandum. In such event
or if during such time any event shall occur as a result of which it is necessary, in the reasonable opinion of any of the Company, its counsel, the Initial Purchasers or counsel for the Initial
Purchasers, to amend or supplement the Offering Memorandum in order that the Offering Memorandum not include any untrue statement of a material fact or omit to state a material fact necessary in order
to make the statements therein not misleading in the light of the circumstances then existing, the Company will forthwith amend or supplement the Offering 

6

 

Memorandum by preparing and furnishing to each Initial Purchaser an amendment or amendments of, or a supplement or supplements to, the Offering Memorandum (in form and substance satisfactory in the
reasonable opinion of counsel for the Initial Purchasers) so that, as so amended or supplemented, the Offering Memorandum will not include an untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein, in the light of the circumstances existing at the time it is delivered to a Subsequent Purchaser, not misleading. 

        (c)    Amendment to Offering Memorandum and Supplements.    The Company will advise each Initial Purchaser promptly of
any proposal to amend or supplement the Offering Memorandum and will not effect such amendment or supplement without the consent of the Initial Purchasers. Neither the consent of the Initial
Purchasers, nor the Initial Purchaser's delivery of any such amendment or supplement, shall constitute a waiver of any of the conditions set forth in Section 5 hereof. 

        (d)    Blue Sky Qualifications.    The Company will endeavor, in cooperation with the Initial Purchasers, to qualify
the Securities for offering and sale under the applicable securities laws of such states and other jurisdictions as the Representatives may designate and to maintain such qualifications in effect for
a period of not less than one year from the date of the Offering Memorandum or such shorter period as is necessary to complete the distribution of the Securities; provided, however, that the Company
shall not be obligated to file any general consent to service of process or to qualify as a foreign corporation or as a dealer in securities in any jurisdiction in which it is not so qualified or to
subject itself to taxation in respect of doing business in any jurisdiction in which it is not otherwise so subject. In each jurisdiction in which the Securities have been so qualified, the Company
will file such statements and reports as may be required by the laws of such jurisdiction to continue such qualification in effect for a period of not less than one year from the date of the Offering
Memorandum. The Company will also supply the Initial Purchasers with such information as is necessary for the determination of the legality of the Securities for investment under the laws of such
jurisdictions as the Initial Purchasers may request. 

        (e)    Use of Proceeds.    The Company will use the net proceeds received by it from the sale of the Securities in the
manner specified in the Offering Memorandum under "Use of Proceeds". 

        (f)    Restriction on Sale of Securities.    During a period of 14 days from the date of the Offering
Memorandum, the Company will not, without the prior written consent of Banc of America and Merrill Lynch, directly or indirectly, issue, sell, offer or contract to sell, grant any option for the sale
of, or otherwise transfer or dispose of, any debt securities of the Company other than such securities representing commercial bank debt or intercompany debt. 

        (g)    Reporting Requirements.    The Company, during the period when the Offering Memorandum is required to be
delivered pursuant to Section 6(a)(vii) hereof, will file all documents required to be filed with the Commission pursuant to the 1934 Act within the time periods required by the 1934 Act and
the 1934 Act Regulations. 

        SECTION 4.    Payment of Expenses.    

        (a)    Expenses.    The Company will pay all expenses incident to the performance of its obligations under this
Agreement, including (i) the preparation, printing, delivery to the Initial Purchasers and any filing of the Offering Memorandum (including financial statements and exhibits) and of each
amendment or
supplement thereto, (ii) the preparation, printing and delivery to the Initial Purchasers of any Agreement among Initial Purchasers, the Indenture and such other documents as may be required in
connection with the offering, purchase, sale, issuance or delivery of the Securities, (iii) the preparation, issuance and delivery of the certificates, if any, for the Securities,
(iv) the fees and disbursements of the Company's counsel, accountants and other 

7

 

advisors, (v) the qualification of the Securities under securities laws in accordance with the provisions of Section 3(d) hereof, including filing fees and the reasonable fees and
disbursements of counsel for the Initial Purchasers in connection therewith and in connection with the preparation of the Blue Sky Survey and any supplement thereto, (vi) the printing and
delivery to the Initial Purchasers of copies of each preliminary Offering Memorandum and of the Offering Memorandum and any amendments or supplements thereto, (vii) the preparation, printing
and delivery to the Underwriters of copies of the Blue Sky Survey and any supplement thereto, (viii) the fees and expenses of the Trustee, including the fees and disbursements of counsel for
the Trustee in connection with the Indenture and the Securities, and (ix) any fees payable in connection with the rating of the Securities. 

        (b)    Termination of Agreement.    If this Agreement is terminated by the Representatives in accordance with the
provisions of Section 5 or Section 10(a)(i) hereof, the Company shall reimburse the Initial Purchasers for all of their out-of-pocket expenses, including the
reasonable fees and disbursements of counsel for the Initial Purchasers. 

8

   
        SECTION 5.    Conditions of the Initial Purchasers' Obligations.    The obligations of the several Initial
Purchasers hereunder are subject to the accuracy of the representations and warranties of the Company contained in Section 1 hereof or in certificates of any officer of the Company delivered
pursuant to the provisions hereof, to the performance by the Company of its covenants and other obligations hereunder, and to the following further conditions: 

        (a)    Opinion of Connie C. Holbrook, Esq.    At Closing Time, the Representatives shall have received the
favorable opinion, dated as of Closing Time, of Connie C. Holbrook, Esq., counsel for the Company who may rely as to all matters governed by federal and New York law upon the opinion of
Skadden, Arps, Slate, Meagher & Flom LLP referred to below, in form and substance reasonably satisfactory to counsel for the Initial Purchasers, to the effect that: 

          (i)  The
Company has been duly incorporated and is an existing corporation in good standing under the laws of the State of Utah. 

        (ii)  The
Company has corporate power and authority to own its properties and conduct its business as described in the Offering Memorandum; and the Company is duly qualified
to do business as a foreign corporation and is in good standing in all other jurisdictions in which it owns or leases substantial properties or in which the conduct of its business requires such
qualification, except where the failure to be so qualified would not have a Material Adverse Effect. 

        (iii)  The
Securities are in the form contemplated by the Indenture, have been duly authorized by the Company and, assuming that the Securities have been duly authenticated
by the Trustee in accordance with the terms of the Indenture, the Securities have been duly executed, issued and delivered by the Company and constitute valid and binding obligations of the Company,
enforceable against the Company in accordance with their terms, except to the extent that enforcement thereof may be limited by (a) bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium or other similar laws now or hereinafter in effect relating to or affecting creditors' rights generally and (b) general principles of equity (regardless of whether enforceability is
considered in a proceeding at law or in equity). In expressing the opinion set forth in this paragraph (iii), such counsel may assume that the Securities, in the form delivered to the Initial
Purchasers, conform to the specimen of the Securities examined by such counsel, which fact need not be verified by an inspection of the individual Securities. 

        (iv)  The
execution, delivery and performance of the Indenture, of the Registration Rights Agreement and of this Agreement and the issuance and sale of the Securities and
compliance with the terms and
provisions hereof and thereof will not (a) result in a breach or violation of any of the terms or provisions of, or constitute a default under, (1) any law, rule, regulation or order
known to such counsel of any governmental agency having jurisdiction over the Company or any of its properties or any agreement or instrument known to such counsel to which the Company is a party or
by which the Company is bound or to which any of the properties of the Company is subject, which would cause a material adverse change in the financial position, shareholders' equity or results of
operations of the Company or affect the validity of the Securities or the legal authority of the Company to comply with the terms of the Securities, the Indenture, this Agreement or (2) the
charter or bylaws of the Company or (b) result in the creation or imposition of any lien, charge or encumbrance upon any property or assets of the Company or any subsidiary pursuant to any
contract, indenture, mortgage, deed of trust, loan or credit agreement, note, lease or any other agreement or instrument, known to such counsel, to which the Company or any subsidiary is a party or by
which it or any of them may be bound, or to which any of the property or assets of the Company or any subsidiary is subject (except for such liens, charges or encumbrances that would not have a 

9

 

Material Adverse Effect); and the Company has full power and authority to authorize, issue and sell the Securities as contemplated by this Agreement. 

        (v)  The
Indenture has been duly authorized, executed and delivered by the Company and (assuming the due authorization, execution and delivery of the Indenture by the
Trustee) is a valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, except to the extent enforcement thereof may be limited by
(a) bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or other similar laws now or hereinafter in effect relating to or affecting creditors' rights generally, and
(b) general principles of equity (regardless of whether enforceability is considered in a proceeding at law or in equity). 

        (vi)  Each
of the Purchase Agreement and the Registration Rights Agreement has been duly authorized, executed and delivered by the Company and the Registration Rights
Agreement constitutes a valid and legally binding agreement of the Company, enforceable against the Company in accordance with its terms. 

      (vii)  No
authorization, approval or consent of any governmental authority or agency is necessary in connection with the transactions contemplated by this Agreement, except
such as may be required under state securities or Blue Sky laws, and except as have been obtained. 

      (viii)  The
documents incorporated by reference in the Offering Memorandum (other than the financial statements and supporting schedules included therein or omitted
therefrom, as to which such counsel need express no opinion), when they were filed with the Commission complied as to form in all material respects with the requirements of the 1934 Act and the 1934
Act Regulations. 

        (ix)  It
is not necessary in connection with the offer, sale and delivery of the Securities to the Initial Purchasers and to each Subsequent Purchaser in the manner
contemplated by the Purchase Agreement
and the Offering Memorandum to register the Securities under the 1933 Act or to qualify the Indenture under the Trust Indenture Act. 

        (b)    Opinion of Company Counsel.    At Closing Time, the Representatives shall have received the favorable opinion,
dated as of Closing Time, of Skadden, Arps, Slate, Meagher & Flom LLP, special counsel for the Company, in form and substance reasonably satisfactory to counsel for the Initial
Purchasers, to the effect that: 

          (i)  The
Securities are in the form contemplated by the Indenture, and when executed and authenticated in accordance with the terms of the Indenture and delivered to and
paid for by the Initial Purchasers in accordance with the terms hereof, will constitute valid and binding obligation of the Company, enforceable against the Company in accordance with their terms
under the laws of the State of New York, except to the extent that enforcement thereof may be limited by (a) bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or other
similar laws now or hereinafter in effect relating to or affecting creditors' rights generally and (b) general principles of equity (regardless of whether enforceability is considered in a
proceeding at law or in equity). 

        (ii)  The
Securities and the Indenture conform in all material respects to the descriptions thereof contained in the Offering Memorandum. 

        (iii)  The
Indenture has been duly executed and delivered by the Company (to the extent such execution and delivery are matters governed by the laws of the State of New York)
and (assuming the due authorization, execution and delivery of the Indenture by the Trustee) is a valid and binding agreement of the Company, enforceable against the Company in accordance with its
terms under the laws of the State of New York, except to the extent enforcement 

10

 

thereof may be limited by (a) bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or other similar laws now or hereinafter in effect relating to or affecting creditors'
rights generally and (b) general principles of equity (regardless of whether enforceability is considered in a proceeding at law or in equity). 

        (iv)  Each
of this Agreement and the Registration Rights Agreement has been duly executed and delivered by the Company (to the extent such execution and delivery are matters
governed by the laws of the State of New York). 

        (v)  Such
counsel does not know of any legal or governmental proceedings which would be required to be disclosed in the Offering Memorandum which are not disclosed as
required, assuming that the Offering Memorandum was subject to Regulation S-K of the 1933 Act Regulations. 

        (vi)  No
authorization, approval or consent of any governmental authority or agency is necessary in connection with the consummation by the Company of the transactions
contemplated by this Agreement, except such as may be required by state securities or Blue Sky laws, and other than any that has been obtained. 

      (vii)  The
statements set forth in the Offering Memorandum under the captions "Description of the Notes" and "Exchange Offer and Registration Rights", insofar as such
statements purport to summarize certain provisions of the documents referred to therein, fairly summarize such provisions in all material respects. 

      (viii)  Assuming
(i) the accuracy of the representations and warranties of the Company set forth in Section 1 of the Purchase Agreement, (ii) the due
performance by the Company of the covenants and agreements set forth in Section 3 of the Purchase Agreement and the due performance by the Initial Purchasers of the covenants and agreements set
forth in Section 6 of the Purchase Agreement, (iii) compliance by the Initial Purchasers with the offering and transfer procedures and restrictions described in the Offering Memorandum,
(iv) the accuracy of the representations and warranties made in accordance with this Agreement and the Offering Memorandum by purchasers to whom the Initial Purchasers initially resell the
Securities and (v) that purchasers to whom the Initial Purchasers initially resell the Securities receive a copy of the Offering Memorandum prior to such sale, the offer, sale and delivery of
the Securities to the Initial Purchasers in the manner contemplated by the Purchase Agreement and the Offering Memorandum and the initial resale of the Securities by the Initial Purchasers in the
manner contemplated in the Offering Memorandum and this Agreement, do not require registration under the Securities Act, and the Indenture does not require qualification under the Trust Indenture Act,
it being understood that we do not express any opinion as to any subsequent resale of any Security. 

        (c)    Opinion of Counsel to the Initial Purchasers.    The opinion of Sidley Austin Brown & Wood LLP,
counsel to the Initial Purchasers, who may rely as to all matters governed by Utah law upon the opinion of Connie C. Holbrook, Esq., referred to above, covering the matters referred to in
subparagraph (a) under the subheading (i) and subparagraph (b) under the subheadings (i) through (iv), inclusive, (viii) and (ix) above. 

        (d)  In
giving their opinions as of the date hereof required by subsection (b), (c) and (d) of this Section, counsel (other than Connie C. Holbrook) shall state
that they have participated in conferences with officers and other representatives of the Company, representatives of the independent accountants of the Company, and the Initial Purchasers, at which
the contents of the Offering Memorandum, and any amendments or supplements thereto, and related matters were discussed and although such counsel are not passing upon, and do not assume any
responsibility for, the accuracy, completeness or fairness of the statements contained in the Offering 

11

 

Memorandum or any amendments or supplements thereto and have made no independent check or verification thereof, on the basis of the foregoing, no facts have come to such counsel's attention that lead
them to believe that the Offering Memorandum, at the time the Offering Memorandum was
issued, at the time any such amended or supplemented Offering Memorandum was issued or at the Closing Time, contained an untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary in order to make the statements therein not misleading. Such counsel may state that they express no opinion or belief with respect to the financial
statements and the related notes, schedules and other financial or reserve data included in or excluded from the Offering Memorandum or the exhibits thereto or incorporated by reference in such
Offering Memorandum. 

        (e)    Officers' Certificate.    At Closing Time, there shall not have been, since the date hereof or since the
respective dates as of which information is given in the Offering Memorandum, any material adverse change in the condition, financial or otherwise, or in the earnings, business affairs or business
prospects of the Company and its subsidiaries considered as one enterprise, whether or not arising in the ordinary course of business, and the Representatives shall have received a certificate of the
President or a Vice President of the Company and of the chief financial or chief accounting officer of the Company, dated as of Closing Time, to the effect that (i) there has been no such
material adverse change, (ii) the representations and warranties in Section 1(a) hereof are true and correct with the same force and effect as though expressly made at and as of Closing
Time and (iii) the Company has complied with all covenants and agreements and satisfied all conditions on its part to be performed or satisfied at or prior to Closing Time. 

        (f)    Accountants' Comfort Letter.    At the time of the execution of this Agreement, the Representatives shall have
received from Ernst & Young, LLP a letter dated such date, in form and substance satisfactory to the Representatives, together with signed or reproduced copies of such letter for each of
the other Initial Purchasers containing statements and information of the type ordinarily included in accountants' "comfort letters" to underwriters with respect to the financial statements and
certain financial information contained in the Offering Memorandum. 

        (g)    Bring-down Comfort Letter.    At Closing Time, the Representatives shall have received from
Ernst & Young, LLP a letter, dated as of Closing Time, to the effect that they reaffirm the statements made in the letter furnished pursuant to subsection (f) of this Section,
except that the specified date referred to shall be a date not more than three business days prior to Closing Time. 

        (h)    Maintenance of Rating.    At Closing Time, the Securities shall be rated at least Baa2 by Moody's Investors
Service Inc. and BBB+ by Standard & Poor's Ratings Services, a division of McGraw-Hill, Inc., and, if requested, the Company shall have delivered to the
Representatives a letter dated the Closing Time, from each such rating agency, or other evidence satisfactory to the Representatives, confirming that the Securities have such ratings; and since the
date of this Agreement, there shall not have occurred a downgrading in the rating assigned to the Securities or any of the Company's other debt securities by any "nationally recognized statistical
rating agency", as that term is defined by the Commission for purposes of Rule 436(g)(2) under the 1933 Act, and no such organization shall have publicly announced that it has under
surveillance or review its rating of the Securities or any of the Company's other debt securities. 

        (i)    Additional Documents.    At Closing Time, counsel for the Initial Purchasers shall have been furnished with
such documents and opinions as they may reasonably require for the purpose of enabling them to pass upon the issuance and sale of the Securities as herein contemplated, or in order to evidence the
accuracy of any of the representations or warranties, or the fulfillment of any of the conditions, herein contained; and all proceedings taken by the Company in connection with the issuance and sale
of the Securities as herein contemplated shall be reasonably satisfactory in form and substance to the Representatives and counsel for the Initial Purchasers. 

12

 

        (j)    Termination of Agreement.    If any condition specified in this Section shall not have been fulfilled when and
as required to be fulfilled, this Agreement may be terminated by the Representatives by notice to the Company at any time at or prior to Closing Time, and such termination shall be without liability
of any party to any other party except as provided in Section 4 and except that Sections 1, 7, 8 and 9 shall survive any such termination and remain in full force and effect. 

        SECTION 6.    Subsequent Offers and Resales of the Securities.    

        (a)    Offer and Sale Procedures.    Each of the Initial Purchasers and the Company hereby establish and agree to
observe the following procedures in connection with the offer and sale of the Securities: 

        (i)    Offers and Sales only to Qualified Institutional Buyers.    Offers and sales of the Securities shall only be
made to persons whom the offeror or seller reasonably believes to be qualified institutional buyers, as defined in Rule 144A under the 1933 Act ("Qualified Institutional Buyers"). 

        (ii)    No General Solicitation.    No general solicitation or general advertising (within the meaning of
Rule 502(c) under the 1933 Act) will be used in the United States in connection with the offering or sale of the Securities. 

        (iii)    Purchases by Non-Bank Fiduciaries.    In the case of a non-bank Subsequent Purchaser
of a Security acting as a fiduciary for one or more third parties, each third party shall, in the judgment of the applicable Initial Purchaser, be an Institutional Accredited Investor or a Qualified
Institutional Buyer or a non-U.S. person outside the United States, as those terms are defined in Rule 144A. 

        (iv)    Subsequent Purchaser Notification.    Each Initial Purchaser will take reasonable steps to inform persons
acquiring Securities from such Initial Purchaser that the Securities (A) have not been and will not be registered under the 1933 Act, (B) are being sold to them without registration
under the 1933 Act in reliance on Rule 144A or in accordance with another exemption from registration under the 1933 Act,
as the case may be, and (C) may not be offered, sold or otherwise transferred except (1) to the Company, or (2) in accordance with (x) Rule 144A to a person whom the
seller reasonably believes is a Qualified Institutional Buyer that is purchasing such Securities for its own account or for the account of a Qualified Institutional Buyer to whom notice is given that
the offer, sale or transfer is being made in reliance on Rule 144A or (y) pursuant to another available exemption from registration under the 1933 Act. 

        (v)    Restrictions on Transfer.    The transfer restrictions and the other provisions set forth in the Offering
Memorandum under the heading "Notice to Investors", including the legend required thereby, shall apply to the Securities except as otherwise agreed by the Company and the Initial Purchasers. 

        (vi)    Delivery of Offering Memorandum.    Each Initial Purchaser will deliver to each purchaser of the Securities
from such Initial Purchaser, in connection with its original distribution of the Securities, a copy of the Offering Memorandum, as amended and supplemented at the date of such delivery. 

        (b)    Covenants of the Company.    The Company covenants with each Initial Purchaser as follows: 

        (i)    Integration.    The Company agrees that it will not and will cause its Affiliates not to, directly or
indirectly, solicit any offer to buy, sell or make any offer or sale of, or otherwise negotiate in respect of, securities of the Company of any class if, as a result of the doctrine of 

13

 

"integration" referred to in Rule 502 under the 1933 Act, such offer or sale would render invalid (for the purpose of (A) the sale of the offered Securities by the Company to the
Initial Purchasers, (B) the resale of the offered Securities by the Initial Purchasers to Subsequent Purchasers or (C) the resale of the offered Securities by such Subsequent Purchasers
to others) the exemption from the registration requirements of the 1933 Act provided by Section 4(2) thereof or by Rule 144A thereunder or otherwise. 

        (ii)    Rule 144A Information.    The Company agrees that, in order to render the offered Securities eligible
for resale pursuant to Rule 144A under the 1933 Act, while any of the offered Securities remain outstanding, it will make available, upon request, to any holder of offered Securities or
prospective purchasers of Securities the information specified in Rule 144A(d)(4), unless the Company furnishes information to the Commission pursuant to Section 13 or 15(d) of the 1934
Act. 

        (iii)    Restriction on Resales.    Until the expiration of two years after the original issuance of the offered
securities, the Company will not, and will cause its Affiliates not to, resell any offered Securities which are "restricted securities" (as such term is defined under Rule 144(a)(3) under the
1933 Act), whether as beneficial owner or otherwise (except as agent acting as a securities broker on behalf of and for the account of customers in the ordinary course of business in unsolicited
broker's transactions). 

        (c)    Qualified Institutional Buyer.    Each Initial Purchaser severally and not jointly represents and warrants to,
and agrees with, the Company that it is a Qualified Institutional Buyer and an "accredited investor" within the meaning of Rule 501(a) under the 1933 Act (an "Accredited Investor"). 

        SECTION 7.    Indemnification.    

        (a)    Indemnification of Initial Purchasers.    The Company agrees to indemnify and hold harmless each Initial
Purchaser and each person, if any, who controls any Initial Purchaser within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act as follows: 

          (i)  against
any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or alleged untrue statement of a material
fact contained in any Preliminary Offering Memorandum or the Final Offering Memorandum (or any amendment thereto) or the omission or alleged omission therefrom of a material fact necessary to make the
statements therein, in the light of the circumstances under which they were made, not misleading; 

        (ii)  against
any and all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement of any litigation, or
any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue
statement or omission; provided that (subject to Section 7(d) below) any such settlement is effected with the written consent of the Company; and 

        (iii)  against
any and all expense whatsoever, as incurred (including, subject to Section 7(c) hereof, the fees and disbursements of counsel chosen by Banc of
America), reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any
claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above; 

provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of any
untrue statement or omission or alleged untrue 

14

 

statement or omission made in reliance upon and in conformity with written information furnished to the Company or special counsel to the Company by any Initial Purchaser expressly for use in the
Offering Memorandum (or any amendment or supplement thereto). The foregoing indemnity with respect to any untrue statement contained in or omitted from a Preliminary Offering Memorandum shall not
inure to the benefit of any Initial Purchaser (or any person controlling such Initial Purchaser) from whom the person asserting any such loss, liability, claim, damage or expense purchased any of the
Securities which are the subject thereof if such person did not receive a copy of the Final Offering Memorandum (or any amendment or supplement thereto) (in each case exclusive of the documents from
which information is incorporated by reference) at or prior to the written confirmation of the sale of such Securities to such person and the untrue statement contained in or omitted from such
Preliminary Offering Memorandum was corrected in the Final Offering Memorandum (or any amendment or supplement thereto) and provided that the Company has satisfied its obligations pursuant to
Section 3(a) of this Agreement to provide the Initial Purchasers with a sufficient number of copies of any amendment or supplement to the Offering Memorandum in a timely manner. 

        (b)    Indemnification of Company.    Each Initial Purchaser, severally and not jointly, agrees to indemnify and hold
harmless the Company and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability,
claim, damage and expense described in the indemnity contained in subsection (a) of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue
statements or omissions, made in the Offering Memorandum (or any amendment or supplement thereto) in reliance upon and in conformity with written information furnished to the Company or special
counsel to the Company by such Initial Purchaser expressly for use in the Offering Memorandum (or any amendment or supplement thereto), and will reimburse any legal or other expenses reasonably
incurred by the Company in connection with investigating or defending such loss, liability, claim, damage, expense or action as such expenses are incurred. 

        (c)    Actions against Parties; Notification.    Each indemnified party shall give notice as promptly as reasonably
practicable to each indemnifying party of any action commenced against it in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such
indemnifying party from any liability hereunder to the extent it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise
than on account of this indemnity agreement. In the case of parties indemnified pursuant to Section 7(a) above, counsel to the indemnified parties shall be selected by Banc of America and
Merrill Lynch, and, in the case of parties indemnified pursuant to Section 7(b) above, counsel to the indemnified parties shall be selected by the Company. If it so elects within a reasonable
time after receipt of such notice, an indemnifying party, jointly with any other indemnifying parties receiving such notice, may assume the defense of such action with counsel chosen by it and
approved by the indemnified parties defendant in such action (which approval shall not be unreasonably withheld), unless such indemnified parties reasonably object to such assumption on the ground
that there may be legal defenses available to them which are different from or in addition to those available to such indemnifying party. If an indemnifying party assumes the defense of such action,
the indemnifying party shall not be liable for any fees and expenses of counsel for the indemnified parties incurred thereafter in connection with such action other than the reasonable costs of
investigation. In no event shall the indemnifying parties be liable for fees and expenses of more than one counsel (in addition to any local counsel) separate from their own counsel for all
indemnified parties in connection with any one action or separate but similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances. No indemnifying
party shall, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, 

15

 

or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 7 or Section 8 hereof (whether or not the indemnified parties are actual
or potential parties
thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation,
proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party. 

        (d)    Settlement without Consent if Failure to Reimburse.    If at any time an indemnified party shall have requested
an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by
Section 7(a)(ii) effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request,
(ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying
party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. Notwithstanding the immediately preceding sentence, if at any time an
indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, an indemnifying party shall not be liable for any settlement of the
nature contemplated by Section 7(a)(ii) effected without its consent if such indemnifying party (i) reimburses such indemnified party in accordance with such request to the extent it
considers such request to be reasonable and (ii) provides written notice to the indemnified party substantiating the unpaid balance as unreasonable, in each case prior to the date of such
settlement. 

        SECTION 8.    Contribution.    If the indemnification provided for in Section 7 hereof is for any reason
(except as provided therein) unavailable to or insufficient to hold harmless an indemnified party in respect of any losses, liabilities, claims, damages or expenses referred to therein, then each
indemnifying party shall contribute to the aggregate amount of such losses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred, (i) in such proportion as
is appropriate to reflect the relative benefits received by the Company on the one hand and the Initial Purchasers on the other hand from the offering of the Securities pursuant to this Agreement or
(ii) if the allocation provided by clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in
clause (i) above but also the relative fault of the Company on the one hand and of the Initial Purchasers on the other hand in connection with the statements or omissions which resulted in such
losses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations. 

16

   
        The relative benefits received by the Company on the one hand and the Initial Purchasers on the other hand in connection with the offering of the Securities pursuant to this Agreement
shall be deemed to be in the same respective proportions as the total net proceeds from the offering of the Securities pursuant to this Agreement (before deducting expenses) received by the Company
and the total purchase discount received by the Initial Purchasers, in each case as set forth on the cover of the Offering Memorandum, bear to the aggregate initial offering price of the Securities as
set forth on such cover. 

        The
relative fault of the Company on the one hand and the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether any such untrue or alleged
untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or by the Initial Purchasers and the parties' relative
intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. 

        The
Company and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 8 were determined by pro rata allocation (even if the
Initial Purchasers were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this
Section 8. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 8 shall be deemed to include
any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency
or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. 

        Notwithstanding
the provisions of this Section 8, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the
Securities purchased by it and distributed to the subsequent purchaser were offered to the subsequent purchaser exceeds the amount of any damages which such Initial Purchaser has otherwise been
required to pay by reason of any such untrue or alleged untrue statement or omission or alleged omission. 

        No
person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. 

        For
purposes of this Section 8, each person, if any, who controls an Initial Purchaser within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act
shall have the same rights to contribution as such Initial Purchaser, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of
the 1934 Act shall have the same rights to contribution as the Company. The Initial Purchasers' respective obligations to contribute pursuant to this Section are several in proportion to the principal
amount of Securities set forth opposite their respective names in Schedule A hereto and not joint. 

        SECTION 9.    Representations, Warranties and Agreements to Survive Delivery.    All representations,
warranties and agreements contained in this Agreement or in certificates of officers of the Company or any of its subsidiaries submitted pursuant hereto, shall remain operative and in full force and
effect, regardless of any investigation made by or on behalf of any Initial Purchaser or controlling person, or by or on behalf of the Company, and shall survive delivery of the Securities to the
Initial Purchasers. 

        SECTION 10.    Termination of Agreement.    

        (a)    Termination; General.    The Representatives may terminate this Agreement, by notice to the Company, at any
time at or prior to Closing Time (i) if there has been, since the time of execution of this Agreement or since the respective dates as of which information is given in the Offering Memorandum,
any material adverse change in the condition, financial or otherwise, or in 

17

 

the earnings, business affairs or business prospects of the Company and its subsidiaries considered as one enterprise, whether or not arising in the ordinary course of business, or (ii) if
there has occurred any material adverse change in the financial markets in the United States or any outbreak of hostilities or escalation thereof or other calamity or crisis, in each case the effect
of which is such as to make it, in the reasonable judgment of the Representatives, impracticable or inadvisable to market the Securities or to enforce contracts for the sale of the Securities, or
(iii) if trading in the Securities has been suspended or materially limited by the Commission, or if trading generally on the American Stock Exchange or the New York Stock Exchange or in the
Nasdaq National Market has been suspended or materially limited, or minimum or maximum prices for trading have been fixed, or maximum ranges for prices have been required, by any of the exchanges or
by such system or by order of the Commission, the National Association of Securities Dealers, Inc. or any other governmental authority, or a material disruption has occurred in commercial
banking or securities settlement or clearance services in the United States or (iv) if a banking moratorium has been declared by either Federal, New York or Utah authorities. 

        (b)    Liabilities.    If this Agreement is terminated pursuant to this Section, such termination shall be without
liability of any party to any other party (except as provided in Section 4 hereof, and provided further that Sections 1, 7, 8 and 9 shall survive such termination and remain in full
force and effect, pursuant to a termination under Section 10(a)(i)). 

        SECTION 11.    Default by One or More of the Initial Purchasers.    If one or more of the Initial Purchasers
shall fail at Closing Time to purchase the Securities which it or they are obligated to purchase under this Agreement (the "Defaulted Securities"), the Representatives shall have the right, within
24 hours thereafter, to make arrangements for one or more of the non-defaulting Initial Purchasers, or any other initial purchasers, to purchase all, but not less than all, of the
Defaulted Securities in such amounts as may be agreed upon and upon the terms herein set forth; if, however, the Representatives shall not have completed such arrangements within such
24-hour period, then: 

        (a)  if
the number of Defaulted Securities does not exceed 10% of the aggregate principal amount of the Securities to be purchased hereunder, each of the
non-defaulting Initial Purchasers shall be obligated, severally and not jointly, to purchase the full amount thereof in the proportions that their respective purchase obligations hereunder
bear to the purchase obligations of all non-defaulting Initial Purchasers, or 

        (b)  if
the number of Defaulted Securities exceeds 10% of the aggregate principal amount of the Securities to be purchased hereunder, this Agreement shall terminate without
liability on the part of any non-defaulting Initial Purchaser. 

        No
action taken pursuant to this Section 11 shall relieve any defaulting Initial Purchaser from liability in respect of its default. 

        In
the event of any such default which does not result in a termination of this Agreement, either the Representatives or the Company shall have the right to postpone the Closing Time for
a period not exceeding seven days in order to effect any required changes in the Registration Statement or Prospectus or in any other documents or arrangements. As used herein, the term "Initial
Purchaser" includes any person substituted for an Initial Purchaser under this Section 11. 

        SECTION 12.    Notices.    All notices and other communications hereunder shall be in writing and shall be
deemed to have been duly given if mailed or transmitted by any standard form of telecommunication. Notices to the Initial Purchasers shall be directed to the Representatives at the offices of Banc of
America, Banc of America Corporate Center, 100 North Tryon Street, Charlotte, North Carolina 28255, attention: Transaction Management, and Merrill Lynch, Four World Financial Center, New York, New
York 10008, attention: Scott Primrose; and notices to the Company shall be 

18

 

directed to it at 180 East 100 South, Salt Lake City, UT, 84111, attention of Stephen E. Parks, Vice President, Treasurer and Chief Financial Officer. 

        SECTION 13.    Parties.    This Agreement shall each inure to the benefit of and be binding upon the Initial
Purchasers and the Company and their respective successors. Nothing expressed or mentioned in this Agreement is intended or shall be construed to give any person, firm or corporation, other than the
Initial Purchasers and the Company and their respective successors and the controlling persons referred to in Sections 7 and 8 and their heirs and legal representatives, any legal or equitable
right, remedy or claim under or in respect of this Agreement or any provision herein contained. This Agreement and all conditions and provisions hereof are intended to be for the sole and exclusive
benefit of the Initial Purchasers and the Company and their respective successors, and the controlling persons and officers and directors and their heirs and legal representatives, and for the benefit
of no other person, firm or corporation. No purchaser of Securities from any Initial Purchaser shall be deemed to be a successor by reason merely of such purchase. 

        SECTION 14.    GOVERNING LAW AND TIME.    THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK. SPECIFIED TIMES OF DAY REFER TO NEW YORK CITY TIME. 

        SECTION 15.    Effect of Headings.    The Article and Section headings herein and the Table of Contents are for
convenience only and shall not affect the construction hereof. 

        If
the foregoing is in accordance with your understanding of our agreement, please sign and return to the Company a counterpart hereof, whereupon this instrument, along with all
counterparts, will become a binding agreement among the Initial Purchasers and the Company in accordance with its terms. 

	 	 	Very truly yours,
	

 	
 	

QUESTAR MARKET RESOURCES, INC.
	

 	
 	

By:	
 	

/s/  G. L. NORDLOH      
 G. L. Nordloh
 President and Chief Executive Officer

	CONFIRMED AND ACCEPTED,

as of the date first above written:	 	 
	

BANC OF AMERICA SECURITIES LLC	
 	

 
	

By:	
 	

/s/  LILY CHANG      
Authorized Signatory	
 	

 
	

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED	
 	

 
	

By:	
 	

/s/  ROBERT L. JONES      
Authorized Signatory	
 	

 

        For
themselves and as Representatives of the other Initial Purchasers named in Schedule A hereto. 

19

  

 
 

SCHEDULE A    
  

	Name of Initial Purchaser
 
	 	Principal Amount of

Securities

	Banc of America Securities LLC	 	$	60,000,000
	Merrill Lynch, Pierce, Fenner & Smith Incorporated	 	 	60,000,000
	Banc One Capital Markets, Inc	 	 	15,000,000
	U.S. Bancorp Piper Jaffray Inc	 	 	15,000,000
	A.G.Edwards & Sons Inc.	 	 	10,000,000
	First Albany Corporation.	 	 	10,000,000
	Petrie Parkman& Co., Inc	 	 	10,000,000
	TD Securities (USA) Inc	 	 	10,000,000
	First Union Securities, Inc.	 	 	10,000,000
	 	Total	 	$	200,000,000
	 	 	

Sch. A-1

  

 
 

SCHEDULE B    
  

        QUESTAR MARKET RESOURCES, INC. 

$200,000,000
7% Notes due 2007 

        1.    The
initial offering price of the Securities shall be 100% of the principal amount thereof, plus accrued interest, if any, from the date of issuance. 

        2.    The
purchase price to be paid by the Initial Purchasers for the Securities shall be 99.4% of the principal amount thereof. 

        3.    The
interest rate on the Securities shall be 7% per annum. 

        4.    The
Securities shall include a make-whole early redemption option with a spread over the applicable pricing Treasury Rate of 50 basis points. 

Sch. B-1

  

 
 

SCHEDULE C    
  

        List of subsidiaries 

Wexpro
Company

Questar Exploration and Production Company

Questar Gas Management Company

Questar Energy Trading Company

Celsius Energy Resources Ltd.

Questar URC Company

Shenandoah Energy Inc. 

Sch. C-1

QuickLinks

Exhibit 4.01

Table of Contents

SCHEDULE A

SCHEDULE B

SCHEDULE CQuickLinks
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Exhibit 4.03    
  

THIS
SECURITY IS A GLOBAL SECURITY AS REFERRED TO IN THE INDENTURE HEREINAFTER REFERENCED. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR THE INDIVIDUAL SECURITIES REPRESENTED HEREBY, THIS
GLOBAL SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE
DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. 

UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE
THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 

 
 

QUESTAR MARKET RESOURCES, INC.
  
    7% NOTES DUE 2007    
  

	No. 1	 	$200,000,000
	CUSIP No. 74836J AC7	 	 

        QUESTAR
MARKET RESOURCES, INC., a corporation duly organized and existing under the laws of Utah (herein called the "Company," which term includes any successor corporation under
the Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of Two Hundred Million Dollars ($200,000,000) on
January 16, 2007 and to pay interest thereon from January 16, 2002 or from the most recent Interest Payment Date to which interest has been paid or duly provided for,
semi-annually on March 1 and September 1 of each year, commencing March 1, 2002, at the rate of 7% per annum, until the principal hereof is paid or made available for
payment, and (to the extent that the payment of such interest shall be legally enforceable) at the rate of 7% per annum on any overdue principal and premium and on any overdue installment of interest.
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 February 15 or August 15 (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
time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by such
exchange, all as more fully provided in said Indenture. 

        Payment
of the principal of (and premium, if any) and interest on this Security will be made at the office or agency of the Company in the city of Chicago, Illinois or The City of New
York maintained for such purpose, and at any other office or agency maintained by the Company for such purpose, 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 hereon 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:                        ,
2002 

	 	 	 	 	QUESTAR MARKET RESOURCES, INC.
	

 	
 	

 	
 	

By:	
 	

 Name:

Title:
	

Attest:	
 	

 	
 	

 
	

By:	
 	

 Name:

Title:	
 	

 	
 	

 

2

 
 
 

TRUSTEE'S CERTIFICATE OF AUTHENTICATION    
  

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

	 	 	BANK ONE, NA

as Trustee
	

 	
 	

By:	
 	

 Authorized Signatory

3

 
 
 

(REVERSE OF SECURITY)    

        This
Security is one of a duly authorized issue of debt securities of the Company (herein called the "Securities"), issued and to be issued in one or more series under an Indenture,
dated as of March 1, 2001 (herein called the "Indenture", which term shall have the meaning assigned to it in such instrument), between the Company and Bank One, NA, as trustee (herein called
the "Trustee", which term includes any successor trustee under the Indenture), and reference is hereby made to the Indenture and all indentures supplemental thereto for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee 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, limited in aggregate principal amount to $200,000,000. 

        The
Securities of this series are subject to redemption upon not less than 30 nor more than 60 days' notice by first-class mail, at any time, as a whole or in part, at the
election of the Company, at a Redemption Price equal to the greater of (i) 100% of the principal amount of the Securities of this series to be redeemed or (ii) the sum of the present
values of the remaining scheduled payments of principal and interest on the Securities of this series to be redeemed (not including any portion of such payments of interest accrued as of the
Redemption Date) discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate
plus 30 basis points, plus, in each case, accrued and unpaid interest on the principal amount of the Securities of this series being redeemed to the Redemption Date; provided  that interest payments due
on or prior to the Redemption Date will be paid to the record holders of such Securities on the relevant record date. As used herein the following
terms will have the definitions given below: 

        "Treasury
Rate" means, with respect to any Redemption Date, the rate per annum equal to the semiannual equivalent yield to maturity or interpolated (on a day count basis) of the
Comparable
Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date. 

        "Comparable
Treasury Issue" means the United States Treasury security or securities selected by an Independent Investment Banker as having a maturity or interpolated (on a day count
basis) comparable to the remaining term of the Securities of this series to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing
new issues of corporate debt securities of a comparable maturity to the remaining term of the Securities. 

        "Independent
Investment Banker" means one of the Reference Treasury Dealers appointed by the Trustee after consultation with the Company. 

        "Comparable
Treasury Price" means, with respect to any Redemption Date, (i) the average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the
highest and lowest such Reference Treasury Dealer Quotations, or (ii) if the Trustee obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations. 

        "Reference
Treasury Dealer Quotations" means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by the Trustee, of the bid and asked
prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Trustee by such Reference Treasury Dealer at 3:30 p.m. New
York time on the third business day in The City of New York preceding such Redemption Date. 

        "Reference
Treasury Dealer" means at least five primary U.S. Government securities dealers in The City of New York as the Company shall select. 

4

 

        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. 

        There
is no sinking fund or mandatory redemption obligation applicable to the Securities of this series. 

        If
a Change of Control occurs and is accompanied by a Rating Decline (together, a "Change of Control Triggering Event"), the Holder will have the right to require the Company to offer to
repurchase all or any part (equal to $1,000 or an integral multiple thereof) of such Holder's Securities of this series at a purchase price in cash equal to the principal amount of such Securities
plus accrued and unpaid interest, if any, to the date of purchase. Within 30 days following any Change of Control Triggering Event, the Company will mail the Change of Control Offer to each
registered Holder with a copy to the Trustee. No earlier than 30 days nor later than 60 days from the date such Change of Control Offer is mailed (the "Change of Control Payment Date"),
the Company will, to the extent lawful, (i) accept for payment all Securities of this series or portions thereof (in integral multiples of $1,000) properly tendered and not withdrawn under the
Change of Control Offer, (ii) deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Securities of this series or portions thereof so tendered, and
(iii) deliver or cause to be delivered to the Trustee the Securities of this series so accepted together with an Officers' Certificate stating the aggregate principal amount of such Securities
or portions thereof being purchased by the Company. 

        If
an Event of Default with respect to Securities of this series shall occur and be continuing, the principal amount of the Securities of this series may be declared due and payable in
the manner and with the effect and subject to the conditions provided in the Indenture. 

        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 a majority 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 a majority 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. 

        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 premium, if any) 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 premium, if any) 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. 

5

 

        The
Securities of this series are issuable only in registered form without coupons in denominations of $1,000 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. 

6

QuickLinks

Exhibit 4.03

QUESTAR MARKET RESOURCES, INC. 7% NOTES DUE 2007

TRUSTEE'S CERTIFICATE OF AUTHENTICATION

(REVERSE OF SECURITY)

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