Document:

exv4w3

Exhibit 4.3

 

RANGE RESOURCES CORPORATION

As Issuer

AMERICAN ENERGY SYSTEMS, LLC

ENERGY ASSETS OPERATING COMPANY, LLC

RANGE ENERGY SERVICES COMPANY, LLC

RANGE OPERATING NEW MEXICO, LLC

RANGE PRODUCTION COMPANY

RANGE RESOURCES—APPALACHIA, LLC

RANGE RESOURCES—MIDCONTINENT, LLC

RANGE RESOURCES—PINE MOUNTAIN, INC.

RANGE TEXAS PRODUCTION, LLC

As Guarantors

SENIOR SUBORDINATED DEBT SECURITIES

 

INDENTURE

Dated as of      , 2011

 

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.

As Trustee

 

 

 

 

CROSS -REFERENCE TABLE*

	 	 	 	 	 	 
	Trust Indenture	 	Indenture	 
	Act Section	 	Section	 
	310 
	 (a)(1)
	 	 	7.10	 
	 
	(a)(2)
	 	 	7.10	 
	 
	(a)(3)
	 	 	N.A.	 
	 
	(a)(4)
	 	 	N.A.	 
	 
	(a)(5)
	 	 	7.10	 
	 
	(b)
	 	 	7.10	 
	 
	(c)
	 	 	N.A.	 
	311 
	(a)
	 	 	7.11	 
	 
	(b)
	 	 	7.11	 
	 
	(c)
	 	 	N.A.	 
	312 
	(b)
	 	 	12.03	 
	 
	(c)
	 	 	12.03	 
	313 
	(a)
	 	 	7.06	 
	 
	(b)(1)
	 	 	N.A.	 
	 
	(b)(2)
	 	 	7.07	 
	 
	(c)
	 	 	7.06, 12.02	 
	 
	(d)
	 	 	7.06	 
	314 
	 (a)
	 	 	4.03; 12.02	 
	 
	(b)
	 	 	N.A.	 
	 
	(c)(1)
	 	 	12.04	 
	 
	(c)(2)
	 	 	12.04	 
	 
	(c)(3)
	 	 	N.A.	 
	 
	(d)
	 	 	10.03 — 10.05	 
	 
	(e)
	 	 	12.05	 
	 
	(f)
	 	 	N.A.	 
	315 
	(a)
	 	 	7.01	 
	 
	(b)
	 	 	7.05; 12.02	 
	 
	(c)
	 	 	7.01	 
	 
	(d)
	 	 	7.01	 
	 
	(e)
	 	 	6.11	 
	316 
	 (a)
	 	 	2.07	 
	 
	(a)(1)(A)
	 	 	6.05	 
	 
	(a)(1)(B)
	 	 	6.04	 
	 
	(a)(2)
	 	 	N.A.	 
	 
	(b)
	 	 	6.07	 
	 
	(c)
	 	 	12.02	 
	317 
	(a)(1)
	 	 	6.08	 
	 
	(a)(2)
	 	 	6.09	 
	 
	(b)
	 	 	2.05	 
	318 
	(a)
	 	 	12.01	 
	 
	(b)
	 	 	N.A.	 
	 
	(c)
	 	 	12.01	 

 

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

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 1 Definitions and Incorporation by Reference
	 	 	1	 
	 
	 	 	 	 
	Section 1.01 Definitions
	 	 	1	 
	Section 1.02 Other Definitions
	 	 	12	 
	Section 1.03 Incorporation by Reference of Trust Indenture Act
	 	 	12	 
	Section 1.04 Rules of Construction
	 	 	13	 
	 
	 	 	 	 
	ARTICLE 2 The Securities
	 	 	13	 
	 
	 	 	 	 
	Section 2.01 Forms Generally
	 	 	13	 
	Section 2.02 Form Of Trustee’s Certificate Of Authentication
	 	 	13	 
	Section 2.03 Amount Unlimited
	 	 	13	 
	Section 2.04 Execution and Authentication
	 	 	14	 
	Section 2.05 Registrar, Paying Agent and Authenticating Agent; Paying Agent to Hold Money in Trust
	 	 	15	 
	Section 2.06 Replacement Securities
	 	 	15	 
	Section 2.07 Outstanding Securities
	 	 	15	 
	Section 2.08 Temporary Securities
	 	 	16	 
	Section 2.09 Cancellation
	 	 	16	 
	Section 2.10 CUSIP and CINS Numbers
	 	 	16	 
	Section 2.11 Registration, Transfer and Exchange
	 	 	16	 
	Section 2.12 Defaulted Interest
	 	 	18	 
	 
	 	 	 	 
	ARTICLE 3 Redemption and Prepayment
	 	 	18	 
	 
	 	 	 	 
	Section 3.01 Notices to Trustee
	 	 	18	 
	Section 3.02 Selection of Securities to be Redeemed
	 	 	18	 
	Section 3.03 Notice of Redemption
	 	 	19	 
	Section 3.04 Effect of Notice of Redemption
	 	 	19	 
	Section 3.05 Deposit of Redemption Price
	 	 	19	 
	Section 3.06 Securities Redeemed in Part
	 	 	20	 
	Section 3.07 Optional Redemption
	 	 	20	 
	Section 3.08 Mandatory Redemption
	 	 	20	 
	Section 3.09 Offer to Purchase by Application of Excess Proceeds
	 	 	20	 
	 
	 	 	 	 
	ARTICLE 4 Covenants
	 	 	21	 
	 
	 	 	 	 
	Section 4.01 Payment of Securities
	 	 	21	 
	Section 4.02 Maintenance of Office or Agency
	 	 	22	 
	Section 4.03 Reports
	 	 	22	 
	Section 4.04 Compliance Certificate
	 	 	22	 
	Section 4.05 Taxes
	 	 	23	 
	Section 4.06 Stay, Extension and Usury Laws
	 	 	23	 
	Section 4.07 Restricted Payments
	 	 	23	 
	Section 4.08 Dividend and Other Payment Restrictions Affecting Subsidiaries
	 	 	24	 
	Section 4.09 Incurrence of Indebtedness and Issuance of Disqualified Stock
	 	 	25	 
	Section 4.10 Asset Sales
	 	 	26	 
	Section 4.11 Transactions with Affiliates
	 	 	27	 
	Section 4.12 Liens
	 	 	28	 
	Section 4.13 Offer to Repurchase Upon Change of Control
	 	 	28	 
	Section 4.14 Additional Subsidiary Guarantees
	 	 	29	 
	Section 4.15 Corporate Existence
	 	 	29	 
	Section 4.16 No Senior Subordinated Debt
	 	 	29	 
	Section 4.17 Business Activities
	 	 	29	 
	 
	 	 	 	 
	ARTICLE 5 Successors
	 	 	29	 
	 
	 	 	 	 
	Section 5.01 Merger, Consolidation, or Sale of Substantially All Assets
	 	 	29	 
	Section 5.02 Successor Corporation Substituted
	 	 	30	 

i

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 6 Defaults and Remedies
	 	 	30	 
	 
	 	 	 	 
	Section 6.01 Events of Default
	 	 	30	 
	Section 6.02 Acceleration
	 	 	31	 
	Section 6.03 Other Remedies
	 	 	32	 
	Section 6.04 Waiver of Past Defaults
	 	 	32	 
	Section 6.05 Control by Majority
	 	 	32	 
	Section 6.06 Limitation on Suits
	 	 	32	 
	Section 6.07 Rights of Holders of Securities to Receive Payment
	 	 	33	 
	Section 6.08 Collection Suit by Trustee
	 	 	33	 
	Section 6.09 Trustee May File Proofs of Claim
	 	 	33	 
	Section 6.10 Priorities
	 	 	33	 
	Section 6.11 Undertaking for Costs
	 	 	33	 
	 
	 	 	 	 
	ARTICLE 7 Trustee
	 	 	34	 
	 
	 	 	 	 
	Section 7.01 Duties of Trustee
	 	 	34	 
	Section 7.02 Rights of Trustee
	 	 	34	 
	Section 7.03 Individual Rights of Trustee
	 	 	35	 
	Section 7.04 Trustee’s Disclaimer
	 	 	35	 
	Section 7.05 Notice of Defaults
	 	 	35	 
	Section 7.06 Reports by Trustee to Holders of the Securities
	 	 	35	 
	Section 7.07 Compensation and Indemnity
	 	 	36	 
	Section 7.08 Replacement of Trustee
	 	 	36	 
	Section 7.09 Successor Trustee by Merger, etc
	 	 	37	 
	Section 7.10 Eligibility; Disqualification
	 	 	37	 
	Section 7.11 Preferential Collection of Claims Against Company
	 	 	37	 
	 
	 	 	 	 
	ARTICLE 8 Legal Defeasance and Covenant Defeasance
	 	 	37	 
	 
	 	 	 	 
	Section 8.01 Option to Effect Legal Defeasance or Covenant Defeasance
	 	 	37	 
	Section 8.02 Legal Defeasance and Discharge
	 	 	37	 
	Section 8.03 Covenant Defeasance
	 	 	38	 
	Section 8.04 Conditions to Legal or Covenant Defeasance
	 	 	38	 
	Section 8.05 Deposited Money and Government Securities to be Held in Trust; Other
Miscellaneous Provisions
	 	 	39	 
	Section 8.06 Repayment to Company
	 	 	39	 
	Section 8.07 Reinstatement
	 	 	40	 
	Section 8.08 Satisfaction and Discharge
	 	 	40	 
	 
	 	 	 	 
	ARTICLE 9 Amendment, Supplement and Waiver
	 	 	40	 
	 
	 	 	 	 
	Section 9.01 Without Consent of Holders of Securities
	 	 	40	 
	Section 9.02 With Consent of Holders of Securities
	 	 	41	 
	Section 9.03 Compliance with Trust Indenture Act
	 	 	42	 
	Section 9.04 Revocation and Effect of Consents
	 	 	42	 
	Section 9.05 Notation on or Exchange of Securities
	 	 	42	 
	Section 9.06 Trustee to Sign Amendment, etc
	 	 	42	 
	 
	 	 	 	 
	ARTICLE 10 Subordination
	 	 	42	 
	 
	 	 	 	 
	Section 10.01 Agreement to Subordinate
	 	 	42	 
	Section 10.02 Certain Definitions
	 	 	43	 
	Section 10.03 Liquidation; Dissolution; Bankruptcy
	 	 	43	 
	Section 10.04 Default on Designated Senior Debt
	 	 	44	 
	Section 10.05 Acceleration of Securities
	 	 	45	 
	Section 10.06 When Distribution Must be Paid Over
	 	 	45	 
	Section 10.07 Notice by Company
	 	 	45	 
	Section 10.08 Subrogation
	 	 	45	 
	Section 10.09 Relative Rights
	 	 	46	 

ii

 

	 	 	 	 	 
	 	 	Page	 
	Section 10.10 Subordination May Not be Impaired by Company or the Subsidiary Guarantors
	 	 	46	 
	Section 10.11 Payment, Distribution or Notice to Representative
	 	 	46	 
	Section 10.12 Rights of Trustee and Paying Agent
	 	 	46	 
	Section 10.13 Authorization to Effect Subordination
	 	 	47	 
	Section 10.14 Amendments
	 	 	47	 
	Section 10.15 No Waiver of Subordination Provisions
	 	 	47	 
	 
	 	 	 	 
	ARTICLE 11 The Guarantees
	 	 	47	 
	 
	 	 	 	 
	Section 11.01 The Guarantees
	 	 	47	 
	Section 11.02 Execution and Delivery of Guarantees
	 	 	48	 
	Section 11.03 Subsidiary Guarantors May Consolidate, etc., on Certain Terms
	 	 	48	 
	Section 11.04 Releases of Guarantees
	 	 	49	 
	Section 11.05 Limitation on Subsidiary Guarantor Liability
	 	 	49	 
	Section 11.06 “Trustee” to Include Paying Agent
	 	 	49	 
	Section 11.07 Subordination of Guarantees
	 	 	49	 
	 
	 	 	 	 
	ARTICLE 12 Miscellaneous
	 	 	49	 
	 
	 	 	 	 
	Section 12.01 Trust Indenture Act Controls
	 	 	49	 
	Section 12.02 Notices
	 	 	50	 
	Section 12.03 Communication by Holders of Securities with Other Holders of Securities
	 	 	50	 
	Section 12.04 Certificate and Opinion as to Conditions Precedent
	 	 	51	 
	Section 12.05 Statements Required in Certificate or Opinion
	 	 	51	 
	Section 12.06 Rules by Trustee and Agents
	 	 	51	 
	Section 12.07 No Personal Liability of Directors, Officers, Employees and Stockholders
	 	 	51	 
	Section 12.08 Governing Law
	 	 	51	 
	Section 12.09 No Adverse Interpretation of Other Agreements
	 	 	51	 
	Section 12.10 Successors
	 	 	51	 
	Section 12.11 Severability
	 	 	51	 
	Section 12.12 Counterpart Originals
	 	 	52	 
	Section 12.13 Table of Contents, Headings, etc
	 	 	52	 
	Section 12.14 Actions on Other than Business Days
	 	 	52	 

EXHIBITS

Exhibit A DTC Legend

Exhibit B Guarantee

iii

 

     INDENTURE dated as of      , 2011 among Range Resources Corporation, a Delaware corporation (the
“Company”), as issuer, the Subsidiary Guarantors (as hereinafter defined) as guarantors and The
Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”).

     The Company has duly authorized the execution and delivery of this Indenture to provide for
the issuance from time to time of its unsecured debentures, notes or other evidences of
indebtedness (herein called the “Securities”), to be issued as provided in this Indenture.

     The Company, the Subsidiary Guarantors and the Trustee agree as follows for the benefit of
each other and for the equal and ratable benefit of the respective Holders from time to time of the
Securities:

ARTICLE 1

Definitions and Incorporation by Reference

     Section 1.01 Definitions.

     “Acquired Debt” means, with respect to any specified Person, (i) Indebtedness of any other
Person existing at the time such other Person is merged with or into or became a Subsidiary of such
specified Person, including, without limitation, Indebtedness incurred in connection with, or in
contemplation of, such other Person merging with or into or becoming a Subsidiary of such specified
Person, and (ii) Indebtedness secured by a Lien encumbering any asset acquired by such specified
Person.

     “Additional Securities” means any Securities issued under the Indenture in addition to the
Initial Securities in accordance with Section 2.03. Additional Securities will be treated as part
of the same series of Securities as the Initial Securities for all purposes under this Indenture.

     “Adjusted Consolidated Net Tangible Assets” means (without duplication), as of the date of
determination, (i) the sum of (a) discounted future net revenues from proved oil and gas reserves
of the Company and its Restricted Subsidiaries calculated in accordance with the Commission’s
guidelines before any state or federal income taxes, with no less than 80% of the discounted future
net revenues estimated by one or more nationally recognized firms of independent petroleum
engineers in a reserve report prepared as of the end of the Company’s most recently completed
fiscal year, as increased by, as of the date of determination, the estimated discounted future net
revenues from (1) estimated proved oil and gas reserves acquired since the date of such year-end
reserve report, and (2) estimated oil and gas reserves attributable to upward revisions of
estimates of proved oil and gas reserves since the date of such year-end reserve report due to
exploration, development or exploitation activities, in each case calculated in accordance with the
Commission’s guidelines (utilizing the prices utilized in such year-end reserve report) increased
by the accretion of the discount from the date of the reserve report to the date of determination,
and decreased by, as of the date of determination, the estimated discounted future net revenues
from (3) estimated proved oil and gas reserves produced or disposed of since the date of such
year-end reserve report and (4) estimated oil and gas reserves attributable to downward revisions
of estimates of proved oil and gas reserves since the date of such year-end reserve report due to
changes in geological conditions or other factors which would, in accordance with standard industry
practice, cause such revisions, in each case calculated in accordance with the Commission’s
guidelines (utilizing the prices utilized in such year-end reserve report); provided, that, in the
case of each of the determinations made pursuant to clause (1) through (4), such increases and
decreases shall be as estimated by the Company’s petroleum engineers, unless in the event that
there is a Material Change as a result of such acquisitions, dispositions or revisions, then the
discounted future net revenues utilized for purposes of this clause (i) (a) shall be confirmed in
writing by one or more nationally recognized firms of independent petroleum engineers, (b) 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 annual or quarterly
financial statements, (c) the Net Working Capital on a date no earlier than the date of the
Company’s latest annual or quarterly financial statements and (d) the greater of (1) the net book
value on a date no earlier than the date of the Company’s latest annual or quarterly financial
statements or (2) the book value of other tangible assets (including, without duplication,
investments in unconsolidated Restricted Subsidiaries and mineral rights held under lease or other
contractual arrangements) of the Company and its Restricted Subsidiaries, as of the date no earlier
than the date of the Company’s latest annual or quarterly financial statements, minus (ii) the sum
of (a) minority interests, (b) any gas balancing liabilities of the Company and its Restricted
Subsidiaries reflected in the Company’s latest audited financial statements, and (c) the

1

 

discounted future net revenues, calculated in accordance with the Commission’s 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 clause (i)(a) above, would be necessary to fully satisfy the payment
obligations of the Company and its Restricted Subsidiaries with respect to Dollar-Denominated
Production Payments on the schedules specified with respect thereto. If the Company changes its
method of accounting from the successful efforts method to the full cost method or a similar method
of accounting, “Adjusted Consolidated Net Tangible Assets” will continue to be calculated as if the
Company was still using the successful efforts method of accounting.

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

     “Agent” means any Registrar, Paying Agent or Authenticating Agent.

     “Agent Member” means a member of, or a participant in, the Depositary.

     “Asset Sale” means (i) the sale, lease, conveyance or other disposition (but excluding the
creation of or disposition pursuant to a Lien) of any assets including, without limitation, by way
of a sale and leaseback; provided, that the sale, lease, conveyance or other disposition of all or
substantially all of the assets of the Company and its Subsidiaries taken as a whole shall be
governed by Sections 4.13 and/or 5.01 hereof and not by Section 4.10 hereof, and (ii) the issuance
or sale by the Company or any of its Restricted Subsidiaries of Equity Interests of any of the
Company’s Subsidiaries (including the sale by the Company or a Restricted Subsidiary of Equity
Interests in an Unrestricted Subsidiary), in the case of either clause (i) or (ii), whether in a
single transaction or a series of related transactions (a) that have a fair market value in excess
of $5.0 million or (b) for net proceeds in excess of $5.0 million. Notwithstanding the foregoing,
the following shall not be deemed to be Asset Sales: (1) a transfer of assets by the Company to a
Wholly Owned Restricted Subsidiary of the Company or by a Wholly Owned Restricted Subsidiary of the
Company to the Company or to another Wholly Owned Restricted Subsidiary of the Company, (2) an
issuance of Equity Interests by a Wholly Owned Restricted Subsidiary of the Company to the Company
or to another Wholly Owned Restricted Subsidiary of the Company, (3) the making of a Permitted
Investment or a Restricted Payment that is permitted by Section 4.07, (4) the abandonment,
farm-out, lease or sublease of undeveloped oil and gas properties in the ordinary course of
business, (5) the trade or exchange by the Company or any Restricted Subsidiary of the Company of
any oil and gas property owned or held by the Company or such Restricted Subsidiary for any oil and
gas property owned or held by another Person, which the Board of Directors of the Company
determines in good faith to be of approximately equivalent value, (6) the trade or exchange by the
Company or any Subsidiary of the Company of any oil and gas property owned or held by the Company
or such Subsidiary for Equity Interests in another Person engaged primarily in the Oil and Gas
Business which, together with all other such trades or exchanges (to the extent excluded from the
definition of Asset Sale pursuant to this clause (6)) since the date of this Indenture, do not
exceed 5% of Adjusted Consolidated Net Tangible Assets determined after such trade or exchange, (7)
the sale or transfer of hydrocarbons or other mineral products or other inventory or surplus or
obsolete equipment in the ordinary course of business or (8) sales of assets or property (including
Capital Stock) described in clause (c)(iv) of Section 4.07.

     “Attributable Debt” in respect of a sale and leaseback transaction means, at the time of
determination, the present value (discounted at the rate of interest implicit in such transaction,
determined in accordance with GAAP) of the obligation of the lessee for net rental payments during
the remaining term of the lease included in such sale and leaseback transaction (including any
period for which such lease has been extended or may, at the option of the lessor, be extended).

     “Authenticating Agent” refers to a Person engaged to authenticate the Securities in the stead
of the Trustee.

     “Bankruptcy Code” means Title 11 of the United States Code, as amended.

2

 

     “Board of Directors” means the Board of Directors of the Company or a Subsidiary Guarantor, as
applicable, or any authorized committee of such Board of Directors.

     “Business Day” means any day other than a Legal Holiday.

     “Capital Lease Obligation” means, at the time any determination thereof is to be made, the
amount of the liability in respect of a capital lease that would at such time be required to be
capitalized on a balance sheet in accordance with GAAP.

     “Capital Stock” means (i) in the case of a corporation, corporate stock, (ii) in the case of
an association or business entity, any and all shares, interests, participations, rights or other
equivalents (however designated) of corporate stock, (iii) in the case of a partnership,
partnership interests (whether general or limited), (iv) in the case of a limited liability company
or similar entity, any membership or similar interests therein and (v) 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, in each case excluding debt securities
convertible or exchangeable for any of the foregoing.

     “Cash Equivalents” means (i) United States dollars, (ii) securities issued or directly and
fully guaranteed or insured by the United States government or any agency or instrumentality
thereof having maturities of not more than six months from the date of acquisition, (iii)
certificates of deposit and eurodollar time deposits with maturities of six months or less from the
date of acquisition, bankers’ acceptances with maturities not exceeding six months and overnight
bank deposits, in each case with any lender party to the Credit Agreement or with any domestic
commercial bank having capital and surplus in excess of $500 million and a Thompson Bank Watch
Rating of “B” or better, (iv) repurchase obligations with a term of not more than seven days for
underlying securities of the types described in clauses (ii) and (iii) above entered into with any
financial institution meeting the qualifications specified in clause (iii) above, (v) commercial
paper having a rating of at least P1 from Moody’s or a rating of at least Al from S&P, and (vi)
investments in money market or other mutual funds substantially all of whose assets comprise
securities of the types described in clauses (ii) through (v) above.

     “Certificated Security” means a Security in registered individual form without interest
coupons.

     “Change of Control” means the occurrence of any of the following: (i) 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
Subsidiaries taken as a whole to any “person” or group of related “persons” (as such terms are used
in Section 13(d)(3) of the Exchange Act), (ii) the adoption of a plan relating to the liquidation
or dissolution of the Company, (iii) the consummation of any transaction (including, without
limitation, any purchase, sale, acquisition, disposition, merger or consolidation) the result of
which is that any “person” (as defined above) or group of related “persons” becomes the “beneficial
owner” (as such term is defined in Rule 13d-3 and Rule 13d-5 under the Exchange Act) of more than
40% of the aggregate voting power of all classes of Capital Stock of the Company having the right
to elect directors under ordinary circumstances or (iv) the first day on which a majority of the
members of the Board of Directors of the Company are not Continuing Directors.

     “Commission” means the Securities and Exchange Commission.

     “Consolidated Cash Flow” means, with respect to any Person for any period, the Consolidated
Net Income of such Person and its Restricted Subsidiaries for such period, plus (i) an amount equal
to any extraordinary loss, plus any net loss realized in connection with an Asset Sale (together
with any related provision for taxes), to the extent such losses were included in computing such
Consolidated Net Income, plus (ii) provision for taxes based on income or profits of such Person
and its Restricted Subsidiaries for such period, to the extent that such provision for taxes was
included in computing such Consolidated Net Income, plus (iii) consolidated interest expense of
such Person and its Restricted Subsidiaries for such period, whether paid or accrued (including,
without limitation, amortization of original issue discount, non-cash interest payments, the
interest component of any deferred payment obligations, the interest component of all payments
associated with Capital Lease Obligations, imputed interest with respect to Attributable Debt,
commissions, discounts and other fees and charges incurred in respect of letters of credit or
bankers’ acceptance financings, and net payments (if any) pursuant to Interest Rate Hedging
Agreements), to the extent that any such expense was included in computing such Consolidated Net
Income, plus (iv)

3

 

depreciation, depletion and amortization expenses (including amortization of goodwill and
other intangibles) for such Person and its Restricted Subsidiaries for such period to the extent
that such depreciation, depletion and amortization expenses were included in computing such
Consolidated Net Income, plus (v) exploration expenses for such Person and its Restricted
Subsidiaries for such period to the extent such exploration expenses were included in computing
such Consolidated Net Income, plus (vi) other non-cash charges (excluding any such non-cash charge
to the extent that 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) of such Person and its
Restricted Subsidiaries for such period to the extent that such other non-cash charges were
included in computing such Consolidated Net Income, in each case, on a consolidated basis and
determined in accordance with GAAP. Notwithstanding the foregoing, the provision for taxes on the
income or profits of, and the depreciation, depletion and amortization and other non-cash charges
and expenses of, a Restricted Subsidiary of the referent Person shall be added to Consolidated Net
Income to compute Consolidated Cash Flow only to the extent (and in same proportion) that the Net
Income of such Restricted Subsidiary was included in calculating the Consolidated Net Income of
such Person and only if a corresponding amount would be permitted at the date of determination to
be dividended to the referent Person by such Restricted Subsidiary without prior governmental
approval (that has not been obtained), and without direct or indirect restriction pursuant to the
terms of its charter and all agreements, instruments, judgments, decrees, orders, statutes, rules
and governmental regulations applicable to that Restricted Subsidiary or its stockholders.

     “Consolidated Net Income” means, with respect to any Person for any period, the aggregate of
the Net Income of such Person and its Subsidiaries for such period, on a consolidated basis,
determined in accordance with GAAP; provided, that (i) the Net Income (but not loss) of any Person
that is not a Restricted Subsidiary or that is accounted for by the equity method of accounting
shall be included only to the extent of the amount of dividends or distributions paid in cash to
the referent Person or a Wholly Owned Restricted Subsidiary thereof, (ii) the Net Income of any
Restricted Subsidiary shall be excluded to the extent that the declaration or payment of dividends
or similar distributions by that Restricted Subsidiary of that Net Income is not at the date of
determination permitted without any prior governmental approval (that has not been obtained) or,
directly or indirectly, by operation of the terms of its charter or any agreement, instrument,
judgment, decree, order, statute, rule or governmental regulation applicable to that Restricted
Subsidiary or its stockholders, (iii) the Net Income of any Person acquired in a pooling of
interests transaction for any period prior to the date of such acquisition shall be excluded, (iv)
the cumulative effect of a change in accounting principles shall be excluded, (v) any impairments
or writedowns of oil and natural gas assets shall be excluded, provided, however, that ceiling
limitation write-downs in accordance with GAAP shall be treated as capitalized costs, as if such
write-downs had not occurred, (vi) extraordinary non-cash losses shall be excluded, (vii) any
non-cash compensation expenses realized for grants of performance shares, stock options or stock
awards to officers, directors and employees of the Company or any of its Restricted Subsidiaries
shall be excluded and (viii) any unrealized non-cash gains or losses or charges in respect of hedge
or non-hedge derivatives (including those resulting from the application of the Financial
Accounting Standards Board’s Statement of Financial Accounting Standards No. 133) shall be
excluded.

     “Continuing Directors” means, as of any date of determination, any member of the Board of
Directors of the Company who (i) was a member of such Board of Directors on the date of original
issuance of the Securities or (ii) 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.

     “Corporate Trust Office of the Trustee” shall be at the address of the Trustee specified in
Section 12.02 hereof or such other address as to which the Trustee may give notice to the Company.

     “Credit Agreement” means that certain Fourth Amended and Restated Credit Agreement, dated as
of February 18, 2011, by and among the Company, certain Subsidiaries of the Company, JPMorgan Chase
Bank, N.A., Royal Bank of Canada, Bank of America, N.A., Credit Agricole Corporate and Investment
Bank, Wells Fargo Bank, National Association, Bank of Montreal, Barclays Bank PLC, BNP Paribas,
Citibank, N.A., Compass Bank, Deutsche Bank Trust Company Americas, Natixis, The Bank of Nova
Scotia, Suntrust Bank, Union Bank, N.A., Capital One, N.A., Comerica Bank, Credit Suisse AG, Cayman
Islands Branch, KeyBank National Association, Société Générale, UBS Loan Finance LLC, U.S. Bank
National Association, Bank of Scotland plc, BOKF, NA dba Bank of Texas, Amegy Bank National
Association, The Frost National Bank and Sterling Bank (hereinafter collectively referred to as
“Lenders”, and individually, “Lender”) and JPMorgan Chase Bank N.A., as Administrative Agent and
Issuing Bank, Bank of America, N.A., as Co-Documentation Agent, Wells Fargo Bank,

4

 

National Association, as Co-Documentation Agent, Credit Agricole Corporate and Investment
Bank, as Co-Syndication Agent, Royal Bank of Canada, as Co-Syndication Agent, as such credit
agreement has been amended or supplemented to the date of the Indenture, including any related
notes, guarantees, collateral documents, instruments and agreements executed in connection
therewith, and in each case as amended, restated, modified, renewed, refunded, replaced or
refinanced, in whole or in part, from time to time, whether or not with the same lenders or agents.

     “Credit Facilities” means, with respect to the Company, one or more debt facilities
(including, without limitation, the Credit Agreement) or commercial paper facilities with banks or
other institutional lenders providing for revolving credit loans, term loans, production payment
financing, 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.

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

     “Depositary” means the depositary of each Global Security, which will initially be DTC.

     “Designated Senior Debt” means (i) the Credit Agreement and (ii) any other Senior Debt
permitted under this Indenture the principal amount of which is $25 million or more and that has
been designated by the Company as “Designated Senior Debt.”

     “Disqualified Stock” means any Capital Stock to the extent that, 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, matures or is mandatorily redeemable, pursuant to a sinking fund obligation
or otherwise, or redeemable at the option of the holder thereof, in whole or in part, on or prior
to the date that is 91 days after the date on which the Securities mature.

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

     “DTC” means The Depository Trust Company, a New York corporation, and its successors.

     “DTC Legend” means the legend set forth in Exhibit A.

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

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Fixed Charge Coverage Ratio” means with respect to any Person for any period, the ratio of
the Consolidated Cash Flow of such Person for such period to the Fixed Charges of such Person for
such period. In the event that the Company or any of its Restricted Subsidiaries incurs, assumes,
guarantees or redeems any Indebtedness (other than revolving credit borrowings) or issues preferred
stock subsequent to the commencement of the period for which the Fixed Charge Coverage Ratio is
being calculated but prior to the date on which the calculation of the Fixed Charge Coverage Ratio
is made (the “Calculation Date”), then the Fixed Charge Coverage Ratio shall be calculated giving
pro forma effect to such incurrence, assumption, guarantee or redemption of Indebtedness, or such
issuance or redemption of preferred stock, as if the same had occurred at the beginning of the
applicable four-quarter reference period. In addition, for purposes of making the computation
referred to above, (i) acquisitions that have been made by the referent Person or any of its
Restricted Subsidiaries, including through mergers or consolidations and including any related
financing transactions, during the four-quarter reference period or subsequent to such reference
period and on or prior to the Calculation Date (including, without limitation, any acquisition to
occur on the Calculation Date) shall be deemed to have occurred on the first day of the
four-quarter reference period and Consolidated Cash Flow for such reference period shall be
calculated without giving effect to clause (iii) of the proviso set forth in the definition of
Consolidated Net Income, (ii) the net proceeds of Indebtedness incurred or Disqualified Stock
issued by the referent Person pursuant to the first paragraph of Section 4.09 hereof during the

5

 

four-quarter reference period or subsequent to such reference period and on or prior to the
Calculation Date shall be deemed to have been received by the referent Person or any of its
Restricted Subsidiaries on the first day of the four-quarter reference period and applied to its
intended use on such date, (iii) the Consolidated Cash Flow attributable to discontinued
operations, as determined in accordance with GAAP, and operations or businesses disposed of prior
to the Calculation Date, shall be excluded and (iv) the Fixed Charges attributable to discontinued
operations, as determined in accordance with GAAP, and operations or businesses disposed of prior
to the Calculation Date, shall be excluded, but only to the extent that the obligations giving rise
to such Fixed Charges shall not be obligations of the referent Person or any of its Restricted
Subsidiaries following the Calculation Date.

     “Fixed Charges” means, with respect to any Person for any period, the sum, without
duplication, of (i) the consolidated interest expense of such Person and its Restricted
Subsidiaries for such period, whether paid or accrued (including, without limitation, amortization
of original issue discount, non-cash interest payments, the interest component of any deferred
payment obligations, the interest component of all payments associated with Capital Lease
Obligations, imputed interest with respect to Attributable Debt, commissions, discounts and other
fees and charges incurred in respect of letter of credit or bankers’ acceptance financings, and net
payments (if any) pursuant to Interest Rate Hedging Agreements); (ii) the consolidated interest
expense of such Person and its Restricted Subsidiaries that was capitalized during such period;
(iii) any interest expense on Indebtedness of another Person that is guaranteed by such Person or
any of its Restricted Subsidiaries or secured by a Lien on assets of such Person or any of its
Restricted Subsidiaries (whether or not such guarantee or Lien is called upon) and (iv) the product
of (a) all cash dividend payments (and non-cash dividend payments in the case of a Person that is a
Restricted Subsidiary) on any series of preferred stock of such Person or any of its Restricted
Subsidiaries, times (b) a fraction, the numerator of which is one and the denominator of which is
one minus the then current combined federal, state and local statutory tax rate of such Person,
expressed as a decimal, in each case, on a consolidated basis and in accordance with GAAP.

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

     “Global Security” means a Security in registered global form without interest coupons.

     “Government Securities” 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 by 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 Government Security or a specific payment of principal of or interest on any such Government
Security 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 Government Security or the specific payment of principal of or interest on the
Government Security evidenced by such depositary receipt.

     “guarantee” means a guarantee (other than by endorsement of negotiable instruments for
collection in the ordinary course of business), direct or indirect, in any manner (including,
without limitation, letters of credit and reimbursement agreements in respect thereof), of all or
any part of any Indebtedness.

     “Guarantee” means each of the Guarantees of the Securities by the Subsidiary Guarantors
hereunder.

     “Holder” means a Person in whose name a Security is registered on the Registrar’s Register.

     “Indebtedness” means, with respect to any Person, without duplication, (a) any indebtedness of
such Person, whether or not contingent, (i) in respect of borrowed money, (ii) evidenced by bonds,
notes, debentures or similar instruments, (iii) evidenced by letters of credit (or reimbursement
agreements in respect thereof) or banker’s acceptances, (iv) representing Capital Lease
Obligations, (v) representing the balance deferred and unpaid of the purchase price of any
property, except any such balance that constitutes an accrued expense or trade payable, (vi)

6

 

representing any obligations in respect of Interest Rate Hedging Agreements or Oil and Gas
Hedging Contracts, and (vii) in respect of any Production Payment, (b) all indebtedness of others
secured by a Lien on any asset of such Person (whether or not such indebtedness is assumed by such
Person), (c) Attributable Debt of such Person, and (d) to the extent not otherwise included in the
foregoing, the guarantee by such Person of any indebtedness of any other Person; provided, that the
indebtedness described in clauses (a) (i), (ii), (iv) and (v) shall be included in this definition
of Indebtedness only if, and to the extent that, the indebtedness described in such clauses would
appear as a liability upon a balance sheet of such Person prepared in accordance with GAAP.

     “Indenture” means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof and shall include the terms of the Securities established as
contemplated hereunder.

     “Initial Securities” means the Securities issued on the Issue Date and any Securities issued
in replacement thereof.

     “Interest Rate Hedging Agreements” means, with respect to any Person, the obligations of such
Person under (i) interest rate swap agreements, interest rate cap agreements and interest rate
collar agreements and (ii) other agreements or arrangements designed to protect such Person against
fluctuations in interest rates.

     “Investments” means, with respect to any Person, all investments by such Person in other
Persons (including Affiliates) in the form of direct or indirect loans (including guarantees of
Indebtedness or other obligations, but excluding trade credit and other ordinary course advances
customarily made in the oil and gas industry), advances or capital contributions (excluding
commission, travel and similar advances to officers and employees made in the ordinary course of
business), purchases or other acquisitions for consideration of Indebtedness, Equity Interests or
other securities, together with all items that are or would be classified as investments on a
balance sheet prepared in accordance with GAAP; provided, that the following shall not constitute
Investments: (i) an acquisition of assets, Equity Interests or other securities by the Company for
consideration consisting of common equity securities of the Company, (ii) Interest Rate Hedging
Agreements entered into in accordance with the limitations set forth in clause (h) of the
definition of “Permitted Indebtedness” set forth in Section 4.09 hereof, (iii) Oil and Gas Hedging
Contracts entered into in accordance with the limitations set forth in clause (i) of the definition
of “Permitted Indebtedness” set forth in Section 4.09 hereof and (iv) endorsements of negotiable
instruments and documents in the ordinary course of business. If the Company or any Restricted
Subsidiary of the Company sells or otherwise disposes of any Equity Interests of any direct or
indirect Restricted Subsidiary of the Company such that, after giving effect to any such sale or
disposition, such Person is no longer a Subsidiary of the Company, the Company shall be deemed to
have made an Investment on the date of any such sale or disposition equal to the fair market value
of the Equity Interests of such Subsidiary not sold or disposed of.

     “Issue Date” means the first date that any Securities are issued under this Indenture.

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

     “Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest
or encumbrance of any kind in respect of such asset, whether or not filed, recorded or otherwise
perfected under applicable law (including any conditional sale or other title retention agreement,
any lease in the nature thereof, any option or other agreement to sell or give a security interest
in and any filing of or agreement to give any financing statement under the Uniform Commercial Code
(or equivalent statutes) of any jurisdiction other than a precautionary financing statement with
respect to a lease not intended as a security agreement).

     “Material Change” means an increase or decrease (excluding changes that result solely from
changes in prices) of more than 20% during a fiscal quarter in the estimated discounted future net
cash flows from proved oil and gas reserves of the Company and its Restricted Subsidiaries,
calculated in accordance with clause (i)(a) of the definition of Adjusted Consolidated Net Tangible
Assets; provided, however, that the following will be excluded from the calculation of Material
Change; (i) any acquisitions during the quarter of oil and gas reserves that have been

7

 

estimated by one or more nationally recognized firms of independent petroleum engineers and on
which a report or reports exist and (ii) any disposition of properties existing at the beginning of
such quarter that have been disposed of as provided in Section 4.10 hereof.

     “Moody’s” means Moody’s Investors Service, Inc. and its successors.

     “Net Income” means, with respect to any Person, the net income (loss) of such Person,
determined in accordance with GAAP and before any reduction in respect of preferred stock
dividends, excluding, however, (i) any gain (but not loss), together with any related provision for
taxes on such gain (but not loss), realized in connection with (a) any Asset Sale (including,
without limitation, dispositions pursuant to sale and leaseback transactions) or (b) the
disposition of any securities by such Person or any of its Restricted Subsidiaries or the
extinguishment of any Indebtedness of such Person or any of its Restricted Subsidiaries and (ii)
any extraordinary or nonrecurring gain (but not loss), together with any related provision for
taxes on such extraordinary or nonrecurring gain (but not loss).

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

     “Net Working Capital” means (i) all current assets of the Company and its Restricted
Subsidiaries, minus (ii) all current liabilities of the Company and its Restricted Subsidiaries,
except current liabilities included in Indebtedness, in each case as set forth in financial
statements of the Company prepared in accordance with GAAP (excluding any adjustments made pursuant
to the Financial Accounting Standards Board’s Statement of Financial Accounting Standards No. 133).

     “Non-Recourse Debt” means Indebtedness (i) as to which neither the Company nor any of its
Restricted Subsidiaries (a) provides any guarantee or credit support of any kind (including any
undertaking, guarantee, indemnity or agreement or instrument that would constitute Indebtedness) or
(b) is directly or indirectly liable (as a guarantor or otherwise); (ii) 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 of its Restricted Subsidiaries to declare a default on such
other Indebtedness or cause the payment thereof to be accelerated or payable prior to its stated
maturity; and (iii) the explicit terms of which provide that there is no recourse against any of
the assets of the Company or its Restricted Subsidiaries.

     “Obligations” means any principal, interest, penalties, fees, indemnifications,
reimbursements, damages and other liabilities payable under the documentation governing any
Indebtedness.

     “Officer” means, with respect to any Person, the Chairman of the Board, the Chief Executive
Officer, the President, the Chief Operating Officer, the Chief Financial Officer, the Treasurer,
any Assistant Treasurer, the Controller, the Secretary, the Assistant Secretary, any Vice-President
of such Person or any other individual designated in writing by such Person as an Officer.

     “Officers’ Certificate” means a certificate signed on behalf of the Company, by two Officers
of the Company, one of whom must be the principal executive officer, the principal financial
officer, the treasurer or the principal accounting officer of the Company, that meets the
requirements of Section 12.05 hereof.

     “Oil and Gas Business” means (i) the acquisition, exploration, development, operation and
disposition of interests in oil, gas and other hydrocarbon properties, (ii) the gathering,
marketing, distribution, treating, processing, storage, selling and transporting of any production
from such interests or properties, (iii) any business relating to

8

 

exploration for or development, production, treatment, processing, storage, transportation or
marketing of oil, gas and other minerals and products produced in association therewith and (iv)
any activity that is ancillary to or necessary or appropriate for the activities described in
clauses (i) through (iii) of this definition.

     “Oil and Gas Hedging Contracts” means any oil and gas purchase or hedging agreement, and other
agreement or arrangement, in each case, that is designed to provide protection against oil and gas
price fluctuations.

     “Opinion of Counsel” means an opinion from legal counsel who is reasonably acceptable to the
Trustee, that meets the requirements of Section 12.05 hereof. The counsel may be an employee of or
counsel to the Company, any Subsidiary Guarantor or the Trustee.

     “pari passu Indebtedness” means indebtedness which ranks pari passu in right of payment to the
Securities.

     “Paying Agent” refers to a Person engaged to perform the obligations of the Trustee in respect
of payments made or funds held hereunder in respect of the Securities.

     “Permitted Investments” means (a) any Investment in the Company or in a Wholly Owned
Restricted Subsidiary of the Company; (b) any Investment in Cash Equivalents or securities issued
or directly and fully guaranteed or insured by the United States government or any agency or
instrumentality thereof having maturities of not more than one year from the date of acquisition;
(c) any Investment by the Company or any Restricted Subsidiary of the Company in a Person if, as a
result of such Investment and any related transactions that at the time of such Investment are
contractually mandated to occur, (i) such Person becomes a Wholly Owned Restricted Subsidiary of
the Company or (ii) such Person is merged, consolidated or amalgamated with or into, or transfers
or conveys all or substantially all of its assets to, or is liquidated into, the Company or a
Wholly Owned Restricted Subsidiary of the Company; (d) any Investment made as a result of the
receipt of non-cash consideration from an Asset Sale that was made pursuant to and in compliance
with Section 4.10 hereof; (e) other Investments in any Person or Persons having an aggregate fair
market value (measured on the date each such Investment was made and without giving effect to
subsequent changes in value), when taken together with all other Investments made pursuant to this
clause (e) that are at the time outstanding not to exceed $10.0 million; (f) any Investment
acquired by the Company in exchange for Equity Interests in the Company (other than Disqualified
Stock); (g) shares of Capital Stock received in connection with any good faith settlement of a
bankruptcy proceeding involving a trade creditor; (h) entry into operating agreements, joint
ventures, partnership agreements, working interests, royalty interests, mineral leases, processing
agreements, farm-out agreements, contracts for the sale, transportation or exchange of oil and
natural gas, unitization agreements, pooling arrangements, area of mutual interest agreements,
production sharing agreements or other similar or customary agreements, transactions, properties,
interests or arrangements, and Investments and expenditures in connection therewith or pursuant
thereto, in each case made or entered into the ordinary course of the Oil and Gas Business,
excluding, however, Investments in corporations other than any Investment received pursuant to the
Asset Sale provision and (i) the acquisition of any Equity Interests pursuant to a transaction of
the type described in clause (6) of the exclusions from the definition of “Asset Sale”.

     “Permitted Liens” means (i) Liens securing Indebtedness of a Subsidiary or Liens securing
Senior Debt, in each case, that is outstanding on the Issue Date and Liens securing Senior Debt
that is permitted by the terms of this Indenture to be incurred, (ii) Liens in favor of the
Company, (iii) Liens on property or assets existing at the time of acquisition thereof by the
Company or any Subsidiary of the Company and Liens on property or assets of a Subsidiary existing
at the time it became a Subsidiary, provided, that such Liens were in existence prior to the
contemplation of the acquisition and do not extend to any assets other than the acquired property,
(iv) Liens incurred or deposits made in the ordinary course of business in connection with workers’
compensation, unemployment insurance or other kinds of social security, or to secure the payment or
performance of tenders, statutory or regulatory obligations, surety or appeal bonds, performance
bonds or other obligations of a like nature incurred in the ordinary course of business (including
lessee or operator obligations under statutes, governmental regulations or instruments related to
the ownership, exploration and production of oil, gas and minerals on state or federal lands or
waters), (v) Liens existing on the date of this Indenture, (vi) Liens for taxes, assessments or
governmental charges or claims that are not yet delinquent or that are being contested in good
faith by appropriate proceedings promptly instituted and diligently concluded, provided, that any
reserve or other appropriate provision as shall be required in conformity with GAAP shall have been
made therefor, (vii) statutory liens of landlords, mechanics, suppliers, vendors, warehousemen,
carriers or other like Liens arising in the ordinary course of business, (viii) judgment Liens not
giving rise to an Event of Default so long as any appropriate legal proceeding that may have been
duly initiated

9

 

for the review of such judgment shall not have been finally terminated or the period within
which such proceeding may be initiated shall not have expired, (ix) Liens on, or related to,
properties or assets to secure all or part of the costs incurred in the ordinary course of the Oil
and Gas Business for the exploration, drilling, development or operation thereof, (x) Liens on
pipelines or pipeline facilities that arise under operation of law, (xi) Liens arising under
operating agreements, joint venture agreements, partnership agreements, oil and gas leases,
farm-out agreements, division orders, contracts for the sale, transportation or exchange of oil or
natural gas, unitization and pooling declarations and agreements, area of mutual interest
agreements and other agreements that are customary in the Oil and Gas Business, (xii) Liens
reserved in oil and gas mineral leases for bonus or rental payments and for compliance with the
terms of such leases, (xiii) Liens securing the Securities and (xiv) Liens not otherwise permitted
by clauses (i) through (xiii) that are incurred in the ordinary course of business of the Company
or any Subsidiary of the Company with respect to obligations that do not exceed $5.0 million at any
one time outstanding.

     “Permitted Refinancing Debt” means any Indebtedness of the Company or any of its Restricted
Subsidiaries issued in exchange for, or the net proceeds of which are used to extend, refinance,
renew, replace, defease or refund other Indebtedness (other than Indebtedness incurred under a
Credit Facility) of the Company or any of its Restricted Subsidiaries; provided, that: (i) the
principal amount of such Permitted Refinancing Debt does not exceed the principal amount of the
Indebtedness so extended, refinanced, renewed, replaced, defeased or refunded (plus the amount of
reasonable expenses incurred in connection therewith); (ii) such Permitted Refinancing Debt has a
final maturity date on or later than the final maturity date of, and has a Weighted Average Life to
Maturity equal to or greater than the Weighted Average Life to Maturity of, the Indebtedness being
extended, refinanced, renewed, replaced, defeased or refunded; (iii) if the Indebtedness being
extended, refinanced, renewed, replaced, defeased or refunded is subordinated in right of payment
to the Securities, such Permitted Refinancing Debt has a final maturity date later than the final
maturity date of, and is subordinated in right of payment to, the Securities on terms at least as
favorable taken as a whole to the Holders of the Securities as those contained in the documentation
governing the Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded; and
(iv) such Indebtedness is incurred either by the Company or by the Restricted Subsidiary who is the
obligor on the Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded.

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

     “Production Payments” means Dollar-Denominated Production Payments and Volumetric Production
Payments, collectively.

     “Registrar” means a Person engaged to maintain the Register.

     “Repurchase Offer” means an offer made by the Company to purchase all or any portion of a
Holder’s Securities pursuant to Section 4.10 or 4.13 hereof.

     “Responsible Officer” when used with respect to the Trustee, means the officer within the
Corporate Trust Department of the Trustee (or any successor group of the Trustee) having direct
responsibility for the administration of this Indenture.

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

     “Restricted Subsidiary” means any direct or indirect Subsidiary of the Company that is not an
Unrestricted Subsidiary.

     “S&P” means Standard & Poor’s Ratings Group and its successors.

     “Securities Act” means the Securities Act of 1933, as amended.

     “Significant Subsidiary” means any Subsidiary of the Company that would be a “significant
subsidiary” as defined in Article I, Rule 1.02 of Regulations S-X, promulgated pursuant to the
Exchange Act, as such Regulation is in effect on the date hereof.

10

 

     “Subordinated Indebtedness” means any Indebtedness of the Company or any Restricted Subsidiary
(whether outstanding on the date of the issuance of the Securities or thereafter incurred) which is
subordinate or junior in right of payment to the Securities pursuant to a written agreement.

     “Subsidiary” means, with respect to any Person, (i) 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) to vote in the election of
directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly,
by such Person or one or more of the other Subsidiaries of that Person (or a combination thereof)
and (ii) 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 such
Person or of one or more Subsidiaries of such Person (or any combination thereof).

     “Subsidiary Guarantors” means initially the Restricted Subsidiaries of the Company who are
signatories to this Indenture as of the Issue Date and any other future Restricted Subsidiary of
the Company and in each case their respective successors and assigns; provided, that in no event
shall any Subsidiary acquired or created by the Company after the date of this Indenture that is
organized under the laws of a jurisdiction other than the United States or any State or other
subdivision thereof (a “non-U.S. Subsidiary”) be a Subsidiary Guarantor under this Indenture.

     “TIA” means the Trust Indenture Act of 1939, as amended, as in effect on the date on which
this Indenture is qualified under the TIA.

     “Total Assets” means, with respect to any Person, the total consolidated assets of such Person
and its Restricted Subsidiaries, as shown on the most recent balance sheet of such Person.

     “Trustee” means the party named as such in the preamble to this Indenture until a successor
replaces it in accordance with the applicable provisions of this Indenture and thereafter means the
successor serving hereunder.

     “Unrestricted Subsidiary” means (i) any Subsidiary of the Company which at the time of
determination shall be an Unrestricted Subsidiary (as designated by the Board of Directors of the
Company, as provided below) and (ii) any Subsidiary of an Unrestricted Subsidiary. 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: (a) such Subsidiary does not own any
Capital Stock of, 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; (b) all the Indebtedness of such Subsidiary shall at the date of designation, and will
at all times thereafter consist of, Non-Recourse Debt; (c) the Company certifies that such
designation was permitted by Section 4.07; (d) 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; (e) such Subsidiary does
not, directly or indirectly, own any Indebtedness of or Equity Interest in, and has no Investments
in, the Company or any Restricted Subsidiary; (f) such Subsidiary is a Person with respect to which
neither the Company nor any of its Restricted Subsidiaries has any direct or indirect obligation
(1) to subscribe for additional Equity Interests or (2) to maintain or preserve such Person’s
financial condition or to cause such Person to achieve any specified levels of operating results;
and (g) 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
Officer’s Certificate certifying that such designation complied 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
this 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 (1) 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 (excluding Permitted
Indebtedness) pursuant to Section 4.09 on a pro forma basis taking into account such designation
and (2) such Subsidiary executes a Guarantee pursuant to Section 11.02 of this Indenture.

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

     “Weighted Average Life to Maturity” means, when applied to any Indebtedness at any date, the
number of years obtained by dividing (i) the sum of the products obtained by multiplying (a) the
amount of each then remaining installment, sinking fund, serial maturity or other required payments
of principal, including payment at final maturity, in respect thereof, by (b) the number of years
(calculated to the nearest one-twelfth) that will elapse between such date and the making of such
payment, by (ii) the then outstanding principal amount of such Indebtedness.

     “Wholly Owned Restricted Subsidiary” means, with respect to any Person, a Restricted
Subsidiary of such Person, all of the outstanding Capital Stock or other ownership interests of
which (other than directors’ qualifying shares) are owned, directly or indirectly, by such Person
or by one or more Wholly Owned Restricted Subsidiaries of such Person.

     Section 1.02 Other Definitions.

	 	 	 	 	 
	Term	 	Defined in Section
	“Affiliate Transaction”
	 	 	4.11
	“Asset Sale Offer”
	 	 	3.09
	“Bankruptcy Law”
	 	 	10.02
	“Change of Control Offer”
	 	 	4.13
	“Change of Control Payment”
	 	 	4.13
	“Change of Control Payment Date”
	 	 	4.13
	“Covenant Defeasance”
	 	 	8.03
	“Custodian”
	 	 	6.01
	“Event of Default”
	 	 	6.01
	“Excess Proceeds”
	 	 	4.10
	“incur”
	 	 	4.09
	“Legal Defeasance”
	 	 	8.02
	“Notice of Default”
	 	 	6.01
	“Offer Amount”
	 	 	3.09
	“Offer Period”
	 	 	3.09
	“Payment Blockage Notice”
	 	 	10.04
	“Payment Default”
	 	 	6.01
	“Permitted Indebtedness”
	 	 	4.09
	“Purchase Date”
	 	 	3.09
	“Register”
	 	 	2.11
	“Representative”
	 	 	10.02
	“Restricted Payments”
	 	 	4.07
	“Senior Debt”
	 	 	10.02

     Section 1.03 Incorporation by Reference of Trust Indenture Act.

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

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

     “indenture securities” means the Securities;

     “indenture to be qualified” means this Indenture;

     “indenture trustee” or “institutional trustee” means the Trustee;

     “obligor” with respect to the Securities means the Company and with respect to the Guarantees
means the Subsidiary Guarantors and any successor obligor upon the Securities and the Guarantees,
respectively.

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

     Section 1.04 Rules of Construction.

     Unless the context otherwise requires:

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

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

          (c) “or” is not exclusive;

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

          (e) provisions apply to successive events and transactions;

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

          (g) References to Statements of Financial Accounting Standards of the Financial Accounting
Standards Board do not reflect the new nomenclature resulting from the Financial Accounting
Standard Board’s codification of such Statements in its Accounting Standards Codification 105,
Generally Accepted Accounting Principles, issued in June 2009, but are deemed to include the
codified statements under their current nomenclature.

ARTICLE 2

The Securities

     Section 2.01 Forms Generally. The Securities shall be in substantially the form as shall be
established by or pursuant to a resolution of the Board of Directors or in one or more indentures
supplemental hereto, in each case as contemplated by Section 2.03, 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 the rules of any securities exchange
or as may, consistently herewith, be determined by the officers executing such Securities, as
evidenced by their execution of the Securities.

     The definitive Securities shall be printed, lithographed or engraved on steel-engraved borders
or may be produced in any other manner, all as determined by the officers executing such
Securities, as evidenced by their execution of such Securities.

     Section 2.02 Form Of Trustee’s Certificate Of Authentication. The Trustee’s certificate of
authentication shall be substantially in the following form:

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

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON TRUST
 COMPANY, N.A., as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

     Section 2.03 Amount Unlimited. The aggregate principal amount of Securities which may be
authenticated and delivered under this Indenture is unlimited.

     The Securities may be issued from time to time. Prior to the issuance of Securities, there
shall be established in or pursuant to (i) action taken pursuant to a resolution of the Board of
Directors and (subject to Section 2.04) set

13

 

forth, or determined in the manner provided, in an Officers’ Certificate (a “Board
Resolution”), or (ii) one or more indentures supplemental hereto, the definitive terms of the
Securities to the extent they are not set forth in or vary from the provisions of this Indenture,
including the following:

          (a) the title of the Securities;

          (b) the purchase price, denomination and any limit upon the aggregate principal amount of the
Initial Securities and, if limited, Additional Securities, 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 this
Indenture);

          (c) the date or dates on which the principal of and premium, if any, on the Securities is
payable or the method of determination thereof;

          (d) the rate or rates at which the Securities shall bear interest, if any, or the method of
calculating such rate or rates of interest, 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
any such interest shall be payable and the regular record dates, if any, for the interest payable
on any interest payment date;

          (e) 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 Securities may be redeemed, in whole or in part, at the option of the Company, if the Company
is to have that option;

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

          (g) if other than the principal amount thereof, the portion of the principal amount of
Securities which shall be payable upon declaration of acceleration of the Maturity thereof pursuant
to Section 6.02 or the method by which such portion shall be determined;

          (h) any modifications of or additions to the Events of Default or the covenants of the Company
set forth herein;

          (i) the form of Security; and

          (j) any other terms of the Securities.

     All Securities shall be substantially identical except as may otherwise be provided (i) by a
Board Resolution, (ii) by action taken pursuant to a Board Resolution and (subject to Section 2.04)
set forth, or determined in the manner provided, in an Officers’ Certificate or (iii) in any such
indenture supplemental hereto. All Securities need not be issued at the same time and, unless
otherwise provided, Additional Securities may be issued, subject to any limitations herein;
provided, however, that any such issuance made under the same CUSIP number as the original issuance
will be made only if either such Additional Securities are issued with no more than de minimis
original issue discount or such issuance is a “qualified reopening” as such term is defined under
Treasury regulations section 1.1275-2(k)(3) promulgated under the Internal Revenue Code of 1986, as
amended.

     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 Officers’ Certificate setting forth, or providing the manner for determining, the
terms of the Securities, and an appropriate record of any action taken pursuant thereto in
connection with the issuance of any Securities of such series shall be delivered to the Trustee
prior to the authentication and delivery thereof.

     Section 2.04 Execution and Authentication.

          (a) An Officer shall execute the Securities for the Company by facsimile or manual signature
in the name and on behalf of the Company. If an Officer whose signature is on a Security no longer
holds that office at the time the Security is authenticated, the Security will still be valid.

14

 

          (b) A Security will not be valid until the Trustee manually signs the certificate of
authentication on the Security, with the signature conclusive evidence that the Security has been
authenticated under the Indenture.

          (c) At any time and from time to time after the execution and delivery of the Indenture, the
Company may deliver Securities executed by the Company to the Trustee for authentication. The
Trustee will authenticate and deliver said Securities after receipt by the Trustee of an Officers’
Certificate specifying

               (1) the amount of Securities to be authenticated and the date on which the Securities are to
be authenticated,

               (2) whether the Securities are to be issued as one or more Global Securities or Certificated
Securities, and

               (3) other information the Company may determine to include or the Trustee may reasonably
request.

     Section 2.05 Registrar, Paying Agent and Authenticating Agent; Paying Agent to Hold Money in
Trust.

          (a) The Company may appoint one or more Registrars and one or more Paying Agents, and the
Trustee may appoint an Authenticating Agent, in which case each reference in the Indenture to the
Trustee in respect of the obligations of the Trustee to be performed by that Agent will be deemed
to be references to the Agent. The Company may act as Registrar or (except for purposes of Article
8) Paying Agent. In each case the Company and the Trustee will enter into an appropriate agreement
with the Agent implementing the provisions of the Indenture relating to the obligations of the
Trustee to be performed by the Agent and the related rights. The Company initially appoints the
Trustee as Registrar and Paying Agent.

          (b) The Company will require each Paying Agent other than the Trustee to agree in writing that
the Paying Agent will hold in trust for the benefit of the Holders or the Trustee all money held by
the Paying Agent for the payment of principal, premium, if any, or of interest on the Securities
and will promptly notify the Trustee of any Default by the Company in making any such payment. The
Company at any time may require a Paying Agent to pay all money held by it to the Trustee and
account for any funds disbursed, and the Trustee may at any time during the continuance of any
payment Default, upon written request to a Paying Agent, require the Paying Agent to pay all money
held by it to the Trustee and to account for any funds disbursed. Upon doing so, the Paying Agent
will have no further liability for the money so paid over to the Trustee.

     Section 2.06 Replacement Securities. If a mutilated Security is surrendered to the Trustee or
if a Holder claims that its Security has been lost, destroyed or wrongfully taken, the Company will
issue and the Trustee will authenticate a replacement Security of like tenor and principal amount
and bearing a number not contemporaneously outstanding. Every replacement Security is an additional
Obligation of the Company and entitled to the benefits of the Indenture. If required by the Trustee
or the Company, an indemnity must be furnished that is sufficient in the judgment of both the
Trustee and the Company to protect the Company and the Trustee from any loss they may suffer if a
Security is replaced. The Company may charge the Holder for the expenses of the Company and the
Trustee in replacing a Security. In case the mutilated, lost, destroyed or wrongfully taken
Security has become or is about to become due and payable, the Company in its discretion may pay
the Security instead of issuing a replacement Security.

     Section 2.07 Outstanding Securities.

          (a) Securities outstanding at any time are all Securities that have been authenticated by the
Trustee except for

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

               (2) any Security which has been replaced pursuant to Section 2.06 unless and until the Trustee
and the Company receive proof satisfactory to them that the replaced Security is held by a bona
fide purchaser; and

               (3) on or after the maturity date or any redemption date or date for repurchase of the
Securities pursuant to an Asset Sale Offer or a Change of Control Offer, those Securities payable
or to be redeemed or

15

 

repurchased on that date for which the Trustee (or Paying Agent, other than the Company or an
Affiliate of the Company) holds money sufficient to pay all amounts then due.

          (b) A Security does not cease to be outstanding because the Company or one of its Affiliates
holds the Security, provided, that in determining whether the Holders of the requisite principal
amount of the outstanding Securities have given or taken any request, demand, authorization,
direction, notice, consent, waiver or other action hereunder, Securities owned by the Company or
any Affiliate of the Company will be disregarded and deemed not to be outstanding, (it being
understood that in determining whether the Trustee is protected in relying upon any such request,
demand, authorization, direction, notice, consent, waiver or other action, only Securities which
the Trustee actually knows to be so owned will be so disregarded). Securities so owned which 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 Affiliate of the Company.

     Section 2.08 Temporary Securities. Until definitive Securities are ready for delivery, the
Company may prepare and the Trustee will authenticate temporary Securities. Temporary Securities
will be substantially in the form of definitive Securities but may have insertions, substitutions,
omissions and other variations determined to be appropriate by the Company Officer executing the
temporary Securities, as evidenced by the execution of the temporary Securities. If temporary
Securities are issued, the Company will cause definitive Securities to be prepared without
unreasonable delay. After the preparation of definitive Securities, the temporary Securities will
be exchangeable for definitive Securities upon surrender of the temporary Securities at the office
or agency of the Company designated for the purpose pursuant to Section 4.02, without charge to the
Holder. Upon surrender for cancellation of any temporary Securities the Company will execute and
the Trustee will authenticate and deliver in exchange therefor a like principal amount of
definitive Securities of authorized denominations. Until so exchanged, the temporary Securities
will be entitled to the same benefits under the Indenture as definitive Securities.

     Section 2.09 Cancellation. The Company at any time may 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 for cancellation any
Securities previously authenticated hereunder which the Company has not issued and sold. Any
Registrar or the Paying Agent will forward to the Trustee any Securities surrendered to it for
transfer, exchange or payment. The Trustee will cancel all Securities surrendered for transfer,
exchange, payment or cancellation and dispose of them in accordance with its document retention
procedures or the written instructions of the Company. The Company may not issue new Securities to
replace Securities it has paid in full or delivered to the Trustee for cancellation.

     Section 2.10 CUSIP and CINS Numbers. The Company in issuing the Securities may use “CUSIP”
and “CINS” numbers, and the Trustee will use CUSIP numbers or CINS numbers in notices of redemption
or exchange or in offers to purchase as a convenience to Holders, the notice to 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 redemption or exchange. The Company will promptly notify the Trustee
in writing of any change in the CUSIP or CINS numbers.

     Section 2.11 Registration, Transfer and Exchange.

          (a) The Securities will be issued in registered form only, without coupons, and the Company
shall cause the Registrar to maintain a register (the “Register”) of the Securities, for
registering the record ownership of the Securities by the Holders and transfers and exchanges of
the Securities.

          (b) (1) Each Global Security will be registered in the name of the Depositary or its nominee
and, so long as DTC is serving as the Depositary thereof, will bear the DTC Legend set forth in
Exhibit A.

               (2) Each Global Security will be delivered to the Trustee as custodian for the Depositary.
Transfers of a Global Security (but not a beneficial interest therein) will be limited to transfers
thereof in whole, but not in part, to the Depositary, its successors or their respective nominees,
except (A) as set forth in Section 2.11(b)(4) and (B) transfers of portions thereof in the form of
Certificated Securities may be made upon request of an Agent Member (for itself or on behalf of a
beneficial owner) by written notice given to the Trustee by or on behalf of the Depositary in
accordance with customary procedures of the Depositary and in compliance with this Section 2.11.

16

 

               (3) Agent Members will have no rights under the Indenture with respect to any Global Security
held on their behalf by the Depositary, and the Depositary shall be treated by the Company, the
Trustee and any agent of the Company or the Trustee as the absolute owner and Holder of such Global
Security for all purposes whatsoever. Notwithstanding the foregoing, the Depositary or its nominee
may grant proxies and otherwise authorize any Person (including any Agent Member and any Person
that holds a beneficial interest in a Global Security through an Agent Member) to take any action
which a Holder is entitled to take under the Indenture or the Securities, and nothing herein will
impair, as between the Depositary and its Agent Members, the operation of customary practices
governing the exercise of the rights of a holder of any security.

               (4) If (A) the Depositary notifies the Company that it is unwilling or unable to continue as
Depositary for a Global Security and a successor depositary is not appointed by the Company within
90 days of the notice or (B) an Event of Default has occurred and is continuing and the Trustee has
received a request from the Depositary, the Trustee will promptly exchange each beneficial interest
in the Global Security for one or more Certificated Securities in authorized denominations having
an equal aggregate principal amount registered in the name of the owner of such beneficial
interest, as identified to the Trustee by the Depositary, and thereupon the Global Security will be
deemed canceled. Each Certificated Security will be registered in the name of the Holder thereof or
its nominee.

          (c) A Holder may transfer a Security to another Person or exchange a Security for another
Security or Securities of any authorized denomination by presenting to the Trustee a written
request therefor stating the name of the proposed transferee or requesting such an exchange. The
Registrar will promptly register any transfer or exchange that meets the requirements of this
Section by noting the same in the Register maintained by the Registrar for the purpose; provided,
that

               (1) no transfer or exchange will be effective until it is registered in such Register and

               (2) the Trustee will not be required (A) to issue, register the transfer of or exchange any
Security for a period of 15 days before a selection of Securities to be redeemed or repurchased,
(B) to register the transfer of or exchange any Security so selected for redemption or repurchase
in whole or in part, except, in the case of a partial redemption or repurchase, that portion of any
Security not being redeemed or repurchased, or (C) if a redemption or a repurchase is to occur
after a regular record date but on or before the corresponding related interest payment date, to
register the transfer of or exchange any Security on or after the regular record date and before
the date of redemption or repurchase. Prior to the registration of any transfer, the Company, the
Trustee and their agents will treat the Person in whose name the Security is registered as the
owner and Holder thereof for all purposes (whether or not the Security is overdue), and will not be
affected by notice to the contrary.

     From time to time the Company will execute and the Trustee will authenticate additional
Securities as necessary in order to permit the registration of a transfer or exchange in accordance
with this Section.

     No service charge will be imposed in connection with any transfer or exchange of any Security,
but the Company may require payment of a sum sufficient to cover any transfer tax or similar
governmental charge payable in connection therewith (other than a transfer tax or other similar
governmental charge payable upon exchange pursuant to subsection (b)(4)).

          (d) (1) Global Security to Global Security. If a beneficial interest in a Global Security is
transferred or exchanged for a beneficial interest in another Global Security, the Trustee will (A)
record a decrease in the principal amount of the Global Security being transferred or exchanged
equal to the principal amount of such transfer or exchange and (B) record a like increase in the
principal amount of the other Global Security. Any beneficial interest in one Global Security that
is transferred to a Person who takes delivery in the form of a beneficial interest in another
Global Security, or exchanged for a beneficial interest in another Global Security, will, upon
transfer or exchange, cease to be an owner of a beneficial interest in such Global Security and
become an owner of a beneficial interest in the other Global Security and, accordingly, will
thereafter be subject to all transfer and exchange restrictions, if any, and other procedures
applicable to beneficial interests in such other Global Security for as long as it remains such an
interest.

               (2) Global Security to Certificated Security. If a beneficial interest in a Global Security
is transferred or exchanged for a Certificated Security, the Trustee will (A) record a decrease in
the principal amount of such

17

 

Global Security equal to the principal amount of such transfer or exchange and (B) deliver one
or more new Certificated Securities in authorized denominations having an equal aggregate principal
amount to the transferee (in the case of a transfer) or the owner of such beneficial interest (in
the case of an exchange), registered in the name of such transferee or owner, as applicable.

               (3) Certificated Security to Global Security. If a Certificated Security is transferred or
exchanged for a beneficial interest in a Global Security, the Trustee will (A) cancel such
Certificated Security, (B) record an increase in the principal amount of such Global Security equal
to the principal amount of such transfer or exchange and (C) in the event that such transfer or
exchange involves less than the entire principal amount of the canceled Certificated Security,
deliver to the Holder thereof one or more new Certificated Securities in authorized denominations
having an aggregate principal amount equal to the untransferred or unexchanged portion of the
canceled Certificated Security, registered in the name of the Holder thereof.

               (4) Certificated Security to Certificated Security. If a Certificated Security is transferred
or exchanged for another Certificated Security, the Trustee will (A) cancel the Certificated
Security being transferred or exchanged, (B) deliver one or more new Certificated Securities in
authorized denominations having an aggregate principal amount equal to the principal amount of such
transfer or exchange to the transferee (in the case of a transfer) or the Holder of the canceled
Certificated Security (in the case of an exchange), registered in the name of such transferee or
Holder, as applicable, and (C) if such transfer or exchange involves less than the entire principal
amount of the canceled Certificated Security, deliver to the Holder thereof one or more
Certificated Securities in authorized denominations having an aggregate principal amount equal to
the untransferred or unexchanged portion of the canceled Certificated Security, registered in the
name of the Holder thereof.

     Section 2.12 Defaulted Interest. If the Company defaults in a payment of interest on the
Securities, it shall pay the defaulted interest in any lawful manner plus, to the extent lawful,
interest payable on the defaulted interest, to the Persons who are Holders on a subsequent special
record date, in each case at the rate provided in the Securities and in Section 4.01 hereof. The
Company shall notify the Trustee in writing of the amount of defaulted interest proposed to be paid
on each Security and the date of the proposed payment. The Company shall fix or cause to be fixed
each such special record date and payment date, provided, that no such special record date shall be
less than 10 days prior to the related payment date for such defaulted interest. At least 15 days
before the special record date, the Company (or, upon the written request of the Company, the
Trustee in the name and at the expense of the Company) shall mail or cause to be mailed to Holders
a notice that states the special record date, the related payment date and the amount of such
interest to be paid.

ARTICLE 3

Redemption and Prepayment

     Section 3.01 Notices to Trustee. The Securities may be redeemable at the option of the
Company as provided in the terms of the Securities. If the Company elects to redeem Securities
pursuant to the optional redemption provisions thereof, then it shall furnish to the Trustee, at
least 45 days but not more than 60 days before a redemption date (or such shorter time as shall be
agreed by the Trustee), an Officers’ Certificate setting forth (i) the paragraph of the Securities
pursuant to which the redemption shall occur, (ii) the redemption date, (iii) the principal amount
of Securities to be redeemed and (iv) the redemption price.

     Section 3.02 Selection of Securities to be Redeemed. If less than all of the Securities are
to be redeemed at any time, selection of Securities for redemption shall be made by the Trustee in
compliance with the requirements of the principal national securities exchange, if any, on which
the Securities are listed as the Trustee is advised by the Company, or, if the Securities are not
so listed, on a pro rata basis, by lot or by such other method as the Trustee shall deem fair and
appropriate (and in such manner as complies with applicable legal requirements); provided, that no
Securities of $1,000 or less shall be redeemed in part. In the event of partial redemption by lot,
the particular Securities to be redeemed shall be selected, unless otherwise provided herein, not
less than 30 nor more than 60 days prior to the redemption date by the Trustee from the outstanding
Securities not previously called for redemption.

     The Trustee shall promptly notify the Company in writing of the Securities selected for
redemption and, in the case of any Security selected for partial redemption, the principal amount
thereof to be redeemed. Securities and portions of Securities selected shall be in amounts of
$1,000 or whole multiples of $1,000; except that if all of the Securities of a Holder are to be
redeemed, the entire outstanding amount of Securities held by such Holder, even if

18

 

not a multiple of $1,000, shall be redeemed. A new Security in principal amount equal to the
unredeemed portion thereof shall be issued in the name of the Holder thereof upon cancellation of
the original Security. On and after the redemption date, unless the Company defaults in payment of
the redemption price, interest ceases to accrue on Securities or portions of them called for
redemption. Except as provided in this Section 3.02, provisions of this Indenture that apply to
Securities called for redemption also apply to portions of Securities called for redemption.

     The provisions of the two preceding paragraphs of this Section 3.02 shall not apply with
respect to any redemption affecting only a Global Security, whether such Global Security is to be
redeemed in whole or in part. In case of any such redemption in part, the unredeemed portion of the
principal amount of the Global Security shall be in an authorized denomination.

     Section 3.03 Notice of Redemption. Subject to the provisions of Section 3.09 hereof, at least
30 days but not more than 60 days before a redemption date, the Company shall mail or cause to be
mailed, by first class mail, a notice of redemption to each Holder of Securities to be redeemed at
such Holder’s registered address, provided, however, that the Company shall provide notice to the
Trustee pursuant to Section 3.01 hereof at least three days (or such shorter period as shall be
satisfactory to the Trustee) prior to the mailing of the notice pursuant to this Section 3.03.

     The notice shall identify the Securities to be redeemed and shall state:

          (a) the redemption date;

          (b) the redemption price;

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

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

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

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

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

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

     If any of the Securities to be redeemed is in the form of a Global Security, then such notice
shall be modified in form but not substance to the extent appropriate to accord with the procedures
of the Depositary applicable to redemptions.

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

     Section 3.04 Effect of Notice of Redemption. Once notice of redemption is mailed in
accordance with Section 3.03 hereof, Securities called for redemption become irrevocably due and
payable on the redemption date at the redemption price. A notice of redemption may not be
conditional.

     Section 3.05 Deposit of Redemption Price. On or prior to the redemption date, the Company
shall deposit with the Trustee or with the Paying Agent money sufficient to pay the redemption
price of and accrued interest on all

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Securities to be redeemed on that date. The Trustee or the Paying Agent shall promptly return
without interest to the Company any money deposited with the Trustee or the Paying Agent by the
Company in excess of the amounts necessary to pay the redemption price of and accrued interest on
all Securities to be redeemed.

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

     Section 3.06 Securities Redeemed in Part. Upon surrender of a Security that is redeemed in
part, the Company shall issue and, upon the receipt of a written authentication order of the
Company signed by an Officer of the Company, the Trustee shall authenticate for the Holder at the
expense of the Company a new Security equal in principal amount to the unredeemed portion of the
Security surrendered.

     Section 3.07 Optional Redemption. Any redemption contemplated by the terms of the Securities
shall be made pursuant to the provisions of Sections 3.01 through 3.06 hereof.

     Section 3.08 Mandatory Redemption. Except as set forth under Sections 4.10 and 4.13 hereof,
the Company shall not be required to make mandatory redemption or sinking fund payments with
respect to the Securities.

     Section 3.09 Offer to Purchase by Application of Excess Proceeds. In the event that, pursuant
to Section 4.10 hereof, the Company shall be required to commence an offer to all Holders of
Securities and, to the extent required by the terms thereof, to all holders or lenders of other
pari passu Indebtedness, to repurchase Securities and any such pari passu Indebtedness (an “Asset
Sale Offer”), it shall follow the procedures specified below.

     The Asset Sale Offer shall remain open for a period of 20 Business Days following its
commencement and no longer, except to the extent that a longer period is required by applicable law
(the “Offer Period”). No later than five Business Days after the termination of the Offer Period
(the “Purchase Date”), the Company shall purchase the principal amount of Securities required to be
purchased pursuant to Section 4.10 hereof, giving effect to any related offer for pari passu
Indebtedness pursuant to Section 4.10, (the “Offer Amount”) or, if less than the Offer Amount has
been tendered, all Securities tendered in response to the Asset Sale Offer. Payment for any
Securities so purchased shall be made in the same manner as interest payments are made.

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

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

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

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

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

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

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          (e) that Holders electing to have a Security purchased pursuant to an Asset Sale Offer may
only elect to have all of such Security purchased and may not elect to have only a portion of such
Security purchased;

          (f) that Holders electing to have a Security purchased pursuant to any Asset Sale Offer shall
be required to surrender the Security, with the form entitled “Option of Holder to Elect Purchase”
on the reverse of the Security completed, or transfer by book-entry transfer, to the Company, the
Depositary, if appointed by the Company, or a Paying Agent at the address specified in the notice
at least three Business Days before the Purchase Date;

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

          (h) that, if the aggregate principal amount of Securities surrendered by Holders exceeds the
Offer Amount, the Company shall select the Securities to be purchased on a pro rata basis (with
such adjustments as may be deemed appropriate by the Company so that only Securities in
denominations of $1,000, or integral multiples thereof, shall be purchased) in the manner provided
in Section 4.10; and

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

     If any of the Securities subject to an Asset Sale Offer is in the form of a Global Security,
then such notice may be modified in form but not substance to the extent appropriate to accord with
the procedures of the Depositary applicable to repurchases.

     On or before the Purchase Date, the Company shall, to the extent lawful, accept for payment,
on a pro rata basis to the extent necessary, the Offer Amount of Securities or portions thereof
tendered pursuant to the Asset Sale Offer, or if less than the Offer Amount has been tendered, all
Securities tendered, and shall deliver to the Trustee an Officers’ Certificate stating that such
Securities or portions thereof were accepted for payment by the Company in accordance with the
terms of this Section 3.09. The Company, the Depositary or the Paying Agent, as the case may be,
shall promptly (but in any case not later than five days after the Purchase Date) mail or deliver
to each tendering Holder an amount equal to the purchase price of the Securities tendered by such
Holder and accepted by the Company for purchase, and the Company shall promptly issue a new
Security, and the Trustee, upon receipt of a written authentication order of the Company signed by
two Officers of the Company shall authenticate and mail or deliver such new Security to such
Holder, in a principal amount equal to any unpurchased portion of the Security surrendered. Any
Security not so accepted shall be promptly mailed or delivered by the Company to the Holder
thereof. The Company shall publicly announce the results of the Asset Sale Offer on the Purchase
Date.

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

ARTICLE 4

Covenants

     Section 4.01 Payment of Securities. The Company shall pay or cause to be paid the principal
of, premium, if any, and interest on the Securities on the dates and in the manner provided in the
Securities. Principal, premium, if any, and interest shall be considered paid on the date due if
the Paying Agent, if other than the Company or a Subsidiary thereof, holds as of 10:00 a.m. Eastern
Time on the due date money deposited by the Company in immediately available funds and designated
for and sufficient to pay all such amounts then due.

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

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     Section 4.02 Maintenance of Office or Agency. The Company shall maintain an office or agency
(which may be an office of the Trustee or an affiliate of the Trustee, Registrar or co-registrar)
where principal, premium, if any, and interest on the Securities will be paid and where Securities
may be surrendered for registration of transfer or for exchange and where notices and demands to or
upon the Company in respect of the Securities and this Indenture may be served. The Company shall
give prompt written notice to the Trustee of the location, and any change in the location, of such
office or agency. If at any time the Company shall fail to maintain any such required office or
agency or shall fail to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee.

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

     Section 4.03 Reports. Notwithstanding that the Company may not be required to remain 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 provide, within 15 days after
such filing, the Trustee and Holders and prospective Holders (upon request) with the annual reports
and the information, documents and other reports that are specified in Sections 13 and 15(d) of the
Exchange Act (but without exhibits in the case of the Holders and prospective Holders). In the
event that the Company is not permitted to file such reports, documents and information with the
Commission, the Company will provide substantially similar information to the Trustee, the Holders
and prospective Holders (upon request) as if the Company were subject to the reporting requirements
of Section 13 or 15(d) of the Exchange Act. The Company shall at all times comply with TIA § 314
(a).

     Section 4.04 Compliance Certificate.

          (a) The Company shall deliver to the Trustee, within 90 days after the end of each fiscal
year, an Officers’ Certificate stating that a review of the activities of the Company and its
Subsidiaries during the preceding fiscal year has been made under the supervision of the signing
Officers with a view to determining whether the Company has kept, observed, performed and fulfilled
its obligations under this Indenture, and further stating, as to each such Officer signing such
certificate, that to the best of his or her knowledge the Company has kept, observed, performed and
fulfilled each and every covenant contained in this Indenture and is not in default in the
performance or observance of any of the terms, provisions and conditions of this Indenture (or, if
a Default or Event of Default shall have occurred, describing all such Defaults or Events of
Default of which he or she may have knowledge and what action the Company is taking or proposes to
take with respect thereto) and that to the best of his or her knowledge no event has occurred and
remains in existence by reason of which payments on account of the principal of, premium, if any,
or interest on the Securities is prohibited or if such event has occurred, a description of the
event and what action the Company is taking or proposes to take with respect thereto. As of the
date hereof, the Company’s fiscal year ends on December 31 of each calendar year. In the event the
Company changes its fiscal year, it shall promptly notify the Trustee in writing of such change.

          (b) So long as not contrary to the then current recommendations of the American Institute of
Certified Public Accountants, the fiscal yearend financial statements delivered pursuant to Section
4.03(a) above shall be accompanied by a written statement of the Company’s independent public
accountants (who shall be a firm of established national reputation) that in making the examination
necessary for certification of such financial statements, nothing has come to their attention that
would lead them to believe that the Company has violated any provisions of Article 4 or Article 5
hereof or, if any such violation has occurred, specifying the nature and period of existence
thereof, it being understood that such accountants shall not be liable directly or indirectly to
any Person for any failure to obtain knowledge of any such violation.

          (c) The Company shall, so long as any of the Securities are outstanding, deliver to the
Trustee, within five Business Days of any Officer becoming aware of any Default or Event of
Default, an Officers’ Certificate specifying such Default or Event of Default and what action the
Company is taking or proposes to take with respect thereto.

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     Section 4.05 Taxes. The Company shall pay, and shall cause each of its Subsidiaries to pay,
prior to delinquency all material taxes, assessments, and governmental levies except such as are
contested in good faith and by appropriate proceedings or where the failure to effect such payment
is not adverse in any material respect to the Holders of the Securities.

     Section 4.06 Stay, Extension and Usury Laws. Each of the Company and the Subsidiary
Guarantors covenants (to the extent that it may lawfully do so) that it shall not at any time
insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any
stay, extension or usury law wherever enacted, now or at any time hereafter in force, that may
affect the covenants or the performance of this Indenture; and each of the Company and the
Subsidiary Guarantors (to the extent that it may lawfully do so) hereby expressly waives all
benefit or advantage of any such law, and covenants that it shall not, by resort to any such law,
hinder, delay or impede the execution of any power herein granted to the Trustee, but shall suffer
and permit the execution of every such power as though no such law has been enacted.

     Section 4.07 Restricted Payments. The Company shall not and shall not permit any of its
Restricted Subsidiaries to, directly or indirectly: (a) declare or pay any dividend or make any
other payment or distribution on account of the Company’s Equity Interests (including, without
limitation, any payment to holders of the Company’s Equity Interests in connection with any merger
or consolidation involving the Company) or to the direct or indirect holders of the Company’s
Equity Interests in their capacity as such (other than dividends or distributions payable in Equity
Interests (other than Disqualified Stock) of the Company); (b) purchase, redeem or otherwise
acquire or retire for value any Equity Interests of the Company; (c) make any principal payment on,
or purchase, redeem, defease or otherwise acquire or retire for value any Indebtedness that is
subordinated to the Securities, except at final maturity; or (d) make any Restricted Investment
(all such payments and other actions set forth in clauses (a) through (d) above being collectively
referred to as “Restricted Payments”), unless, at the time of and after giving effect to such
Restricted Payment:

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

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

               (3) such Restricted Payment, together with the aggregate of all other Restricted Payments made
by the Company and its Restricted Subsidiaries after the date of this Indenture (excluding
Restricted Payments permitted by clauses (2), (3), (5) and (6) of the next succeeding paragraph),
is less than the sum of (A) the dollar amount calculated as of the date of this Indenture under
Section 4.07(c) of that certain Indenture dated July 21, 2003 among the Company, the Subsidiary
Guarantors and The Bank of New York Mellon Trust Company, N.A., as successor trustee to Bank One,
National Association, plus (B) 50% of the Consolidated Net Income of the Company for the period
(taken as one accounting period) from the beginning of the first fiscal quarter commencing prior to
the date of this Indenture to the end of the Company’s most recently ended fiscal quarter for which
internal financial statements are available at the time of such Restricted Payment (or, if such
Consolidated Net Income for such period is a deficit, less 100% of such deficit), plus (C) 100% of
the aggregate net cash proceeds received by the Company from the issue and sale since the date of
this Indenture of Equity Interests in the Company or of debt securities of the Company that have
been converted into or exchanged for such Equity Interests (other than Equity Interests (or
convertible debt securities) sold to a Subsidiary of the Company and other than Disqualified Stock
or debt securities that have been converted into Disqualified Stock), plus (D) 100% of the amount
of net cash proceeds received by the Company or a Restricted Subsidiary from the sale within 12
months of the related acquisition of any of the following that are acquired after the date of the
Indenture in exchange for Equity Interests of the Company (other than Disqualified Stock and other
than Capital Stock issued to a Subsidiary of the Company): (i) any property or assets (other than
Indebtedness and Capital Stock); (ii) 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 another
Restricted Subsidiary; or (iii) Capital Stock constituting a minority interest in any Person that
at such time is a Restricted Subsidiary, plus (E) to the extent that any Restricted Investment that
was made after the date of this Indenture is sold for cash or otherwise liquidated or repaid for
cash, the lesser of (i) the net proceeds of such sale, liquidation or repayment and (ii) the
initial amount of such Restricted Investment.

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     The foregoing provisions shall not prohibit (1) the payment of any dividend within 60 days
after the date of declaration thereof, if at said date of declaration such payment would have
complied with the provisions of this Indenture; (2) the redemption, repurchase, retirement or other
acquisition of any Equity Interests of the Company in exchange for, or out of the proceeds of, the
substantially concurrent sale (other than to a Subsidiary of the Company) of other Equity Interests
of the Company (other than any Disqualified Stock); provided, that the amount of any such net cash
proceeds that are utilized for any such redemption, repurchase, retirement or other acquisition
shall be excluded from clause (c)(iii) or (c)(iv) of the preceding paragraph; (3) the defeasance,
redemption or repurchase of Subordinated Indebtedness with the net cash proceeds from an incurrence
of Permitted Refinancing Debt or the substantially concurrent sale (other than to a Subsidiary of
the Company) of Equity Interests of the Company (other than Disqualified Stock); provided, that the
amount of any such net cash proceeds that are utilized for any such redemption, repurchase,
retirement or other acquisition shall be excluded from clause (c)(iii) or (c)(iv) of the preceding
paragraph; (4) the repurchase, redemption or other acquisition or retirement for value of any
Equity Interests of the Company or any Subsidiary of the Company held by any of the Company’s (or
any of its Subsidiaries’) employees pursuant to any equity subscription agreement or stock option
agreement in effect as of the date of this Indenture; provided, that the aggregate price paid for
all such repurchased, redeemed, acquired or retired Equity Interests shall not exceed $2.0 million
in any twelve-month period; and provided further, that no Default or Event of Default shall have
occurred and be continuing immediately after such transaction; (5) repurchases of Equity Interests
deemed to occur upon exercise of stock options if such Equity Interests represent a portion of the
exercise price of such options; and (6) cash payments made by the Company for the repurchase,
redemption or other acquisition or retirement of the Company’s
63/8% Senior Subordinated Notes due
2015, 71/2% Senior Subordinated Notes due 2016, 71/2% Senior Subordinated Notes due 2017, 71/4% Senior
Subordinated Notes due 2018, 8% Senior Subordinated Notes due 2019 or 63/4% Senior Subordinated Notes
due 2020.

     The amount of all Restricted Payments (other than cash) shall be the fair market value (as
determined in good faith by a resolution of the Board of Directors of the Company set forth in an
Officers’ Certificate delivered to the Trustee, which determination shall be conclusive evidence of
compliance with this provision) on the date of the Restricted Payment of the asset(s) proposed to
be transferred by the Company or the applicable Restricted Subsidiary, as the case may be, pursuant
to the Restricted Payment. Not later than five days after 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 4.07 were computed.

     In computing Consolidated Net Income for purposes of this Section 4.07, (i) the Company shall
use audited financial statements for the portion of the relevant period for which audited financial
statements are available on the date of determination and unaudited financial statements and other
current financial data based on the books and records of the Company for the remaining portion of
such period and (ii) the Company shall be permitted to rely in good faith on the financial
statements and other financial data derived from the books and records of the Company that are
available on the date of determination. If the Company makes a Restricted Payment which, at the
time of the making of such Restricted Payment, would on the good faith determination of the Company
be permitted under the requirements of this Indenture, such Restricted Payment shall be deemed to
have been made in compliance with this Indenture notwithstanding any subsequent adjustments made in
good faith to the Company’s financial statements affecting Consolidated Net Income of the Company
for any period.

     The Board of Directors may designate any Restricted Subsidiary to be an Unrestricted
Subsidiary if such designation would not cause a Default. For purposes of making such
determination, all outstanding Investments by the Company and its Restricted Subsidiaries (except
to the extent repaid in cash) in the Subsidiary so designated shall be deemed to be a Restricted
Investment or, if applicable, a Permitted Investment at the time of such designation and must
comply with this Section 4.07. All such outstanding Investments shall be deemed to constitute
Investments in an amount equal to the greater of the fair market value or the book value of such
Investments at the time of such designation. Such designation shall only be permitted if such
Restricted Payment would be permitted at such time and if such Restricted Subsidiary otherwise
meets the definition of an Unrestricted Subsidiary.

     Section 4.08 Dividend and Other Payment Restrictions Affecting Subsidiaries. The Company
shall not, and shall not permit any of its Restricted Subsidiaries to, directly or indirectly,
create or otherwise cause or suffer to exist or become effective any consensual encumbrance or
restriction on the ability of any Restricted Subsidiary to (a)(1) pay dividends or make any other
distributions to the Company or any of its Restricted Subsidiaries (A) on its

24

 

Capital Stock or (B) with respect to any other interest or participation in, or measured by,
its profits, or (2) pay any indebtedness owed by it to the Company or any of its Restricted
Subsidiaries, (b) make loans or advances to the Company or any of its Restricted Subsidiaries or
(c) transfer any of its properties or assets to the Company or any of its Restricted Subsidiaries,
except for such encumbrances or restrictions existing under or by reason of (i) the Credit
Agreement and the indentures governing the Company’s 63/8% Senior Subordinated Notes due 2015, 71/2%
Senior Subordinated Notes due 2016, 71/2% Senior Subordinated Notes due 2017, 71/4% Senior Subordinated
Notes due 2018, 8% Senior Subordinated Notes due 2019 and 63/4% Senior Subordinated Notes due 2020,
each as in effect as of the date of this Indenture, and any amendments, modifications,
restatements, renewals, increases, supplements, refundings, replacements or refinancings thereof or
any other Credit Facility or indenture or other financing agreement or instrument, provided, that
such amendments, modifications, restatements, renewals, increases, supplements, refundings,
replacements, refinancings or other Credit Facilities or indentures or other financing agreements
or instruments are not materially more restrictive taken as a whole with respect to such dividend
and other payment restrictions than those contained in the Credit Agreement and such indentures as
in effect on the date of the Indenture, (ii) this Indenture and the Securities, (iii) applicable
law, (iv) any instrument governing Indebtedness or Capital Stock of a Person acquired by the
Company or any of its Restricted Subsidiaries as in effect at the time of such acquisition (except,
in the case of Indebtedness, to the extent such Indebtedness was incurred in connection with or in
contemplation of such acquisition), which encumbrance or restriction is not applicable to any
Person, or the properties or assets of any Person, other than the Person and its Subsidiaries, or
the property or assets of the Person and its Subsidiaries, so acquired, provided, that, in the case
of Indebtedness, such Indebtedness was permitted by the terms of this Indenture to be incurred, (v)
by reason of customary non-assignment provisions in leases and customary provisions in other
agreements that restrict assignment of such agreements or rights thereunder, entered into in the
ordinary course of business and consistent with past practices, (vi) purchase money obligations for
property acquired in the ordinary course of business that impose restrictions of the nature
described in clause (c) above on the property so acquired or (vii) Permitted Refinancing Debt,
provided, that the restrictions contained in the agreements governing such Permitted Refinancing
Debt are not materially more restrictive, taken as a whole, than those contained in the agreements
governing the Indebtedness being refinanced.

     Section 4.09 Incurrence of Indebtedness and Issuance of Disqualified Stock. The Company shall
not, and shall not permit any of its Restricted Subsidiaries to, directly or indirectly, create
incur, issue, assume, guarantee or otherwise become directly or indirectly liable, contingently or
otherwise, with respect to (collectively, “incur”) any Indebtedness (including Acquired Debt) and
the Company shall not issue any Disqualified Stock and shall not permit any of its Restricted
Subsidiaries to issue any shares of preferred stock; provided, however, that the Company may incur
Indebtedness (including Acquired Debt) or issue shares of Disqualified Stock if:

          (a) the Fixed Charge Coverage Ratio for the Company’s most recently ended four full fiscal
quarters for which internal financial statements are available immediately preceding the date on
which such additional Indebtedness is incurred or such Disqualified Stock is issued would have been
at least 2.5 to 1, determined on a pro forma basis as set forth in the definition of Fixed Charge
Coverage Ratio; and

          (b) no Default or Event of Default shall have occurred and be continuing at the time such
additional Indebtedness is incurred or such Disqualified Stock is issued or would occur as a
consequence of the incurrence of the additional Indebtedness or the issuance of the Disqualified
Stock.

     Notwithstanding the foregoing, this Indenture shall not prohibit any of the following
(collectively, “Permitted Indebtedness”): (1) the Indebtedness evidenced by the Initial Securities;
(2) the Indebtedness evidenced by the Company’s 63/8% Senior Subordinated Notes due 2015, 71/2% Senior
Subordinated Notes due 2016, 71/2% Senior Subordinated Notes due 2017, 71/4% Senior Subordinated Notes
due 2018, 8% Senior Subordinated Notes due 2019 and 63/4% Senior Subordinated Notes due 2020; (3) the
incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness pursuant to Credit
Facilities, so long as the aggregate principal amount of all Indebtedness incurred pursuant to this
clause (3) and outstanding under all Credit Facilities does not, at any one time, exceed the
greater of (A) $1.5 billion and (B) an amount equal to the sum of (i) $50
million plus (ii) 30% of Adjusted Consolidated Net Tangible Assets determined after the incurrence
of such Indebtedness (including the application of the proceeds therefrom), (4) the guarantee by
any Subsidiary Guarantor of any Indebtedness that is permitted by this Indenture to be incurred by
the Company; (5) all Indebtedness of the Company and its Restricted Subsidiaries in existence as of
the date of this Indenture; (6) intercompany Indebtedness between or among the Company and any of
its Wholly Owned Restricted Subsidiaries; provided, however, that (A)

25

 

if the Company is the obligor on such Indebtedness, such Indebtedness is expressly subordinate
to the payment in full of all Obligations with respect to the Securities and (B)(i) any subsequent
issuance or transfer of Equity Interests that results in any such Indebtedness being held by a
Person other than the Company or a Wholly Owned Restricted Subsidiary and (ii) any sale or other
transfer of any such Indebtedness to a Person that is not either the Company or a Wholly Owned
Restricted Subsidiary shall be deemed, in each case, to constitute an incurrence of such
Indebtedness by the Company or such Restricted Subsidiary, as the case may be; (7) Indebtedness in
connection with one or more standby letters of credit, guarantees, performance bonds or other
reimbursement obligations, in each case, issued in the ordinary course of business and not in
connection with the borrowing of money or the obtaining of advances or credit (other than advances
or credit on open account, includible in current liabilities, for goods and services in the
ordinary course of business and on terms and conditions which are customary in the Oil and Gas
Business, and other than the extension of credit represented by such letter of credit guarantee or
performance bond itself), not to exceed in the aggregate at any given time 5.0% of Total Assets;
(8) Indebtedness under Interest Rate Hedging Agreements entered into for the purpose of limiting
interest rate risks, provided, that the obligations under such agreements are related to payment
obligations on Indebtedness otherwise permitted by the terms of this covenant and that the
aggregate notional principal amount of such agreements does not exceed 105% of the principal amount
of the Indebtedness to which such agreements relate; (9) Indebtedness under Oil and Gas Hedging
Contracts, provided, that such contracts were entered into in the ordinary course of business for
the purpose of limiting risks that arise in the ordinary course of business of the Company and its
Restricted Subsidiaries; (10) the incurrence by the Company of Indebtedness not otherwise permitted
to be incurred pursuant to this paragraph, provided, that the aggregate principal amount (or
accreted value, as applicable) of all Indebtedness incurred pursuant to this clause (10), together
with all Permitted Refinancing Debt incurred pursuant to clause (11) of this paragraph in respect
of Indebtedness previously incurred pursuant to this clause (10), does not exceed $10.0 million at
any one time outstanding; (11) Permitted Refinancing Debt incurred in exchange for, or the net
proceeds of which are used to refinance, extend, renew, replace, defease or refund, Indebtedness
that was permitted by this Indenture to be incurred (including Indebtedness previously incurred
pursuant to this clause (11) and Indebtedness referred to in clause (5) above); (12) accounts
payable or other obligations of the Company or any Restricted Subsidiary to trade creditors created
or assumed by the Company or such Restricted Subsidiary in the ordinary course of business in
connection with the obtaining of goods or services; and (13) Indebtedness consisting of obligations
in respect of purchase price adjustments, guarantees or indemnities in connection with the
acquisition or disposition of assets.

     The Company shall not permit any of its Unrestricted Subsidiary to incur any Indebtedness
other than Non-Recourse Debt; provided, however, if any such Indebtedness ceases to be Non-Recourse
Debt, such event shall be deemed to constitute an incurrence of Indebtedness by the Company.

     For purposes of determining compliance with, and the outstanding principal amount of any
particular Indebtedness incurred pursuant to and in compliance with this Section 4.09: (A)
Indebtedness permitted by this covenant need not be permitted solely by reference to one provision
permitting such Indebtedness but may be permitted in part by one such provision and in part by one
or more other provisions of this covenant permitting such Indebtedness, (B) in the event that
Indebtedness meets the criteria of more than one of the types of Indebtedness permitted by this
covenant to be incurred, the Company, in its sole discretion, will classify such item of
Indebtedness on the date of incurrence (or later reclassify such Indebtedness from or after the
first date on which the Company or its Restricted Subsidiaries could have incurred such
Indebtedness under one or more other of such provisions) and only be required to include the amount
and type of such Indebtedness in one or more of such provisions as it determines; and (C) the
amount of any Indebtedness issued at a price that is less than the principal amount thereof will be
equal to the amount of the liability in respect thereof determined in accordance with GAAP.

     Section 4.10 Asset Sales. The Company shall not, and shall not permit any of its Restricted
Subsidiaries to, engage in an Asset Sale unless (a) the Company (or the Restricted Subsidiary, as
the case may be) receives consideration at the time of such Asset Sale at least equal to the fair
market value (as determined in good faith by a resolution of the Board of Directors of the Company
set forth in an Officer’s Certificate delivered to the Trustee, which determination shall be
conclusive evidence of compliance with this provision) of the assets or Equity Interests issued or
sold or otherwise disposed of and (b) at least 85% of the consideration therefor received by the
Company or such Restricted Subsidiary in such Asset Sale, plus all other Asset Sales since the date
of this Indenture, on a cumulative basis, is in the form of cash or Cash Equivalents; provided,
that the amount of any liabilities (as shown on the Company’s or such Restricted Subsidiary’s most
recent balance sheet), of the Company or any Restricted Subsidiary (other than contingent
liabilities and liabilities that are by their terms subordinated to the Securities or

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any guarantee thereof) that are assumed by the transferee of any such assets pursuant to a
customary novation agreement that releases the Company or such Restricted Subsidiary from further
liability shall be treated as cash for the foregoing purposes.

     Within 360 days after the receipt of any Net Proceeds from an Asset Sale, the Company may
apply such Net Proceeds, at its option: (1) to reduce Senior Debt, (2) to acquire controlling
interests in another Oil and Gas Business, (3) to make capital expenditures in respect of the
Company’s or its Restricted Subsidiaries’ Oil and Gas Business, (4) to purchase long-term assets
that are used or useful in such Oil and Gas Business or (5) to repurchase any Securities. Pending
the final application of any such Net Proceeds, the Company may temporarily reduce Senior Debt that
is revolving debt or otherwise invest such Net Proceeds in any manner that is not prohibited by
this Indenture. Any Net Proceeds from Asset Sales that are not applied as provided in the first
sentence of this paragraph shall (after the expiration of the periods specified in this paragraph)
be deemed to constitute “Excess Proceeds.”

     When the aggregate amount of Excess Proceeds exceeds $10.0 million, the Company shall make an
Asset Sale Offer to purchase the maximum principal amount of Securities and any other pari passu
Indebtedness to which the Asset Sale Offer applies that may be purchased out of the Excess
Proceeds, at an offer price in cash in an amount equal to, in the case of the Securities, 100% of
the principal amount thereof plus accrued and unpaid interest thereon to the date of purchase or,
in the case of any other pari passu Indebtedness, 100% of the principal amount thereof (or with
respect to discount pari passu Indebtedness, the accreted value thereof) on the date of purchase,
in each case, in accordance with the procedures set forth in Section 3.09 hereof or the agreements
governing pari passu Indebtedness, as applicable. To the extent that the aggregate principal amount
(or accreted value, as the case may be) of the Securities and pari passu Indebtedness tendered
pursuant to an Asset Sale Offer is less than the Excess Proceeds, the Company may use any remaining
Excess Proceeds for general corporate purposes. If the sum of (A) the aggregate principal amount of
Securities surrendered by Holders thereof, and (B) the aggregate principal amount or accreted
value, as the case may be, of other pari passu Indebtedness surrendered by holders or lenders
thereof, exceeds the amount of Excess Proceeds, the Trustee and the trustee or other lender
representatives for the pari passu Indebtedness shall select the Securities and other pari passu
Indebtedness to be purchased on a pro rata basis, based on the aggregate principal amount (or
accreted value, as applicable) thereof surrendered in such Asset Sale Offer. Upon completion of
such Asset Sale Offer, the Excess Proceeds shall be reset at zero.

     Section 4.11 Transactions with Affiliates. The Company shall not, and shall not permit any of
its Restricted Subsidiaries to, make any payment to, or sell, lease, transfer or otherwise dispose
of any of its properties or assets to, or purchase any property or assets from, or enter into or
make or amend any contract, agreement, understanding, loan, advance or guarantee with, or for the
benefit of, any of its Affiliates (each of the foregoing, an “Affiliate Transaction”), unless (a)
such Affiliate Transaction is on terms that are no less favorable to the Company or the relevant
Restricted Subsidiary than those that would have been obtained in a comparable transaction by the
Company or such Subsidiary with an unrelated Person and (b) the Company delivers to the Trustee (1)
with respect to an Affiliate Transaction or series of related Affiliate Transactions involving
aggregate consideration in excess of $1,000,000 but less than or equal to $10,000,000, an Officers’
Certificate to the Trustee certifying that such Affiliate Transaction complies with clause (a)
above, (2) with respect to any Affiliate Transaction or series of related Affiliate Transactions
involving aggregate consideration in excess of $10,000,000 but less than or equal to $25,000,000, a
resolution of the Board of Directors set forth in an Officer’s Certificate certifying that such
Affiliate Transaction or series of related Affiliate Transactions complies with clause (a) above
and that such Affiliate Transaction or series of related Affiliate Transactions has been approved
in good faith by a majority of the members of the Board of Directors of the Company who are
disinterested with respect to such Affiliate Transaction or series of related Affiliate
Transactions (which resolution shall be conclusive evidence of compliance with this provision) and
(3) with respect to any Affiliate Transaction or series of related Affiliate Transactions involving
aggregate consideration in excess of $25,000,000, a resolution of the Board of Directors set forth
in an Officers’ Certificate certifying that such Affiliate Transaction or series of related
Affiliate Transactions complies with clause (a) above and that such Affiliate Transaction or series
of related Affiliate Transactions has been approved in good faith by a resolution adopted by a
majority of the members of the Board of Directors of the Company who are disinterested with respect
to such Affiliate Transaction or series of related Affiliate Transactions and an opinion as to the
fairness to the Company or such Subsidiary of such Affiliate Transaction or series of related
Affiliate Transactions from a financial point of view issued by an accounting, appraisal,
engineering or investment banking firm of national standing (which resolution and fairness opinion
shall be conclusive evidence of compliance with this provision); provided, however, that the
foregoing shall not apply to (A) transactions contemplated by any employment

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agreement or other compensation plan or arrangement entered into by the Company or any of its Subsidiaries in the
ordinary course of business, (B) transactions between or among the Company and/or its Restricted
Subsidiaries, (C) Permitted Investments and Restricted Payments that are permitted by Section 4.07
hereof, (D) any indemnification payment made to any director, officer or employee of the Company or
any Subsidiary pursuant to charter, bylaw, statutory or contractual provisions, and (E)
transactions with entities that are Affiliates of the Company or a Restricted Subsidiary only
because of the ownership by the Company or a Restricted Subsidiary of Equity Interests in such
entity.

     Section 4.12 Liens. The Company shall not, and shall not permit any of its Restricted
Subsidiaries to, create, incur, assume or otherwise cause or suffer to exist or become effective
any Lien securing Indebtedness of any kind (other than Permitted Liens) upon any of its property or
assets, now owned or hereafter acquired, unless all payments under the Securities are secured by
such Lien prior to, or on an equal and ratable basis with, the Indebtedness so secured for so long
as such Indebtedness is secured by such Lien.

     Section 4.13 Offer to Repurchase Upon Change of Control.

          (a) Upon the occurrence of a Change of Control, each Holder of the Securities shall have the
right to require the Company to repurchase all or any part (equal to $1,000 or an integral multiple
thereof) of such Holder’s Securities pursuant to the offer described below (the “Change of Control
Offer”) at an offer price in cash equal to 101% of the aggregate principal amount of the Securities
plus accrued and unpaid interest if any, thereon to the date of purchase (the “Change of Control
Payment”). Within 30 days following any Change of Control, unless a notice of redemption has been
given with respect to the Securities, the Company shall mail a notice to each Holder stating: (1) a
description of the transaction or transactions that constitute the Change of Control; (2) that the
Change of Control Offer is being made pursuant to this Section 4.13 and that all Securities
tendered shall be accepted for payment; (3) the purchase price and the purchase date described
below (the “Change of Control Payment Date”); (4) that any Security not tendered shall continue to
accrue interest, if any; (5) that, unless the Company defaults in the payment of the Change of
Control Payment, all Securities accepted for payment pursuant to the Change of Control Offer shall
cease to accrue interest, if any, after the Change of Control Payment Date; (6) that Holders
electing to have any Securities purchased pursuant to a Change of Control Offer shall be required
to surrender the Securities, with the form entitled “Option of Holder to Elect Purchase” on the
reverse of the Securities completed, to the Paying Agent at the address specified in the notice
prior to the close of business on the third Business Day preceding the Change of Control Payment
Date; (7) that Holders shall be entitled to withdraw their election if the Paying Agent receives,
not later than the close of business on the second Business Day preceding the Change of Control
Payment Date, a telegram, telex, facsimile transmission or letter setting forth the name of the
Holder, the principal amount of Securities delivered for purchase, and a statement that such Holder
is withdrawing his election to have the Securities purchased; and (8) that Holders whose Securities
are being purchased only in part shall be issued new Securities equal in principal amount to the
unpurchased portion of the Securities surrendered, which unpurchased portion must be equal to
$1,000 in principal amount or an integral multiple thereof. The Company and each Subsidiary
Guarantor shall comply with the requirements of Rule 14e-1 under the Exchange Act and any other
securities laws and regulations thereunder to the extent such laws and regulations are applicable
to such party in connection with the repurchase of the Securities as a result of a Change of
Control.

          (b) On a Business Day that is no earlier than 30 days nor later than 60 days from the date
that the Company mails or causes to be mailed notice of the Change of Control to the Holders (the
“Change of Control Payment Date”), the Company shall, to the extent lawful, (1) accept for payment
all Securities or portions thereof 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
the Securities or portions thereof so tendered and (3) deliver or cause to be delivered to the
Trustee the Securities so accepted together with an Officers’ Certificate stating the aggregate
principal amount of such Securities or portions thereof being purchased by the Company. The Paying
Agent shall promptly mail to each Holder of the Securities so tendered the Change of Control
Payment for such Securities, and the Trustee shall promptly authenticate and mail (or cause to be
transferred by book entry) to each Holder a new Security equal in principal amount to any
unpurchased portion of the Securities surrendered, if any; provided, that each such new Security
shall be in a principal amount of $1,000 or an integral multiple thereof. The Company shall
publicly announce the results of the Change of Control Offer on or as soon as practicable after the
Change of Control Payment Date.

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     The Change of Control provisions described above shall be applicable whether or not any other
provisions of this Indenture are applicable.

     The Company shall not be required to make a Change of Control Offer upon 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 this Section 4.13 and purchases all Securities (or
portions thereof) validly tendered and not withdrawn under such Change of Control Offer.

     Section 4.14 Additional Subsidiary Guarantees. In the event that the Company or any of its
Restricted Subsidiaries shall acquire or create a material Restricted Subsidiary after the date of
this Indenture, such newly acquired or created Restricted Subsidiary shall be deemed to make the
guarantee set forth in Section 11.01 and the Company shall cause such Subsidiary to evidence such
guarantee in the manner set forth in Section 11.02; provided, that, in no event shall any non-U.S.
Subsidiary of the Company be deemed to make such guarantee or be required to execute a Guarantee in
accordance with Section 11.02. For purposes of the foregoing, a Restricted Subsidiary shall be
deemed to be “material” if it would not be a minor subsidiary within the meaning of Rule 3-10(h) of
Regulation S-X under the Exchange Act.

     Section 4.15 Corporate Existence. Subject to Article 5 hereof, the Company and each of the
Restricted Subsidiaries shall do or cause to be done all things necessary to preserve and keep in
full force and effect (a) its corporate existence, and the corporate, partnership or other
existence of each of the Subsidiaries, in accordance with the respective organizational documents
(as the same may be amended from time to time) of the Company or any such Restricted Subsidiary and
(b) the rights (charter, partnership agreement and statutory), licenses and franchises of the
Company and the Restricted Subsidiaries; provided, however, that the Company and the Restricted
Subsidiaries shall not be required to preserve any such right, license or franchise, or the
corporate, partnership or other existence of any of the Restricted Subsidiaries, if the Board of
Directors of the relevant Person shall determine that the preservation thereof is no longer
desirable in the conduct of the business of the Company and the Restricted Subsidiaries, taken as a
whole, and that the loss thereof is not adverse in any material respect to the Holders of the
Securities.

     Section 4.16 No Senior Subordinated Debt. Notwithstanding the provisions of Section 4.09
hereof, (a) the Company shall not incur, create, issue, assume, guarantee or otherwise become
liable for any Indebtedness that is subordinate or junior in right of payment to any Senior Debt of
the Company and senior in any respect in right of payment to the Securities and (b) the Subsidiary
Guarantors shall not directly or indirectly incur, create, issue, assume, guarantee or otherwise
become liable for any Indebtedness that is subordinate or junior in right of payment to Senior Debt
of the Company and senior in any respect in right of payment to the Guarantees; provided, however,
that the foregoing limitations shall not apply to distinctions between categories of Indebtedness
that exist by reason of any Liens arising or created in respect of some but not all such
Indebtedness.

     Section 4.17 Business Activities. Company shall not, and shall not permit any Restricted
Subsidiary to, engage in any material respect in any business other than the Oil and Gas Business.

ARTICLE 5

Successors

     Section 5.01 Merger, Consolidation, or Sale of Substantially All Assets. The Company shall
not consolidate or merge with or into (whether or not the Company is the surviving corporation), or
sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of its
properties or assets, in one or more related transactions, to another Person, and the Company may
not permit any of its Restricted Subsidiaries to enter into any such transaction or series of
transactions if such transaction or series of transactions would, in the aggregate, result in a
sale, assignment, transfer, lease, conveyance, or other disposition of all or substantially all of
the properties or assets of the Company to another Person, in either case unless (a) the Company is
the surviving corporation or the Person formed by or surviving any such consolidation or merger (if
other than the Company) or to which such sale, assignment, transfer, lease, conveyance or other
disposition shall have been made (the “Surviving Entity”) is a corporation organized or existing
under the laws of the United States, any state thereof or the District of Columbia; (b) the
Surviving Entity (if the Company is not the continuing obligor under this Indenture) assumes all
the obligations of the Company under the Securities and this Indenture pursuant to a supplemental
indenture in a form reasonably satisfactory to the Trustee; (c) immediately before and after giving
effect to such transaction or series of

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transactions no Default or Event of Default exists; (d) the Company or Surviving Entity (if
the Company is not the continuing obligor under this Indenture) will, at the time of such
transaction or series of transactions and after giving pro forma effect thereto as if such
transaction or series of transactions had occurred at the beginning of the applicable four-quarter
period, be permitted to incur at least $1.00 of additional Indebtedness pursuant to the test set
forth in the first paragraph of Section 4.09 hereof. Notwithstanding the foregoing clause (d), any
Restricted Subsidiary may consolidate with, merge into or transfer all or part of its properties
and assets to the Company, and any Wholly Owned Restricted Subsidiary may consolidate with, merge
into or transfer all or part of its properties and assets to another Wholly Owned Restricted
Subsidiary without complying with such clause (d).

     Section 5.02 Successor Corporation Substituted. Upon any consolidation or merger, or any
sale, assignment, transfer, lease, conveyance or other disposition of all or substantially all of
the assets of the Company in accordance with Section 5.01 hereof, the Surviving Entity shall
succeed to, and be substituted for (so that from and after the date of such consolidation, merger,
sale, lease, conveyance or other disposition, the provisions of this Indenture referring to the
“Company” shall refer instead to the Surviving Entity and not to the Company), and may exercise
every right and power of the Company under this Indenture with the same effect as if such successor
Person had been named as the Company herein; provided, however, that the predecessor Company shall
not be relieved from the obligation to pay the principal of and interest on the Securities except
in the case of a sale of all of the Company’s assets that meets the requirements of Section 5.01
hereof.

ARTICLE 6

Defaults and Remedies

     Section 6.01 Events of Default. An “Event of Default” occurs if:

          (a) the Company defaults in the payment of interest on the Securities when the same becomes
due and payable and the Default continues for a period of 30 days, whether or not such payment is
prohibited by the provisions of Article 10 hereof;

          (b) the Company defaults in the payment of the principal of or premium, if any, on the
Securities, whether or not such payment is prohibited by the provisions of Article 10 hereof;

          (c) the Company fails to observe or perform any covenant, condition or agreement on the part
of the Company to be observed or performed pursuant to Article 5 hereof;

          (d) the Company fails to observe or perform any covenant, condition or agreement on the part
of the Company to be observed or performed pursuant to Sections 4.03, 4.07, 4.08, 4.09, 4.10, 4.11,
4.12, 4.13, 4.14, 4.16 and 4.17 hereof and the Default continues for the period and after the
notice specified below;

          (e) the Company fails to comply with any of its other agreements or covenants in, or
provisions of, the Securities or this Indenture and the Default continues for the period and after
the notice specified below;

          (f) except as permitted herein, any Guarantee shall be held in any judicial proceeding to be
unenforceable or invalid or shall cease for any reason to be in full force and effect or a
Subsidiary Guarantor, or any Person acting on behalf of a Subsidiary Guarantor, shall deny or
disaffirm such Subsidiary Guarantor’s obligation under its Guarantee;

          (g) a default occurs under any mortgage, indenture or instrument under which there may be
issued or by which there may be secured or evidenced any Indebtedness for money borrowed by the
Company or any of its Restricted Subsidiaries (or the payment of which is guaranteed by the Company
or any of its Restricted Subsidiaries), whether such Indebtedness or guarantee now exists or shall
be created hereafter, which default (1) is caused by a failure to pay principal of or premium, if
any, or interest on such Indebtedness prior to the expiration of the grace period provided in such
Indebtedness on the date of such default (a “Payment Default”) or (2) results in the acceleration
of such Indebtedness prior to its express maturity and, in each case, the principal amount of any
such Indebtedness, together with the principal amount of any other such Indebtedness under which
there is then existing a Payment Default or the maturity of which has been so accelerated,
aggregates $10 million or more; provided, that if any such default is cured or waived or any such
acceleration rescinded, or such Indebtedness is repaid, within a period of 10 days from the
continuation of such default beyond the applicable grace period or the occurrence of such

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acceleration, as the case may be, such Event of Default under this Indenture and any
consequential acceleration of the Securities shall be automatically rescinded;

          (h) a final non-appealable judgment or order or final non-appealable judgments or orders are
rendered against the Company or any Restricted Subsidiary that remain unpaid or discharged for a
period of 60 days and that require the payment of money, either individually or in an aggregate
amount, in excess of $10 million;

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

               (1) a commences a voluntary case or proceeding,

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

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

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

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

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

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

               (3) orders the liquidation of the Company, any Significant Subsidiary or any group of
Subsidiaries that, taken together, would constitute a Significant Subsidiary, and in each case the
order or decree remains unstayed and in effect for 60 consecutive days.

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

     A Default under clause (d) is not an Event of Default until the Trustee notifies the Company,
or the Holders of at least 25% in principal amount of the then outstanding Securities notify the
Company and the Trustee, of the Default and the Company does not cure the Default within 30
consecutive days after receipt of the notice. A Default under clause (e) is not an Event of Default
until the Trustee notifies the Company, or the Holders of at least 25% in principal amount of the
then outstanding Securities notify the Company and the Trustee, of the Default and the Company does
not cure the Default within 60 days after receipt of the notice. The notice must specify the
Default, demand that it be remedied and state that the notice is a “Notice of Default.”

     Section 6.02 Acceleration. Event of Default (other than an Event of Default specified in
clauses (i) and (j) of Section 6.01 hereof) relating to the Company or any Subsidiary Guarantor
occurs and is continuing, the Trustee by notice to the Company, or the Holders of at least 25% in
principal amount of the then outstanding Securities by written notice to the Company and the
Trustee, may declare the unpaid principal amount of and any accrued and unpaid interest on all the
Securities to be due and payable immediately. If payment of the Securities is accelerated because
of an Event of Default, the Company shall notify the holders of Designated Senior Debt of such
acceleration. Upon such declaration the principal and interest shall be due and payable
immediately; provided, however, that so long as any Designated Senior Debt or any commitment
therefor is outstanding, any such notice or declaration shall not become effective until the
earlier of (a) five Business Days after such notice is delivered to the representative for the
Designated Senior Debt or (b) the acceleration of any Designated Senior Debt and thereafter,
payments on the Securities pursuant to this Article 6 shall be made only to the extent permitted
pursuant to Article 10 herein. Notwithstanding the foregoing, if any Event of Default specified in
clause (i) or (j) of Section 6.01 hereof relating to the Company, any Significant Subsidiary or any
group of Subsidiaries that, taken together, would constitute a Significant Subsidiary occurs, such
an amount shall ipso facto become and be immediately due and payable without any declaration or
other act or notice on the part of the Trustee or any Holder.

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     After a declaration of acceleration under this Indenture, but before a judgment or decree for
payment of principal, premium, if any, and interest on the Securities due under this Article 6 has
been obtained by the Trustee, Holders of a majority in principal amount of the then outstanding
Securities by written notice to the Company and the Trustee may rescind an acceleration and its
consequences if (A) the Company or any Subsidiary Guarantor has paid or deposited with the Trustee
a sum sufficient to pay (i) all sums paid or advanced by the Trustee under this Indenture and the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel and (ii) all overdue interest on the Securities, if any, (B) the rescission would not
conflict with any judgment or decree of a court of competent jurisdiction and (C) all existing
Events of Default (except nonpayment of principal, premium, if any, or interest that has become due
solely because of the acceleration) have been cured or waived.

     Section 6.03 Other Remedies. If an Event of Default occurs and is continuing, the Trustee may
pursue any available remedy to collect the payment of principal, premium, if any, and interest on
the Securities or to enforce the performance of any provision of the Securities or this Indenture.

     The Trustee may maintain a proceeding even if it does not possess any of the Securities or
does not produce any of them in the proceeding. A delay or omission by the Trustee or any Holder of
a Security in exercising any right or remedy accruing upon an Event of Default shall not impair the
right or remedy or constitute a waiver of or acquiescence in the Event of Default. All remedies are
cumulative to the extent permitted by law.

     Section 6.04 Waiver of Past Defaults. Holders of not less than a majority in aggregate
principal amount of the Securities then outstanding by written notice to the Trustee may on behalf
of the Holders of all of the Securities waive an existing Default or Event of Default and its
consequences hereunder, except a continuing Default or Event of Default in the payment of principal
of, premium or interest on the Securities (including in connection with an offer to purchase)
(provided, however, that the Holders of a majority in aggregate principal amount of the then
outstanding Securities may rescind an acceleration and its consequences, including any related
payment default that resulted from such acceleration). Upon any such waiver, such Default shall
cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured for
every purpose of this Indenture; but no such waiver shall extend to any subsequent or other Default
or impair any right consequent thereon.

     Section 6.05 Control by Majority. Holders of a majority in principal amount of the then
outstanding Securities may direct the time, method and place of conducting any proceeding for
exercising any remedy available to the Trustee or exercising any trust or power conferred on it.
However, the Trustee may refuse to follow any direction that conflicts with law or this Indenture
that the Trustee determines may be unduly prejudicial to the rights of other Holders of Securities
or that may involve the Trustee in personal liability it being understood that (subject to Section
7.01) the Trustee shall have no duty to ascertain whether or not such actions or forbearances are
unduly prejudicial to such Holders.

     Section 6.06 Limitation on Suits. A Holder of a Security may pursue a remedy with respect to
this Indenture or the Securities only if:

          (a) the Holder of a Security gives to the Trustee written notice of a continuing Event of
Default;

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

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

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

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

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

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     Section 6.07 Rights of Holders of Securities to Receive Payment. Notwithstanding any other
provision of this Indenture, the right of any Holder of a Security to receive payment of principal,
premium, if any, and interest on the Security, on or after the respective due dates expressed in
the Security (including in connection with an offer to purchase), or to bring suit for the
enforcement of any such payment on or after such respective dates, shall not be impaired or
affected without the consent of such Holder.

     Section 6.08 Collection Suit by Trustee. If an Event of Default specified in Section 6.01(a)
or (b) occurs and is continuing, the Trustee is authorized to recover judgment in its own name and
as trustee of an express trust against the Company or any Subsidiary Guarantor for the whole amount
of principal of, premium, if any, and interest remaining unpaid on the Securities and interest on
overdue principal and, to the extent lawful, interest and such further amount as shall be
sufficient to cover the costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

     Section 6.09 Trustee May File Proofs of Claim. The Trustee is authorized to file such proofs
of claim and other papers or documents as may be necessary or advisable in order to have the claims
of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel) and the Holders of the Securities allowed in any
judicial proceedings relative to the Company or any of the Subsidiary Guarantors (or any other
obligor upon the Securities), its creditors or its property and shall be entitled and empowered to
collect, receive and distribute any money or other property payable or deliverable on any such
claims and any custodian in any such judicial proceeding is hereby authorized by each Holder to
make such payments to the Trustee, and in the event that the Trustee shall consent to the making of
such payments directly to the Holders, to pay to the Trustee any amount due to it for the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel, and any other amounts due the Trustee under Section 7.07 hereof. To the extent that the
payment of any such compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and any other amounts due the Trustee under Section 7.07 hereof out of the estate in
any such proceeding, shall be denied for any reason, payment of the same shall be secured by a Lien
on, and shall be paid out of, any and all distributions, dividends, money, securities and other
properties that the Holders may be entitled to receive in such proceeding whether in liquidation or
under any plan of reorganization or arrangement or otherwise. Nothing herein contained shall be
deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any
Holder any plan of reorganization, arrangement, adjustment or composition affecting the Securities
or the rights of any Holder, or to authorize the Trustee to vote in respect of the claim of any
Holder in any such proceeding provided, however, that the Trustee may, on behalf of the Holders,
vote for the election of a trustee in bankruptcy or similar official and may be a member of the
creditors’ committee.

     Section 6.10 Priorities. If the Trustee collects any money pursuant to this Article, it
shall, subject to the provisions of Article 10, pay out the money in the following order:

     First: to the Trustee, its agents and attorneys for amounts due under Sections 6.08 and 7.07
hereof, including payment of all compensation, expense and liabilities incurred, and all advances
made, by the Trustee and the costs and expenses of collection;

     Second: to Holders of Securities for amounts due and unpaid on the Securities for principal,
premium, if any, and accrued interest, ratably, without preference or priority of any kind,
according to the amounts due and payable on the Securities for principal, premium, if any, and
accrued interest, as the case may be, respectively; and

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

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

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

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ARTICLE 7

Trustee

     Section 7.01 Duties of Trustee.

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

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

               (1) the duties of the Trustee shall be determined solely by the express provisions of this
Indenture and the Trustee need perform only those duties that are specifically set forth in this
Indenture and no others, and no implied covenants or obligations shall be read into this Indenture
against the Trustee; and

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

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

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

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

               (3) the Trustee shall not be liable with respect to any action it takes or omits to take in
good faith in accordance with a direction received by it pursuant to Section 6.05 hereof.

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

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

          (f) The Trustee shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Company. Money held in trust by the Trustee need not be
segregated from other funds except to the extent required by law.

     Section 7.02 Rights of Trustee.

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

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

          (c) The Trustee may act through its attorneys and agents, may in all cases pay, subject to
reimbursement as provided in Section 7.07, such reasonable compensation as it deems proper to all
such attorneys and agents, and shall not be responsible for the misconduct or negligence of any
attorney or agent appointed with due care.

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

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

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

          (g) Except with respect to Sections 4.01 and 4.04 hereof, the Trustee shall have no duty to
inquire as to the performance of the Company’s covenants in Article 4 hereof. In addition, the
Trustee shall not be deemed to have knowledge of any Default or Event of Default except (1) any
Event of Default occurring pursuant to Sections 4.01, 4.04 and 6.01(a) or (b) hereof or (2) any
Default or Event of Default of which a Responsible Officer of the Trustee shall have received
written notification or obtained actual knowledge. For the purposes of this clause (g) only,
“actual knowledge” shall mean the actual fact or statement of knowing, without any duty to make
investigation with regard thereto.

          (h) The Trustee shall not be required to give any bond or surety in respect of the performance
of its duties or the exercise of its powers hereunder.

          (i) the Trustee shall not be bound to ascertain or inquire as to the performance or observance
of any covenants, conditions, or agreements on the part of the Company, except as otherwise set
forth herein, but the Trustee may require of the Company full information and advice as to the
performance of the covenants, conditions and agreements contained herein and shall be entitled in
connection herewith to examine the books, records and premises of the Company.

          (j) The permissive rights of the Trustee to perform the acts enumerated in this Indenture
shall not be construed as a duty and the Trustee shall not be answerable for other than its
negligence or willful misconduct.

     Section 7.03 Individual Rights of Trustee. The Trustee in its commercial banking or any other
capacity may become the owner or pledgee of Securities and may otherwise deal with the Company, the
Subsidiary Guarantors 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 Section 7.10 and Section 7.11 hereof.

     Section 7.04 Trustee’s Disclaimer. The Trustee shall not be responsible for and makes no
representation as to the validity or adequacy of this Indenture, the Securities, or the Guarantees,
it shall not be accountable for the Company’s use of the proceeds from the Securities or any money
paid to the Company or upon the Company’s direction under any provision of this Indenture, it shall
not be responsible for the use or application of any money received by any Paying Agent other than
the Trustee, and it shall not be responsible for any statement or recital herein or in any
certificate delivered pursuant hereto or any statement in the Securities or any other document in
connection with the sale of the Securities or pursuant to this Indenture other than its certificate
of authentication.

     Section 7.05 Notice of Defaults. If a Default or Event of Default occurs and is continuing
and if it is known to the Trustee in the manner contemplated in Section 7.02(g), the Trustee shall
mail to Holders of Securities 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, if
any, or interest on, any Security, the Trustee may withhold the notice if and so long as a
committee of its Responsible Officers in good faith determines that withholding the notice is in
the interests of the Holders of the Securities.

     Section 7.06 Reports by Trustee to Holders of the Securities. Within 60 days after each
September 15 beginning with the September 15 following the date of this Indenture, and for so long
as Securities remain outstanding, the Trustee shall mail to the Holders of the Securities a brief
report dated as of such reporting date that

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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) and transmit by mail all reports as required by TIA § 313(c).

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

     Section 7.07 Compensation and Indemnity. The Company and the Subsidiary Guarantors shall pay
to the Trustee from time to time reasonable compensation for its acceptance of this Indenture and
services hereunder, including, without limitation, extraordinary services such as default
administration. The Trustee’s compensation shall not be limited by any law on compensation of a
trustee of an express trust. The Company and the Subsidiary Guarantors shall reimburse the Trustee
promptly upon request for all reasonable disbursements, advances and expenses incurred or made by
it in addition to the compensation for its services. Such expenses shall include the reasonable
compensation, disbursements and expenses of the Trustee’s agents and counsel.

     The Company and the Subsidiary Guarantors shall indemnify the Trustee against any and all
losses, liabilities or expenses incurred by it arising out of or in connection with the acceptance
or administration of its duties under this Indenture, including the costs and expenses of enforcing
this Indenture against the Company and the Subsidiary Guarantors (including this Section 7.07) and
investigating or defending itself against any claim (whether asserted by the Company, the
Subsidiary Guarantors or any Holder or any other Person) or liability in connection with the
exercise or performance of any of its powers or duties hereunder, except to the extent any such
loss, liability or expense may be attributable to its negligence or bad faith. The Trustee shall
notify the Company and the Subsidiary Guarantors promptly of any claim for which it may seek
indemnity. Failure by the Trustee to so notify the Company and the Subsidiary Guarantors shall not
relieve the Company and the Subsidiary Guarantors of their obligations hereunder. The Company and
the Subsidiary Guarantors shall defend the claim and the Trustee shall cooperate in the defense.
The Trustee may have separate counsel and the Company and the Subsidiary Guarantors shall pay the
reasonable fees and expenses of such counsel. The Company and the Subsidiary Guarantors need not
pay for any settlement made without their consent, which consent shall not be unreasonably
withheld.

     The obligations of the Company and the Subsidiary Guarantors under this Section 7.07 are joint
and several and shall survive the satisfaction and discharge of this Indenture.

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

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

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

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

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

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

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          (b) 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;

          (c) a Custodian or public officer takes charge of the Trustee or its property; or

          (d) the Trustee becomes incapable of acting.

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

     If a successor Trustee does not take office within 30 days after the retiring Trustee resigns
or is removed, the retiring Trustee, the Company, or the Holders of Securities of at least 10% in
principal amount of the then outstanding Securities may petition any court of competent
jurisdiction for the appointment of a successor Trustee.

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

     A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Thereupon, the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers and duties of the
Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to
Holders of the Securities. The retiring Trustee shall promptly transfer all property held by it as
Trustee to the successor Trustee, provided all sums owing to the Trustee hereunder have been paid
and subject to the Lien provided for in Section 7.07 hereof. Notwithstanding replacement of the
Trustee pursuant to this Section 7.08, the Company’s obligations under Section 7.07 hereof shall
continue for the benefit of the retiring Trustee.

     Section 7.09 Successor Trustee by Merger, etc. If the Trustee consolidates, merges or
converts into, or transfers all or substantially all of its corporate trust business to, another
corporation, the successor corporation without any further act shall be the successor Trustee.

     Section 7.10 Eligibility; Disqualification. There shall at all times be a Trustee hereunder
that is a corporation, bank or banking association organized and doing business under the laws of
the United States of America or of any state thereof that is authorized under such laws to exercise
corporate trustee power, that is subject to supervision or examination by federal or state
authorities and that has a combined capital and surplus of at least $50 million as set forth in its
most recent published annual report of condition.

     This Indenture shall 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 7.11 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 moved shall be subject to TIA § 311(a) to the extent indicated therein.

ARTICLE 8

Legal Defeasance and Covenant Defeasance

     Section 8.01 Option to Effect Legal Defeasance or Covenant Defeasance. The Company may, at
the option of its Board of Directors evidenced by a resolution set forth in an Officers’
Certificate, at any time, elect to have either Section 8.02 or 8.03 hereof be applied to all
outstanding Securities upon compliance with the conditions set forth below in this Article 8.

     Section 8.02 Legal Defeasance and Discharge. Upon the Company’s exercise under Section 8.01
hereof of the option applicable to this Section 8.02, the Company and the Subsidiary Guarantors
shall, subject to the satisfaction of the conditions set forth in Section 8.04 hereof, be deemed to
have been discharged from their obligations with respect to all outstanding Securities and the
Guarantees thereof on the date the conditions set forth below are

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satisfied (hereinafter, “Legal Defeasance”). For this purpose, Legal Defeasance means that the
Company shall be deemed to have paid and discharged the entire Indebtedness represented by the
outstanding Securities, which shall thereafter be deemed to be “outstanding” only for the purposes
of Section 8.05 hereof and the other Sections of this Indenture referred to in (a) and (b) below,
and to have satisfied all its other obligations under such Securities and this Indenture (and the
Trustee, on demand of and at the expense of the Company, shall execute proper instruments
acknowledging the same), except for the following provisions which shall survive until otherwise
terminated or discharged hereunder: (a) the rights of Holders of outstanding Securities to receive
payments in respect of the principal, of, premium, if any, and interest on such Securities when
such payments are due from the trust fund described in Section 8.04 hereof, and as more fully set
forth in such Section, (b) the Company’s obligations with respect to such Securities under Article
2 and Section 4.02 hereof, (c) the rights, powers, trusts, duties and immunities of the Trustee
hereunder and the Company’s obligations in connection therewith and (d) this Article 8. Subject to
compliance with this Article 8, the Company may exercise its option under this Section 8.02
notwithstanding the prior exercise of its option under Section 8.03 hereof.

     Section 8.03 Covenant Defeasance. Upon the Company’s exercise under Section 8.01 hereof of
the option applicable to this Section 8.03, the Company and the Subsidiary Guarantors shall,
subject to the satisfaction of the conditions set forth in Section 8.04 hereof, be released from
their obligations under the covenants contained in Sections 4.03, 4.05, 4.07, 4.08, 4.09, 4.10,
4.11, 4.12, 4.13, 4.14, 4.16 and 4.17 hereof and in clause (d) of Section 5.01 and the covenants
contained in the Guarantees with respect to the outstanding Securities on and after the date the
conditions set forth below are satisfied (hereinafter, “Covenant Defeasance”), and the Securities
shall thereafter be deemed not “outstanding” for the purposes of any compliance certificate,
direction, waiver, consent or declaration or act of Holders (and the consequences of any thereof)
in connection with such covenants, but shall continue to be deemed “outstanding” for all other
purposes hereunder (it being understood that such Securities shall not be deemed outstanding for
accounting purposes). For this purpose, Covenant Defeasance means that, with respect to the
outstanding 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 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 shall not constitute a Default or an Event of Default under Section 6.01 hereof,
but, except as specified above, the remainder of this Indenture, such Securities and such
Guarantees shall be unaffected thereby. In addition, upon the Company’s exercise under Section 8.01
hereof of the option applicable to this Section 8.03 hereof, subject to the satisfaction of the
conditions set forth in Section 8.04 hereof, Sections 6.01(c) (but only with respect to the
Company’s failure to observe or perform the covenants, conditions and agreements of the Company
under clause (d) of Section 5.01), 6.01(d), 6.01(f), 6.01(g) and 6.01(h) and 6.01(i) and 6.01(j)
(but only with respect to Restricted Subsidiaries) hereof shall not constitute Events of Default.

     Section 8.04 Conditions to Legal or Covenant Defeasance. The following shall be the
conditions to the application of either Section 8.02 or 8.03 hereof to the outstanding Securities:

     In order to exercise either Legal Defeasance or Covenant Defeasance:

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

          (b) in the case of an election under Section 8.02 hereof, the Company shall have delivered to
the Trustee an Opinion of Counsel in the United States reasonably acceptable to the Trustee
confirming that (1) the Company has received from, or there has been published by, the Internal
Revenue Service a ruling or (2) since the date of this Indenture, there has been a change in the
applicable federal income tax law, in either case to the effect that, and based thereon such
Opinion of Counsel shall confirm that, the Holders of the outstanding Securities will not recognize
income, gain or loss for federal income tax purposes as a result of such Legal Defeasance and will
be subject to federal income tax on the same amounts, in the same manner and at the same times as
would have been the case if such Legal Defeasance had not occurred;

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

          (d) no Default or Event of Default shall have occurred and be continuing on the date of such
deposit (other than a Default or Event of Default resulting from the borrowing of funds to be
applied to such deposit) or insofar as Section 6.01(i) or 6.01(j) hereof is concerned, at any time
in the period ending on the 91st day after the date of deposit;

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

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

          (g) the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent provided for or relating to the Legal
Defeasance or the Covenant Defeasance have been complied with.

     Section 8.05 Deposited Money and Government Securities to be Held in Trust; Other
Miscellaneous Provisions. Subject to Section 8.06 hereof, all money and non-callable Government
Securities (including the proceeds thereof) deposited with the Trustee (or other qualifying
trustee, collectively for purposes of this Section 8.05, the “Trustee”) pursuant to Section 8.04 or
8.08 hereof in respect of the outstanding 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 Paying Agent (including the Company acting as 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, premium, if any, and interest, but such money need not be segregated from
other funds except to the extent required by law.

     The Company and the Subsidiary Guarantors shall pay and indemnify the Trustee against any tax,
fee or other charge imposed on or assessed against the cash or non-callable Government Securities
deposited pursuant to Section 8.04 or 8.08 hereof or the principal and interest received in respect
thereof other than any such tax, fee or other charge which by law is for the account of the Holders
of the outstanding Securities.

     Anything in this Article 8 to the contrary notwithstanding, the Trustee shall deliver or pay
to the Company from time to time upon the request of the Company any money or non-callable
Government Securities held by it as provided in Section 8.04 or 8.08 hereof which, in the opinion
of a nationally recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee (which may be the opinion delivered under Section
8.04(a) hereof), are in excess of the amount thereof that would then be required to be deposited to
effect an equivalent Legal Defeasance or Covenant Defeasance.

     Section 8.06 Repayment to Company. Any money deposited with the Trustee or any Paying Agent,
or then held by the Company, in trust for the payment of the principal of, premium, if any, or
interest on any Security and remaining unclaimed for two years after such principal, premium, if
any, or interest has become due and payable shall be paid to the Company on its written request or
(if then held by the Company) shall be discharged from such trust; and the Holder of such Security
shall thereafter, as a 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 the New York Times and The Wall Street Journal (national
edition), notice that such money remains unclaimed and that, after a date specified therein, which
shall not be less than 30 days from the date of such notification or publication, any unclaimed
balance of such money then remaining shall be repaid to the Company. Any money held by the Trustee
pursuant to this Section 8.06 shall be held uninvested and without liability for interest.

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     Section 8.07 Reinstatement. If the Trustee or Paying Agent is unable to apply any United
States dollars or non-callable Government Securities in accordance with Section 8.02 or 8.03
hereof, as the case may be, by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, then the obligations of
the Company and the Subsidiary Guarantors under this Indenture, the Securities and the Guarantees
shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.02 or 8.03
hereof, as the case may be; provided, however, that if the Company or any Subsidiary Guarantor
makes any payment of principal of, premium, if any, or interest on any Security following the
reinstatement of its obligations, the Company or such Subsidiary Guarantor shall be subrogated to
the rights of the Holders of such Securities to receive such payment from the money held by the
Trustee or Paying Agent.

     Section 8.08 Satisfaction and Discharge. The Indenture will be discharged and will cease to
be of further effect as to all Securities issued thereunder, when: (a) either (1) all Securities
that have been authenticated (except lost, stolen or destroyed Securities that have been replaced
or paid and Securities for whose payment money has theretofore been deposited in trust and
thereafter repaid to the Company) have been delivered to the Trustee for cancellation, or (2) all
Securities that have not been delivered to the Trustee for cancellation have become due and payable
by reason of the giving of a notice of redemption or otherwise or will become due and payable
(including pursuant to a notice of redemption duly given) within one year and the Company or any
Subsidiary Guarantor has irrevocably deposited or caused to be irrevocably deposited with the
Trustee as trust funds in trust solely for the benefit of the Holders (in accordance with Section
8.05), cash in U.S. dollars, non-callable Government Securities, or a combination thereof, in such
amounts as will be sufficient without consideration of any reinvestment of interest, to pay and
discharge the entire Indebtedness on the Securities not delivered to the Trustee for cancellation
for principal, premium, if any, and accrued interest to the date of maturity or redemption; (b) no
Default or Event of Default shall have occurred and be continuing on the date of such deposit or
shall occur as a result of such deposit (other than a Default or Event of Default resulting from
the borrowing of funds to be applied to such deposit) and such deposit will not result in a breach
or violation of, or constitute a default under, any instrument (other than this Indenture) to which
the Company or any Subsidiary Guarantor is a party or by which the Company or any Subsidiary
Guarantor is bound; (c) the Company or any Subsidiary Guarantor has paid or caused to be paid all
other sums payable by it under this Indenture; and (d) the Company has delivered an Officers’
Certificate and an Opinion of Counsel to the Trustee stating that all conditions precedent to
satisfaction and discharge have been satisfied.

ARTICLE 9

Amendment, Supplement and Waiver

     Section 9.01 Without Consent of Holders of Securities. Notwithstanding Section 9.02 of this
Indenture, the Company, the Subsidiary Guarantors and the Trustee may amend or supplement this
Indenture, the Securities or the Guarantees without the consent of any Holder of a Security to
establish the terms of the Securities in accordance herewith or:

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

          (b) to provide for uncertificated Securities in addition to or in place of Certificated
Securities;

          (c) to provide for the assumption of the Company’s obligations to the Holders of the
Securities in the case of a merger or consolidation pursuant to Article 5 hereof;

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

          (e) to secure the Securities or add guarantees thereof; or

          (f) to comply with requirements of the Commission in order to effect or maintain the
qualification of this Indenture under the TIA.

     Upon the request of the Company accompanied by a resolution of the Board of Directors of the
Company and each of the Subsidiary Guarantors, as the case may be, authorizing the execution of any
such amended or supplemental indenture, and upon receipt by the Trustee of the documents described
in Section 7.02 hereof, the Trustee shall join with the Company and the Subsidiary Guarantors in
the execution of any amended or

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supplemental indenture authorized or permitted by the terms of this Indenture and to make any
further appropriate agreements and stipulations that may be therein contained, but the Trustee
shall not be obligated to enter into such amended or supplemental indenture that affects its own
rights, duties or immunities under this Indenture or otherwise.

     Section 9.02 With Consent of Holders of Securities. Except as provided below in this Section
9.02, the Company, the Subsidiary Guarantors and the Trustee may amend or supplement this
Indenture, the Securities and the Guarantees with the consent of the Holders of at least a majority
in aggregate principal amount of the Securities then outstanding (including, without limitation,
consents obtained in connection with a purchase of, or tender offer or exchange offer for the
Securities), and, subject to Sections 6.04 and 6.07 hereof, any existing Default or Event of
Default (other than a Default or Event of Default in the payment of the principal of, premium, if
any, or interest on the Securities, except a payment default resulting from an acceleration that
has been rescinded) or compliance with any provision of this Indenture, the Securities or the
Guarantees may be waived with the consent of the Holders of a majority in principal amount of the
then outstanding Securities (including, without limitation, consents obtained in connection with a
purchase of, or tender offer or exchange offer for the Securities).

     Notwithstanding
the foregoing, without the consent of at least
662/3% in aggregate principal
amount of the Securities then outstanding (including consents obtained in connection with a
purchase of, or tender offer or exchange offer for the Securities), no waiver or amendment to this
Indenture may make any change in the provisions of Sections 3.09, 4.10 and 4.13 hereof that
adversely affect the rights of any Holder of Securities. In addition, any amendment to the
provisions of Article 10 of this Indenture shall require the consent of the Holders of at least
662/3% in aggregate principal amount of the Securities then outstanding if such amendment would
adversely affect the rights of Holders of Securities; provided, that, no amendment may be made to
the provisions of Article 10 of this Indenture that adversely affects the rights of any holder of
Senior Debt then outstanding unless the holders of such Senior Debt (or any group or representative
thereof authorized to consent) consent to such change.

     Subject to Sections 6.04 and 6.07 hereof, the Holders of a majority in aggregate principal
amount of the Securities then outstanding may waive compliance in a particular instance by the
Company or any Subsidiary Guarantor with any provision of this Indenture, the Securities or the
Guarantees. However, without the consent of each Holder affected, an amendment or waiver may not
(with respect to any Securities held by a non-consenting Holder):

          (a) reduce the principal amount of Securities whose Holders must consent to an amendment,
supplement or waiver;

          (b) reduce the principal of or change the fixed maturity of any Security or alter the
provisions with respect to the redemption of the Securities (except as provided above with respect
to Sections 3.09, 4.10 and 4.13 hereof);

          (c) reduce the rate of or change the time for payment of interest on any Security;

          (d) waive a Default or Event of Default in the payment of principal of or premium, if any, or
interest on the Securities (except a rescission of acceleration of the Securities by the Holders of
at least a majority in principal amount of the Securities and a waiver of the payment default that
resulted from such acceleration);

          (e) make any Security payable in money other than that stated in the Securities;

          (f) make any change in the provisions of this Indenture relating to waivers of past Defaults
or the rights of Holders of Securities to receive payments of principal or premium, if any, or
interest on the Securities; or

          (g) make any change in the foregoing amendment and waiver provisions.

     Upon the request of the Company accompanied by a resolution of the Board of Directors of the
Company and each of the Subsidiary Guarantors, as the case may be, authorizing the execution of any
such amended or supplemental indenture, and upon the filing with the Trustee of evidence
satisfactory to the Trustee of the consent of the Holders of Securities as aforesaid, and upon
receipt by the Trustee of the documents described in Section 7.02 hereof, the Trustee shall join
with the Company and the Subsidiary Guarantors in the execution of such amended or supplemental
indenture unless such amended or supplemental indenture affects the Trustee’s own rights, duties or

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immunities under this Indenture or otherwise, in which case the Trustee may in its discretion,
but shall not be obligated to, enter into such amended or supplemental indenture.

     It shall not be necessary for the consent of the Holders of Securities under this Section 9.02
to approve the particular form of any proposed amendment or waiver, but it shall be sufficient if
such consent approves the substance thereof.

     After an amendment, supplement or waiver under this Section becomes effective, the Company
shall mail to the Holders of Securities affected thereby a notice briefly describing the amendment,
supplement or waiver. Any failure of the Company to mail such notice, or any defect therein, shall
not, however, in any way impair or affect the validity of any such amended or supplemental
indenture or waiver.

     Section 9.03 Compliance with Trust Indenture Act. Every amendment or supplement to this
Indenture or the Securities shall be set forth in an amended or supplemental Indenture that
complies with the TIA as then in effect.

     Section 9.04 Revocation and Effect of Consents. Until an amendment, supplement or waiver
becomes effective, a consent to it by a Holder of a Security is a continuing consent by the Holder
of a Security and every subsequent Holder of a Security or portion of a Security that evidences the
same debt as the consenting Holder’s Security, even if notation of the consent is not made on any
Security. However, any such Holder of a Security or subsequent Holder of a Security may revoke the
consent as to its Security if the Trustee receives written notice of revocation before the date the
waiver, supplement or amendment becomes effective. An amendment, supplement or waiver becomes
effective in accordance with its terms and thereafter binds every Holder.

     The Company may, but shall not be obligated to, fix such record date as it may select for the
purpose of determining the Holders entitled to consent to any amendment, supplement or waiver. If a
record date is fixed, then notwithstanding the last sentence of the immediately preceding
paragraph, those Persons who were Holders at such record date (or their duly designated proxies),
and only those Persons, shall be entitled to revoke any consent previously given, whether or not
such Persons continue to be Holders after such record date. No such consent shall be valid or
effective for more than 120 days after such record date.

     Section 9.05 Notation on or Exchange of Securities. The Trustee may place an appropriate
notation about an amendment, supplement or waiver on any Security thereafter authenticated. The
Company in exchange for all Securities may issue and the Trustee shall authenticate new Securities
that reflect the amendment, supplement or waiver.

     Failure to make the appropriate notation or issue a new Security shall not affect the validity
and effect of such amendment, supplement or waiver.

     Section 9.06 Trustee to Sign Amendment, etc. The Trustee shall sign any amended or
supplemental indenture authorized pursuant to this Article 9 if the amendment or supplement does
not adversely affect the rights, duties, liabilities or immunities of the Trustee. Neither the
Company nor any Subsidiary Guarantor may sign an amendment or supplemental Indenture until its
respective Board of Directors approves it. In executing any amended or supplemental indenture, the
Trustee shall be entitled to receive and (subject to Section 7.01) shall be fully protected in
relying upon, an Officer’s Certificate and an Opinion of Counsel stating that the execution of such
amended or supplemental indenture is authorized or permitted by this Indenture and that there has
been compliance with all conditions precedent.

ARTICLE 10

Subordination

     Section 10.01 Agreement to Subordinate. The Company and each Subsidiary Guarantor agree, and
each Holder by accepting a Security and the related Guarantees agrees, that (a) the Indebtedness
evidenced by (1) the Securities, including, but not limited to, the payment of principal of,
premium, if any, and interest on the Securities, and any other payment Obligation of the Company in
respect of the Securities (including any obligation to repurchase the Securities) is subordinated
in right of payment, to the extent and in the manner provided in this Article, to the prior payment
in full in cash of all Senior Debt of the Company (whether outstanding on the date hereof or
hereafter created, incurred, assumed or guaranteed), and (2) the Guarantees and other payment
Obligations

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in respect of the Guarantees are subordinated in right of payment, to the extent and in the
manner provided in this Article, to the prior payment in full in cash of all Senior Debt of each
Subsidiary Guarantor and (b) the subordination is for the benefit of the Holders of Senior Debt.

     Section 10.02 Certain Definitions.

     “Bankruptcy Law” means the Bankruptcy Code or any similar Federal or state law for the relief
of debtors.

     “Representative” means the indenture trustee or other trustee, agent or representative for any
Senior Debt.

     “Senior Debt” means (i) Indebtedness of the Company or any Subsidiary of the Company under or
in respect of any Credit Facility, whether for principal, interest (including interest accruing
after the filing of a petition initiating any proceeding pursuant to any Bankruptcy Law, whether or
not the claim for such interest is allowed as a claim in such proceeding), reimbursement
obligations, fees, commissions, expenses, indemnities or other amounts and (ii) any other
Indebtedness of the Company or any Subsidiary of the Company permitted under the terms of this
Indenture, unless the instrument under which such Indebtedness is incurred expressly provides that
it is on a parity with or subordinated in right of payment to the Securities; provided, that the
Company’s 63/8% Senior Subordinated Notes due 2015, 71/2% Senior Subordinated Notes due 2016, 71/2%
Senior Subordinated Notes due 2017, 71/4% Senior Subordinated Notes due 2018, 8% Senior Subordinated
Notes due 2019 and 63/4% Senior Subordinated Notes due 2020 outstanding on the date of this Indenture
shall be deemed to rank on parity with the Securities and shall not be Senior Debt. Notwithstanding
anything to the contrary in the foregoing sentence, Senior Debt will not include (w) any liability
for federal, state, local or other taxes owed or owing by the Company, (x) any Indebtedness of the
Company to any of its Subsidiaries or other Affiliates, (y) any trade payables or (z) any
Indebtedness that is incurred in violation of this Indenture (other than Indebtedness under (i) the
Credit Agreement or (ii) any other Credit Facility that is incurred on the basis of a
representation by the Company to the applicable lenders that it is permitted to incur such
Indebtedness under this Indenture).

     A “distribution” may consist of cash, securities or other property, by set-off or otherwise.

     All Designated Senior Debt now or hereafter existing and all other Obligations relating
thereto shall not be deemed to have been paid in full unless the holders or owners thereof shall
have received payment in full in cash (or other form of payment consented to by the holders of such
Designated Senior Debt) with respect to such Designated Senior Debt and all other Obligations with
respect thereto.

     Section 10.03 Liquidation; Dissolution; Bankruptcy.

          (a) Upon any payment or distribution of property or securities to creditors of the Company in
a liquidation or dissolution of the Company or in a bankruptcy, reorganization, insolvency,
receivership or similar proceeding relating to the Company or its property, or in an assignment for
the benefit of creditors or any marshalling of the Company’s assets and liabilities:

               (1) the holders of Senior Debt of the Company shall be entitled to receive payment in full in
cash of all Obligations in respect of such Senior Debt (including interest after the commencement
of any such proceeding at the rate specified in the applicable Senior Debt, whether or not a claim
for such interest would be allowed in such proceeding) before the Holders of Securities shall be
entitled to receive any payment or distribution with respect to the Securities and related
Obligations (except in each case that Holders of Securities may receive securities that are
subordinated at least to the same extent as the Securities to Senior Debt and any securities issued
in exchange for Senior Debt and payments made from any defeasance trust created pursuant to Section
8.05 hereof provided, that the applicable deposit does not violate Article 8 or 10 of this
Indenture); and

               (2) until all Obligations with respect to Senior Debt of the Company (as provided in
subsection (a)(1) above) are paid in full in cash, any payment or distribution to which the Holders
of Securities and the related Guarantees would be entitled shall be made to holders of Senior Debt
of the Company (except that Holders of Securities and the related Guarantees may receive securities
that are subordinated at least to the same extent as the Securities to Senior Debt and any
securities issued in exchange for Senior Debt and payments made from any defeasance trust created
pursuant to Section 8.05 hereof provided, that the applicable deposit does not violate Article 8 or
10 of this Indenture).

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          (b) Upon any payment or distribution of property or securities to creditors of a Subsidiary
Guarantor in a liquidation or dissolution of such Subsidiary Guarantor or in a bankruptcy,
reorganization, insolvency, receivership or similar proceeding relating to such Subsidiary
Guarantor or its property, or in an assignment for the benefit of creditors or any marshalling of
such Subsidiary Guarantor’s assets and liabilities:

               (1) the holders of Senior Debt of such Subsidiary Guarantor shall be entitled to receive
payment in full in cash of all Obligations in respect of such Senior Debt (including interest after
the commencement of any such proceeding at the rate specified in the applicable Senior Debt,
whether or not a claim for such interest would be allowed in such proceeding) before the Holders of
Securities and the related Guarantees shall be entitled to receive any payment or distribution with
respect to the Guarantee made by such Subsidiary Guarantor (except in each case that Holders of
Securities and the related Guarantees may receive securities that are subordinated at least to the
same extent as the Securities to Senior Debt and any securities issued in exchange for Senior Debt
and payments made from any defeasance trust created pursuant to Section 8.05 hereof provided, that
the applicable deposit does not violate Article 8 or 10 of this Indenture); and

               (2) until all Obligations with respect to Senior Debt of such Subsidiary Guarantor (as
provided in subsection (b)(1) above) are paid in full in cash, any payment or distribution to which
the Holders of Securities and the related Guarantees would be entitled shall be made to holders of
Senior Debt of such Subsidiary Guarantor (except that Holders of Securities and the related
Guarantees may receive securities that are subordinated at least to the same extent as the
Securities to Senior Debt and any securities issued in exchange for Senior Debt and payments made
from any defeasance trust created pursuant to Section 8.05 hereof provided, that the applicable
deposit does not violate Article 8 or 10 of this Indenture).

     Under the circumstances described in this Section 10.03, the Company, any Subsidiary Guarantor
or any receiver, trustee in bankruptcy, liquidating trustee, agent or other similar person making
any payment or distribution of cash or other property or securities is authorized or instructed to
make any payment or distribution to which the Holders of the Securities and the related Guarantees
would otherwise be entitled (other than securities that are subordinated at least to the same
extent as the Securities to Senior Debt and any securities issued in exchange for Senior Debt and
payments made from any defeasance trust referred to in the second parenthetical clause of each of
clauses (a)(1), (b)(1), (a)(2) and (b)(2) above, which shall be delivered or paid to the Holders of
Securities as set forth in such clauses) directly to the holders of the Senior Debt of the Company
and any Subsidiary Guarantor, as applicable, (pro rata to such holders on the basis of the
respective amounts of Senior Debt of the Company and any Subsidiary Guarantor, as applicable, held
by such holders) or their Representatives, or to any trustee or trustees under any other indenture
pursuant to which any such Senior Debt may have been issued, as their respective interests appear,
to the extent necessary to pay all such Senior Debt in full, in cash or cash equivalents after
giving effect to any concurrent payment, distribution or provision thereof or to or for the holders
of such Senior Debt.

     To the extent any payment of or distribution in respect of Senior Debt (whether by or on
behalf of the Company or any Subsidiary Guarantor, as proceeds of security or enforcement of any
right of setoff or otherwise) is declared to be fraudulent or preferential, set aside or required
to be paid to any receiver, trustee in bankruptcy, liquidating trustee, agent or other similar
Person under any bankruptcy, insolvency, receivership, fraudulent conveyance or similar law, then
if such payment or distribution is recovered by, or paid over to, such receiver, trustee in
bankruptcy, liquidating trustee, agent or other similar Person, the Senior Debt or part thereof
originally intended to be satisfied shall be deemed to be reinstated and outstanding as if such
payment had not occurred. To the extent the obligation to repay any Senior Debt is declared to be
fraudulent, invalid or otherwise set aside under any bankruptcy, insolvency, receivership,
fraudulent conveyance or similar law, then the obligation so declared fraudulent, invalid or
otherwise set aside (and all other amounts that would come due with respect thereto had such
obligation not been so affected) shall be deemed to be reinstated and outstanding as Senior Debt
for all purposes hereof as if such declaration, invalidity or setting aside had not occurred.

     Section 10.04 Default on Designated Senior Debt. The Company and the Subsidiary Guarantors
may not make any payment (whether by redemption, purchase, retirements, defeasance or otherwise)
upon or in respect of the Securities and the related Guarantees (other than securities that are
subordinated at least to the same extent as the Securities to Senior Debt and any securities issued
in exchange for Senior Debt and payments and other distributions made from any defeasance trust
created pursuant to Section 8.05 hereof if the applicable deposit does not violate Article 8 or 10
of this Indenture) until all principal and other Obligations with respect to the Senior Debt of the
Company have been paid in full if:

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          (a) a default in the payment of any principal of, premium, if any, or interest on Designated
Senior Debt occurs; or

          (b) any other default occurs and is continuing with respect to Designated Senior Debt that
permits, or with the giving of notice or passage of time or both (unless cured or waived) would
permit, holders of the Designated Senior Debt as to which such default relates to accelerate its
maturity and the Trustee receives a notice of the default (a “Payment Blockage Notice”) from the
Company or the holders of any Designated Senior Debt. If the Trustee receives any such Payment
Blockage Notice, no subsequent Payment Blockage Notice shall be effective for purposes of this
Section unless and until 360 days shall have elapsed since the date of commencement of the payment
blockage period resulting from the immediately prior Payment Blockage Notice. No nonpayment default
in respect of any Designated Senior Debt that existed or was continuing on the date of delivery of
any Payment Blockage Notice to the Trustee shall be, or be made, the basis for a subsequent Payment
Blockage Notice.

     The Company shall resume payments on and distributions in respect of the Securities and any
Subsidiary Guarantor shall resume making payments and distributions pursuant to the Guarantees
upon:

               (1) in the case of a default referred to in Section 10.04(a) hereof the date upon which the
default is cured or waived, or

               (2) in the case of a default referred to in Section 10.04(b) hereof, the earliest of (A) the
date on which such nonpayment default is cured or waived, (B) the date the applicable Payment
Blockage Notice is retracted by written notice to the Trustee and (C) 90 days after the date on
which the applicable Payment Blockage Notice is received unless (i) the maturity of any Designated
Senior Debt has been accelerated or (ii) a Default or Event of Default under Section 6.01(i) or (j)
has occurred and is continuing, if this Article otherwise permits the payment, distribution or
acquisition at the time of such payment or acquisition.

     Section 10.05 Acceleration of Securities. If payment of the Securities is accelerated because
of an Event of Default, the Company shall promptly notify holders of Senior Debt of the
acceleration.

     Section 10.06 When Distribution Must be Paid Over. In the event that the Trustee or any
Holder receives any payment or distribution of or in respect of any Obligations with respect to the
Securities or the Guarantees at a time when such payment or distribution is prohibited by Section
10.03 or Section 10.04 hereof, such payment or distribution shall be held by the Trustee (if the
Trustee has actual knowledge that such payment or distribution is prohibited by Section 10.03 or
Section 10.04) or such Holder, in trust for the benefit of, and shall be paid forthwith over and
delivered to, the holders of Senior Debt as their interests may appear or their Representative
under the indenture or other agreement (if any) pursuant to which such Senior Debt may have been
issued, as their respective interests may appear, for application to the payment of all Obligations
with respect to Senior Debt remaining unpaid to the extent necessary to pay such Obligations in
full in accordance with their terms, after giving effect to any concurrent payment or distribution
to or for the holders of Senior Debt.

     With respect to the holders of Senior Debt, the Trustee undertakes to perform only such
obligations on the part of the Trustee as are specifically set forth in this Article 10, and no
implied covenants or obligations with respect to the holders of Senior Debt shall be read into this
Indenture against the Trustee. The Trustee shall not be deemed to owe any fiduciary duty to the
holders of Senior Debt, and, except as provided in Section 10.12, shall not be liable to any such
holders if the Trustee shall pay over or distribute to or on behalf of Holders of Securities or the
Company, the Subsidiary Guarantors or any other Person money or assets to which any holders of
Senior Debt shall be entitled by virtue of this Article 10, except if such payment is made as a
result of the willful misconduct or gross negligence of the Trustee.

     Section 10.07 Notice by Company. The Company and the Subsidiary Guarantors shall promptly
notify the Trustee and the Paying Agent of any facts known to the Company or any Subsidiary
Guarantor that would cause a payment of any Obligations with respect to the Securities or the
related Guarantees to violate this Article, but failure to give such notice shall not affect the
subordination of the Securities and the related Guarantees to the Senior Debt as provided in this
Article.

     Section 10.08 Subrogation. After all Senior Debt is paid in full and until the Securities are
paid in full, Holders of Securities and the related Guarantees shall be subrogated (equally and
ratably with all other Indebtedness

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pari passu with the Securities and the Guarantees) to the rights of holders of Senior Debt to
receive distributions and payments applicable to Senior Debt to the extent that distributions and
payments otherwise payable to the Holders of Securities and the related Guarantees have been
applied to the payment of Senior Debt. A payment or distribution made under this Article to holders
of Senior Debt that otherwise would have been made to Holders of Securities and the related
Guarantees is not, as between the Company and Holders of Securities, a payment by the Company on
the Securities.

     Section 10.09 Relative Rights. This Article defines the relative rights of Holders of
Securities and the related Guarantees and holders of Senior Debt. Nothing in this Indenture shall:

          (a) impair, as between the Company and Holders of Securities, the obligation of the Company,
which is absolute and unconditional, to pay principal of and interest on the Securities in
accordance with their terms;

          (b) affect the relative rights of Holders of Securities and the related Guarantees and
creditors of the Company other than their rights in relation to holders of Senior Debt; or

          (c) prevent the Trustee or any Holder from exercising its available remedies upon a Default or
Event of Default, subject to the rights of holders and owners of Senior Debt to receive
distributions and payments otherwise payable to Holders of Securities and the related Guarantees.

     If the Company fails because of this Article to pay principal of or interest on a Security on
the due date, the failure is still a Default or Event of Default.

     Section 10.10 Subordination May Not be Impaired by Company or the Subsidiary Guarantors. No
right of any present or future holders of any Senior Debt to enforce subordination as provided in
this Article 10 will at any time in any way be prejudiced or impaired by any act or failure to act
on the part of the Company or any Subsidiary Guarantor or by any act or failure to act, in good
faith, by any such holder, or by any noncompliance by the Company or any Subsidiary Guarantor with
the terms of this Indenture, regardless of any knowledge thereof that any such holder of Senior
Debt may have or otherwise be charged with. The provisions of this Article 10 are intended to be
for the benefit of, and shall be enforceable directly by, the holders of Senior Debt.

     Section 10.11 Payment, Distribution or Notice to Representative. Whenever a payment or
distribution is to be made or a notice given to holders of Senior Debt, the distribution may be
made and the notice given to their Representative.

     Upon any payment or distribution of assets or securities of the Company or any Subsidiary
Guarantor referred to in this Article 10, the Trustee and the Holders of Securities and the related
Guarantees shall be entitled to rely upon any order or decree made by any court of competent
jurisdiction or upon any certificate of such Representative or of the liquidating trustee or agent
or other Person making any payment or distribution to the Trustee or to the Holders of Securities
and the related Guarantees for the purpose of ascertaining the Persons entitled to participate in
such payment or distribution, the holders of the Senior Debt and other Indebtedness of the Company
or any Subsidiary Guarantor, the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this Article 10.

     Section 10.12 Rights of Trustee and Paying Agent. Notwithstanding the provisions of this
Article 10 or any other provision of this Indenture, the Trustee shall not be charged with
knowledge of the existence of any facts that would prohibit the making of any payment or
distribution by the Trustee, and the Trustee and the Paying Agent may continue to make payments on
the Securities and the Guarantees, unless the Trustee shall have received at its Corporate Trust
Office at least one Business Day prior to the date of such payment written notice of facts that
would cause the payment of any Obligations with respect to the Securities or Guarantees to violate
this Article, which notice shall specifically refer to Section 10.03 or 10.04 hereof. Only the
Company or a Representative may give the notice. Nothing in this Article 10 shall impair the claims
of, or payments to, the Trustee under or pursuant to Section 7.07 hereof.

     The Trustee in its individual or any other capacity may hold Senior Debt with the same rights
it would have if it were not Trustee. Any Agent may do the same with like rights.

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     Section 10.13 Authorization to Effect Subordination. Each Holder by the Holder’s acceptance
thereof authorizes and directs the Trustee on the Holder’s behalf to take such action as may be
necessary or appropriate to effectuate the subordination as provided in this Article 10, and
appoints the Trustee to act as the Holder’s attorney-in-fact for any and all such purposes. If the
Trustee does not file a proper proof of claim or proof of debt in the form required in any
proceeding referred to in Section 6.09 hereof at least 30 days before the expiration of the time to
file such claim, each lender under the Credit Agreement is hereby authorized to file an appropriate
claim for and on behalf of the Holders of the Securities and the related Guarantees.

     Section 10.14 Amendments. No amendment may be made to the provisions of or the definitions of
any terms appearing in this Article 10, or to the provisions of Section 6.02 relating to the
Designated Senior Debt, that adversely affects the rights of any holder of Senior Debt then
outstanding unless the holders of such Senior Debt (or any group or Representative authorized to
give a consent) consent to such change.

     Section 10.15 No Waiver of Subordination Provisions. Without in any way limiting the
generality of Section 10.09 of this Indenture, the holders of Senior Debt may, at any time and from
time to time, without the consent of or notice to the Trustee or the Holders, without incurring
responsibility to the Holders and without impairing or releasing the subordination provided in this
Article 10 or the obligations hereunder of the Holders to the holders of Senior Debt, do any one or
more of the following: (a) change the manner, place or terms of payment or extend the time of
payment of, or renew or alter, Senior Debt or any instrument evidencing the same or any agreement
under which Senior Debt is outstanding or secured; (b) sell, exchange, release or otherwise deal
with any property pledged, mortgaged or otherwise securing Senior Debt; (c) release any Person
liable in any manner for the collection of Senior Debt; and (d) exercise or refrain from exercising
any rights against the Company and each Subsidiary Guarantor and any other Person.

ARTICLE 11

The Guarantees

     Section 11.01 The Guarantees. Each of the Subsidiary Guarantors hereby, jointly and
severally, unconditionally guarantees to each Holder of a Security authenticated and delivered by
the Trustee and to the Trustee and its successors and assigns, irrespective of the validity and
enforceability of this Indenture, the Securities or the obligations of the Company hereunder or
thereunder, that: (a) the principal of and premium, if any, and interest, on the Securities shall
be promptly paid in full when due, whether at maturity, by acceleration, redemption or otherwise,
and interest on the overdue principal of and interest on premium and interest, on the Securities,
if any, if lawful, and all other obligations of the Company to the Holders or the Trustee hereunder
or thereunder shall be promptly paid in full or performed, all in accordance with the terms hereof
and thereof; and (b) in case of any extension of time of payment or renewal of any Securities or
any of such other obligations, that the same shall be promptly paid in full when due or performed
in accordance with the terms of the extension or renewal, whether at stated maturity, by
acceleration or otherwise. Failing payment when due of any amount so guaranteed or any performance
so guaranteed for whatever reason, the Subsidiary Guarantors shall be jointly and severally
obligated to pay the same immediately. The Subsidiary Guarantors hereby agree that their
obligations hereunder shall be unconditional, irrespective of the validity, regularity or
enforceability of the Securities or this Indenture, the absence of any action to enforce the same,
any waiver or consent by any Holder with respect to any provisions hereof or thereof, the recovery
of any judgment against the Company, any action to enforce the same or any other circumstance which
might otherwise constitute a legal or equitable discharge or defense of a guarantor. Each of the
Subsidiary Guarantors hereby waives diligence, presentment, demand of payment, filing of claims
with a court in the event of insolvency or bankruptcy of the Company, any right to require a
proceeding first against the Company, protest, notice and all demands whatsoever and covenant that
this Guarantee shall not be discharged except by complete performance of the obligations contained
in the Securities and this Indenture. If any Holder or the Trustee is required by any court or
otherwise to return to the Company or the Subsidiary Guarantors, or any Custodian, Trustee,
liquidator or other similar official acting in relation to either the Company or the Subsidiary
Guarantors, any amount paid by either to the Trustee or such Holder, this Guarantee, to the extent
theretofore discharged, shall be reinstated in full force and effect. Each of the Subsidiary
Guarantors agrees that it shall not be entitled to any right of subrogation in relation to the
Holders of Securities in respect of any obligations guaranteed hereby until payment in full of all
obligations guaranteed hereby. Each of the Subsidiary Guarantors further agrees that, as between
the Subsidiary Guarantors, on the one hand, and the Holders and the Trustee, on the other hand, (1)
the maturity of the obligations guaranteed hereby may be accelerated as provided in Article 6 for
the purposes of this

47

 

Guarantee, notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the obligations guaranteed hereby and (2) in the event of any
declaration of acceleration of such obligations as provided in Article 6, such obligations (whether
or not due and payable) shall forthwith become due and payable by the Subsidiary Guarantors for the
purpose of this Guarantee. The Subsidiary Guarantors shall have the right to seek contribution from
any Subsidiary Guarantor not paying so long as the exercise of such right does not impair the
rights of the Holders under the Guarantees.

     Section 11.02 Execution and Delivery of Guarantees. To evidence its Guarantee set forth in
Section 11.01, each of the Subsidiary Guarantors hereby agrees that a notation of such Guarantee
substantially in the form of Exhibit B shall be endorsed by an officer of such Subsidiary Guarantor
on each Security authenticated and delivered by the Trustee, that this Indenture shall be executed
on behalf of such Subsidiary Guarantor by an Officer thereof.

     Each Subsidiary Guarantor hereby agrees that its Guarantee set forth in Section 11.01 shall
remain in full force and effect notwithstanding any failure to endorse on each Security a notation
of such Guarantee.

     If an Officer whose signature is on this Indenture or on the applicable Guarantee no longer
holds that office at the time the Trustee authenticates the Security on which such Guarantee is
endorsed, such Guarantee shall be valid nevertheless.

     The delivery of any Security by the Trustee, after the authentication thereof hereunder, shall
constitute due delivery of the Guarantees set forth in this Indenture on behalf of the Subsidiary
Guarantors.

     Section 11.03 Subsidiary Guarantors May Consolidate, etc., on Certain Terms. No Subsidiary
Guarantor may consolidate with or merge with or into (whether or not such Subsidiary Guarantor is
the Surviving Person) another Person, whether or not affiliated with such Subsidiary Guarantor,
unless:

          (a) subject to the provisions of Section 11.04 hereof, the Person formed by or surviving any
such consolidation or merger (if other than such Subsidiary Guarantor) assumes all the obligations
of such Subsidiary Guarantor pursuant to a supplemental indenture in form reasonably satisfactory
to the Trustee in respect of the Securities, this Indenture and such Subsidiary Guarantor’s
Guarantee;

          (b) immediately after giving effect to such transaction, no Default or Event of Default
exists; and

          (c) such transaction does not violate any of Sections 4.03, 4.07, 4.08, 4.09, 4.11, 4.12,
4.13, 4.14, 4.16 and 4.17.

Notwithstanding the foregoing, none of the Subsidiary Guarantors shall be permitted to consolidate
with or merge with or into (whether or not such Subsidiary Guarantor is the surviving Person),
another corporation, Person or entity pursuant to the preceding sentence if such consolidation or
merger would not be permitted by Section 5.01 hereof.

     In case of any such consolidation or merger and upon the assumption by the successor
corporation, by supplemental indenture, executed and delivered to the Trustee and satisfactory in
form to the Trustee, of the Guarantee endorsed upon the Securities and the due and punctual
performance of all of the covenants and conditions of this Indenture to be performed by such
Subsidiary Guarantor, such successor corporation shall succeed to and be substituted for such
Subsidiary Guarantor with the same effect as if it had been named herein as a Subsidiary Guarantor.
Such successor corporation thereupon may cause to be signed any or all of the Guarantees to be
endorsed upon all of the Securities issuable hereunder which theretofore shall not have been signed
by the Company and delivered to the Trustee. All the Guarantees so issued shall in all respects
have the same legal rank and benefit under this Indenture as the Guarantees theretofore and
thereafter issued in accordance with the terms of this Indenture as though all of such Guarantees
had been issued at the date of the execution hereof.

     Except as set forth in Articles 4 and 5 hereof, nothing contained in this Indenture or in any
of the Securities shall prevent any consolidation or merger of any Subsidiary Guarantor with or
into the Company or another Subsidiary Guarantor, or shall prevent any sale or conveyance of the
property of any Subsidiary Guarantor as an entirety or substantially as an entirety to the Company
or any Subsidiary Guarantor.

48

 

     Section 11.04 Releases of Guarantees. In the event of a sale or other disposition of all or
substantially all of the assets of any Subsidiary Guarantor or a sale or other disposition of all
of the capital stock of any Subsidiary Guarantor, to any corporation or other Person (including an
Unrestricted Subsidiary) by way of merger, consolidation, or otherwise, in a transaction that does
not violate any of the covenants of this Indenture, then such Subsidiary Guarantor (in the event of
a sale or other disposition, by way of such merger, consolidation or otherwise, of all the capital
stock of such Subsidiary Guarantor) shall be released and relieved of any obligations under its
Guarantee and such acquiring corporation or other Person (in the event of a sale or other
disposition of all or substantially all of the assets of such Subsidiary Guarantor), if other than
a Subsidiary Guarantor, shall have no obligation to assume or otherwise become liable under such
Guarantee. Upon delivery by the Company to the Trustee of an Officers’ Certificate and an Opinion
of Counsel to the effect that such sale or other disposition was made by the Company in accordance
with the provisions of this Indenture, including without limitation Section 4.10, such Subsidiary
Guarantor shall ipso facto be released from its obligations under its Guarantee and the Trustee
shall execute any documents reasonably required in order to evidence the release of any Subsidiary
Guarantor from its obligations under its Guarantee.

     Any Subsidiary Guarantor not released from its obligations under its Guarantee shall remain
liable for the full amount of principal of and interest on the Securities and for the other
obligations of such Subsidiary Guarantor under this Indenture as provided in this Article 11.

     Any Subsidiary Guarantor that is designated an Unrestricted Subsidiary in accordance with the
terms of this Indenture shall be released from and relieved of its obligations under its Guarantee.

     Section 11.05 Limitation on Subsidiary Guarantor Liability. For purposes hereof, each
Subsidiary Guarantor’s liability shall be that amount from time to time equal to the aggregate
liability of such Subsidiary Guarantor thereunder, but shall be limited to the lesser of (a) the
aggregate amount of the Obligations of the Company under the Securities and this Indenture and (b)
the amount, if any, which would not have (1) rendered such Subsidiary Guarantor “insolvent” (as
such term is defined in the Bankruptcy Code and in the Debtor and Creditor Law of the State of New
York) or (2) left it with unreasonably small capital at the time its Guarantee of the Securities
was entered into, after giving effect to the incurrence of existing Indebtedness immediately prior
to such time; provided, that, it shall be a presumption in any lawsuit or other proceeding in which
such Subsidiary Guarantor is a party that the amount guaranteed pursuant to its Guarantee is the
amount set forth in clause (a) above unless any creditor, or representative of creditors of such
Subsidiary Guarantor, or debtor in possession or trustee in bankruptcy of such Subsidiary
Guarantor, otherwise proves in such a lawsuit that the aggregate liability of such Subsidiary
Guarantor is limited to the amount set forth in clause (b). In making any determination as to the
solvency or sufficiency of capital of a Subsidiary Guarantor in accordance with the previous
sentence, the right of such Subsidiary Guarantor to contribution from other Subsidiary Guarantors
and any other rights such Subsidiary Guarantor may have, contractual or otherwise, shall be taken
into account.

     Section 11.06 “Trustee” to Include Paying Agent. In case at any time any Paying Agent other
than the Trustee shall have been appointed by the Company and be then acting hereunder, the term
“Trustee” as used in Article 10 and this Article 11 shall in such case (unless the context shall
otherwise require) be construed as extending to and including such Paying Agent within its meaning
as fully and for all intents and purposes as if such Paying Agent were named in Article 10 and this
Article 11 in place of the Trustee.

     Section 11.07 Subordination of Guarantees. The obligations of each of the Subsidiary
Guarantors under its Guarantee pursuant to this Article 11 shall be junior and subordinated to the
Senior Debt of the Subsidiary Guarantor pursuant to Article 10 hereof. For the purposes of the
foregoing sentence, the Trustee and the Holders shall have the right to receive and/or retain
payments or distributions by or on behalf of any of the Subsidiary Guarantors only at such times as
they may receive and/or retain payments in respect of the Securities pursuant to this Indenture,
including Article 10 hereof.

ARTICLE 12

Miscellaneous

     Section 12.01 Trust Indenture Act Controls. If any provision of this Indenture limits,
qualifies or conflicts with the duties imposed by TIA § 318(c), the imposed duties shall control.
If any provisions of this Indenture

49

 

modifies or excludes any provision of the TIA that may be so modified or excluded, the latter
provision shall be deemed to apply to this Indenture as so modified or excluded, as the case may
be.

     Section 12.02 Notices. Any notice or communication by the Company or the Subsidiary
Guarantors or the Trustee to the others is duly given if in writing and delivered, in person or
mailed by first class mail (registered or certified, return receipt requested), telecopier or
overnight air courier guaranteeing next day delivery, to the others’ address:

     If to the Company or any Subsidiary Guarantor:

Range Resources Corporation

100 Throckmorton Street, Suite 1200

Fort Worth, Texas 76102

Telecopier No.: (817) 869-4254

Attention: David P. Poole

     With a copy to:

Vinson & Elkins L.L.P.

2500 First City Tower

1001 Fannin Street

Houston, Texas 77002

Telecopier No.: (713) 615-5967

Attention: Kevin P. Lewis and Stephen M. Gill

     If to the Trustee:

The Bank of New York Mellon Trust Company, N.A.

601 Travis, 16th Floor

Houston, Texas 77002

Attention: Marcella Burgess

Telecopier No.: (713) 483-7038

Ref: Range Resources Corporation

     The Company or any Subsidiary Guarantor or the Trustee, by notice to the others may designate
additional or different addresses for subsequent notices or communications.

     All notices and communications (other than those sent to Holders) shall be deemed to have been
duly given: at the time delivered by hand, if personally delivered; five Business Days after being
deposited in the mail, first class mail, certified or registered, return receipt requested, postage
prepaid, if mailed; when receipt acknowledged, if by telecopy; and the next Business Day after
timely delivery to the courier, if sent by overnight air courier guaranteeing next day delivery.

     Any notice or communication to a Holder shall be mailed by first class mail, certified or
registered, return receipt requested, or by overnight air courier guaranteeing next day delivery to
its address shown on the Register kept by the Registrar. Any notice or communication shall also be
so mailed to any Person described in TIA § 313(c), to the extent required by the TIA. Failure to
mail a notice or communication to a Holder or any defect in it shall not affect its sufficiency
with respect to other Holders.

     If a notice or communication is mailed in the manner provided above within the time
prescribed, it is duly given, whether or not the addressee receives it.

     If the Company or any Subsidiary Guarantor mails a notice or communication to Holders, it
shall mail a copy to the Trustee and each Agent at the same time.

     Section 12.03 Communication by Holders of Securities with Other Holders of Securities.
Holders may communicate pursuant to TIA § 312(b) with other Holders with respect to their rights
under this Indenture or the

50

 

Securities. The Company, the Subsidiary Guarantors, the Trustee, the Registrar and anyone else
shall have the protection of TIA § 312(c).

     Section 12.04 Certificate and Opinion as to Conditions Precedent. Upon any request or
application by the Company or any Subsidiary Guarantor to the Trustee to take any action under this
Indenture, the Company or such Subsidiary Guarantor, as the case may be, shall furnish to the
Trustee:

          (a) an Officers’ Certificate in form and substance reasonably satisfactory to the Trustee
(which shall include the statements set forth in Section 12.05 hereof) stating that, in the opinion
of the signers, all conditions precedent and covenants, if any, provided for in this Indenture
relating to the proposed action have been complied with; and

          (b) an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee (which
shall include the statements set forth in Section 12.05 hereof) stating that, in the opinion of
such counsel, all such conditions precedent and covenants have been complied with.

     Section 12.05 Statements Required in Certificate or Opinion. Each certificate or opinion with
respect to compliance with a condition or covenant provided for in this Indenture (other than a
certificate provided pursuant to TIA § 314(a)(4)) shall comply with the provisions of TIA § 314(e)
and shall include:

          (a) a statement that the Person making such certificate or opinion has read such covenant or
condition;

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

          (c) a statement that, in the opinion of such Person, he or she has made such examination or
investigation as is necessary to enable him or her to express an informed opinion as to whether or
not such covenant or condition has been complied with; and

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

     Section 12.06 Rules by Trustee and Agents. The Trustee may make reasonable rules for action
by or at a meeting of Holders. The Registrar or Paying Agent may make reasonable rules and set
reasonable requirements for its functions.

     Section 12.07 No Personal Liability of Directors, Officers, Employees and Stockholders. No
director, officer, employee, incorporator or stockholder of the Company, as such, shall have any
liability for any obligations of the Company under the Securities or this Indenture or for any
claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of
Securities, by accepting a Security, waives and releases all such liability. The waiver and release
are part of the consideration for issuance of the Securities. Such waiver may not be effective to
waive liabilities under the federal securities laws and it is the view of the Commission that such
a waiver is against public policy.

     Section 12.08 Governing Law. THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE
USED TO CONSTRUE THIS INDENTURE, THE SECURITIES AND THE GUARANTEES.

     Section 12.09 No Adverse Interpretation of Other Agreements. This Indenture may not be used
to interpret any other indenture, loan or debt agreement of the Company or their respective
Subsidiaries or of any other Person. Any such indenture, loan or debt agreement may not be used to
interpret this Indenture and the Guarantees.

     Section 12.10 Successors. All agreements of the Company and each Subsidiary Guarantor in this
Indenture, the Securities and the Guarantees shall bind its respective successors. All agreements
of the Trustee in this Indenture shall bind its successors.

     Section 12.11 Severability. 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.

51

 

     Section 12.12 Counterpart Originals. The parties may sign any number of copies of this
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement.

     Section 12.13 Table of Contents, Headings, etc. The Table of Contents, Cross-Reference Table
and Headings of the Articles and Sections of this Indenture have been inserted for convenience of
reference only, are not to be considered a part of this Indenture and shall in no way modify or
restrict any of the terms or provisions hereof.

     Section 12.14 Actions on Other than Business Days. Unless otherwise provided herein, if the
date for making any payment or the last date for the performance of any act or the exercising of
any right, as provided in this Indenture, is not a Business Day, such payment may be made, act
performed or right exercised on the next succeeding Business Day, with the same force and effect as
if made or done on the nominal date provided therefor, and, with respect to any payment so made, no
interest shall accrue for the period between such nominal date and the date of payment.

[Signatures on following page]

52

 

SIGNATURES

Dated as of

             , 2011

	 	 	 	 	 

	 	 	RANGE RESOURCES CORPORATION
	 
	 	 	 	 
	Attest:

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 	 	 	 	 
	 
	 	 	 	 
	Attest:

	 	AMERICAN ENERGY SYSTEMS, LLC

ENERGY ASSETS OPERATING COMPANY, LLC

RANGE ENERGY SERVICES COMPANY, LLC

RANGE OPERATING NEW MEXICO, LLC

RANGE PRODUCTION COMPANY

RANGE RESOURCES—APPALACHIA, LLC

RANGE RESOURCES—MIDCONTINENT, LLC

RANGE RESOURCES—PINE MOUNTAIN, INC.

RANGE TEXAS PRODUCTION, LLC

	 
	 	 	 	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

[Signature Page to Indenture]

 

	 	 	 	 	 

	 	 	THE BANK OF NEW YORK MELLON TRUST 

COMPANY, N.A., as Trustee
	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

[Signature Page to Indenture]

 

EXHIBIT A

DTC LEGEND

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

     [TRANSFERS OF THIS GLOBAL NOTE ARE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES
OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF
THIS GLOBAL NOTE ARE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE TRANSFER PROVISIONS OF THE
INDENTURE.]

A-1

 

EXHIBIT B

Guarantee

     Each of the Subsidiary Guarantors hereby, jointly and severally and unconditionally guarantees
to each Holder of a Security authenticated and delivered by the Trustee and to the Trustee and its
successors and assigns, irrespective of the validity and enforceability of the Indenture, dated as
of        , 2011, among Range Resources Corporation, a Delaware corporation (the “Company”),
the Subsidiary Guarantors party thereto and The Bank of New York Mellon Trust Company, N.A., as
trustee (the “Trustee”) (as it may be amended or supplemented, the “Indenture”), the Securities or
the obligations of the Company hereunder or thereunder, that: (a) the principal of, and premium,
if any, and interest on, the Securities shall be promptly paid in full when due, whether at
maturity, by acceleration, redemption or otherwise, and interest on the overdue principal of, and
interest on premium and interest on, the Securities, if any, if lawful, and all other obligations
of the Company to the Holders or the Trustee hereunder or thereunder shall be promptly paid in full
or performed, all in accordance with the terms hereof and thereof; and (b) in case of any extension
of time of payment or renewal of any Securities or any of such other obligations, that same shall
be promptly paid in full when due or performed in accordance with the terms of the extension or
renewal, whether at stated maturity, by acceleration or otherwise. Failing payment when due of any
amount so guaranteed or any performance so guaranteed for whatever reason, the Subsidiary
Guarantors shall be jointly and severally obligated to pay the same immediately.

     The obligations of the Subsidiary Guarantors to the Holders of Securities and to the Trustee
pursuant to this Guarantee and the Indenture (including the subordination provisions thereof) are
expressly set forth in Article 11 of the Indenture, and reference is hereby made to such Indenture
for the precise terms of this Guarantee. The terms of Article 11 of the Indenture are incorporated
herein by reference.

     This is a continuing Guarantee and shall remain in full force and effect and shall be binding
upon each of the Subsidiary Guarantors and its respective successors and assigns to the extent set
forth in the Indenture until full and final payment of all of the Company’s Obligations under the
Securities and the Indenture and shall inure to the benefit of the Trustee and the Holders of
Securities and their successors and assigns and, in the event of any transfer or assignment of
rights by any Holder of Securities or the Trustee, the rights and privileges herein conferred upon
that party shall automatically extend to and be vested in such transferee or assignee, all subject
to the terms and conditions hereof. Notwithstanding the foregoing, any Subsidiary Guarantor that
satisfies the provisions of Section 11.04 of the Indenture shall be released of its obligations
hereunder. This is a Guarantee of payment and not a, guarantee of collection.

     This Guarantee shall not be valid or obligatory for any purpose until the certificate of
authentication on the Security upon which this Guarantee is noted shall have been executed by the
Trustee under the Indenture by the manual signature of one of its authorized officers.

     For purposes hereof, each Subsidiary Guarantor’s liability will be that amount from time to
time equal to the aggregate liability of such Subsidiary Guarantor hereunder but shall be limited
to the lesser of (i) the aggregate amount of the obligations of the Company under the Securities
and the Indenture and (ii) the amount, if any, which would not have (A) rendered such Subsidiary
Guarantor “insolvent” (as such term is defined in the federal Bankruptcy Code and in the Debtor and
Creditor law of the State of New York) or (B) left it with unreasonably small capital at the time
its Guarantee was entered into, after giving effect to the incurrence of existing Indebtedness
immediately prior to such time; provided, that, it shall be a presumption in any lawsuit or other
proceeding in which such Subsidiary Guarantor is a party that the amount guaranteed pursuant to its
Guarantee is the amount set forth in clause (i) above unless any creditor, or representative of
creditors of such Subsidiary Guarantor, or debtor in possession or trustee in bankruptcy of such
Subsidiary Guarantor, otherwise proves in such a lawsuit that the aggregate liability of such
Subsidiary Guarantor is limited to the amount set forth in clause (ii). The Indenture provides
that, in making any determination as to the solvency or sufficiency of capital of a Subsidiary
Guarantor in accordance with the previous sentence, the right of such Subsidiary Guarantor to
contribution from other Subsidiary Guarantors and any other rights such Subsidiary Guarantor may
have, contractual or otherwise, shall be taken into account.

B-1

 

     Capitalized terms used herein have the same meanings given in the Indenture unless otherwise
indicated.

	 	 	 	 	 

	 

	 	AMERICAN ENERGY SYSTEMS, LLC
	 

	 	ENERGY ASSETS OPERATING COMPANY, LLC
	 

	 	RANGE ENERGY SERVICES COMPANY, LLC
	 

	 	RANGE OPERATING NEW MEXICO, LLC
	 

	 	RANGE PRODUCTION COMPANY
	 

	 	RANGE RESOURCES—APPALACHIA, LLC
	 

	 	RANGE RESOURCES—MIDCONTINENT, LLC
	 

	 	RANGE RESOURCES—PINE MOUNTAIN, INC.
	 

	 	RANGE TEXAS PRODUCTION, LLC
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

B-2Exhibit 10.1

Exhibit 10.1

Execution Copy

CREDIT AGREEMENT

Between

R. G. Barry Corporation

as Borrower

and

The Huntington National Bank

As Lender

Dated as of March 1, 2011

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	PAGE	 
	ARTICLE I Definitions
	 	 	1	 
	Section 1.1. Definitions
	 	 	1	 
	Section 1.2. Classification of Loans and Advances
	 	 	13	 
	Section 1.3. Terms Generally
	 	 	13	 
	Section 1.4. Accounting Terms; Agreement Accounting Principles
	 	 	13	 
	Section 1.5. Termination of Existing Credit Agreement
	 	 	14	 
	ARTICLE II The Credits
	 	 	14	 
	Section 2.1. Commitments
	 	 	14	 
	Section 2.2. Termination of Commitments
	 	 	15	 
	Section 2.3. Fees
	 	 	15	 
	Section 2.4. Borrowing Notices
	 	 	16	 
	Section 2.5. Required Loan Payments
	 	 	16	 
	Section 2.6. Optional Principal Payments
	 	 	16	 
	Section 2.7. Interest Rates
	 	 	16	 
	Section 2.8. Rates Applicable After Default; Late Payment
	 	 	17	 
	Section 2.9. General Terms With Respect to Payment of Obligations
	 	 	17	 
	Section 2.10. Telephonic Notices
	 	 	18	 
	Section 2.11. Interest Payment Dates; Interest and Fee Basis
	 	 	18	 
	Section 2.12. Continuation and Continuation of Outstanding Advances
	 	 	18	 
	ARTICLE III Yield Protection; Taxes
	 	 	19	 
	Section 3.1. Yield Protection
	 	 	19	 
	Section 3.2. Changes in Capital Adequacy Regulations
	 	 	19	 
	Section 3.3. Taxes
	 	 	20	 
	Section 3.4. Lender Statements; Survival of Indemnity
	 	 	20	 
	ARTICLE IV Conditions Precedent
	 	 	21	 
	Section 4.1. Effective Date
	 	 	21	 
	Section 4.2. Each Loan
	 	 	21	 
	ARTICLE V Representations And Warranties
	 	 	22	 
	Section 5.1. Existence and Standing
	 	 	22	 
	Section 5.2. Authorization and Validity
	 	 	22	 
	Section 5.3. No Conflict; Government Consent
	 	 	23	 
	Section 5.4. Financial Statements
	 	 	23	 
	Section 5.5. Material Adverse Change
	 	 	23	 
	Section 5.6. Taxes
	 	 	23	 
	Section 5.7. Litigation and Contingent Obligations
	 	 	24	 
	Section 5.8. Subsidiaries
	 	 	24	 
	Section 5.9. ERISA
	 	 	24	 
	Section 5.10. Accuracy of Information
	 	 	24	 
	Section 5.11. Federal Reserve Regulations
	 	 	24	 
	Section 5.12. Material Contracts
	 	 	25	 
	Section 5.13. Compliance With Laws
	 	 	25	 
	Section 5.14. Ownership of Properties
	 	 	25	 
	Section 5.15. Intellectual Property
	 	 	26	 
	Section 5.16. Plan Assets; Prohibited Transactions
	 	 	26	 

 

i

 

	 	 	 	 	 
	 	 	PAGE	 
	Section 5.17. Environmental Matters
	 	 	26	 
	Section 5.18. Investment Company Act
	 	 	27	 
	Section 5.19. Public Utility Holding Company Act
	 	 	27	 
	Section 5.20. Post Retirement Benefits
	 	 	27	 
	Section 5.21. Solvency
	 	 	27	 
	Section 5.22. Labor Matters
	 	 	28	 
	Section 5.23. Customers and Suppliers
	 	 	28	 
	ARTICLE VI Covenants
	 	 	28	 
	Section 6.1. Financial Reporting
	 	 	28	 
	Section 6.2. Use of Proceeds
	 	 	29	 
	Section 6.3. Notice of Certain Events
	 	 	30	 
	Section 6.4. Conduct of Business; Change in Senior Management
	 	 	30	 
	Section 6.5. Taxes
	 	 	30	 
	Section 6.6. Insurance
	 	 	30	 
	Section 6.7. Compliance with Laws
	 	 	30	 
	Section 6.8. Maintenance of Properties
	 	 	31	 
	Section 6.9. Books and Records; Inspection
	 	 	31	 
	Section 6.10. Dividends
	 	 	31	 
	Section 6.11. Indebtedness
	 	 	31	 
	Section 6.12. Merger
	 	 	32	 
	Section 6.13. Sale of Assets
	 	 	32	 
	Section 6.14. Performance of Material Contracts
	 	 	32	 
	Section 6.15. Investments and Acquisitions
	 	 	33	 
	Section 6.16. Liens
	 	 	33	 
	Section 6.17. Leases
	 	 	34	 
	Section 6.18. Affiliates
	 	 	34	 
	Section 6.19. Subordinated Indebtedness
	 	 	34	 
	Section 6.20. Sale of Accounts
	 	 	34	 
	Section 6.21. Sale and Leaseback Transactions and Other Off-Balance Sheet
Liabilities
	 	 	34	 
	Section 6.22. Contingent Obligations
	 	 	34	 
	Section 6.23. Letters of Credit
	 	 	35	 
	Section 6.24. Primary Depository
	 	 	35	 
	Section 6.25. Required Rate Management Transactions
	 	 	35	 
	Section 6.26. Clean Out Period
	 	 	35	 
	Section 6.27. Change in Principal Office
	 	 	35	 
	Section 6.28. Prepayments
	 	 	35	 
	Section 6.29. Organizational and Business Activities
	 	 	35	 
	Section 6.30. [Reserved]
	 	 	36	 
	Section 6.31. Financial Covenants
	 	 	36	 
	ARTICLE VII Defaults, Acceleration, Remedies, and Waivers
	 	 	36	 
	Section 7.1. Defaults
	 	 	36	 
	Section 7.2. Acceleration; Remedies
	 	 	39	 
	Section 7.3. Preservation of Rights
	 	 	39	 
	Section 7.4. Setoff
	 	 	39	 
	ARTICLE VIII General Provisions
	 	 	40	 
	Section 8.1. Survival of Representations
	 	 	40	 
	Section 8.2. Governmental Regulation
	 	 	40	 

 

ii

 

	 	 	 	 	 
	 	 	PAGE	 
	Section 8.3. Headings
	 	 	40	 
	Section 8.4. Entire Agreement
	 	 	40	 
	Section 8.5. Benefits of this Agreement
	 	 	40	 
	Section 8.6. Expenses; Indemnification
	 	 	40	 
	Section 8.7. Severability of Provisions
	 	 	41	 
	Section 8.8. Nonliability of the Lender
	 	 	41	 
	Section 8.9. Confidentiality
	 	 	41	 
	Section 8.10. Nonreliance
	 	 	42	 
	Section 8.11. Disclosure
	 	 	42	 
	Section 8.12. Amendments
	 	 	42	 
	Section 8.13. Notices
	 	 	42	 
	Section 8.14. Change of Address
	 	 	42	 
	Section 8.15. Counterparts
	 	 	43	 
	Section 8.16. Choice of Law
	 	 	43	 
	Section 8.17. Consent to Jurisdiction
	 	 	43	 
	Section 8.18. Assignments
	 	 	43	 
	Section 8.19. Participations
	 	 	43	 
	Section 8.20. Dissemination of Information
	 	 	44	 
	Section 8.21. Successors and Assigns
	 	 	44	 
	Section 8.22. WAIVER OF JURY TRIAL
	 	 	44	 
	Section 8.23. Interest Rate Limitation
	 	 	44	 
	Section 8.24. IMPORTANT INFORMATION ABOUT PROCEDURES REQUIRED BY THE
USA PATRIOT ACT
	 	 	45	 
	 
	 	 
	SCHEDULE 1 LITIGATION AND CONTINGENT OBLIGATIONS
	 	 	 	 
	SCHEDULE 2 SUBSIDIARIES AND OTHER INVESTMENTS
	 	 	 	 
	SCHEDULE 3 INDEBTEDNESS AND LIENS
	 	 	 	 
	SCHEDULE 4 ADDRESSES OF REAL PROPERTY OWNED OR LEASED BY THE BORROWER
	 	 	 	 
	SCHEDULE 5 UNFUNDED LIABILITIES
	 	 	 	 
	SCHEDULE 6 INTELLECTUAL PROPERTY PROCEEDINGS OR INTERFERENCE
	 	 	 	 
	 
	 	 
	EXHIBIT A CLOSING AGENDA
	 	 	 	 
	EXHIBIT B FORM OF COMPLIANCE CERTIFICATE
	 	 	 	 
	EXHIBIT C FORM OF REVOLVING CREDIT NOTE
	 	 	 	 
	EXHIBIT D FORM OF TERM NOTE
	 	 	 	 

 

iii

 

CREDIT AGREEMENT

This Credit Agreement, dated as of March 1, 2011, is by and between R. G. Barry Corporation
and The Huntington National Bank.

Background Information

The Borrower has requested that the Lender extend Revolving Credit Loans and the Term Loan to
the Borrower, and the Lender has agreed to do so, upon the terms and conditions hereinafter set
forth.

Provisions

NOW, THEREFORE, in consideration of the provision of such credit facilities, the agreements
and covenants hereinafter contained, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Lender and the Borrower do hereby agree as
follows (except as otherwise provided herein, capitalized terms used herein are as defined in
Article I):

ARTICLE I

Definitions

Section 1.1. Definitions.

“Acquisition” means any transaction, or any series of related transactions,
consummated on or after the date of this Agreement, by which the Borrower or any of its
Subsidiaries (i) acquires any going business or all or substantially all of the assets of any firm,
corporation or limited liability company, or division thereof, whether through purchase of assets,
merger or otherwise or (ii) directly or indirectly acquires (in one transaction or as the most
recent transaction in a series of transactions) at least a majority (in number of votes) of the
securities of a corporation which have ordinary voting power for the election of directors (other
than securities having such power only by reason of the happening of a contingency) or a majority
(by percentage or voting power) of the outstanding ownership interests of a partnership or limited
liability company.

“Advance” means a borrowing hereunder made by the Lender on a Borrowing Date.

“Affiliate” of any Person means any other Person directly or indirectly controlling,
controlled by or under common control with such Person. A Person shall be deemed to control
another Person if the controlling Person owns 10% or more of any class of voting securities (or
other ownership interests) of the controlled Person or possesses, directly or indirectly, the power
to direct or cause the direction of the management or policies of the controlled Person, whether
through ownership of stock, by contract or otherwise.

“Agreement” means this Credit Agreement, as it may be amended, modified, supplemented,
extended, restated and replaced from time to time.

 

 

 

“Agreement Accounting Principles” means generally accepted accounting principles as in
effect from time to time, applied in a manner consistent with that used in preparing the financial
statements referred to in Section 5.4.

“Article” means an article of this Agreement unless another document is specifically
referenced.

“Authorized Officer” means any of the [chief executive officer, president, chief
financial officer or treasurer] of the Borrower, acting singly.

“Board” means the Board of Governors of the Federal Reserve System of the United
States of America.

“Borrower” means R. G. Barry Corporation.

“Borrowing Date” means a date on which an Advance is made hereunder.

“Borrowing Notice” is defined in Section 2.4.

“Business Day” means (i) with respect to any borrowing, a day (other than a Saturday
or Sunday) on which banks generally are open in Columbus, Ohio and New York City for the conduct of
substantially all of their commercial lending activities, interbank wire transfers can be made on
the Fedwire system and dealings in United States dollars are carried on in the London interbank
market, and (ii) for all other purposes, a day (other than a Saturday or Sunday) on which banks
generally are open in Columbus, Ohio for the conduct of substantially all of their commercial
lending activities and interbank wire transfers can be made on the Fedwire system.

“Capitalized Lease” of a Person means any lease of Property by such Person as lessee
which would be capitalized on a balance sheet of such Person prepared in accordance with Agreement
Accounting Principles.

“Capitalized Lease Obligations” of a Person means the amount of the obligations of
such Person under Capitalized Leases which would be shown as a liability on a balance sheet of such
Person prepared in accordance with Agreement Accounting Principles.

“Cash Equivalent Investments” means (i) short-term obligations of, or fully guaranteed
by, the United States of America, (ii) commercial paper rated A-2 or better by S&P or P-2 or better
by Moody’s, (iii) demand deposit accounts maintained in the ordinary course of business, and (iv)
certificates of deposit issued by and time deposits with commercial banks (whether domestic or
foreign) having capital and surplus in excess of $100,000,000; provided in each case that the same
provides for payment of both principal and interest (and not principal alone or interest alone) and
is not subject to any contingency regarding the payment of principal or interest.

 

2

 

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

(a) any Person or “group” (as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934) who does not have an ownership interest in the Borrower on
the Effective Date is or becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5
under the Securities Exchange Act of 1934), directly or indirectly, of voting shares of
Borrower entitling such Person or group to exercise more than 25% of the combined voting
power of Borrower’s outstanding shares of all classes in the election of directors, and such
voting power enables, or has the ability to enable, such Person or “group” to control the
management of the Borrower; or

(b) during any consecutive two-year period, individuals who, at the beginning of such
period, constituted the board of directors of Borrower cease to constitute the majority of
such board of directors unless the election or nomination for election of each new director
was approved or recommended by a majority of the directors then still in office who were
directors at the beginning of such period.

For purposes of this definition, a Person or group will be deemed to have “beneficial
ownership” of all securities that such Person or group has the right to acquire, whether
such right is exercisable immediately or only after the passage of time.

“Charges” shall have the meaning set forth in Section 8.23.

“Charter Documents” mean a Person’s formation or other governing documents, including
but not limited to, as applicable, its certificate or articles of incorporation, bylaws, code of
regulations, articles of organization, operating agreement, certificate of limited partnership and
partnership agreement.

“Class” means either a Revolving Credit Loan or a Term Loan.

“Closing Agenda” means the Closing Agenda prepared by the Lender, setting forth the
required closing documentation and other items pursuant to Section 4.1, attached hereto as
Exhibit B.

“Code” means the Internal Revenue Code of 1986, as amended, reformed or otherwise
modified from time to time.

“Commitment” means the Revolving Credit Commitment, the Facility LC Commitment and/or
the Term Commitment, as the context requires.

“Compliance Certificate” means a certificate in form and substance attached as
Exhibit C.

“Consolidated EBITDA” means Consolidated Net Income, plus to the extent deducted from
revenues in determining Consolidated Net Income, (i) Consolidated Interest Expense, (ii) expense
for all income and franchise taxes paid or accrued (iii) depreciation expense, (iv) amortization
expense and (v) extraordinary losses incurred other than in the ordinary course of business, minus
(y), to the extent included in Consolidated Net Income, extraordinary gains
realized other than in the ordinary course of business, all calculated for the Borrower and
its Subsidiaries on a consolidated basis.

 

3

 

“Consolidated Funded Indebtedness” means at any time the aggregate dollar amount of
Consolidated Indebtedness which has actually been funded and is outstanding at such time, whether
or not such amount is due or payable at such time.

“Consolidated Indebtedness” means at any time the Indebtedness of the Borrower and its
Subsidiaries calculated on a consolidated basis as of such time.

“Consolidated Interest Expense” means, with reference to any period, the interest
expense of the Borrower and its Subsidiaries calculated on a consolidated basis for such period.

“Consolidated Net Income” means, with reference to any period, the net income (or
loss) of the Borrower and its Subsidiaries, calculated for the Borrower and its Subsidiaries on a
consolidated basis for such period.

“Consolidated Net Worth” means at any time the sum of the consolidated shareholders’
equity of the Borrower and its Subsidiaries, plus (to the extent not included in consolidated
shareholders’ equity) preferred stock, and excluding the amount of any pension plan related
adjustments and charges, including market changes, made in accordance with accounting rules for the
fiscal year ending June 27, 2009 and each fiscal year thereafter during the term of this Agreement,
all determined in accordance with generally accepted accounting principles for the Borrower and its
Subsidiaries on a consolidated basis.

“Contingent Obligation” of a Person means any agreement, undertaking or arrangement by
which such Person assumes, guarantees, endorses, contingently agrees to purchase or provide funds
for the payment of, or otherwise becomes or is contingently liable upon, the obligation or
liability of any other Person, or agrees to maintain the net worth or working capital or other
financial condition of any other Person, or otherwise assures any creditor of such other Person
against loss, including any comfort letter, operating agreement, take or pay contract or the
obligations of any such Person as general partner of a partnership with respect to the liabilities
of the partnership.

“Controlled Group” means all members of a controlled group of corporations or other
business entities and all trades or businesses (whether or not incorporated) under common control
which, together with the Borrower, are treated as a single employer under Section 414 of the Code.

“Conversion/Continuation Notice” is defined in Section 2.12.

“Default” means an event described in Article VII.

“Effective Date” means the date on which the conditions specified in Section 4.1 are
satisfied.

 

4

 

“Enterprise Value” means the aggregate amount of the purchase price including, but not
limited to, any assumed debt, earn-outs (to the extent a fixed and determinable obligation is
incurred), deferred payments, covenant not to compete payments, consulting fees or similar
arrangements.

“Environmental Laws” means any and all federal, state, local and foreign statutes,
laws, judicial decisions, regulations, ordinances, rules, judgments, orders, decrees, plans,
injunctions, permits, concessions, grants, franchises, licenses, agreements and other governmental
restrictions relating to (i) the protection of the environment, (ii) the effect of the environment
on human health, (iii) emissions, discharges or releases of pollutants, contaminants, hazardous
substances or wastes into surface water, ground water or land, or (iv) the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of pollutants, contaminants,
hazardous substances or wastes or the clean-up or other remediation thereof.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time, and any rule or regulation issued thereunder.

“Excluded Taxes” means, in the case of the Lender, taxes imposed on its overall net
income by (i) the jurisdiction under the laws of which the Lender is incorporated or organized, or
(ii) the jurisdiction in which the Lender’s principal executive office is located.

“Exhibit” refers to an exhibit to this Agreement, unless another document is
specifically referenced.

“Facility LC” means a commercial or standby Letter of Credit issued by the Lender for
the account of the Borrower pursuant to the terms of this Agreement and the applicable Facility LC
Application.

“Facility LC Application” means a Letter of Credit application and agreement in the
Lender’s customary form at any time with respect to a request to issue a Facility LC.

“Facility LC Commitment” means the obligation of the Lender to issue Facility LCs to
the Borrower; provided that the maximum amount of Facility LC Obligations outstanding at any time
shall not exceed $1,500,000, as such amount may be modified from time to time pursuant to the terms
hereof. The Facility LC Commitment is a sublimit of, and not in addition to, the Revolving Credit
Commitment.

“Facility LC Obligations” means, at any time, the sum, without duplication, of (i) the
aggregate undrawn stated amount under all Facility LCs outstanding at such time plus (ii) the
aggregate unpaid amount of all Facility LC Reimbursement Obligations at such time.

“Facility LC Reimbursement Obligations” means, at any time, the aggregate of all
obligations of the Borrower then outstanding hereunder and under the Facility LC Applications to
reimburse the Lender for amounts paid by the Lender in respect of any one or more drawings under
Facility LCs.

 

5

 

“Federal Funds Effective Rate” means, for any day, an interest rate per annum equal to
the weighted average of the rates on overnight Federal funds transactions with members of the
Federal Reserve System arranged by Federal funds brokers on such day, as published for such day
(or, if such day is not a Business Day, for the immediately preceding Business Day) by the Federal
Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day,
the average of the quotations at approximately 10:00 a.m. (Columbus, Ohio time) on such day on such
transactions received by the Lender from three Federal funds brokers of recognized standing
selected by the Lender in its sole discretion.

“Fixed Charge Coverage Ratio” means the ratio, determined as of the end of each fiscal
quarter of the Borrower for the then most-recently ended four fiscal quarters, of (i) Consolidated
EBITDA, to (ii) the current principal maturities of Consolidated Funded Debt, plus Consolidated
Interest Expense, plus dividends and other distributions by the Borrower, plus income and franchise
taxes, plus Minimum Required Cash Pension Contribution, all calculated for the Borrower and its
Subsidiaries on a consolidated basis.

“Funded Debt Leverage Ratio” means the ratio, determined as of the end of each fiscal
quarter of the Borrower for the then most-recently ended four fiscal quarters, of (i) Consolidated
Funded Indebtedness outstanding on such date to (ii) Consolidated EBITDA for the most-recently
ended four fiscal quarters, all calculated for the Borrower and its Subsidiaries on a consolidated
basis.

“Indebtedness” of a Person means such Person’s (i) obligations for borrowed money,
(ii) obligations representing the deferred purchase price of Property or services (other than
accounts payable arising in the ordinary course of such Person’s business payable on terms
customary in the trade), (iii) obligations, whether or not assumed, secured by Liens or payable out
of the proceeds or production from Property now or hereafter owned or acquired by such Person, (iv)
obligations which are evidenced by notes, acceptances, or other instruments, (v) obligations of
such Person to purchase securities or other Property arising out of or in connection with the sale
of the same or substantially similar securities or Property, (vi) Capitalized Lease Obligations and
(vii) any other obligation for borrowed money or other financial accommodation which in accordance
with Agreement Accounting Principles would be shown as a liability on the consolidated balance
sheet of such Person.

“Intellectual Property” means all business and trade names, trademarks, logos, service
marks, brand names, patents, patent applications, copyrights, know how, trade secrets, processes,
techniques, discoveries, inventions, developments, research, formulas, designs, confidential
information, customer lists, software, technical information, data, plans and drawings, and other
proprietary rights required for or incidental to a Person’s business or operations.

“Interest Period” means, with respect to a LIBO Rate Advance, a period of one, two or
three months (for Revolving Credit Loans) or a period of one month (for the Term Loan) commencing
on a Business Day selected by the Borrower pursuant to this Agreement. Such Interest Period shall
end on the day which corresponds numerically to such date one, two or three months thereafter (as
applicable), provided, however, that if there is no such numerically corresponding day in such
next, second or third succeeding month (as applicable), such Interest
Period shall end on the last Business Day of such next, second or third succeeding month (as
applicable). If an Interest Period would otherwise end on a day which is not a Business Day, such
Interest Period shall end on the next succeeding Business Day, provided, however, that if said next
succeeding Business Day falls in a new calendar month, such Interest Period shall end on the
immediately preceding Business Day.

 

6

 

“Investment” of a Person means any loan, advance (other than commission, travel and
similar advances to officers and employees made in the ordinary course of business), extension of
credit (other than accounts receivable arising in the ordinary course of business on terms
customary in the trade) or contribution of capital by such Person; stocks, bonds, mutual funds,
partnership interests, notes, debentures or other securities owned by such Person; any deposit
accounts and certificate of deposit owned by such Person; and structured notes, derivative
financial instruments and other similar instruments or contracts owned by such Person.

“Lender” means The Huntington National Bank, a national banking association, and its
successors and assigns.

“Letter of Credit” of a Person means a letter of credit or similar instrument which is
issued upon the application of such Person or upon which such Person is an account party or for
which such Person is in any way liable.

“LIBO Base Rate” shall mean the rate obtained by dividing: (1) the actual or estimated
per annum rate, or the arithmetic mean of the per annum rates, of interest for deposits in U.S.
dollars for the related Interest Period, as determined by the Lender in its discretion based upon
reference to information which appears on page LIBOR01, captioned British Bankers Assoc. Interest
Settlement Rates, of the Reuters America Network, a service of Reuters America Inc. (or such other
page that may replace that page on that service for the purpose of displaying London interbank
offered rates; or, if such service ceases to be available or ceases to be used by the Lender, such
other reasonably comparable money rate service as the Lender may select) or upon information
obtained from any other reasonable procedure, as of two Business Days prior to the first day of an
Interest Period; by (2) an amount equal to one minus the stated maximum rate (expressed as a
decimal), if any, of all Reserve Requirements that is specified on the first day of each Interest
Period, or any other regulations of any governmental authority having jurisdiction with respect
thereto, as conclusively determined by the Lender, absent manifest error. If the LIBO Base Rate
cannot be determined by the Lender at any time, the Lender shall determine an appropriate
substitute interest rate which, until the time at which the LIBO Base Rate can again be determined,
shall be deemed to be the LIBO Base Rate for all purposes hereunder.

“LIBO Rate” shall mean the rate per annum equal to the sum of (x) the LIBO Base Rate,
plus (y) (i) 185 basis points (1.85%) with respect to the Term Loan, and (ii) 175 basis points
(1.75%) with respect to the Revolving Credit Loan.

“LIBO Rate Advance” means an Advance which, except as otherwise provided in Section
2.8, bears interest at the applicable LIBO Rate.

 

7

 

“LIBO Rate Loan” means a Loan which, except as otherwise provided in Section 2.8,
bears interest at the applicable LIBO Rate.

“Lien” means any lien (statutory or other), mortgage, pledge, hypothecation,
assignment, deposit arrangement, encumbrance or preference, priority or other security agreement or
preferential arrangement of any kind or nature whatsoever (including the interest of a vendor or
lessor under any conditional sale, Capitalized Lease or other title retention agreement).

“Loan Documents” means this Agreement, the Notes issued pursuant to Section 2.9, and
all other documents with respect to the Loans, as such documents may be amended, modified,
supplemented, extended, restated and replaced from time to time.

“Loans” means the loans made by the Lender to the Borrower pursuant to this Agreement.

“Margin Stock” has the meaning assigned to such term in Regulation U.

“Material Adverse Effect” means a material adverse effect on (i) the business,
Property, financial condition or results of operations of the Borrower and its Subsidiaries taken
as a whole, (ii) the ability of the Borrower to perform its obligations under the Loan Documents,
or (iii) the validity or enforceability of any of the Loan Documents or the rights or remedies of
the Lender thereunder.

“Material Contracts” means those contracts and agreements to which the Borrower or any
of its Subsidiaries is a party which, in the event of a breach or violation thereof by the Borrower
or any of its Subsidiaries, or in the event of a termination thereof (other than terminations by
expiration at the end of the term thereof), could reasonably be expected to have a Material Adverse
Effect.

“Material Indebtedness” is defined in Section 7.1.5.

“Maximum Rate” shall have the meaning set forth in Section 8.23.

“Minimum Required Cash Pension Contribution” means the minimum required cash pension
contribution the Borrower is required to make to its Plans as calculated by actuaries engaged by
the Borrower.

“Moody’s” means Moody’s Investors Service, Inc.

“Multiemployer Plan” means a Plan maintained pursuant to a collective bargaining
agreement or any other arrangement to which the Borrower or any member of the Controlled Group is a
party to which more than one employer is obligated to make contributions.

“Notes” means the Revolving Credit Note and the Term Note, together.

 

8

 

“Obligations” means all unpaid principal of and accrued and unpaid interest on the
Loans, all accrued and unpaid fees and all expenses, reimbursements, indemnities and other
obligations of the Borrower to the Lender or to any indemnified party arising under the Loan
Documents in connection with the Loans.

“Off-Balance Sheet Liability” of a Person means (i) any repurchase obligation or
liability of such Person with respect to accounts or notes receivable sold by such Person, (ii) any
liability under any Sale and Leaseback Transaction which is not a Capitalized Lease, (iii) any
liability under any so-called “synthetic lease” transaction entered into by such Person, or (iv)
any obligation arising with respect to any other transaction which is the functional equivalent of
or takes the place of borrowing but which does not constitute a liability on the balance sheets of
such Person, but excluding from this clause (iv) Operating Leases.

“Operating Lease” of a Person means any lease of Property (other than a Capitalized
Lease) by such Person as lessee which has an original term (including any required renewals and any
renewals effective at the option of the lessor) of one year or more.

“Other Taxes” is defined in Section 3.3(ii).

“Outstanding Credit Exposure” means, at any time, the sum of (i) the Outstanding
Revolving Credit Exposure at such time, plus (ii) the aggregate principal amount of the Term Loans
outstanding at such time.

“Outstanding Revolving Credit Exposure” means, at any time, the sum of (i) aggregate
principal amount of the Revolving Credit Loans outstanding at such time, plus (ii) the Facility LC
Obligations outstanding at such time.

“Participants” is defined in Section 8.19.

“PBGC” means the Pension Benefit Guaranty Corporation, or any successor thereto.

“Permitted Acquisition” means an Acquisition which (i) satisfies each of the following
conditions:

(a) the business to be acquired is in the business of accessory footwear or other fashion or
functional accessory products or a substantially similar line of business,

(b) the Enterprise Value of such Acquisition does not exceed $10,000,000.00;

(c) if an equity interests Acquisition, the Borrower shall own no less than 51% of the voting
power and equity interests, computed on a fully diluted basis, of the business to be acquired;

(d) any Indebtedness owed to the seller(s) of the business to be acquired shall be
subordinated to the Loans, which subordination shall be in form and substance satisfactory to the
Lender;

 

9

 

(e) no Default or Unmatured Default shall exist before or after giving effect to the
Acquisition or be created as a result thereof; and

(f) the Borrower shall have provided to the Lender notice of the Acquisition at least 120 days
prior to the closing of such Acquisition; or

(ii) prior to its consummation, the Acquisition is approved in writing by the Lender.

“Permitted Liens” is defined in Section 6.16.

“Person” means any natural person, corporation, firm, joint venture, partnership,
limited liability company, association, enterprise, trust or other entity or organization, or any
government or political subdivision or any agency, department or instrumentality thereof.

“Plan” means an employee pension benefit plan which is covered by Title IV of ERISA or
subject to the minimum funding standards under Section 412 of the Code as to which the Borrower or
any member of the Controlled Group may have any liability.

“Property” of a Person means any and all property, whether real, personal, tangible,
intangible, or mixed, of such Person, or other assets owned, leased or operated by such Person.

“Purchasers” is defined in Section 8.18.

“Rate Management Obligations” of a Person means any and all obligations of such
Person, whether absolute or contingent and howsoever and whensoever created, arising, evidenced or
acquired (including all renewals, extensions and modifications thereof and substitutions therefor),
under (i) any and all Rate Management Transactions, and (ii) any and all cancellations, buy backs,
reversals, terminations or assignments of any Rate Management Transactions.

“Rate Management Transaction” means any transaction (including an agreement with
respect thereto) now existing or hereafter entered into by the Borrower which is a rate swap, basis
swap, forward rate transaction, commodity swap, commodity option, equity or equity index swap,
equity or equity index option, bond option, interest rate option, foreign exchange transaction, cap
transaction, floor transaction, collar transaction, forward transaction, currency swap transaction,
cross-currency rate swap transaction, currency option or any other similar transaction (including
any option with respect to any of these transactions) or any combination thereof, whether linked to
one or more interest rates, foreign currencies, commodity prices, equity prices or other financial
measures.

“Regulation D” means Regulation D of the Board as from time to time in effect and any
successor thereto or other regulation or official interpretation of the Board relating to reserve
requirements applicable to member banks of the Federal Reserve System.

“Regulation T” means Regulation T of the Board as from time to time in effect and all
official rulings and interpretations thereunder or thereof.

 

10

 

“Regulation U” means Regulation U of the Board as from time to time in effect and any
successor or other regulation or official interpretation of the Board relating to the extension of
credit by banks for the purpose of purchasing or carrying margin stocks applicable to member banks
of the Federal Reserve System.

“Regulation X” means Regulation X of the Board as from time to time in effect and all
official rulings and interpretations thereunder or thereof.

“Reportable Event” means a reportable event as defined in Section 4043 of ERISA and
the regulations issued under such section, with respect to a Plan, excluding, however, such events
as to which the PBGC has by regulation waived the requirement of Section 4043(a) of ERISA that it
be notified within thirty (30) days of the occurrence of such event, provided, however, that a
failure to meet the minimum funding standard of Section 412 of the Code and of Section 302 of ERISA
shall be a Reportable Event regardless of the issuance of any such waiver of the notice requirement
in accordance with either Section 4043(a) of ERISA or Section 412(d) of the Code.

“Reserve Requirement” means the maximum aggregate reserve requirement (including all
basic, supplemental, marginal and other reserves) which is imposed under Regulation D on
Eurocurrency liabilities.

“Revolving Credit Commitment” means the obligation of the Lender to make Revolving
Credit Loans to the Borrower, issue Facility LCs for the account of the Borrower and permit
Facility LC Obligations to be outstanding in an aggregate amount not exceeding (i) $5,000,000
during the period commencing January 1st and ending June 30th of each
calendar year, and (ii) $10,000,000 during the period commencing July 1st and ending
December 31st of each calendar year, as such amount may be modified from time to time
pursuant to the terms hereof.

“Revolving Credit Loans” means Loans made pursuant to Section 2.1.1.

“Revolving Credit Note” means the Note issued in connection with the Revolving Credit
Loans pursuant to Section 2.9, in the form of Exhibit D.

“Revolving Credit Termination Date” means March 1, 2014, or any earlier date on which
the Revolving Credit Commitment is otherwise terminated pursuant to the terms hereof.

“S&P” means Standard and Poor’s Ratings Services, a division of The McGraw Hill
Companies, Inc.

“Sale and Leaseback Transaction” means any sale or other transfer of Property by any
Person with the intent to lease such Property as lessee.

“Schedule” refers to a specific schedule to this Agreement, unless another document is
specifically referenced.

“Section” means a numbered section of this Agreement, unless another document is
specifically referenced.

 

11

 

“Single Employer Plan” means a Plan maintained by the Borrower or any member of the
Controlled Group for employees of the Borrower or any member of the Controlled Group.

“Subordinated Indebtedness” of a Person means any Indebtedness of such Person the
payment of which is subordinated to payment of the Obligations to the written satisfaction of the
Lender.

“Subsidiary” of a Person means (i) any corporation more than 50% of the outstanding
securities having ordinary voting power of which shall at the time be owned or controlled, directly
or indirectly, by such Person or by one or more of its Subsidiaries or by such Person and one or
more of its Subsidiaries, or (ii) any partnership, limited liability company, association, joint
venture or similar business organization more than 50% of the ownership interests having ordinary
voting power of which shall at the time be so owned or controlled. Unless otherwise expressly
provided, all references herein to a “Subsidiary” shall mean a Subsidiary of the Borrower. For
purposes of the representations and warranties made herein, each reference to a “Subsidiary” shall
include any Subsidiary acquired in a Permitted Acquisition that has occurred prior to the time such
representation or warranty is made or deemed made pursuant to the terms hereof.

“Substantial Portion” means, with respect to the Property of the Borrower and its
Subsidiaries, Property which (i) represents more than 5% of the consolidated assets of the Borrower
and its Subsidiaries as shown in the consolidated financial statements of the Borrower and it
Subsidiaries most recently provided to the Lender pursuant to the terms hereof, or (ii) is
responsible for more than 5% of the consolidated net sales or of the Consolidated Net Income of the
Borrower and its Subsidiaries as reflected in the financial statements referred to in clause (i)
above.

“Taxes” means any and all present or future taxes, duties, levies, imposts,
deductions, charges or withholdings, and any and all liabilities with respect to the foregoing, but
excluding Excluded Taxes.

“Term Commitment” means the commitment of the Lender to make the Term Loan hereunder
on the Effective Date in the maximum amount $30,000,000.

“Term Loan” means the Loan made pursuant to Section 2.1.3.

“Term Loan Payment Date” means the first day of each month.

“Term Loan Termination Date” means March 1, 2016.

“Term Note” means the Note issued in connection with the Term Loan pursuant to Section
2.9, in the form of Exhibit E.

“Transferee” is defined in Section 8.20.

 

12

 

“Unfunded Liabilities” means the amount (if any) by which the present value of all
vested and unvested accrued benefits under all Single Employer Plans exceeds the fair market value
of all such Plan assets allocable to such benefits, all determined as of the then most recent
valuation date for such Plans using PBGC actuarial assumptions for single employer plan
terminations.

“Unmatured Default” means an event which but for the lapse of time or the giving of
notice, or both, would constitute a Default.

“Unused Commitment Fee” is defined in Section 2.3.2.

“Wholly-Owned Subsidiary” of a Person means (i) any Subsidiary all of the outstanding
voting securities of which shall at the time be owned or controlled, directly or indirectly, by
such Person or one or more Wholly-Owned Subsidiaries of such Person, or by such Person and one or
more Wholly-Owned Subsidiaries of such Person, or (ii) any partnership, limited liability company,
association, joint venture or similar business organization 100% of the ownership interests having
ordinary voting power of which shall at the time be so owned or controlled.

Section 1.2. Classification of Loans and Advances.

 For purposes of this Agreement, Loans may be classified and referred to by Class (a
Revolving Credit Loan or a Term Loan).

Section 1.3. Terms Generally.

The definitions of terms herein shall apply equally to the singular and plural forms of the
terms defined. Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The words “include”, “includes” and “including” shall be
deemed to be followed by the phrase “without limitation”. The word “will” shall be construed to
have the same meaning and effect as the word “shall”. Unless the context requires otherwise (a)
any definition of or reference to any agreement, instrument or other document herein shall be
construed as referring to such agreement, instrument or other document as from time to time
amended, supplemented or otherwise modified (subject to any restrictions on such amendments,
supplements or modifications set forth herein), (b) any reference herein to any Person shall be
construed to include such Person’s successors and assigns, (c) the words “herein”, “hereof” and
“hereunder”, and words of similar import, shall be construed to refer to this Agreement in its
entirety and not to any particular provision hereof, and (d) all references herein to Articles,
Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and
Exhibits and Schedules to, this Agreement.

Section 1.4. Accounting Terms; Agreement Accounting Principles.

Except as otherwise expressly provided herein, all terms of an accounting or financial nature
shall be construed in accordance with Agreement Accounting Principles, as in effect from time to
time, provided that, if the Borrower notifies the Lender that the Borrower requests an amendment to
any provision hereof to eliminate the effect of any change occurring
after the date hereof in

 

13

 

Agreement
Accounting Principles or in the application thereof on the operation of such provision (or if the Lender notifies the Borrower that the Lender requests an amendment to any
provision hereof for such purpose), regardless of whether any such notice is given before or after
such change in Agreement Accounting Principles or in the application thereof, then such provision
shall be interpreted on the basis of Agreement Accounting Principles as in effect and applied
immediately before such change shall have become effective until such notice shall have been
withdrawn or such provision amended in accordance herewith.

Section 1.5. Termination of Existing Credit Agreement.

The existing Revolving Credit Agreement dated March 29, 2007 between the Borrower and the
Lender, as amended, and all promissory notes issued in connection therewith, as amended, will be
terminated as of the Effective Date and will be superceded and replaced by this Agreement and the
other Loan Documents.

ARTICLE II

The Credits

Section 2.1. Commitments.

Section 2.1.1. Revolving Credit Commitment

From and including the Effective Date and prior to the Revolving Credit Termination Date, the
Lender agrees, on the terms and conditions set forth in this Agreement, to (a) make Revolving
Credit Loans to the Borrower, and (b) issue Facility LCs upon the request of the Borrower, provided
that, after giving effect to the making of each such Advance and the issuance of each such Facility
LC, (x) the Outstanding Revolving Credit Exposure shall not exceed the Revolving Credit Commitment;
and (y) the maximum amount of Facility LC Obligations outstanding at any time shall not exceed the
Facility LC Commitment. Subject to the terms of this Agreement, the Borrower may borrow, repay and
reborrow Revolving Credit Loans at any time prior to the Revolving Credit Termination Date. The
Revolving Credit Commitment shall expire on the Revolving Credit Termination Date. The Borrower
may request the Lender increase the Revolving Credit Commitment by an amount up to $5,000,000. If
the Lender consents to such increase of the Revolving Credit Commitment, in its sole discretion,
such additional facility will be evidenced by a Note(s) delivered by the Borrower to the Lender and
subject to the terms of this Agreement in accordance with its Class, and the Revolving Credit
Commitment will be deemed to be amended to reflect such increase.

Section 2.1.2. Facility LC Commitment.

Upon the request of the Borrower and after receipt of a properly completed and signed Facility
LC Application from the Borrower, the Lender agrees, on the terms and conditions set forth in this
Agreement and the Facility LC Applications, to issue Facility LCs and to renew, extend, increase,
decrease or otherwise modify each Facility LC, from time to time from and including the date of
this Agreement until the 60th day prior to the Termination Date; provided that after giving effect
to the issuance of or modification of such Facility LC, (x) the aggregate amount of Facility LC
Obligations shall not exceed the Facility LC Commitment

 

14

 

and (y) the Outstanding Revolving Credit
Exposure shall not exceed the Revolving Credit Commitment. No Facility LC shall have an expiry date later than one year after its issuance.
Facility LCs may have an expiry date after the Revolving Credit Termination Date provided that the
Borrower has fully cash-collateralized any such Facility LCs by providing funds to the Lender not
later than 10 Business Day prior to the Revolving Credit Termination Date in amounts equal to the
aggregate of the stated amount of, and any unpaid fees, costs and expenses with respect to, any
such Facility LCs. The Borrower shall pay to the Lender with respect to each Facility LC such fees
as are in effect as the time of the issuance of each Facility LC and as required by the applicable
Facility LC Application.

Section 2.1.3. Term Loan Commitment.

Subject to the terms and conditions set forth herein, the Lender agrees to make the Term Loan
to the Borrower in a principal amount not exceeding the Term Commitment as follows: (i) $15,000,000
of the Term Loan will be disbursed to the Borrower on the Effective Date, and (ii) the remaining
$15,000,000 of the Term Loan will be disbursed to the Borrower on March 31, 2011, or such earlier
date as may be requested by the Borrower upon at least two Business Day’s prior written notice to
the Lender. Amounts repaid in respect of the Term Loan may not be reborrowed.

Section 2.2. Termination of Commitments.

(i) Unless previously terminated, the Revolving Credit Commitment shall terminate on the
Revolving Credit Termination Date.

(ii) Unless previously terminated, the Facility LC Commitment shall terminate on the Revolving
Credit Termination Date.

(iii) Unless previously terminated or fully disbursed, the Term Commitment shall terminate on
March 31, 2011.

Section 2.3. Fees.

Section 2.3.1. Facility Fees.

The Borrower agrees to pay to the Lender a facility fee with respect to (i) the Term Loan in
the amount of $75,000, and (ii) the Revolving Credit Loan in the amount of $25,000. The fees shall
be paid no later than the Effective Date.

Section 2.3.2. Unused Commitment Fee.

From and including the Effective Date and prior to the Revolving Credit Termination Date, the
Borrower shall pay to the Lender an unused commitment fee (the “Unused Commitment Fee”) in the
amount of 0.25% of the daily average unused amount of the Revolving Credit Commitment. Such Unused
Commitment Fee shall accrue on the unused amount of the Revolving Credit Commitment beginning on
the Effective Date and shall continue to accrue thereafter through the Revolving Credit Termination
Date. The accrued Unused Commitment
Fee shall be payable quarterly in arrears beginning on June 30, 2011, upon written notice to
the Borrower by the Lender setting forth such accrued Unused Commitment Fee.

 

15

 

Section 2.4. Borrowing Notices.

The Borrower shall give the Lender irrevocable notice (a “Borrowing Notice”) not later than
1:00 p.m. (Columbus, Ohio time) on the Borrowing Date for each LIBO Rate Advance. The Lender will
make funds available to the Borrower by making Advances into one of Borrower’s deposit accounts
with Lender.

Section 2.5. Required Loan Payments.

The Borrower hereby unconditionally promises to pay to the Lender the Loans as follows:

Section 2.5.1. Required Payments of the Term Loan.

The outstanding principal balance of the Term Loan shall be payable to the Lender in equal
consecutive monthly installments in the amount of $357,142.86 on each Term Loan Payment Date,
commencing with the Term Loan Payment Date of April 1, 2011 and continuing thereafter until the
Term Loan Termination Date, at which time the outstanding principal balance of the Term Loan,
together with all interest accrued thereon, shall be due and payable in full.

Section 2.5.2. Required Payments of Revolving Credit Loans.

The Outstanding Revolving Credit Exposure and all other unpaid Obligations (other than
Obligations with respect to the Term Loan) shall be paid in full by the Borrower to the Lender on
the Revolving Credit Termination Date.

Section 2.6. Optional Principal Payments.

The Borrower may from time to time prepay, without penalty or premium, all or any portion of
outstanding LIBO Rate Advances. The Borrower agrees to pay all applicable fees, costs, breakage,
penalties or premiums owed to the Lender or its affiliates by the Borrower for prepayment of any
Rate Management Transaction to the extent required under the terms thereof, including, without
limitation, the costs associated with an “Additional Termination Event,” “Affected Transaction,”
“Early Termination Date,” “Event of Default,” “Potential Event of Default,” “Terminated
Transactions,” or a “Termination Event,” all as defined in any Rate Management Transaction.

Section 2.7. Interest Rates.

Advances with respect to both the Revolving Credit Loans and the Term Loan shall be comprised
entirely of LIBO Rate Loans. Each LIBO Rate Advance shall bear interest on the outstanding
principal amount thereof, for each day from and including the date such Advance is made. Changes
in the rate of interest of any LIBO Rate Advance will take effect simultaneously with each change
in the LIBO Rate in accordance with the terms hereof.

 

16

 

Section 2.8. Rates Applicable After Default; Late Payment.

(i) Notwithstanding anything to the contrary contained herein, during the continuance of a
Default or Unmatured Default the Lender may, at its option, by notice to the Borrower, declare that
no Advance may be made. During the continuance of a Default the Lender may, at its option, by
notice to the Borrower, declare that each LIBO Rate Advance shall bear interest at a rate per annum
equal to the LIBO Rate in effect from time to time plus 3% per annum, provided that, during the
continuance of a Default under Section 7.1.6 or 7.1.7, such interest rate shall be applicable to
all Loans without any election or action on the part of the Lender.

(ii) Any installment or other payment required to be made by the Borrower in connection with
the Loans which is not made within ten (10) days of the date of such installment or payment is due
shall be subject to a late charge equal to 5% of the amount of the installment or payment.

Section 2.9. General Terms With Respect to Payment of Obligations.

(i) All payments of the Obligations hereunder shall be made, without setoff, deduction, or
counterclaim, in immediately available funds to the Lender at the Lender’s addresses specified
pursuant to Section 8.13, by 2:00 p.m. (Columbus, Ohio time) on the date when due. The Lender is
hereby authorized to charge the accounts of the Borrower maintained with the Lender for each
payment of principal, interest and fees as it becomes due hereunder.

(ii) The Lender shall maintain in accordance with its usual practice an account or accounts
evidencing the indebtedness of the Borrower to the Lender resulting from each Loan made by the
Lender from time to time, in which it will record (a) the amount of each Loan made hereunder, (b)
the amount of any principal or interest due and payable or to become due and payable from the
Borrower to the Lender hereunder, and (c) the amount of any sum received by the Lender hereunder
from the Borrower. The Lender may, if the Lender so elects in connection with any transfer of its
Loans or enforcement of this Agreement or the Notes, endorse on a schedule forming a part hereof or
the Notes appropriate notation to evidence the foregoing information with respect to the principal
and interest then outstanding.

(iii) The entries maintained in the accounts maintained pursuant to paragraph (ii) above shall
be prima facie evidence of the existence and amounts of the Obligations therein recorded, absent
manifest error; provided, however, that the failure of the Lender to maintain such accounts or any
error therein shall not in any manner affect the obligation of the Borrower to repay the
Obligations in accordance with their terms.

(iv) The Lender shall prepare and the Borrower shall execute and deliver to the Lender
appropriate Notes payable to the order of the Lender to evidence the Loans. The Loans evidenced by
such Notes and interest thereon shall at all times (including after any assignment pursuant to
Section 8.18) be represented by one or more Notes payable to the order of the payee named therein
or any assignee pursuant to Section 8.18.

 

17

 

Section 2.10. Telephonic and Electronic Notices.

The Borrower hereby authorizes the Lender to extend or continue Advances, and to transfer
funds based on telephonic or electronic notices made by any person or persons the Lender in good
faith believes to be acting on behalf of the Borrower, it being understood that the foregoing
authorization is specifically intended to allow Borrowing Notices to be given telephonically or
electronically. The Borrower agrees to deliver promptly to the Lender a written confirmation, if
such confirmation is requested by the Lender, of each telephonic notice signed by an Authorized
Officer. If the written confirmation differs in any material respect from the action taken by the
Lender, the records of the Lender shall govern absent manifest error.

Section 2.11. Interest Payment Dates; Interest and Fee Basis.

Interest accrued on each LIBO Rate Advance shall be payable on each Term Loan Payment Date,
commencing with the first such date to occur after the date hereof and at maturity. Interest and
commitment fees shall be calculated for actual days elapsed on the basis of a 360 day year.
Interest shall be payable for the day an Advance is made but not for the day of any payment on the
amount paid if payment is received prior to noon (local time) at the place of payment. If any
payment of principal of or interest on an Advance shall become due on a day which is not a Business
Day, the due date shall be extended to the next succeeding Business Day; provided, however, that if
such next succeeding Business Day occurs in the following calendar month, then the due date shall
be the immediately preceding Business Day.

Section 2.12. Continuation and Continuation of Outstanding Advances.

Each LIBO Rate Advance shall continue as a LIBO Rate Advance until the end of the then
applicable Interest Period therefor, at which time such LIBO Rate Advance shall be automatically
converted into a LIBO Rate Advance with a one month Interest Period unless (x) such LIBO Rate
Advance is or was repaid in accordance with the terms of this Agreement, or (y) the Borrower shall
have given the Lender a Conversion/Continuation Notice (as defined below) requesting that, at the
end of such Interest Period, such LIBO Rate Advance continue as a LIBO Rate Advance for the same or
another Interest Period. The Borrower shall give the Lender irrevocable notice (a
“Conversion/Continuation Notice”) of each conversion or continuation of a LIBO Rate Advance not
later than 10:00 a.m. (Columbus time) at least three Business Days prior to the date of the
requested conversion or continuation, specifying:

(i) the requested date, which shall be a Business Day, of such conversion or continuation,

(ii) the aggregate amount of the Advance which is to be converted or continued, and

(iii) the amount of such Advance which is to be converted into or continued as a LIBO Rate
Advance and the duration of the Interest Period applicable thereto.

 

18

 

ARTICLE III

Yield Protection; Taxes

Section 3.1. Yield Protection.

If, on or after the date of this Agreement, the adoption of any law or any governmental or
quasi governmental rule, regulation, policy, guideline or directive (whether or not having the
force of law), or any change in the interpretation or administration thereof by any governmental or
quasi-governmental authority, central bank or comparable agency charged with the interpretation or
administration thereof, or compliance by the Lender with any request or directive (whether or not
having the force of law) of any such authority, central bank or comparable agency:

(i) subjects the Lender to any Taxes, or changes the basis of taxation of payments (other than
with respect to Excluded Taxes) to the Lender in respect of LIBO Rate Loans, or

(ii) imposes or increases or deems applicable any reserve, assessment, insurance charge,
special deposit or similar requirement against assets of, deposits with or for the account of, or
credit extended by, the Lender (other than reserves and assessments taken into account in
determining the interest rate applicable to LIBO Rate Advances), or

(iii) imposes any other condition the result of which is to increase the cost to the Lender of
making, funding or maintaining LIBO Rate Loans or reduces any amount receivable by the Lender in
connection with LIBO Rate Loans, or requires the Lender to make any payment calculated by reference
to the amount of LIBO Rate Loans or interest by an amount deemed material by the Lender, and the
result of any of the foregoing is to increase the cost to the Lender of making or maintaining its
LIBO Rate Loans or Commitments or to reduce the return received by the Lender, in connection with
such LIBO Rate Loans or Commitments, then, within fifteen (15) days of demand by the Lender, the
Borrower shall pay the Lender such additional amount or amounts as will compensate the Lender for
such increased cost or reduction in amount received.

Section 3.2. Changes in Capital Adequacy Regulations.

If the Lender reasonably determines the amount of capital required or expected to be
maintained by the Lender or any corporation controlling the Lender is increased as a result of a
Change, then, within fifteen (15) days of demand by the Lender, the Borrower shall pay the Lender
the amount necessary to compensate for any shortfall in the rate of return on the portion of such
increased capital which the Lender reasonably determines is attributable to this Agreement, the
Outstanding Credit Exposure or any Commitment, as the case may be, hereunder (after taking into
account the Lender’s policies as to capital adequacy). “Change” means (i) any change after the
date of this Agreement in the Risk Based Capital Guidelines or (ii) any adoption of or change in
any other law, governmental or quasi governmental rule, regulation, policy, guideline,
interpretation, or directive (whether or not having the force of law) after the date of this
Agreement which affects the amount of capital required or expected to be maintained by the Lender
or any corporation controlling the Lender. “Risk Based Capital Guidelines” means (i) the risk
based capital guidelines in effect in the United States on the date of this Agreement,
including transition rules, and (ii) the corresponding capital regulations promulgated by
regulatory authorities outside the United States implementing the July 1988 report of the Basle
Committee on Banking Regulation and Supervisory Practices Entitled “International Convergence of
Capital Measurements and Capital Standards,” including transition rules, and any amendments to such
regulations adopted prior to the date of this Agreement.

 

19

 

Section 3.3. Taxes.

(i) All payments by the Borrower to or for the account of the Lender hereunder or under the
Notes shall be made free and clear of and without deduction for any and all Taxes. If the Borrower
shall be required by law to deduct any Taxes from or in respect of any sum payable hereunder to the
Lender, (a) the sum payable shall be increased as necessary so that after making all required
deductions (including deductions applicable to additional sums payable under this Section 3.3) the
Lender receives an amount equal to the sum it would have received had no such deductions been made,
(b) the Borrower shall make such deductions, (c) the Borrower shall pay the full amount deducted to
the relevant authority in accordance with applicable law and (d) upon the request of the Lender,
the Borrower shall furnish to the Lender the original copy of a receipt evidencing payment thereof
within thirty (30) days after such payment is made.

(ii) In addition, the Borrower hereby agrees to pay any present or future stamp or documentary
taxes and any other excise or property taxes, charges or similar levies which arise from any
payment made hereunder or under the Notes or from the execution or delivery of, or otherwise with
respect to, this Agreement or the Notes (“Other Taxes”).

(iii) The Borrower hereby agrees to indemnify the Lender for the full amount of Taxes or Other
Taxes (including any Taxes or Other Taxes imposed on amounts payable under this Section 3.3) paid
by the Lender and any liability (including penalties, interest and expenses) arising therefrom or
with respect thereto. Payments due under this indemnification shall be made within thirty (30)
days of the date the Lender makes demand therefor pursuant to Section 3.4.

Section 3.4. Lender Statements; Survival of Indemnity.

The Lender shall deliver a written statement of the Lender to the Borrower as to the amount
due, if any, under Sections 3.1, 3.2 or 3.3. Such written statement shall set forth in reasonable
detail the calculations upon which the Lender determined such amount and shall be final, conclusive
and binding on the Borrower in the absence of manifest error. Determination of amounts payable
under such Sections in connection with a LIBO Rate Loan shall be calculated as though the Lender
funded its LIBO Rate Loan through the purchase of a deposit of the type and maturity corresponding
to the deposit used as a reference in determining the LIBO Rate applicable to such Loan, whether in
fact that is the case or not. Unless otherwise provided herein, the amount specified in the
written statement of the Lender shall be payable on demand after receipt by the Borrower of such
written statement. The obligations of the Borrower under Sections 3.1, 3.2 and 3.3 shall survive
payment of the Obligations and termination of this Agreement.

 

20

 

ARTICLE IV

Conditions Precedent

Section 4.1. Effective Date.

(i) The obligation of the Lender to make the initial Revolving Credit Loan and the Term Loan
is subject to the satisfaction of the following conditions:

The Borrower shall have furnished the Lender with:

(a) Certified copy of the resolutions of the Borrower, authorizing the execution of and
delivery of, and the performance of its obligations under, this Agreement, the Loan Documents and
any other documents to be delivered by the Borrower pursuant hereto and thereto.

(b) Certified copy of the Charter Documents of the Borrower, including any and all amendments
thereto, as in effect on the date of this Agreement, together with good standing certificates.

(c) A certificate of the secretary of the Borrower certifying the names of the officers of the
Borrower authorized to sign this Agreement, the Loan Documents and any other documents or
certificates to be delivered pursuant hereto and thereto by the Borrower, together with the true
signatures of such officers.

(d) The Notes required by the Lender pursuant to Section 2.9 payable to the order of the
Lender, duly executed by the Borrower.

(e) The documents and items set forth in the Closing Agenda.

(f) All other Loan Documents executed by the parties thereto.

(g) Such other documents as the Lender or its counsel may have reasonably requested.

(ii) The Lender shall notify the Borrower of the Effective Date, and such notice shall be
conclusive and binding.

Section 4.2. Each Loan.

The obligation of the Lender to make (x) any Revolving Credit Loan, including the initial
Revolving Credit Loan, upon the delivery of a Borrowing Notice pursuant to Section 2.4 and (y) the
Term Loan also is subject to the satisfaction of the following conditions:

(i) There exists no Default or Unmatured Default.

 

21

 

(ii) The representations and warranties contained in Article V are true and correct in all
material respects as of the date of this Agreement and except to the extent any such representation
or warranty is stated to relate solely to an earlier date, in which case such representation or
warranty shall have been true and correct on and as of such earlier date.

(iii) No law or regulation prohibits, and no order, judgment or decree of any arbitrator or
government authority enjoins or restrains the Lender from making the requested Advance.

Each Borrowing Notice with respect to each Loan shall constitute a representation and warranty
by the Borrower to the Lender that the conditions contained in Sections 4.2(i) and (ii) have been
satisfied.

ARTICLE V

Representations And Warranties

The Borrower represents and warrants to the Lender that:

Section 5.1. Existence and Standing.

The Borrower is a corporation incorporated, validly existing and in good standing under the
laws of its jurisdiction of organization and has all requisite authority to conduct its business in
each jurisdiction in which its business is conducted. Each of the Borrower’s Subsidiaries is a
corporation or limited liability company incorporated or organized, as the case may be, validly
existing and in good standing under the laws of its jurisdiction of formation and has all requisite
authority to conduct its business in each jurisdiction in which its business is conducted unless
the failure to obtain such authority would not have a Material Adverse Effect.

Section 5.2. Authorization and Validity.

The Borrower has the power and authority and legal right to execute and deliver the Loan
Documents to which it is a party and to perform its obligations thereunder. The execution and
delivery by the Borrower of the Loan Documents to which it is a party and the performance of its
obligations thereunder have been duly authorized by proper corporate proceedings, and the Loan
Documents to which the Borrower is a party constitute legal, valid and binding obligations of the
Borrower enforceable against the Borrower in accordance with their terms, except as enforceability
may be limited by bankruptcy, insolvency or similar laws affecting the enforcement of creditors’
rights generally.

 

22

 

Section 5.3. No Conflict; Government Consent.

Neither the execution and delivery by the Borrower of the Loan Documents to which it is a
party, nor the consummation of the transactions therein contemplated, nor compliance with the
provisions thereof will violate (i) any law, rule, regulation, order, writ, judgment, injunction,
decree or award binding on the Borrower or any of its Subsidiaries, (ii) the Borrower’s or any
Subsidiary’s Charter Documents or (iii) the provisions of any material indenture, instrument or
agreement to which the Borrower or any of its Subsidiaries is a party or is subject, or by which
it, or its Property, is bound, or conflict with or constitute a default thereunder, or result in,
or require, the creation or imposition of any Lien (other than Permitted Liens) in, of or on the
Property of the Borrower or any of its Subsidiaries pursuant to the terms of any such indenture,
instrument or agreement. No order, consent, adjudication, approval, license, authorization, or
validation of, or filing, recording or registration with, or exemption by, or other action in
respect of any governmental or public body or authority, or any subdivision thereof, which has not
been obtained by the Borrower or any of its Subsidiaries, is required to be obtained by the
Borrower or any of its Subsidiaries in connection with the execution and delivery of the Loan
Documents, the borrowings under this Agreement, the payment and performance by the Borrower of the
Obligations or the legality, validity, binding effect or enforceability of any of the Loan
Documents.

Section 5.4. Financial Statements.

The financial statements of the Borrower and its Subsidiaries for the 2007, 2008, 2009 and
2010 fiscal years and the fiscal quarter ended October 2, 2010 heretofore delivered to the Lender
were prepared in accordance with generally accepted accounting principles in effect on the date
such statements were prepared and fairly present in all material respects the consolidated
financial condition and operations of the Borrower and its Subsidiaries at such date and the
consolidated results of their operations for the period then ended.

Section 5.5. Material Adverse Change.

Since October 2, 2010, there has been no change in the business, Property, condition
(financial or otherwise) or results of operations of the Borrower and its Subsidiaries which would
reasonably be expected to have a Material Adverse Effect.

Section 5.6. Taxes.

The Borrower and its Subsidiaries have filed all United States federal tax returns and all
other tax returns which are required to be filed (or have filed appropriate extensions therefor)
and have paid all taxes due pursuant to said filed returns or pursuant to any assessment received
by the Borrower or any of its Subsidiaries, except (i) such taxes, if any, as are being contested
in good faith and as to which adequate reserves have been provided in accordance with Agreement
Accounting Principles and as to which no Lien exists (other than a Permitted Lien), and (ii) where
failure to file the applicable return and pay the tax could not reasonably be expected to have a
Material Adverse Effect. No tax liens have been filed and no claims are being asserted with
respect to any such taxes, except for Permitted Liens. The charges, accruals and reserves on
the books of the Borrower and its Subsidiaries in respect of any taxes or other governmental
charges are adequate.

 

23

 

Section 5.7. Litigation and Contingent Obligations.

Except as set forth on Schedule 1, there is no litigation, arbitration, governmental
investigation, proceeding or inquiry pending or, to the knowledge of any of their officers,
threatened against or affecting the Borrower or any of its Subsidiaries which could reasonably be
expected to have a Material Adverse Effect or which seeks to prevent, enjoin or delay the making of
any Loans. Other than any liability incident to any litigation, arbitration or proceeding which
(i) could not reasonably be expected to have a Material Adverse Effect or (ii) as set forth on
Schedule 1, the Borrower does not have any material contingent obligations not provided for
or disclosed in the financial statements referred to in Section 5.4.

Section 5.8. Subsidiaries.

Schedule 2 contains an accurate list of all Subsidiaries of the Borrower as of the
date of this Agreement, setting forth their respective jurisdictions of organization and the
percentage of their respective capital stock or other ownership interests owned by the Borrower or
other Subsidiaries. All of the issued and outstanding shares of capital stock or other ownership
interests of such Subsidiaries have been (to the extent such concepts are relevant with respect to
such ownership interests) duly authorized and issued and are fully paid and non-assessable.

Section 5.9. ERISA.

Except as set forth on Schedule 5, there are no Unfunded Liabilities of any Single
Employer Plans. The Borrower nor any other member of the Controlled Group has incurred, or is
reasonably expected to incur, any withdrawal liability to Multiemployer Plans. Each Plan complies
in all material respects with all applicable requirements of law and regulations, no Reportable
Event has occurred with respect to any Plan, the Borrower nor any other member of the Controlled
Group has withdrawn from any Plan or initiated steps to do so, and no steps have been taken to
reorganize or terminate any Plan.

Section 5.10. Accuracy of Information.

No information, exhibit or report furnished by the Borrower or any of its Subsidiaries to the
Lender in connection with the negotiation of, or compliance with, the Loan Documents contained any
material misstatement of fact or omitted to state a material fact or any fact necessary to make the
statements contained therein not materially misleading.

Section 5.11. Federal Reserve Regulations.

Neither the Borrower nor any Subsidiary is engaged principally, or as one of its important
activities, in the business of extending credit for the purpose of buying or carrying Margin Stock.

 

24

 

Section 5.12. Material Contracts.

With respect to each Material Contract, except as could not reasonably be expected to have a
Material Adverse Effect, (a) such Material Contract is in full force and effect and constitutes the
legal, valid and binding obligation of the Borrower or any of its Subsidiaries that is a party
thereto, and to its knowledge, the other parties thereto, enforceable in accordance with its terms,
(b) such Material Contract will not be terminated as a result of this Agreement, (c) the Borrower
and any of its Subsidiaries that is a party thereto are not in default in any material respect
under such Material Contract and, to its knowledge, no event has occurred which, with the passage
of time, would constitute such a default, and (d) to its knowledge, no other party is in default
under such Material Contract.

Section 5.13. Compliance With Laws.

The Borrower and its Subsidiaries have complied with all applicable statutes, rules,
regulations, orders and restrictions of any domestic or foreign government or any instrumentality
or agency thereof having jurisdiction over the Borrower, the conduct of its businesses or the
ownership of its respective Property, except where noncompliance could not reasonably be expected
to have a Material Adverse Effect.

Section 5.14. Ownership of Properties.

(i) Except as set forth on Schedule 3, on the date of this Agreement, the Borrower and
its Subsidiaries will have good title, free of all Liens other than Permitted Liens, to all of the
Property and assets reflected in the Borrower’s most recent consolidated financial statements
provided to the Lender as owned by the Borrower and its Subsidiaries.

(ii) Each of the Borrower and each of its Subsidiaries has complied with all material
obligations under each lease to which it is a party and that are material to the Borrower and its
Subsidiaries unless any such noncompliance by such Person under such lease would not result in a
Material Adverse Effect and all such leases are in full force and effect. Each of the Borrower and
each of its Subsidiaries enjoys peaceful and undisturbed possession under all such leases in which
such Person is a lessee.

(iii) Schedule 4 sets forth the address of all real property that is owned or leased
by the Borrower or any of its Subsidiaries as of the Effective Date after giving effect to the
transactions contemplated hereby.

(iv) As of the Effective Date, neither the Borrower nor any of its Subsidiaries has received
notice of, or has knowledge of, any pending or contemplated condemnation proceeding affecting any
of its respective real properties or any sale or disposition thereof, in lieu of condemnation.
None of the Borrower’s or any of its Subsidiaries’ real properties, nor any interest therein, is
subject to any right of first refusal, option or other contractual right to purchase such real
property or interest therein.

 

25

 

Section 5.15. Intellectual Property.

The Borrower and its Subsidiaries own, license or otherwise have the right to use, all
Intellectual Property used in or necessary for the operation of their respective businesses
presently conducted or proposed to be conducted, free and clear of any Liens, and has the right to
use its Intellectual Property without payment to any Person, except where the failure to make such
payments would not have a Material Adverse Effect. Except as listed on Schedule 6, there
are no interference, opposition or cancellation proceedings or infringement suits pending or, to
the knowledge of the Borrower, threatened with respect to any Intellectual Property owned by the
Borrower or any of its Subsidiaries, and to the knowledge of the Borrower there are no
interference, opposition or cancellation proceedings or infringement suits pending or threatened
with respect to Intellectual Property licensed by the Borrower or any of its Subsidiaries. Except
as listed on Schedule 6, to the knowledge of the Borrower, no Person is interfering with,
infringing upon, misappropriating or otherwise in conflict with any Intellectual Property owned by
the Borrower or any of its Subsidiaries to the extent any of the foregoing could result in a
Material Adverse Effect. To the knowledge of the Borrower, neither the Borrower nor any of its
Subsidiaries respectively have interfered with, infringed upon, misappropriated or otherwise come
into conflict with any Intellectual Property rights of any Person. Neither the Borrower nor any of
its Subsidiaries have received any claim alleging such action.

Section 5.16. Plan Assets; Prohibited Transactions.

The Borrower is not an entity deemed to hold “plan assets” within the meaning of 29 C.F.R. §
2510.3-101 of an employee benefit plan (as defined in Section 3(3) of ERISA) which is subject to
Title I of ERISA or any plan (within the meaning of Section 4975 of the Code), and neither the
execution of this Agreement nor the making of any Loans hereunder gives rise to a prohibited
transaction within the meaning of Section 406 of ERISA or Section 4975 of the Code.

Section 5.17. Environmental Matters.

In the ordinary course of its business, the officers of the Borrower consider the effect of
Environmental Laws on the business of the Borrower and its Subsidiaries, in the course of which
they identify and evaluate potential risks and liabilities accruing to the Borrower due to
Environmental Laws. On the basis of this consideration, the Borrower has concluded that
Environmental Laws are not reasonably expected to have a Material Adverse Effect. Neither the
Borrower nor any of its Subsidiaries has received any notice to the effect that any of its
operations are not in material compliance with any of the requirements of applicable Environmental
Laws or are the subject of any federal or state investigation evaluating whether any remedial
action is needed to respond to a release of any toxic or hazardous waste or substance into the
environment, which non-compliance or remedial action could reasonably be expected to have a
Material Adverse Effect.

 

26

 

Section 5.18. Investment Company Act.

Neither the Borrower nor any Subsidiary is an “investment company” or a company “controlled”
by an “investment company”, within the meaning of the Investment Company Act of 1940, as amended.

Section 5.19. Public Utility Holding Company Act.

Neither the Borrower nor any Subsidiary is a “holding company” or a “subsidiary company” of a
“holding company”, or an “affiliate” of a “holding company” or of a “subsidiary company” of a
“holding company”, within the meaning of the Public Utility Holding Company Act of 2005, as
amended.

Section 5.20. Post Retirement Benefits.

The present value of the expected cost of post retirement medical and insurance benefits
payable by the Borrower and its Subsidiaries to its employees and former employees, as estimated by
the Borrower in accordance with procedures and assumptions deemed reasonable by the Lender, does
not exceed $100,000.00.

Section 5.21. Solvency.

(i) Immediately after the consummation of the transactions to occur on the date hereof and
immediately following the making of each Loan, if any, made on the date hereof and after giving
effect to the application of the proceeds of such Loans, (a) the fair value of the assets of the
Borrower and its Subsidiaries on a consolidated basis, at a fair valuation, will exceed the debts
and liabilities, subordinated, contingent or otherwise, of the Borrower and its Subsidiaries on a
consolidated basis; (b) the present fair saleable value of the Property of the Borrower and its
Subsidiaries on a consolidated basis will be greater than the amount that will be required to pay
the probable liability of the Borrower and its Subsidiaries on a consolidated basis on their debts
and other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities
become absolute and matured; (c) the Borrower and its Subsidiaries on a consolidated basis will be
able to pay their debts and liabilities, subordinated, contingent or otherwise, as such debts and
liabilities become absolute and matured; and (d) the Borrower and its Subsidiaries on a
consolidated basis will not have unreasonably small capital with which to conduct the businesses in
which they are engaged as such businesses are now conducted and are proposed to be conducted after
the date hereof.

(ii) The Borrower does not intend to, or to permit any of its Subsidiaries to, and does not
believe that it or any of its Subsidiaries will, incur debts beyond its ability to pay such debts
as they mature, taking into account the timing of and amounts of cash to be received by it or any
such Subsidiary and the timing of the amounts of cash to be payable on or in respect of its
Indebtedness or the Indebtedness of any such Subsidiary.

 

27

 

Section 5.22. Labor Matters.

As of the Effective Date, there are no strikes, lockouts or slowdowns against the Borrower or
any of its Subsidiaries pending or, to the knowledge of the Borrower, threatened. The hours worked
by and payments made to employees of the Borrower and its Subsidiaries have not been in violation
of the Fair Labor Standards Act or any other applicable Federal, state, local or foreign law
dealing with such matters, except where any such violations, individually or in the aggregate,
would not be reasonably likely to result in a Material Adverse Effect. All material payments due
from the Borrower or any of its Subsidiaries, or for which any claim may be made against the
Borrower or any Subsidiary, on account of wages and employee health and welfare insurance and other
benefits, have been paid or accrued as a liability on the books of the Borrower and its
Subsidiaries. The consummation of the transactions contemplated hereby will not give rise to any
right of termination or right of renegotiation on the part of any union under any collective
bargaining agreement to which the Borrower or any Subsidiary is bound.

Section 5.23. Customers and Suppliers.

No customer or supplier of the Borrower or any Subsidiary has notified the Borrower or any
Subsidiary of an intention to, and to the knowledge of the Borrower, no customers or suppliers of
the Borrower or any Subsidiary intends to, cease doing business with the Borrower or any Subsidiary
or to reduce the amount of goods or services purchased or sold on a regular on-going basis from the
Borrower or any Subsidiary, which cessation or reduction could have a Material Adverse Effect.

ARTICLE VI

Covenants

During the term of this Agreement, unless the Lender shall otherwise consent in writing:

Section 6.1. Financial Reporting.

The Borrower will maintain for itself and its Subsidiaries a system of accounting established
and administered in accordance with generally accepted accounting principles, and furnish to the
Lender:

(i) Within 120 days after the close of each of its fiscal years, an unqualified audit report
certified by independent certified public accountants acceptable to the Lender, prepared in
accordance with Agreement Accounting Principles on a consolidated and consolidating basis for the
Borrower and its Subsidiaries, including balance sheets as of the end of such period, related
profit and loss and reconciliation of surplus statements, and statements of cash flows, accompanied
by any management letter prepared by said accountants.

(ii) Within 45 days after the close of each quarterly period of each of its fiscal years,
consolidated unaudited internally prepared balance sheets for the Borrower and its Subsidiaries as
at the close of each such period and consolidated profit and loss and reconciliation of surplus
statements and a statement of cash flows for the period from the beginning of such fiscal year to
the end of such month, all certified by its chief financial officer.

 

28

 

(iii) Within 45 days after the close of each quarterly period of each of its fiscal years, a
Compliance Certificate, which shall include compliance with Section 6.31, in form and substance
satisfactory to the Lender signed by an Authorized Officer.

(iv) Promptly after the same are sent, copies of all quarterly financial statements, reports
and notice which the Borrower sends to its stockholders as stockholders and promptly after the same
are filed, copies of all financial statements and reports (including, without limitation, reports
on Forms 10-K, 10-Q and 8-K) which the Borrower may make to, or file with, and copies of all
material notices the Borrower receives from, the Securities and Exchange Commission or any public
body succeeding to any or all of the functions of the Securities and Exchange Commission.

(v) As soon as possible and in any event within 10 days after the Borrower knows that any
Reportable Event has occurred with respect to any Plan, a statement, signed by the chief financial
officer of the Borrower, describing said Reportable Event and the action which the Borrower
proposes to take with respect thereto.

(vi) Such other information (including non financial information) as either the Lender may
from time to time reasonably request.

(vii) Reports required to be delivered pursuant to subsections 6.1(i), 6.1(ii), and, to the
extent relating to reports on Forms 10-K, 10-Q and 8-K and other reports, financial statements and
notices posted on the Securities and Exchange Commission’s website, subsection 6.1(iv), shall be
deemed to have been delivered on the date on which such report, financial statement or notice is
posted on the Securities and Exchange Commission’s website at www.sec.gov, and such posting shall
be deemed to satisfy the reporting requirements of such subsections.

Section 6.2. Use of Proceeds.

The Borrower will, and will cause each Subsidiary to, use the proceeds of (i) the Term Loan
for general corporate purposes, including in connection with Permitted Acquisitions and the payment
or reimbursement of fees and other costs incurred in connection with Permitted Acquisitions; and
(ii) the Revolving Credit Loans for working capital purposes. The Borrower will not, nor will it
permit any Subsidiary to, use any of the proceeds of the Loans to purchase or carry any Margin
Stock or for any purpose that entails a violation of, or that is inconsistent with, the provisions
of the Regulations of the Board, including Regulation T, U or X.

 

29

 

Section 6.3. Notice of Certain Events.

The Borrower will give prompt notice in writing to the Lender of the occurrence of (i) any
Default or Unmatured Default; (ii) all suits, actions or other proceedings commenced or threatened
in writing against the Borrower or any of its Subsidiaries where the amount claimed is
$500,000 or more; (iii) any dispute that is reduced to writing or that could otherwise have a
Material Adverse Effect and arises between the Borrower and any governmental regulatory body or law
enforcement authority; (iv) any matter that has resulted or is reasonably likely to result in a
Material Adverse Effect with respect to the Borrower or any Subsidiary; and (v) the loss or
destruction of any material asset (but excluding the write off or write down of goodwill in
connection with any Acquisition) of the Borrower or any of its Subsidiaries not covered by
insurance.

Section 6.4. Conduct of Business.

The Borrower will, and will cause each Subsidiary to, carry on and conduct its business in
substantially the same manner and in substantially the same fields of enterprise as it is presently
conducted. The Borrower will do all things necessary to remain duly organized, validly existing
and in good standing as a domestic corporation in its jurisdiction of organization, and maintain
all requisite authority to conduct its business in each jurisdiction in which its business is
conducted. The Borrower will cause each Subsidiary to do all things necessary to remain duly
organized, validly existing and in good standing as a domestic corporation or limited liability
company, as the case may be, in its jurisdiction of organization, and to maintain all requisite
authority to conduct its business in each jurisdiction in which its business is conducted, unless
the failure to maintain such authority would not have a Material Adverse Effect.

Section 6.5. Taxes.

The Borrower will, and will cause each Subsidiary to, timely file complete and correct United
States federal and applicable foreign, state and local tax returns required by law and pay when due
all taxes, assessments and governmental charges and levies upon it or its income, profits or
Property, except those which are being contested in good faith by appropriate proceedings and with
respect to which adequate reserves have been set aside in accordance with Agreement Accounting
Principles and as to which no Lien exists (other than a Permitted Lien).

Section 6.6. Insurance.

The Borrower will, and will cause each Subsidiary to, (a) maintain with financially sound and
reputable insurance companies fire and extended coverage insurance on their insurable Property
containing a lender’s loss payable clause in favor of the Lender, and providing that said insurance
will not be terminated except after at least 30 days’ written notice from the insurance company to
the Lender, (b) maintain such other insurance on their Property for the benefit of the Lender as
the Lender shall from time to time reasonably request, (c) furnish to the Lender upon the request
of the Lender from time to time evidence (on ACORD Form 28) of such insurance, and (d) maintain
general liability and other insurance that may be reasonably requested by the Lender in amounts
reasonably satisfactory to the Lender.

Section 6.7. Compliance with Laws.

The Borrower will, and will cause each Subsidiary to, comply with all laws, rules,
regulations, orders, writs, judgments, injunctions, decrees or awards to which it may be subject,
including all Environmental Laws, except where noncompliance could not reasonably be expected to
have a Material Adverse Effect.

 

30

 

Section 6.8. Maintenance of Properties.

The Borrower will, and will cause each Subsidiary to, do all things necessary to maintain,
preserve, protect and keep its Property in good repair, working order and condition, and make all
necessary and proper repairs, renewals and replacements so that its business carried on in
connection therewith may be properly conducted at all times.

Section 6.9. Books and Records; Inspection.

The Borrower will, and will cause each Subsidiary to, (i) keep proper books of record and
account in which full, true and correct entries in all material respects are made for all dealings
and transactions in relation to its business and activities, and (ii) permit the Lender, by its
representatives and agents, to inspect any of the Property, books and financial records of the
Borrower and each Subsidiary, to examine and make copies of the books of accounts and other
financial records of the Borrower and each Subsidiary, and to discuss the affairs, finances and
accounts of the Borrower and each Subsidiary with, and to be advised as to the same by, their
respective officers at such reasonable times and intervals as each Lender may designate, and upon
reasonable prior notice to the Borrower.

Section 6.10. Dividends.

The Borrower will not, nor will it permit any Subsidiary to, declare or pay any dividends or
make any distributions on its capital stock (other than dividends payable in its own capital stock)
or redeem, repurchase or otherwise acquire or retire any of its capital stock at any time
outstanding, except that (i) any Subsidiary may declare and pay dividends or make distributions to
the Borrower or to a Wholly-Owned Subsidiary, and (ii) the Borrower may declare and pay dividends
on its capital stock and repurchase its capital stock provided that no Default or Unmatured Default
shall exist before or after giving effect to such dividends and distributions or repurchases, or be
created as a result thereof.

Section 6.11. Indebtedness.

The Borrower will not, nor will it permit any Subsidiary to, create, incur or suffer to exist
any Indebtedness, except:

(i) The Loans in favor of the Lender.

(ii) Indebtedness existing on the date hereof and described in Schedule 3 and
replacements and refinancings thereof in the same or lesser amounts.

(iii) Indebtedness arising under Rate Management Transactions, which have been approved by the
Lender, related to the Loans.

 

31

 

(iv) Other Indebtedness permitted under Section 6.17.

(v) Other unsecured Indebtedness in an aggregate amount not to exceed $100,000 at any one
time.

Section 6.12. Merger.

Which consents will not be unreasonably withheld or delayed, the Borrower will not, nor will
it permit any Subsidiary to, merge or consolidate with or into any other Person, except that a
Subsidiary may merge with the Borrower or a Wholly-Owned Subsidiary without the written consent of
the Lender.

Section 6.13. Sale of Assets.

The Borrower will not, nor will it permit any Subsidiary to, lease, sell or otherwise dispose
of its Property to any other Person, except:

(i) Sales of inventory, supplies, materials and equipment, in each case in the ordinary course
of business.

(ii) Leases, sales or other dispositions of its Property that, together with all other
Property of the Borrower and its Subsidiaries previously leased, sold or disposed of (other than
the ordinary course dispositions described in all other clauses of this Section) as permitted by
this Section during the twelve month period ending with the month in which any such lease, sale or
other disposition occurs, do not constitute a Substantial Portion of the Property of the Borrower
and its Subsidiaries.

(iii) Any sale, transfer or lease of assets in the ordinary course of business which are no
longer necessary or required in the conduct of the Borrower’s business.

(iv) Any sale, transfer or lease of fixed assets in the ordinary course of business which are
replaced by substitute assets within a twelve-month period of such disposition.

(v) The sale of Cash Equivalent Investments in the ordinary course of business.

(vi) The abandonment, cancellation or disposition of any Intellectual Property of the Borrower
or any Subsidiary in the ordinary course of business.

Section 6.14. Performance of Material Contracts.

The Borrower will, and will cause each Subsidiary to, perform and comply with, in accordance
with its terms, all provisions of each Material Contract, to the extent any non-performance or
non-compliance could result in a Material Adverse Effect.

 

32

 

Section 6.15. Investments and Acquisitions.

The Borrower will not, nor will it permit any Subsidiary to, make any Investments or
commitments therefor, become or remain a partner in any partnership, limited liability company or
joint venture, or make any Acquisition of any Person, except:

(i) Cash Equivalent Investments.

(ii) Existing Investments in Subsidiaries and other Investments in existence on the date
hereof and described in Schedule 2.

(iii) Permitted Acquisitions.

Section 6.16. Liens.

The Borrower will not, nor will it permit any Subsidiary to, create, incur, or suffer to exist
any (x) Lien in, of or on the Property of the Borrower or any of its Subsidiaries, or (y) agreement
with any Person (other than the Lender) which prohibits or restricts the granting of any such Lien
of any kind in favor of the Lender, except the following (“Permitted Liens”):

(i) Liens for taxes, assessments or governmental charges or levies on its Property if the same
shall not at the time be delinquent or thereafter can be paid without penalty, or are being
contested in good faith and by appropriate proceedings and for which adequate reserves in
accordance with Agreement Accounting Principles shall have been set aside on its books.

(ii) Liens imposed by law, such as carriers’, warehousemen’s and mechanics’ liens and other
similar liens arising in the ordinary course of business which secure payment of obligations not
more than 60 days past due or which are being contested in good faith by appropriate proceedings
and for which adequate reserves shall have been set aside on its books.

(iii) Liens arising out of pledges or deposits under worker’s compensation laws, unemployment
insurance, old age pensions, or other social security or retirement benefits, or similar
legislation.

(iv) Utility easements, building restrictions and such other encumbrances or charges against
real property as are of a nature generally existing with respect to properties of a similar
character and which do not in any material way affect the marketability of the same or interfere
with the use thereof in the business of the Borrower or its Subsidiaries.

(v) Liens existing on the date hereof and described in Schedule 3 (and refinancings
and replacements thereof that secure the same debt (or debt permitted to be refinanced hereunder)
and are limited to the same assets).

(vi) Liens on leases permitted under Section 6.17 hereof.

 

33

 

Section 6.17. Leases.

The Borrower will not, nor will it permit any Subsidiary to, enter into any one lease
(including Operating Leases or Capitalized Lease Obligations) providing for annual rentals which
exceed $500,000.00.

Section 6.18. Affiliates.

The Borrower will not, nor will it permit any Subsidiary to, enter into any transaction
(including the purchase or sale of any Property or service) with, or make any payment or transfer
to, any Affiliate except in the ordinary course of business and pursuant to the reasonable
requirements of the Borrower’s or such Subsidiary’s business and upon fair and reasonable terms no
less favorable to the Borrower or such Subsidiary than the Borrower would obtain in a comparable
arms length transaction.

Section 6.19. Subordinated Indebtedness.

The Borrower will not, nor will it permit any Subsidiary to, make any amendment or
modification to the indenture, note or other agreement evidencing or governing any Subordinated
Indebtedness, or directly or indirectly voluntarily prepay, defease or in substance defease,
purchase, redeem, retire or otherwise acquire, any Subordinated Indebtedness.

Section 6.20. Sale of Accounts.

The Borrower will not, nor will it permit any Subsidiary to, sell or otherwise dispose of any
notes receivable or accounts receivable, with or without recourse.

Section 6.21. Sale and Leaseback Transactions and Other Off-Balance Sheet Liabilities.

The Borrower will not, nor will it permit any Subsidiary to, enter into or suffer to exist any
(i) Rate Management Obligation, (ii) Sale and Leaseback Transaction or (iii) any other transaction
pursuant to which it incurs or has incurred Off-Balance Sheet Liabilities, except for Rate
Management Obligations permitted by Section 6.25.

Section 6.22. Contingent Obligations.

The Borrower will not, nor will it permit any Subsidiary to, make or suffer to exist any
Contingent Obligation, except (i) by endorsement of instruments for deposit or collection in the
ordinary course of business, (ii) guaranties comprising Indebtedness permitted under Section 6.11
and (iii) normal product warranties and indemnities in favor of vendors and customers entered into
in the ordinary course of business and relating to products or services sold or performed by the
Borrower or any Subsidiary.

 

34

 

Section 6.23. Letters of Credit.

The Borrower will not, nor will it permit any Subsidiary to, apply for or become liable upon
or in respect of any Letter of Credit other than the Facility LCs.

Section 6.24. Primary Depository.

The Borrower will maintain its primary operating bank accounts with the Lender.

Section 6.25. Required Rate Management Transactions.

Within 30 days of the funding of the Term Loan, the Borrower will enter into one or more
transactions of the type described in the definition of “Rate Management Transactions” with one or
more financial institutions acceptable to the Lender in its reasonable discretion, providing for a
fixed rate of interest on a notional amount of at least $15,000,000, and upon such other terms
agreed to by the Lender and the Borrower.

Section 6.26. Clean Out Period.

The Borrower will cause there to be no Revolving Credit Loans outstanding under the Revolving
Credit Note for a period of 30 consecutive days during each period commencing on July 1 of each
year through and including June 30 of the following year.

Section 6.27. Change in Principal Office.

The Borrower will not move its principal office, executive office or principal place of
business without 30 days prior notice to the Lender.

Section 6.28. Prepayments.

The Borrower will not, nor will permit any Subsidiary to, pay any Indebtedness prior to its
scheduled maturity other than the Notes as permitted by and in accordance with the Notes and this
Agreement.

Section 6.29. Organizational and Business Activities.

The Borrower will not, nor will it permit any Subsidiary to (i) amend the Charter Documents of
the Borrower or any Subsidiary in any way that would reasonably be expected to result in a Material
Adverse Effect, or (ii) without the written consent of Lender, such consent not to be unreasonably
withheld or delayed, change the Borrower’s or any Subsidiary’s legal form, effect any
reorganization or recapitalization or engage in any business activities or operations substantially
different from or unrelated to its present business.

 

35

 

Section 6.30. [Reserved].

Section 6.31.
Financial Covenants.

Section 6.31.1. Fixed Charge Coverage Ratio.

The Borrower will not permit the Fixed Charge Coverage Ratio, determined as of the last day of
each fiscal quarter, commencing with the fiscal quarter ending on (or on the date nearest to) March
31, 2012, to be less than 1.1 to 1.0.

Section 6.31.2. Funded Debt Leverage Ratio.

The Borrower will not permit the Funded Debt Leverage Ratio, determined as of the last day of
each fiscal quarter, commencing with the fiscal quarter ending on (or on the date nearest to) March
31, 2012, to be greater than 2.25 to 1.00.

Section 6.31.3. Consolidated Net Worth.

The Borrower will maintain Consolidated Net Worth of not less than $52,000,000 as of the end
of fiscal year 2011, with such amount to be increased as of the end of each fiscal year thereafter
by the amount equal to 50% of Consolidated Net Income for each such fiscal year, but without any
deduction for any consolidated net loss for any such fiscal year.

ARTICLE VII

Defaults, Acceleration, Remedies, and Waivers 

Section 7.1. Defaults.

The occurrence of any one or more of the following events shall constitute a Default:

Section 7.1.1. Any representation or warranty made or deemed made by or on behalf of the
Borrower or any of its Subsidiaries to the Lender under or in connection with this Agreement, any
Loan or any certificate or information delivered in connection with this Agreement or any other
Loan Document shall be materially false on the date as of which made.

Section 7.1.2. Nonpayment of principal of any Loan when due, or nonpayment of interest upon
any Loan or of any fee or other obligations under any of the Loan Documents within 10 days of the
date when due.

Section 7.1.3. The breach by the Borrower of Section 6.2, any of Sections 6.10 through 6.13,
Sections 6.15 through 6.26, or Section 6.31.

Section 7.1.4. The breach by the Borrower (other than a breach which constitutes a Default
under another Section of this Article VII) of any of the terms or provisions of this Agreement or
any other Loan Document, which is not remedied within 30 days after the
occurrence of such breach, or, in the case of any other Loan Document, such lesser period of
grace as is specifically applicable to such breach in such Loan Document.

 

36

 

Section 7.1.5. Failure of the Borrower or any of its Subsidiaries to pay when due any
Indebtedness aggregating in excess of $100,000 (“Material Indebtedness”); or the default by the
Borrower or any of its Subsidiaries (beyond the applicable grace period with respect thereto, if
any) under any agreement under which any such Material Indebtedness was created or is governed, or
any other event shall occur or condition exist, the effect of which default or event is to cause,
or to permit the holder or holders of such Material Indebtedness to cause, such Material
Indebtedness to become due prior to its stated maturity; or any Material Indebtedness of the
Borrower or any of its Subsidiaries shall be declared to be due and payable or required to be
prepaid or repurchased (other than by a regularly scheduled payment) prior to the stated maturity
thereof; or the Borrower or any of its Subsidiaries shall not pay, or admit in writing its
inability to pay, its debts generally as they become due.

Section 7.1.6. The Borrower or any of its Subsidiaries shall (i) have an order for relief
entered with respect to it under the Federal bankruptcy laws as now or hereafter in effect, (ii)
make an assignment for the benefit of creditors, (iii) apply for, seek, consent to, or acquiesce
in, the appointment of a receiver, custodian, trustee, examiner, liquidator or similar official for
it or any Substantial Portion of its Property, (iv) institute any proceeding seeking an order for
relief under the Federal bankruptcy laws as now or hereafter in effect or seeking to adjudicate it
a bankrupt or insolvent, or seeking dissolution, winding up, liquidation, reorganization,
arrangement, adjustment or composition of it or its debts under any law relating to bankruptcy,
insolvency or reorganization or relief of debtors or fail to file an answer or other pleading
denying the material allegations of any such proceeding filed against it, (v) take any corporate
action to authorize or effect any of the foregoing actions set forth in this Section 7.1.6 or (vi)
fail to contest in good faith any appointment or proceeding described in Section 7.1.7.

Section 7.1.7. Without the application, approval or consent of the Borrower or any of its
Subsidiaries, a receiver, trustee, examiner, liquidator or similar official shall be appointed for
the Borrower or any of its Subsidiaries or any Substantial Portion of its Property, or a proceeding
described in Section 7.1.6(iv) shall be instituted against the Borrower or any of its Subsidiaries
and such appointment continues undischarged or such proceeding continues undismissed or unstayed
for a period of 60 consecutive days.

Section 7.1.8. Any court, government or governmental agency shall condemn, seize or otherwise
appropriate, or take custody or control of, all or any portion of the Property of the Borrower and
its Subsidiaries which, when taken together with all other Property of the Borrower and its
Subsidiaries so condemned, seized, appropriated, or taken custody or control of, during the twelve
month period ending with the month in which any such action occurs, constitutes a Substantial
Portion.

Section 7.1.9. The Borrower or any of its Subsidiaries shall fail within 30 days to pay, bond
or otherwise discharge one or more (i) judgments or orders for the payment of money in excess of
$500,000 (or the equivalent thereof in currencies other than U.S. dollars) in the aggregate, or
(ii) nonmonetary judgments or orders which, individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect, which judgment(s), in any such case,
is/are not stayed on appeal or otherwise being appropriately contested in good faith.

 

37

 

Section 7.1.10. The representations and warranties set forth in Section 5.9 (ERISA) shall at
any time not be true and correct.

Section 7.1.11. The occurrence of any “default”, as defined in any Loan Document (other than
this Agreement) or the breach of any of the terms or provisions of any Loan Document (other than
this Agreement), which default or breach continues beyond any period of grace therein provided.

Section 7.1.12. The representations and warranties set forth in Section 5.16 (Plan Assets;
Prohibited Transactions) shall at any time not be true and correct.

Section 7.1.13. [Reserved].

Section 7.1.14. Any Change in Control shall occur.

Section 7.1.15. Nonpayment by the Borrower or any Subsidiary of any Rate Management Obligation
when due or the default by the Borrower or any Subsidiary under any Rate Management Transaction or
any transaction of the type described in the definition of “Rate Management Transactions,” whether
or not any the Lender or Affiliate of a Lender is a party thereto.

Section 7.1.16. The Borrower or any other member of the Controlled Group shall have been
notified by the sponsor of a Multiemployer Plan that it has incurred withdrawal liability to such
Multiemployer Plan in an amount which, when aggregated with all other amounts required to be paid
to Multiemployer Plans by the Borrower or any other member of the Controlled Group as withdrawal
liability (determined as of the date of such notification), exceeds $100,000 or requires payments
exceeding $100,000 per annum.

Section 7.1.17. The Borrower or any other member of the Controlled Group shall have been
notified by the sponsor of a Multiemployer Plan that such Multiemployer Plan is in reorganization
or is being terminated, within the meaning of Title IV of ERISA, if as a result of such
reorganization or termination the aggregate annual contributions of the Borrower and the other
members of the Controlled Group (taken as a whole) to all Multiemployer Plans which are then in
reorganization or being terminated have been or will be increased over the amounts contributed to
such Multiemployer Plans for the respective plan years of each such Multiemployer Plan immediately
preceding the plan year in which the reorganization or termination occurs by an amount exceeding
$100,000.00.

Section 7.1.18. The Borrower or any of its Subsidiaries shall (i) be the subject of any
proceeding or investigation pertaining to the release by the Borrower, any of its Subsidiaries or
any other Person of any toxic or hazardous waste or substance into the environment, or (ii) violate
any Environmental Law, which, in the case of an event described in clause (i) or clause (ii), could
reasonably be expected to have a Material Adverse Effect.

 

38

 

Section 7.2. Acceleration; Remedies.

Section 7.2.1. If any Default described in Section 7.1.6 or 7.1.7 occurs with respect to the
Borrower, the obligations of the Lender to make Loans hereunder shall automatically terminate and
the Obligations shall immediately become due and payable without any election or action on the part
of the Lender. If any other Default occurs, the Lender may (a) terminate or suspend the
obligations of the Lender to make Loans hereunder or declare the Obligations to be due and payable,
or both, whereupon the Obligations shall become immediately due and payable, without presentment,
demand, protest or notice of any kind, all of which the Borrower hereby expressly waives, and (b)
upon notice to the Borrower and in addition to the continuing right to demand payment of all
amounts payable under this Agreement, make demand on the Borrower to pay.

Section 7.2.2. Upon the occurrence of any Default, the Lender shall have all of the rights and
remedies provided by any law or agreement.

Section 7.2.3. Upon the occurrence of any Default and the acceleration of the Obligations,
payments due under the Loans shall be paid in the following order:

(i) FIRST, the payment of all Obligations owing to the Lender, in such order as the Lender
shall determine; and

(ii) SECOND, the balance, if any, after all of the Obligations have been satisfied, shall be
paid to the Borrower, or deposited by the Lender into the Borrower’s general operating account with
the Lender, as the Borrower shall direct.

Section 7.3. Preservation of Rights.

No delay or omission of the Lender to exercise any right under the Loan Documents shall impair
such right or be construed to be a waiver of any Default or an acquiescence therein, and the making
of Loans notwithstanding the existence of a Default or the inability of the Borrower to satisfy the
conditions precedent to the making of such Loans shall not constitute any waiver or acquiescence.
Any single or partial exercise of any such right shall not preclude other or further exercise
thereof or the exercise of any other right, and no waiver, amendment or other variation of the
terms, conditions or provisions of the Loan Documents whatsoever shall be valid unless in writing
signed by the Lender required pursuant to Section 8.12, and then only to the extent in such writing
specifically set forth. All remedies contained in the Loan Documents or by law afforded shall be
cumulative and all shall be available to the Lender until the Obligations have been paid in full.

Section 7.4. Setoff.

In addition to, and without limitation of, any rights of the Lender under applicable law, if
the Borrower becomes insolvent, however evidenced, or any Default occurs, any and all deposits
(including all account balances, whether provisional or final and whether or not collected or
available) and any other Indebtedness at any time held or owing by the Lender or any Affiliate of
the Lender to or for the credit or account of the Borrower may be offset and applied toward the
payment of the Obligations owing to the Lender, whether or not the Obligations, or any part hereof,
shall then be due.

 

39

 

ARTICLE VIII

General Provisions

Section 8.1. Survival of Representations.

All representations and warranties of the Borrower contained in this Agreement shall survive
the making of the Loans herein contemplated.

Section 8.2. Governmental Regulation.

Anything contained in this Agreement to the contrary notwithstanding, the Lender shall not be
obligated to extend credit to the Borrower in violation of any limitation or prohibition provided
by any applicable statute or regulation.

Section 8.3. Headings.

Section headings in the Loan Documents are for convenience of reference only, and shall not
govern the interpretation of any of the provisions of the Loan Documents.

Section 8.4. Entire Agreement.

The Loan Documents embody the entire agreement and understanding between the Borrower and the
Lender and supersede all prior agreements and understandings between the Borrower and the Lender
relating to the subject matter thereof.

Section 8.5. Benefits of this Agreement.

This Agreement shall not be construed so as to confer any right or benefit upon any Person
other than the parties to this Agreement and their respective successors and assigns.

Section 8.6. Expenses; Indemnification.

(i) The Borrower shall reimburse the Lender for any reasonable costs, internal charges and out
of pocket expenses (including reasonable attorneys’ fees and time charges of attorneys for the
Lender, which attorneys may be employees of the Lender) paid or incurred by the Lender in
connection with the preparation, negotiation, execution, delivery, syndication, review, amendment,
modification and administration of the Loan Documents. The Borrower also agrees to reimburse the
Lender for any reasonable costs, internal charges and out of pocket expenses (including reasonable
attorneys’ fees and time charges of attorneys for the Lender, which attorneys may be employees of
the Lender) paid or incurred by the Lender in connection with the collection and enforcement of the
Loan Documents.

 

40

 

(ii) The Borrower hereby further agrees to indemnify the Lender, its directors, officers and
employees against all losses, claims, damages, penalties, judgments, liabilities and reasonable
expenses (including all reasonable expenses of litigation or preparation therefor whether or not
the Lender is a party thereto) which it may pay or incur arising out of or relating to this
Agreement, the other Loan Documents, the transactions contemplated hereby or the direct or indirect
application or proposed application of the proceeds of any Loan hereunder except to the extent that
they are determined in a final non-appealable judgment by a court of competent jurisdiction to have
resulted from the gross negligence or willful misconduct of the party seeking indemnification. The
obligations of the Borrower under this Section 8.6 shall survive the termination of this Agreement.

Section 8.7. Severability of Provisions.

Any provision in any Loan Document that is held to be inoperative, unenforceable, or invalid
in any jurisdiction shall, as to that jurisdiction, be inoperative, unenforceable, or invalid
without affecting the remaining provisions in that jurisdiction or the operation, enforceability,
or validity of that provision in any other jurisdiction, and to this end the provisions of all Loan
Documents are declared to be severable.

Section 8.8. Nonliability of the Lender.

The relationship between the Borrower on the one hand and the Lender on the other hand shall
be solely that of borrower and lender. The Lender shall not have any fiduciary responsibilities to
the Borrower. The Lender undertakes no responsibility to the Borrower to review or inform the
Borrower of any matter in connection with any phase of the Borrower’s business or operations. The
Borrower agrees that the Lender shall not have any liability to the Borrower (whether sounding in
tort, contract or otherwise) for losses suffered by the Borrower in connection with, arising out
of, or in any way related to, the transactions contemplated and the relationship established by the
Loan Documents, or any act, omission or event occurring in connection therewith, unless it is
determined in a final non-appealable judgment by a court of competent jurisdiction that such losses
resulted from the gross negligence or willful misconduct of the party from which recovery is
sought. The Lender shall not have liability with respect to, and the Borrower hereby waives,
releases and agrees not to sue for, any special, indirect or consequential damages suffered by the
Borrower in connection with, arising out of, or in any way related to the Loan Documents or the
transactions contemplated thereby.

Section 8.9. Confidentiality.

The Lender agrees to hold any confidential information which it may receive from the Borrower
pursuant to this Agreement in confidence, except for disclosure (i) to its Affiliates, (ii) to
legal counsel, accountants, and other professional advisors to the Lender and its Affiliates or to
a Transferee; provided that such Transferee agrees to be bound by the terms of this Section 8.9,
(iii) to regulatory officials, (iv) to any Person as required by law, regulation, or legal process,
(v) to any Person as may be required or be necessary in connection with any legal proceeding to
which the Lender is a party, and (vi) permitted by Section 8.20.

 

41

 

Section 8.10. Nonreliance.

The Lender hereby represents that it is not relying on or looking to any Margin Stock for the
repayment of the Loans provided for herein.

Section 8.11. Disclosure.

The Borrower and the Lender hereby (i) acknowledge and agree that the Lender and/or its
Affiliates from time to time may hold investments in, make other loans to or have other
relationships with the Borrower and its Affiliates, and (ii) waive any liability of the Lender or
Affiliate of the Lender to the Borrower, respectively, arising out of or resulting from such
investments, loans or relationships other than liabilities arising out of the gross negligence or
willful misconduct of the Lender or its Affiliates.

Section 8.12. Amendments.

The Lender and the Borrower may enter into agreements supplemental hereto for the purpose of
adding or modifying any provisions to the Loan Documents or changing in any manner the rights of
the Lender or the Borrower hereunder or waiving any Default hereunder.

Section 8.13. Notices.

Except as otherwise permitted by Section 2.4 with respect to Borrowing Notices, all notices,
requests and other communications to any party hereunder shall be in writing (including electronic
transmission, facsimile transmission or similar writing) and shall be given to such party: (x) in
the case of the Borrower, at its address or facsimile number set forth on the signature pages
hereof, (y) in the case of the Lender, at its address or facsimile number set forth on the
signature pages hereof, or (z) in the case of any party, at such other address or facsimile number
as such party may hereafter specify for the purpose by notice to the Lender and the Borrower in
accordance with the provisions of this Section 8.13. Each such notice, request or other
communication shall be effective (i) if given by facsimile transmission, when transmitted to the
facsimile number specified in this Section and confirmation of receipt is received, (ii) if given
by mail, 72 hours after such communication is deposited in the mails with first class postage
prepaid, addressed as aforesaid, or (iii) if given by any other means, when delivered (or, in the
case of electronic transmission, received) at the address specified in this Section; provided that
notices to the Lender under Article II shall not be effective until received.

Section 8.14. Change of Address.

The Borrower and the Lender may each change the address for service of notice upon it by a
notice in writing to the other parties hereto.

 

42

 

Section 8.15. Counterparts.

This Agreement may be executed in any number of counterparts, all of which taken together
shall constitute one agreement, and any of the parties hereto may execute this Agreement by signing
any such counterpart. This Agreement shall be effective when it has been executed by the Borrower
and the Lender.

Section 8.16. Choice of Law.

The Loan Documents (other than those containing a contrary express choice of law provision)
shall be construed in accordance with the internal laws (but without regard to the conflict of laws
provisions) of the State of Ohio, but giving effect to federal laws applicable to national banks.

Section 8.17. Consent to Jurisdiction.

The Borrower hereby irrevocably submits to the nonexclusive jurisdiction of any United States
federal or Ohio state court sitting in Columbus, Ohio in any action or proceeding arising out of or
relating to any Loan Documents and the Borrower hereby irrevocably agrees that all claims in
respect of such action or proceeding may be heard and determined in any such court and irrevocably
waives any objection it may now or hereafter have as to the venue of any such suit, action or
proceeding brought in such a court or that such court is an inconvenient forum. Nothing herein
shall limit the right of the Lender to bring proceedings against the Borrower in the courts of any
other jurisdiction. Any judicial proceeding by the Borrower against the Lender or any Affiliate of
the Lender involving, directly or indirectly, any matter in any way arising out of, related to, or
connected with any Loan Document shall be brought only in a court in Columbus, Ohio.

Section 8.18. Assignments.

The Lender may, in the ordinary course of its business and in accordance with applicable law,
at any time assign to one or more banks or other entities (“Purchasers”) all or any part of its
rights and obligations under the Loan Documents. The consent of the Borrower shall not be required
for any assignment.

Section 8.19. Participations.

The Lender may, in the ordinary course of its business and in accordance with applicable law,
at any time sell to one or more banks or other entities (“Participants”) participating interests in
any Loans made by the Lender, the Notes held by the Lender, the Commitments of the Lender or any
other interest of the Lender under the Loan Documents. In the event of any such sale by the Lender
of participating interests to a Participant, the Lender’s obligations under the Loan Documents
shall remain unchanged, the Lender shall remain solely responsible to the other parties hereto for
the performance of such obligations, the Lender shall remain the owner of its respective Loans and
the holder of its Notes issued to it in evidence thereof for all purposes under the Loan Documents,
all amounts payable by the Borrower under this Agreement shall be
determined as if the Lender had not sold such participating interests, and the Borrower and the
Lender shall continue to deal solely and directly with the Lender in connection with the Lender’s
rights and obligations under the Loan Documents.

 

43

 

Section 8.20. Dissemination of Information.

The Borrower authorizes the Lender to disclose to any Participant or Purchaser or any other
Person acquiring an interest in the Loan Documents by operation of law (each a “Transferee”) and
any prospective Transferee any and all information in the Lender’s possession concerning the
creditworthiness of the Borrower; provided that such Transferee agrees to be bound by the
provisions of Section 8.9.

Section 8.21. Successors and Assigns.

The terms and provisions of the Loan Documents shall be binding upon and inure to the benefit
of the Borrower and the Lender and their respective successors and assigns, except that the
Borrower shall not have the right to assign its rights or obligations under the Loan Documents.

Section 8.22. WAIVER OF JURY TRIAL.

THE BORROWER AND THE LENDER HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING,
DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY
ARISING OUT OF, RELATED TO, OR CONNECTED WITH ANY LOAN DOCUMENT OR THE RELATIONSHIP ESTABLISHED
THEREUNDER.

Section 8.23. Interest Rate Limitation.

Notwithstanding anything herein to the contrary, if at any time the interest rate applicable
to any Loan, together with all fees, charges and other amounts that are treated as interest on such
Loan under applicable law (collectively, the “Charges”), shall exceed the maximum lawful rate (the
“Maximum Rate”) that may be contracted for, charged, taken, received or reserved by the Lender
holding such Loan in accordance with applicable law, the rate of interest payable in respect of
such Loan hereunder, together with all Charges payable in respect thereof, shall be limited to the
Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in
respect of such Loan but were not payable as a result of the operation of this Section shall be
cumulated and the interest and Charges payable to the Lender in respect of other Loans or periods
shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together
with interest thereon at the Federal Funds Effective Rate to the date of repayment, shall have been
received by the Lender.

 

44

 

Section 8.24. IMPORTANT INFORMATION ABOUT PROCEDURES REQUIRED BY THE USA PATRIOT ACT.

To help the government fight the funding of terrorism and money laundering activities, Federal
law requires all financial institutions to obtain, verify, and record information that identifies
each Person who opens an account or establishes a relationship with the Lender. What this means:
When a Person opens an account or establishes a relationship with the Lender, the Lender may ask
the name, address, date of birth, and other information that will allow the Lender to identify the
Person who opens an account or establishes a relationship with the Lender. The Lender may also ask
to see identifying documents for the Person.

[Signatures contained on following page]

 

45

 

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

	 	 	 	 	 
	 	BORROWER:

R. G. Barry Corporation,

an Ohio corporation

 	 
	 	By:  	/s/ José G. Ibarra
 	 
	 	 	José G. Ibarra, Chief Financial Officer 	 

Address:

13405 Yarmouth Rd., NW

Pickerington, OH 43147

Attn: Chief Financial Officer

Telephone: (614) 864-6400

Facsimile: (614) 729-7152

Email:       jibarra@rgbarry.com and

                ascarberry@rgbarry.com

	 	 	 	 	 
	 	LENDER:

The Huntington National Bank,

a national banking association

 	 
	 	By:  	/s/ Bud Ward
 	 
	 	 	Bud Ward, Senior Vice President 	 

Address:

41 South High Street, 8th Floor

Columbus, OH 43215

Attention: Bud Ward

Telephone: (614) 480-3412

Facsimile: (614) 480-3698

Email:       bud.ward@huntington.com

Signature Page to

Credit Agreement

 

 

 

SCHEDULE 1

LITIGATION AND CONTINGENT OBLIGATIONS

(See Section 5.7)

NONE

 

 

 

SCHEDULE 2

SUBSIDIARIES AND OTHER INVESTMENTS

(See Sections 5.8 and 6.15)

Subsidiaries

The Dearfoams Company, an Ohio corporation

Foot Petals, Inc., an Ohio corporation

RGB Technology, Inc., a North Carolina corporation

Each of these Subsidiaries is wholly-owned by Borrower

Cash Equivalents

Federated Money Market Accounts

ING Commercial Paper

 

 

 

SCHEDULE 3

INDEBTEDNESS AND LIENS

(See Sections 5.14, 6.11 and 6.16)

CSV LOAN — Secured by Pacific Life Insurance Policy VP 65141260

 

 

 

SCHEDULE 4

ADDRESSES OF REAL PROPERTY

OWNED OR LEASED BY THE BORROWER AND SUBSIDIARIES

(Landlord’s name in parentheses)

(See Section 5.14(iii))

13405 Yarmouth Road

Pickerington, OH 43147

3301 Barry Ave.

San Angelo, TX 76901

(HH Commercial Park, LTD,)

9 East 37th Street, 11th Floor

New York, NY 10016

( 9 East 37 Associates LLC)

206 Southwest 8th Street

Bentonville, AR 72712

(Harrison French Development)

194 Rock Road

Office 2nd Floor

Glen Rock, NJ 07452

(Auhanes Demirdjian)

6615 E. Pacific Coast Highway

Suite 150 of the 1st Floor

Long Beach, CA 90803

(MP Partners)

 

 

 

SCHEDULE 5

UNFUNDED LIABILITIES

(See Section 5.9)

Borrower maintains the R.G. Barry Associates Retirement Plan (the “Plan”), which is currently
frozen and no future benefits are accruing for its participants. As of January 31, 2011, the
Plan’s liabilities on a termination basis are equal to approximately $35.2 million, and the fair
market value of the Plan’s assets is approximately $25.3 million. The Unfunded Liabilities of the
Plan may fluctuate, depending on the future value of the Plan’s assets.

 

 

 

SCHEDULE 6

INTELLECTUAL PROPERTY PROCEEDINGS OR INTERFERENCE

(See Section 5.15)

NONE

 

 

 

EXHIBIT A

CLOSING AGENDA

[attached]

 

Exhibit A-1

 

CLOSING AGENDA

The Huntington National Bank

$10,000,000 Revolving Loan

and

$30,000,000 Term Loan

to

R.G. Barry Corporation

as of February 28, 2011

Parties List

	 	 	 

	HNB:

	 	The Huntington National Bank
	 

	 	Attention: Bud Ward, Senior Vice President
	 

	 	Phone: (614) 480-3412
	 

	 	Fax: (614) 306-6423
	 

	 	Email: bud.ward@huntington.com
	 
	 	 
	Borrower:

	 	R.G. Barry Corporation
	 

	 	      Attention:
	 

	 	      Phone:
	 

	 	      Fax:
	 

	 	      Email:
	 
	 	 
	SZD:

	 	Schottenstein, Zox & Dunn Co., L.P.A., counsel to HNB
	 

	 	Attention: John D. Robinett                Laura L. Hult
	 

	 	Phone: (614) 462-2218                       (614) 462-1109
	 

	 	Fax: (614) 222-3485                           (614) 222-3470
	 

	 	Email: jrobinett@szd.com                  lhult@szd.com
	 
	 	 
	VSSP:

	 	Vorys, Sater, Seymour and Pease LLP, counsel to Borrower
	 

	 	Attention: Thomas O. Ruby
	 

	 	Phone: (614) 464-5698
	 

	 	Fax: (614) 719-4934
	 

	 	Email: toruby@vorys.com

 

Exhibit A-2

 

	 	 	 	 	 	 	 	 	 
	 	 	Responsible	 	 	 
	Documents and Closing Items	 	Party	 	Status
	1 Credit Agreement
	 	SZD	 	Final
	a Exhibit A Closing Agenda
	 	SZD	 	Final
	b Exhibit B Compliance Certificate
	 	SZD	 	Final
	c Exhibit C Form of Revolving Credit Note
	 	SZD	 	Final
	d Exhibit D Form of Term Note
	 	SZD	 	Final
	e Disclosure Schedules
	 	VSSP/Borrower	 	Final
	2 Revolving Loan Note ($10,000,000)
	 	SZD	 	Final
	3 Term Note ($30,000,000)
	 	SZD	 	Final
	4 Due Diligence Questionnaire, together with requested items
	 	Form Prepared by	 	Received
	   
	 	SZD; Borrower to complete	 	 	 	 
	5 Legal Opinion
	 	VSSP	 	Draft 2/28 Approved
	6 Organizational Authority Documents (Borrower)
	 	 	 	 	 	 	 	 
	a Secretary Certificate
	 	VSSP/Borrower	 	Draft 2/25 Approved
	b Certificate of Incorporation
	 	VSSP/Borrower	 	Received
	c Code of Regulations
	 	VSSP/Borrower	 	Received
	d Corporate Resolutions
	 	VSSP/Borrower	 	Draft 2/25 Approved
	e Incumbency Certificate
	 	VSSP/Borrower	 	Draft 2/25 Approved
	f Good Standing Certificate
	 	VSSP/Borrower	 	Received
	7 Driver’s licenses
	 	Borrower	 	Received
	8 EINs
	 	Borrower	 	Received
	9 Certificates of Liability and Property Insurance
	 	Borrower	 	Received
	10 Flow of Funds
	 	TBD	 	 	 	 
	11 Term Loan Fee and Revolving Credit Loan Fee
	 	Borrower	 	To be paid
	12 Payment of HNB legal fees and out of pocket expenses
	 	Borrower	 	To be paid
	13 Additional Items
	 	VSSP/Borrowers	 	To be provided if
	   
	 	 	 	 	 	requested by HNB

 

Exhibit A-3

 

EXHIBIT B

FORM OF COMPLIANCE CERTIFICATE

[on following 2 pages]

 

Exhibit B-1

 

[to be on R.G. Barry Corporation letterhead]

[Date]

The Huntington National Bank

41 South High Street

Columbus, OH 43215

Attention: Bud Ward, Senior Vice President

RE: Loans under Credit Agreement dated March 1, 2011

Ladies and Gentlemen:

Reference is made to the above-referenced Credit Agreement, and capitalized terms used herein shall
have the meanings assigned to such terms in the Credit Agreement.

The undersigned, a duly authorized officer of R.G. Barry Corporation, the Borrower under the Credit
Agreement, hereby certifies that, as of the date of this Certificate, there exists no Default or
Unmatured Default under the Credit Agreement.

	 	 	 	 	 	 	 

	 	 	R.G. BARRY CORPORATION

	 	 
	 

	 	By:

Name:

Title:
	 	 
 

 
 

 
 

	 	   

 

Exhibit B-2

 

[to be on R.G. Barry Corporation letterhead]

[Date]

The Huntington National Bank

41 South High Street

Columbus, OH 43215

Attention: Bud Ward, Senior Vice President

RE: Loans under Credit Agreement dated March 1, 2011

Ladies and Gentlemen:

Reference is made to the above-referenced Credit Agreement, and capitalized terms used herein shall
have the meanings assigned to such terms in the Credit Agreement.

The undersigned, a duly authorized officer of R.G. Barry Corporation, the Borrower under the Credit
Agreement, hereby certifies that, as of the date of this Certificate:

The Fixed Charge Coverage Ratio for the period ending                     , 20_____, is _____:_____.

The Funded Debt Leverage Ratio, as of the last day of the period ending                     , 20_____,
is _____:_____.

[The Consolidated Net Worth, as of the last day of the period ending                     , 20_____, is
$                    .] [only include the bracketed language in the annual compliance certificate]

	 	 	 	 	 	 	 

	 	 	R.G. BARRY CORPORATION

	 	 
	 

	 	By:

Name:

Title:
	 	 
 

 
 

 
 

	 	   

 

Exhibit B-3

 

EXHIBIT C

FORM OF REVOLVING CREDIT NOTE

			
	 	 	 
	$10,000,000.00
	 	March 1, 2011

R. G. Barry Corporation, an Ohio corporation, and its successors and assigns (the “Borrower”),
promises to pay to the order of The Huntington National Bank (the “Lender”) the aggregate unpaid
principal amount of all Revolving Credit Loans made by the Lender to the Borrower pursuant to
Article II of the Agreement (as hereinafter defined), in immediately available funds at the main
office of the Lender in Columbus, Ohio, together with interest on the unpaid principal amount
hereof at the rates and on the dates set forth in the Agreement. The Borrower shall pay the
principal of and accrued and unpaid interest on the Revolving Credit Loans in full on the Revolving
Credit Termination Date or on such other date(s) as provided in the Agreement.

The Borrower agrees that all loan advances made by the Lender under this Note will be
evidenced by entries made by the Lender in its electronic data processing system and/or internal
memoranda maintained by the Lender. The Borrower further agrees that (i) the sum or sums shown on
the most recent printout from the Lender’s electronic data processing system and/or such memoranda
shall be rebuttably presumptive evidence of the amount of the principal sum and of the amount of
any accrued interest due hereon, provided, however, the failure of the Lender to make any such
entry(s) shall not affect the obligation of the Borrower to repay outstanding principal, interest
or any other amount due under this Note in accordance with the terms hereof, and (ii) such a
printout may be attached to this Note and shall be incorporated herein by reference as if fully
written herein.

This Note is one of the Notes issued pursuant to, and is entitled to the benefits of, the
Credit Agreement dated as of March 1, 2011 (which, as it may be amended, modified, supplemented,
extended, restated and replaced from time to time, is herein called the “Agreement”), between the
Borrower and the Lender, to which Agreement reference is hereby made for a statement of the terms
and conditions governing this Note, including the terms and conditions under which this Note may be
prepaid or its maturity date accelerated. Capitalized terms used herein and not otherwise defined
herein are used with the meanings attributed to them in the Agreement.

The Borrower, and any indorser, surety or guarantor, hereby severally waive presentment,
notice of dishonor, protest and notice of protest, and diligence in bringing suit against any party
hereto, and consent that, without discharging any of them, the time of payment may be extended an
unlimited number of times before or after maturity without notice.

 

Exhibit C-1

 

THE BORROWER AND THE LENDER HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING,
DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY
ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS NOTE OR ANY LOAN DOCUMENT OR THE RELATIONSHIP
ESTABLISHED HEREUNDER OR THEREUNDER.

	 	 	 	 	 	 	 

	 	 	BORROWER:	 	 
	 
	 	 
	 	 

    	R. G. Barry Corporation,

an Ohio corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Its:
	 	 
 

 
 

	 	  

 

Exhibit C-2

 

EXHIBIT D

FORM OF TERM NOTE

			
	 	 	 
	$30,000,000.00
	 	March 1, 2011

R. G. Barry Corporation, an Ohio corporation, and its respective successors and assigns (the
“Borrower”), promises to pay to the order of The Huntington National Bank (the “Lender”) the
aggregate unpaid principal amount of the Term Loan made by the Lender to the Borrower pursuant to
Article II of the Agreement (as hereinafter defined), in immediately available funds at the main
office of the Lender in Columbus, Ohio, together with interest on the unpaid principal amount
hereof at the rates set forth in the Agreement. The Borrower shall pay the principal of and
accrued and unpaid interest on the Term Loan on the dates set forth in the Agreement.

The Borrower agrees that all loan advances made by the Lender under this Note will be
evidenced by entries made by the Lender in its electronic data processing system and/or internal
memoranda maintained by the Lender. The Borrower further agrees that (i) the sum or sums shown on
the most recent printout from the Lender’s electronic data processing system and/or such memoranda
shall be rebuttably presumptive evidence of the amount of the principal sum and of the amount of
any accrued interest due hereon, provided, however, the failure of the Lender to make any such
entry(s) shall not affect the obligation of the Borrower to repay outstanding principal, interest
or any other amount due under this Note in accordance with the terms hereof, and (ii) such a
printout may be attached to this Note and shall be incorporated herein by reference as if fully
written herein.

This Note is one of the Notes issued pursuant to, and is entitled to the benefits of, the
Credit Agreement dated as of March 1, 2011 (which, as it may be amended, modified, supplemented,
extended, restated and replaced from time to time, is herein called the “Agreement”), between the
Borrower and the Lender, to which Agreement reference is hereby made for a statement of the terms
and conditions governing this Note, including the terms and conditions under which this Note may be
prepaid or its maturity date accelerated. Capitalized terms used herein and not otherwise defined
herein are used with the meanings attributed to them in the Agreement.

The Borrower, and any indorser, surety or guarantor, hereby severally waive presentment,
notice of dishonor, protest and notice of protest, and diligence in bringing suit against any party
hereto, and consent that, without discharging any of them, the time of payment may be extended an
unlimited number of times before or after maturity without notice.

 

Exhibit D-1

 

THE BORROWER AND THE LENDER HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING,
DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY
ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS NOTE OR ANY LOAN DOCUMENT OR THE RELATIONSHIP
ESTABLISHED HEREUNDER OR THEREUNDER.

	 	 	 	 	 	 	 

	 	 	BORROWER:	 	 
	 
	 	 	 	 	 	 
	 	 	R. G. Barry Corporation,

an Ohio corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 
 

	 	 
	 

	 	Its:
	 	 
 

	 	 

 

Exhibit D-2

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