Document:

Indenture, dated as of April 23, 2007.

 Exhibit 4.1 
 EXECUTION COPY 
  

 Energy Partners, Ltd., 
 Issuer 
 Senior Floating Rate Notes Due 2013 
 and

 9.75% Senior Notes Due 2014 
  

 INDENTURE 
 Dated as of April 23, 2007 
  

 U.S. Bank National Association 
 Trustee 
  

 CROSS-REFERENCE TABLE 
  

					
	 TIA SECTION
	  	 INDENTURE
SECTION

	310	 	 (a)(1)
	  	7.10
		 	 (a)(2)
	  	7.10
		 	 (a)(3)
	  	N.A.
		 	 (a)(4)
	  	N.A.
		 	 (a)(5)
	  	7.10
		 	 (b)
	  	7.08; 7.10
		 	 (c)
	  	N.A.
	311	 	 (a)
	  	7.11
		 	 (b)
	  	7.11
		 	 (c)
	  	N.A.
	312	 	 (a)
	  	2.05
		 	 (b)
	  	11.03
		 	 (c)
	  	11.03
	313	 	 (a)
	  	7.06
		 	 (b)(1)
	  	7.06
		 	 (b)(2)
	  	7.06
		 	 (c)
	  	11.02
		 	 (d)
	  	7.06
	314	 	 (a)
	  	4.02; 4.12; 11.02
		 	 (b)
	  	N.A.
		 	 (c)(1)
	  	2.02
		 	 (c)(2)
	  	2.02
		 	 (c)(3)
	  	N.A.
		 	 (d)
	  	N.A.
		 	 (e)
	  	11.05
		 	 (f)
	  	N.A.
	315	 	 (a)
	  	7.01
		 	 (b)
	  	7.05; 11.02
		 	 (c)
	  	7.01
		 	 (d)
	  	7.01
		 	 (e)
	  	6.11
	316	 	 (a)(last sentence)
	  	11.06
		 	 (a)(1)(A)
	  	6.05
		 	 (a)(1)(B)
	  	6.04
		 	 (a)(2)
	  	N.A.
		 	 (b)
	  	6.07
		 	 (c)
	  	N.A.
	317	 	 (a)(1)
	  	6.08
		 	 (a)(2)
	  	6.09
		 	 (b)
	  	2.04
	318	 	 (a)
	  	11.01
		 	 (b)
	  	N.A.
		 	 (c)
	  	N.A.

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

 -i- 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE
	  	1
	SECTION 1.01	  	 Definitions
	  	1
	SECTION 1.02	  	 Other Definitions
	  	29
	SECTION 1.03	  	 Incorporation by Reference of Trust Indenture Act
	  	29
	SECTION 1.04	  	 Rules of Construction
	  	30
		
	 ARTICLE II THE SECURITIES
	  	30
	SECTION 2.01	  	 Form and Dating
	  	30
	SECTION 2.02	  	 Execution and Authentication
	  	31
	SECTION 2.03	  	 Registrar and Paying Agent
	  	31
	SECTION 2.04	  	 Paying Agent To Hold Money in Trust
	  	32
	SECTION 2.05	  	 Securityholder Lists
	  	32
	SECTION 2.06	  	 Transfer and Exchange
	  	32
	SECTION 2.07	  	 Replacement Securities
	  	32
	SECTION 2.08	  	 Outstanding Securities
	  	33
	SECTION 2.09	  	 Temporary Securities
	  	33
	SECTION 2.10	  	 Cancellation
	  	33
	SECTION 2.11	  	 Defaulted Interest
	  	33
	SECTION 2.12	  	 CUSIP Numbers
	  	34
	SECTION 2.13	  	 Issuance of Additional Securities
	  	34
	SECTION 2.14	  	 Computation of Interest
	  	34
		
	 ARTICLE III REDEMPTION
	  	35
	SECTION 3.01	  	 Notices to Trustee
	  	35
	SECTION 3.02	  	 Selection of Securities To Be Redeemed
	  	36
	SECTION 3.03	  	 Notice of Redemption
	  	36
	SECTION 3.04	  	 Effect of Notice of Redemption
	  	37
	SECTION 3.05	  	 Deposit of Redemption Price
	  	37
	SECTION 3.06	  	 Securities Redeemed in Part
	  	37
		
	 ARTICLE IV COVENANTS
	  	37
	SECTION 4.01	  	 Payment of Securities
	  	37
	SECTION 4.02	  	 SEC Reports
	  	38
	SECTION 4.03	  	 Limitation on Indebtedness
	  	38
	SECTION 4.04	  	 [Reserved]
	  	40
	SECTION 4.05	  	 Limitation on Restricted Payments
	  	40
	SECTION 4.06	  	 Limitation on Restrictions on Distributions from Restricted Subsidiaries
	  	43
	SECTION 4.07	  	 Limitation on Sales of Assets and Subsidiary Stock
	  	45
	SECTION 4.08	  	 Limitation on Affiliate Transactions
	  	47
	SECTION 4.09	  	 Change of Control
	  	48
	SECTION 4.10	  	 Restricted and Unrestricted Subsidiaries
	  	50
	SECTION 4.11	  	 Limitation on Liens
	  	50

  

 -i- 

					
	 	  	 	  	Page
	SECTION 4.12	  	 Compliance Certificate
	  	51
	SECTION 4.13	  	 Further Instruments and Acts
	  	51
	SECTION 4.14	  	 Future Subsidiary Guarantors
	  	51
	SECTION 4.15	  	 Limitation on Line of Business
	  	51
		
	 ARTICLE V SUCCESSOR COMPANY
	  	51
	SECTION 5.01	  	 When Company May Merge or Transfer Assets
	  	51
	SECTION 5.02	  	 When Subsidiary Guarantors May Merge or Transfer Assets
	  	52
		
	 ARTICLE VI DEFAULTS AND REMEDIES
	  	53
	SECTION 6.01	  	 Events of Default
	  	53
	SECTION 6.02	  	 Acceleration
	  	55
	SECTION 6.03	  	 Other Remedies
	  	55
	SECTION 6.04	  	 Waiver of Past Defaults
	  	55
	SECTION 6.05	  	 Control by Majority
	  	55
	SECTION 6.06	  	 Limitation on Suits
	  	56
	SECTION 6.07	  	 Rights of Holders To Receive Payment
	  	56
	SECTION 6.08	  	 Collection Suit by Trustee
	  	56
	SECTION 6.09	  	 Trustee May File Proofs of Claim
	  	57
	SECTION 6.10	  	 Priorities
	  	57
	SECTION 6.11	  	 Undertaking for Costs
	  	57
	SECTION 6.12	  	 Waiver of Stay or Extension Laws
	  	57
		
	 ARTICLE VII TRUSTEE
	  	58
	SECTION 7.01	  	 Duties of Trustee
	  	58
	SECTION 7.02	  	 Rights of Trustee
	  	59
	SECTION 7.03	  	 Individual Rights of Trustee
	  	59
	SECTION 7.04	  	 Trustee’s Disclaimer
	  	59
	SECTION 7.05	  	 Notice of Defaults
	  	60
	SECTION 7.06	  	 Reports by Trustee to Holders
	  	60
	SECTION 7.07	  	 Compensation and Indemnity
	  	60
	SECTION 7.08	  	 Replacement of Trustee
	  	61
	SECTION 7.09	  	 Successor Trustee by Merger
	  	61
	SECTION 7.10	  	 Eligibility; Disqualification
	  	62
	SECTION 7.11	  	 Preferential Collection of Claims Against Company
	  	62
		
	 ARTICLE VIII DISCHARGE OF INDENTURE; DEFEASANCE
	  	62
	SECTION 8.01	  	 Discharge of Liability on Securities; Defeasance
	  	62
	SECTION 8.02	  	 Conditions to Defeasance
	  	63
	SECTION 8.03	  	 Application of Trust Money
	  	64
	SECTION 8.04	  	 Repayment to Company
	  	64
	SECTION 8.05	  	 Indemnity for Government Obligations
	  	64
	SECTION 8.06	  	 Reinstatement
	  	64

  

 -ii- 

					
	 	  	Page
	 ARTICLE IX AMENDMENTS
	  	65
	SECTION 9.01	  	 Without Consent of Holders
	  	65
	SECTION 9.02	  	 With Consent of Holders
	  	66
	SECTION 9.03	  	 Compliance with Trust Indenture Act
	  	66
	SECTION 9.04	  	 Revocation and Effect of Consents and Waivers
	  	66
	SECTION 9.05	  	 Notation on or Exchange of Securities
	  	67
	SECTION 9.06	  	 Trustee To Sign Amendments
	  	67
		
	 ARTICLE X SUBSIDIARY GUARANTEES
	  	67
	SECTION 10.01	  	 Subsidiary Guarantees
	  	67
	SECTION 10.02	  	 Limitation on Liability
	  	69
	SECTION 10.03	  	 Successors and Assigns
	  	69
	SECTION 10.04	  	 No Waiver
	  	69
	SECTION 10.05	  	 Modification
	  	69
	SECTION 10.06	  	 Release of Subsidiary Guarantor
	  	69
	SECTION 10.07	  	 Contribution among Subsidiaries
	  	70
		
	 ARTICLE XI MISCELLANEOUS
	  	70
	SECTION 11.01	  	 Trust Indenture Act Controls
	  	70
	SECTION 11.02	  	 Notices
	  	70
	SECTION 11.03	  	 Communication by Holders with Other Holders
	  	70
	SECTION 11.04	  	 Certificate and Opinion as to Conditions Precedent
	  	71
	SECTION 11.05	  	 Statements Required in Certificate or Opinion
	  	71
	SECTION 11.06	  	 When Securities Disregarded
	  	71
	SECTION 11.07	  	 Rules by Trustee, Paying Agent and Registrar
	  	72
	SECTION 11.08	  	 Legal Holidays
	  	72
	SECTION 11.09	  	 Governing Law
	  	72
	SECTION 11.10	  	 No Recourse Against Others
	  	72
	SECTION 11.11	  	 Successors
	  	72
	SECTION 11.12	  	 Multiple Originals
	  	72
	SECTION 11.13	  	 Table of Contents; Headings
	  	72
	SECTION 11.14	  	 Severability
	  	72

  

 -iii- 

 APPENDICES 
  

			
	 APPENDIX A
	  	Provisions Relating to the Floating Rate Notes, and Exchange Securities, Private Exchange Securities and Other Securities, related thereto
	 EXHIBIT 1 TO
 APPENDIX A
	  	Form of Floating Rate Notes
		
	 EXHIBIT 2 TO
 APPENDIX A
	  	Form of Fixed Rate Notes
		
	 APPENDIX B
	  	Form of Supplemental Indenture
		
	 APPENDIX C
	  	Form of Certificate from Acquiring Institutional Accredited Investor

  

 -iv- 

 INDENTURE dated as of April 23, 2007 among Energy Partners, Ltd., a Delaware corporation (the
“Company”), the Company’s subsidiaries signatory hereto (each, a “Subsidiary Guarantor” and, collectively, the “Subsidiary Guarantors”) and U.S. Bank National Association, as Trustee (the “Trustee”).

 The Company, the Subsidiary Guarantors and the Trustee agree as follows for the benefit of one another and for the equal and ratable
benefit of the Holders of the Company’s Senior Floating Rate Notes due 2013 (the “Floating Rate Notes”) and 9.75% Senior Notes due 2014 (the “Fixed Rate Notes”, and together with the Floating Rate Notes, the Initial
Securities, Exchange Securities and Private Exchange Securities (each as defined herein), collectively, the “Securities”): 
 ARTICLE I 
 DEFINITIONS AND INCORPORATION BY REFERENCE 
 SECTION 1.01 Definitions. 
 “Additional Assets” means 
 (a) any property or assets (other than Indebtedness and Capital Stock) in the Oil and Gas Business; 
 (b) 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 
 (c) Capital Stock constituting a minority interest in any Person that at such time is
a Restricted Subsidiary; 
 provided, however, that any such Restricted Subsidiary described in clause (b) or (c) above is
engaged in the Oil and Gas Business. 
 “Adjusted Consolidated Net Tangible Assets” or “ACNTA” means (without
duplication), as of the date of determination, 
 (a) the sum of: 
 (1) discounted future net revenue from proved crude oil and natural gas reserves of the Company and its Restricted Subsidiaries calculated
in accordance with SEC guidelines before any state or federal income taxes, as estimated in a reserve report prepared as of the end of the Company’s most recently completed fiscal year, which reserve report is prepared or reviewed by
independent petroleum engineers, as increased by, as of the date of determination, the discounted future net revenue of 
 (A) estimated proved crude oil and natural gas reserves of the Company and its Restricted Subsidiaries attributable to acquisitions consummated since the date of such year-end reserve report, and 
 (B) estimated crude oil and natural gas reserves of the Company and its Restricted Subsidiaries attributable to extensions, discoveries
and other additions and upward determinations of estimates of proved crude oil and natural gas reserves (including previously estimated development costs incurred during the period and the accretion of discount since the prior year end) due to

 
exploration, development or exploitation, production or other activities, which reserves were not reflected in such year-end reserve report, that would, in
the case of determinations made under clauses (A) and (B), in accordance with standard industry practice, result in such determinations, in each case calculated in accordance with SEC guidelines (utilizing the prices utilized in such
year-end reserve report), 
 and decreased by, as of the date of determination, the discounted future net revenue attributable to 
 (C) estimated proved crude oil and natural gas reserves of the Company and its Restricted Subsidiaries reflected in such year-end reserve
report produced or disposed of since the date of such year-end reserve report and 
 (D) reductions in the estimated crude
oil and natural gas reserves of the Company and its Restricted Subsidiaries reflected in such year-end reserve report since the date of such year-end reserve report attributable to downward determinations of estimates of proved crude oil and natural
gas reserves due to exploration, development or exploitation, production or other activities conducted or otherwise occurring since the date of such year-end reserve report that would, in the case of determinations made under clauses (C) and
(D), in accordance with standard industry practice, result in such determinations, in each case calculated in accordance with SEC guidelines (utilizing the prices utilized in such year-end reserve report); 
 provided, however, that, in the case of each of the determinations made under clauses (A) through (D), such increases and decreases will be as
estimated by the Company’s engineers, except that if as a result of such acquisitions, dispositions, discoveries, extensions or revisions, there is a Material Change that is an increase, then such increases and decreases in the discounted
future net revenue will be confirmed in writing by an independent petroleum engineer; 
 (2) the capitalized costs that are
attributable to crude oil and natural gas properties of the Company and its Restricted Subsidiaries to which no proved crude oil and natural gas reserves are attributed, based on the Company’s books and records as of a date no earlier than the
date of the Company’s latest annual or quarterly financial statements; 
 (3) the Net Working Capital on a date no
earlier than the date of the Company’s latest annual or quarterly financial statements; and 
 (4) the greater of
(I) the net book value on a date no earlier than the date of the Company’s latest annual or quarterly financial statements and (II) the appraised value, as estimated by independent appraisers, of other tangible assets of the Company
and its Restricted Subsidiaries as of a date no earlier than the date of the Company’s latest audited financial statements (provided that the Company will not be required to obtain such an appraisal of such assets if no such appraisal
has been performed); 
 minus 
 (b) to the extent not otherwise taken into account in the immediately preceding clause (a), the sum of: 
 (1) minority interests; 
  

 -2- 

 (2) any natural gas balancing liabilities of the Company and its Restricted Subsidiaries
reflected in the Company’s latest audited financial statements; 
 (3) the discounted future net revenue, calculated in
accordance with SEC guidelines (utilizing the same prices utilized in the Company’s year-end reserve report), attributable to reserves subject to participation interests, overriding royalty interests or other interests of third parties, under
participation, partnership, vendor financing or other agreements then in effect, or which otherwise are required to be delivered to third parties; 
 (4) the discounted future net revenue, calculated in accordance with SEC guidelines (utilizing the same prices utilized in the Company’s year-end reserve report), attributable to reserves that are required to be
delivered to third parties to fully satisfy the obligations of the Company and its Restricted Subsidiaries with respect to Volumetric Production Payments on the schedules specified with respect thereto; and 
 (5) the discounted future net revenue, calculated in accordance with SEC guidelines, attributable to reserves subject to
Dollar-Denominated Production Payments that, based on the estimates of production included in determining the discounted future net revenue specified in the immediately preceding clause (a)(1) (utilizing the same prices utilized in the
Company’s year-end reserve report), would be necessary to satisfy fully the obligations of the Company and its Restricted Subsidiaries with respect to Dollar-Denominated Production Payments on the schedules specified with respect thereto.

 If the Company changes its method of accounting from the successful efforts method to the full cost method or a similar method of accounting,
“ACNTA” will continue to be calculated as if the Company were 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 the purposes of this definition,
“control” when used with respect to any Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms
“controlling” and “controlled” have meanings correlative to the foregoing. For purposes of Sections 4.05 [Limitation on Restricted Payments], 4.07 [Limitation on Sales of Assets and Subsidiary Stock] and 4.08 [Limitation on
Affiliate Transactions] only, “Affiliate” will also mean any beneficial owner of Capital Stock representing 10% or more of the total voting power of the Voting Stock (on a fully diluted basis) of the Company or of rights or warrants to
purchase such Capital Stock (whether or not currently exercisable) and any Person who would be an Affiliate of any such beneficial owner under the first sentence hereof. 
 “Applicable Premium” means, with respect to any Security on any redemption date, prior to April 15, 2008 in the case of the Floating Rate Notes, and prior to April 15, 2011 in the case of the Fixed
Rate Notes, the greater of: 
 (a) 1.0% of the principal amount of such Security; and 
 (b) the excess, if any, of (x) the present value at such redemption date of (i) the redemption price of such Security at
April 15, 2008 (with respect to any Floating Rate Note) or 

  

 -3- 

 
April 15, 2011 (with respect to any Fixed Rate Note), plus (ii) all required interest payments due on such Security through April 15, 2008
(with respect to any Floating Rate Note, assuming that the rate of interest on the Floating Rate Notes for the period from the redemption date through April 15, 2008 will be equal to the rate of interest on the Floating Rate Notes in effect on
the date on which the applicable notice of redemption is given) or April 15, 2011 (with respect to any Fixed Rate Note) (excluding accrued but unpaid interest to the redemption date), computed using a discount rate equal to the Treasury Yield
as of such redemption date plus 50 basis points; over (y) the outstanding principal amount of such Security plus accrued and unpaid interest, if any, to the redemption date. 
 “Asset Disposition” means any sale, lease, transfer or other disposition (or series of related sales, leases, transfers or dispositions) by the
Company or any Restricted Subsidiary, including any disposition by means of a merger, consolidation or similar transaction (each referred to for the purposes of this definition as a “disposition”), of: 
 (a) any shares of Capital Stock of a Restricted Subsidiary (other than directors’ qualifying shares or shares required by applicable
law to be held by a Person other than the Company or a Restricted Subsidiary); 
 (b) all or substantially all the assets of
any division or line of business of the Company or any Restricted Subsidiary; or 
 (c) any other assets of the Company or any
Restricted Subsidiary outside of the ordinary course of business of the Company or such Restricted Subsidiary. 
 Notwithstanding the foregoing, none of the
following will be deemed to be an Asset Disposition: 
 (a) a disposition by a Restricted Subsidiary to the Company or by the
Company or a Restricted Subsidiary to another Restricted Subsidiary; 
 (b) for purposes of Section 4.07 [Limitation on
Sales of Assets and Subsidiary Stock] only, a disposition that constitutes a Restricted Payment permitted by Section 4.05 [Limitation on Restricted Payments], a disposition of all or substantially all the assets of the Company in compliance
with Section 5.01 [Merger and Consolidation] or a disposition that constitutes a Change of Control under clause (c) of the definition thereof; 
 (c) the sale or transfer (whether or not in the ordinary course of business) of crude oil and natural gas properties or direct or indirect
interests in real property; provided, however, that at the time of such sale or transfer such properties do not have associated with them any proved reserves; 
 (d) the abandonment, farm-out, lease or sublease of developed or undeveloped crude oil and natural gas properties in the ordinary course
of business; 
 (e) the trade or exchange by the Company or any Restricted Subsidiary of any crude oil and natural gas
property owned or held by the Company or such Restricted Subsidiary for (1) any crude oil and natural gas property owned or held by another Person or (2) the Capital Stock of another Person that becomes a Restricted Subsidiary as a result
of such trade or exchange and all or substantially all of whose assets consist of crude oil and natural gas properties, in either case including any cash or cash equivalents necessary in order to achieve an exchange of equivalent value;
provided, however, that the value of the property or Capital Stock received by 

  

 -4- 

 
the Company or any Restricted Subsidiary in such trade or exchange (including any cash or cash equivalents) is at least equal to the fair market value (as
determined in good faith by the Board of Directors or an Officer of the Company with responsibility for such transaction) of the property (including any cash or cash equivalents) so traded or exchanged; 
 (f) the sale or transfer of hydrocarbons or other mineral products or surplus or obsolete equipment in the ordinary course of business;

 (g) any sale, lease or other disposition of any individual assets or series of related sales, leases or other dispositions
where the cash proceeds and fair market value of non-cash proceeds do not exceed $1,000,000; or 
 (h) Production Payments and
Reserve Sales in connection with the acquisition of any crude oil and natural gas property after the Issue Date; provided that any such Production Payment and Reserve Sale is created, incurred, issued or assumed in connection with the
financing of, and within 90 days after the acquisition of, such oil and natural gas property. 
 “Attributable Debt” in respect of
a Sale/Leaseback Transaction means, as at the time of determination, the present value (discounted at the interest rate implicit in the Sale/Leaseback Transaction, compounded annually) of the total obligations of the lessee for rental payments
during the remaining term of the lease included in such Sale/Leaseback Transaction, including any period for which such lease has been extended; provided, however, that if such Sale/Leaseback Transaction results in a Capital Lease
Obligation, the amount of Indebtedness represented by such Sale/Leaseback Transaction will be determined in accordance with the definition of “Capital Lease Obligation.” 
 “Average Life” means, as of the date of determination, with respect to any Indebtedness or Preferred Stock, the quotient obtained by dividing

 (a) the sum of the products of the numbers of years from the date of determination to the dates of each successive
scheduled principal payment of such Indebtedness or redemption or similar payment with respect to such Preferred Stock multiplied by the amount of such payment, by 
 (b) the sum of all such payments. 
 “Board of Directors” means the Board of Directors of the Company or any committee thereof duly authorized to act on behalf of such Board. 
 “Business Day” means each day other than a Saturday, a Sunday or a day on which banking institutions are not required to be open in the State of New York or Texas. 
 “Capital Lease Obligation” means an obligation that is required to be classified and accounted for as a capital lease for financial reporting
purposes in accordance with GAAP, and the amount of Indebtedness represented by such obligation will be the capitalized amount of such obligation determined in accordance with GAAP; and the Stated Maturity thereof will be the date of the last
payment of rent or any other amount due under such lease prior to the first date upon which such lease may be terminated by the lessee without payment of a penalty. 
 “Capital Stock” of any Person means any and all shares, interests, rights to purchase, warrants, options, participations or other equivalents of or interests in, however designated, equity of such Person,
including any Preferred Stock, but excluding any debt securities convertible into such equity. 
  

 -5- 

 “Change of Control” means the occurrence of any of the following events: 
 (a) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the
beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that for purposes of this clause (a) such person will be deemed to have “beneficial ownership” of all shares that such person has the right to
acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of more than 50% of the total voting power of the Voting Stock of the Company (for the purposes of this clause (a), such person
will be deemed to beneficially own any Voting Stock of a specified corporation held by a parent corporation, if such person is the beneficial owner (as defined in this clause (a)), directly or indirectly, of more than 50% of the voting power of
the Voting Stock of such parent corporation); 
 (b) during any period of two consecutive years, individuals who at the
beginning of such period constituted the Board of Directors of the Company (together with any new directors whose election by such Board of Directors or whose nomination for election by the stockholders of the Company was approved by a vote of a
majority of the directors of the Company then still in office who were either directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the
Board of Directors then in office; or 
 (c) the stockholders of the Company have approved any plan of liquidation or
dissolution of the Company. 
 “Code” means the Internal Revenue Code of 1986, as amended. 
 “Company” means the party named as such in the preamble to this Indenture until a successor replaces it and, thereafter, means the successor
and, for purposes of any provision contained herein and required by the TIA, each other obligor on the indenture securities. 
 “Consolidated Coverage Ratio” as of any date of determination means the ratio of 
 (a) the aggregate
amount of EBITDA for the period of the most recent four consecutive fiscal quarters ending at least 45 days prior to the date of such determination, to 
 (b) Consolidated Interest Expense for such four fiscal quarters; provided, however, that: 
 (1) if the Company or any Restricted Subsidiary has Incurred any Indebtedness since the beginning of such period that remains outstanding or if the transaction giving rise to the need to calculate the Consolidated
Coverage Ratio is an Incurrence of Indebtedness, or both, EBITDA and Consolidated Interest Expense for such period will be calculated after giving effect on a pro forma basis to such Indebtedness as if such Indebtedness had been Incurred on the
first day of such period and the discharge of any other Indebtedness repaid, repurchased, defeased or otherwise discharged with the proceeds of such new Indebtedness as if such discharge had occurred on the first day of such period; 
 (2) if the Company or any Restricted Subsidiary has repaid, repurchased, defeased or otherwise discharged any Indebtedness since the
beginning of such period or if any Indebtedness is to be repaid, repurchased, defeased or otherwise discharged on the 

  

 -6- 

 
date of the transaction giving rise to the need to calculate the Consolidated Coverage Ratio, EBITDA and Consolidated Interest Expense for such period will
be calculated on a pro forma basis as if such discharge had occurred on the first day of such period and as if the Company or such Restricted Subsidiary has not earned the interest income actually earned during such period in respect of cash or
Temporary Cash Investments used to repay, repurchase, defease or otherwise discharge such Indebtedness; 
 (3) if since the
beginning of such period the Company or any Restricted Subsidiary has made any Asset Disposition, then EBITDA for such period will be reduced by an amount equal to EBITDA (if positive) directly attributable to the assets that are the subject of such
Asset Disposition for such period, or increased by an amount equal to EBITDA (if negative), directly attributable thereto for such period and Consolidated Interest Expense for such period will be reduced by an amount equal to the Consolidated
Interest Expense directly attributable to any Indebtedness of the Company or any Restricted Subsidiary repaid, repurchased, defeased or otherwise discharged with respect to the Company and its continuing Restricted Subsidiaries in connection with
such Asset Disposition for such period (or, if the Capital Stock of any Restricted Subsidiary is sold, the Consolidated Interest Expense for such period directly attributable to the Indebtedness of such Restricted Subsidiary to the extent the
Company and its continuing Restricted Subsidiaries are no longer liable for such Indebtedness after such sale); 
 (4) if
since the beginning of such period the Company or any Restricted Subsidiary (by merger or otherwise) has made an Investment in any Restricted Subsidiary (or any Person that becomes a Restricted Subsidiary) or an acquisition (including by way of
lease) of assets, including any acquisition of assets occurring in connection with a transaction requiring a calculation to be made hereunder, EBITDA and Consolidated interest Expense for such period will be calculated after giving pro forma effect
thereto (including the Incurrence of any Indebtedness) as if such Investment or acquisition occurred on the first day of such period; and 
 (5) if since the beginning of such period any Person (that subsequently became a Restricted Subsidiary or was merged with or into the Company or any Restricted Subsidiary since the beginning of such period) has made
any Asset Disposition, any Investment or acquisition of assets that would have required an adjustment under clause (3) or (4) above if made by the Company or a Restricted Subsidiary during such period, EBITDA and Consolidated Interest
Expense for such period will be calculated after giving pro forma effect thereto as if such Asset Disposition, Investment or acquisition occurred on the first day of such period. 
 For purposes of this definition, whenever pro forma effect is to be given to an acquisition of assets, the amount of income or earnings relating thereto and the amount of Consolidated Interest Expense associated with
any Indebtedness Incurred in connection therewith, the pro forma calculations will be determined in good faith by a responsible financial or accounting Officer of the Company. If any Indebtedness bears a floating rate of interest and is being given
pro forma effect, the interest on such Indebtedness will be calculated as if the rate in effect on the date of determination had been the applicable rate for the entire period (taking into account any Interest Rate Agreement applicable to such
Indebtedness, but if the remaining term of such Interest Rate Agreement is less than 12 months, then such Interest Rate Agreement will only be taken into account for that portion of the period equal to the remaining term of such agreement).

  

 -7- 

 The Consolidated Interest Expense attributable to interest on any Indebtedness under a revolving credit
facility, the outstanding principal balance of which is required to be computed on a pro forma basis in accordance with the foregoing, will be computed based on the average daily balance of such Indebtedness during the applicable period,
provided that such average daily balance will take into account the amount of any repayment of Indebtedness under such revolving credit facility during the applicable period, to the extent such repayment permanently reduced the commitments or
amounts available to be borrowed under such facility. 
 “Consolidated Interest Expense” means, for any period, the total interest
expense of the Company and its Restricted Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP, plus, to the extent not included in such total interest expense, and to the extent incurred by the Company or
its Restricted Subsidiaries, without duplication: 
 (a) interest expense attributable to Capital Lease Obligations and
imputed interest with respect to Attributable Debt; 
 (b) amortization of debt discount and debt issuance cost; 

(c) capitalized interest; 
 (d) non-cash interest expense; 
 (e) commissions, discounts and other fees and charges owed
with respect to letters of credit and bankers’ acceptance financing; 
 (f) net costs (including amortization of fees and
up-front payments) associated with Interest Rate Agreements that, at the time entered into, resulted in the Company and its Restricted Subsidiaries being net payees as to future payouts under such agreements, and Interest Rate Agreements for which
the Company or any of its Restricted Subsidiaries has paid a premium; 
 (g) dividends paid (excluding dividends paid in
shares of Capital Stock that is not Disqualified Stock) in respect of all Preferred Stock held by Persons other than the Company or a Wholly Owned Subsidiary; 
 (h) interest accruing on any Indebtedness of any other Person to the extent such Indebtedness is Guaranteed by, or secured by a Lien on
Property of, the Company or any Restricted Subsidiary (whether or not such Guarantee or Lien is called upon); 
 (i) interest
incurred in connection with Investments in discontinued operations; and 
 (j) cash contributions to any employee stock
ownership plan or similar trust to the extent such contributions are used by such plan or trust to pay interest or fees to any Person (other than the Company) in connection with Indebtedness Incurred by such plan or trust; 
 minus, to the extent included above, write-off of deferred financing costs and interest attributable to Dollar-Denominated Production Payments. 
  

 -8- 

 “Consolidated Net Income” means, for any period, the net income of the Company and its
Subsidiaries determined on a consolidated basis in accordance with GAAP; provided, however, that there will not be included in such Consolidated Net Income: 
 (a) any net income of any Person (other than the Company) if such Person is not a Restricted Subsidiary, except that: 
 (1) subject to the exclusion contained in clause (c) below, the Company’s equity in the net income of any such Person for
such period will be included in such Consolidated Net Income up to the aggregate amount of cash actually distributed by such Person during such period to the Company or a Restricted Subsidiary as a dividend, interest payment or other distribution
(subject, in the case of a dividend, interest payment or other distribution paid to a Restricted Subsidiary, to the limitations contained in clause (b) below); and 
 (2) the Company’s equity in a net loss of any such Person for such period will not be included in determining such Consolidated Net
Income, except to the extent of the aggregate cash actually contributed to such Person by the Company or a Restricted Subsidiary during such period; 
 (b) any net income of any Restricted Subsidiary if such Restricted Subsidiary is subject to restrictions, directly or indirectly, on the payment of dividends or the making of distributions by such Restricted
Subsidiary, directly or indirectly, to the Company, except that: 
 (1) subject to the exclusion contained in
clause (c) below, the equity in the net income of any such Restricted Subsidiary for such period will be included in such Consolidated Net Income up to the amount of cash permitted to be distributed by such Restricted Subsidiary during
such period to the Company or another Restricted Subsidiary as a dividend or other distribution (subject, in the case of a dividend or other distribution paid to another Restricted Subsidiary, to the limitation contained in this clause); and

 (2) the Company’s equity in a net loss of any such Restricted Subsidiary for such period will be included in
determining such Consolidated Net Income; 
 (c) any gain or loss realized upon the sale or other disposition of any assets of
the Company or its consolidated Subsidiaries (including any sale or disposition under any sale-and-leaseback arrangement) that is not sold or otherwise disposed of in the ordinary course of business and any gain or loss realized upon the sale or
other disposition of any Capital Stock of any Person; 
 (d) extraordinary, non-recurring or unusual gains or losses, together
with any related provision for taxes on such gains or losses and all related fees and expenses; 
 (e) any non-cash
compensation expense 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; 
 (f) any impairment losses on oil and natural gas properties; 
 (g) the cumulative effect of a change in accounting principles; and 
 (h) any unrealized non-cash gains or losses or charges in respect of Hedging Obligations. 
  

 -9- 

 Notwithstanding the foregoing, for the purposes of Section 4.05 [Limitation on Restricted Payments] only, there will
be excluded from Consolidated Net Income any dividends, interest payments, repayments of loans or advances or other transfers of assets from Unrestricted Subsidiaries to the Company or a Restricted Subsidiary to the extent such dividends, interest
payments, repayments or transfers increase the amount of Restricted Payments permitted under Section 4.05(a)(3)(E). 
 “Consolidated Net Worth” means the total of the amounts shown on the balance sheet of the Company and its Subsidiaries, determined on a consolidated basis in accordance with GAAP, as of the end of the most recent fiscal quarter of
the Company ending at least 45 days prior to the taking of any action for the purpose of which the determination is being made, as the sum of (a) the par or stated value of all outstanding Capital Stock of the Company plus
(b) paid-in capital or capital surplus relating to such Capital Stock plus (c) any retained earnings or earned surplus less (x) any accumulated deficit and (y) any amounts attributable to Disqualified Stock.

 “Credit Agreement” means that certain Credit Agreement, dated as of April 23, 2007, by and among the Company and Bank of
America, N.A. (or any successor thereto or replacement thereof), as administrative agent, letter of credit issuer and a bank, and the other lenders party thereto, as banks, 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, refinanced or increased in whole or in part from time to time. 
 “Credit Facilities” means, with respect to the Company or any Restricted Subsidiary, one or more debt facilities (including the Credit
Agreement) or commercial paper facilities with banks or other institutional lenders providing for revolving credit loans, term loans, receivables financing (including through the sale of receivables to such lenders or to special purpose entities
formed to borrow from such lenders against such receivables) or letters of credit, in each case, as amended, restated, modified, renewed, refunded, replaced or refinanced in whole or in part from time to time. 
 “Currency Agreement” means, in respect of a Person, any foreign exchange contract, currency swap agreement or other similar agreement designed
to protect such Person against fluctuations in currency values. 
 “Debt to BOE Ratio” means, with respect to any date of
determination, the ratio, as of the last day of the most recent fiscal quarter ending prior to such date of determination (a “Test Date”), of (A) the aggregate principal amount of Indebtedness of the Company and its Restricted
Subsidiaries outstanding as of such Test Date to (B) the aggregate number of barrels of oil equivalent, using the ratio of one barrel of crude oil or condensate to 6 Mcf of natural gas (“BOE”), of estimated proved crude oil and
natural gas reserves of the Company and its Restricted Subsidiaries, as estimated in the most recently prepared written report by a nationally recognized firm of independent petroleum engineers (the “Most Recent Reserve Report”) as
increased by the following occurring on or prior to the Test Date: 
 (a) estimated proved crude oil and natural gas reserves
acquired by the Company and its Restricted Subsidiaries since the date of the Most Recent Reserve Report; and 
 (b) estimated
crude oil and natural gas reserves attributable to extensions, discoveries and other additions and upward determinations of estimates of proved crude oil and natural gas reserves since the date of the Most Recent Reserve Report due to exploration,
development or exploitation, production or other activities, which reserves were not reflected in the Most Recent Report which would, in accordance with standard industry practice, result in such determinations, 

  

 -10- 

 
in each of cases (a) and (b), calculated in accordance with SEC guidelines (utilizing the prices utilized in the Most Recent Reserve Report), and
decreased by the following occurring on or prior to the Test Date: 
 (c) estimated proved crude oil and natural gas reserves
produced or disposed of since the date of the Most Recent Reserve Report; and 
 (d) reductions in the estimated oil and
natural gas reserves attributable to downward determinations of estimates of proved oil and natural gas reserves since the date of the Most Recent Reserve Report due to exploration, development or exploitation, production or other activities
conducted or otherwise occurring since the Most Recent Reserve Report or other factors which would, in accordance with standard industry practice, cause such determinations, 
 in each of cases (c) and (d) calculated in accordance with SEC guidelines (utilizing the prices utilized in the Most Recent Reserve Report); provided, however, that, in the case of each of the
determinations made pursuant to clauses (a) through (d), such increases and decreases shall be as estimated by the Company’s petroleum engineers, unless there is a 25% or greater change in BOE as a result of such acquisitions, dispositions
or revisions from the amount of BOE calculated in the Most Recent Reserve Report, in which case the estimated proved crude oil and natural gas reserves for purposes of this definition shall be confirmed in writing by a nationally recognized firm of
petroleum engineers (which may be the Company’s independent petroleum engineers who prepare the Company’s reserve reports). 
 “Default” means any event which is, or after notice or passage of time or both would be, an Event of Default. 
 “Disqualified Stock” means, with respect to any Person, any Capital Stock that by its terms, or by the terms of any security into which it is convertible or for which it is exchangeable, or upon the happening of any event:
(a) matures or is mandatorily redeemable under a sinking fund obligation or otherwise; (b) is convertible or exchangeable at the option of the holder thereof for Indebtedness or Disqualified Stock; or (c) is redeemable or
repurchasable, in whole or in part, at the option of the holder thereof; in each case on or prior to the first anniversary of the Stated Maturity of the Securities; provided, however, that any Capital Stock that would not constitute
Disqualified Stock but for provisions thereof giving holders thereof the right to require such Person to purchase or redeem such Capital Stock upon the occurrence of an “asset sale” or “change of control” occurring prior to the
Stated Maturity of the Securities will not constitute Disqualified Stock if: (x) the “asset sale” or “change of control” provisions applicable to such Capital Stock are not more favorable, as measured by the purchase or
redemption price or the breadth of the definition of the event or events triggering such purchase or redemption obligation to the holders of such Capital Stock than the provisions of Sections 4.07 [Limitation on Sales of Assets and Subsidiary
Stock] and 4.09 [Change of Control] and (y) any such requirement only becomes operative after compliance with such corresponding terms applicable to the Securities, including the purchase of any Securities tendered pursuant thereto. 

The amount of any Disqualified Stock that does not have a fixed redemption, repayment or repurchase price will be calculated in accordance with the terms of such
Disqualified Stock as if such Disqualified Stock were redeemed, repaid or repurchased on any date on which the amount of such Disqualified Stock is to be determined under the Indenture; provided, however, that if such Disqualified
Stock could not be required to be redeemed, repaid or repurchased at the time of such determination, the redemption, repayment or repurchase price will be the book value of such Disqualified Stock as reflected in the most recent financial statements
of such Person. 
  

 -11- 

 “Dollar-Denominated Production Payments” means production payment obligations recorded as
liabilities in accordance with GAAP, together with all undertakings and obligations in connection therewith. 
 “EBITDA” means,
with respect to any period, the Consolidated Net Income for such period: 
 (a) plus the sum of, to the extent
reflected in the consolidated income statement of the Company and its Restricted Subsidiaries for such period from which Consolidated Net Income is determined and deducted in the determination of such Consolidated Net Income, without duplication:

 (1) Consolidated Interest Expense; 
 (2) income tax expense; 
 (3) depreciation, depletion and amortization expense (excluding amortization expense attributable to a prepaid operating activity item that was paid in cash in the prior period); 
 (4) exploration expense; and 
 (5) all other non-cash charges including non-cash charges taken under FAS 133 (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 except such amounts as the Company determines in good faith are nonrecurring); 
 (b) less, to the extent included in the determination of such Consolidated Net Income and in excess of any costs or expenses attributable thereto and deducted in the determination of such Consolidated Net
Income, the sum of: 
 (1) the amount of deferred revenues that are amortized during such period and are attributable to
reserves that are subject to Volumetric Production Payments; and 
 (2) amounts recorded in accordance with GAAP as repayments
of principal and interest under Dollar-Denominated Production Payments. 
 Notwithstanding the foregoing, the provision for taxes based on the income or
profits of, and the depletion, depreciation, amortization and exploration and other non-cash charges of, a Restricted Subsidiary will be added to Consolidated Net Income to compute EBITDA only: 
 (1) to the extent (and in the same proportion) that the net income of such Restricted Subsidiary was included in the determination of
Consolidated Net Income; and 
 (2) if a corresponding amount would be permitted at the date of determination to be paid as a
dividend to the Company by such Restricted Subsidiary without prior approval (that has not been obtained), under the terms of its charter and all agreements, instruments, judgments, decrees, orders, statutes, rules and governmental regulations
applicable to such Restricted Subsidiary or its stockholders. 
  

 -12- 

 “Equity Offering” means: 
 (a) a primary offering of shares of common stock of the Company pursuant to an underwritten offering registered under the Securities Act,
other than an offering with respect to such common stock or options, warrants or rights to acquire same, registered on Form S-4 or Form S-8; or 
 (b) a private offering of shares of common stock of the Company so long as (i) such sale (together with any related transactions) does not give rise to a Change of Control and (ii) at the time of
consummation of the sale pursuant to such offering, the Company’s common stock continues to be registered pursuant to Section 12(b) or Section 12(g) under the Exchange Act. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 “Exchange Securities” means the debt securities of the Company issued under the Indenture in exchange for, and in an aggregate principal amount
equal to, the Securities, in compliance with the terms of the Registration Rights Agreement. 
 “Fair Market Value” means, with
respect to any non-cash consideration or property transferred or received by any Person, the fair market value of such consideration or property as determined by the Board of Directors of the Company. 
 “FAS 123R” means Financial Accounting Standards Board Statement No. 123 (R), as amended, “Share Based Payment.” 
 “FAS 133” means Financial Accounting Standards Board Statement No. 133, as amended, “Accounting for Derivative Instruments and
Hedging Activities.” 
 “GAAP” means generally accepted accounting principles in the United States of America as in effect on
the Issue Date, including those set forth in: (a) the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants; (b) statements and pronouncements of the Financial Accounting
Standards Board; (c) such other statements by such other entity as approved by a significant segment of the accounting profession; and (d) the rules and regulations of the SEC governing the inclusion of financial statements (including pro
forma financial statements) in periodic reports required to be filed under Section 13 of the Exchange Act, including opinions and pronouncements in staff accounting bulletins and similar written statements from the accounting staff of the SEC.

 “Guarantee” means, without duplication, any obligation, contingent or otherwise, of any Person directly or indirectly
guaranteeing any Indebtedness of any Person and any obligation, direct or indirect, contingent or otherwise, of such Person: (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness of such Person
(whether arising by virtue of partnership arrangements, or by agreements to keep-well, to purchase assets, goods, securities or services, to take-or-pay or to maintain financial statement conditions or otherwise); or (b) entered into for the
purpose of assuring in any other manner the obligee of such Indebtedness of the payment thereof or to protect such obligee against loss in respect thereof (in whole or in part); provided, however, that the term “Guarantee”
will not include endorsements for collection or deposit in the ordinary course of business. The term “Guarantee” used as a verb has a corresponding meaning. The term “Guarantor” will mean any Person Guaranteeing any obligation.

  

 -13- 

 “Guarantee Agreement” means a supplemental indenture, in a form satisfactory to the Trustee, by
which a Subsidiary Guarantor or any other Person becomes subject to the applicable terms and conditions of this Indenture. 
 “Hedging
Obligations” of any Person means the obligations of such Person under any Oil and Gas Hedging Contract, Interest Rate Agreement or Currency Agreement. 
 “Holder” or “Securityholder” or “Noteholder” means the Person in whose name a Security is registered on the Registrar’s books. 
 “Incur” means issue, assume, Guarantee, incur or otherwise become liable for; provided, however, that any Indebtedness or Capital
Stock of a Person existing at the time such Person becomes a Subsidiary (whether by merger, consolidation, acquisition or otherwise) will be deemed to be Incurred by such Subsidiary at the time it becomes a Subsidiary. The term
“Incurrence” when used as a noun will have a correlative meaning. The accretion of principal of a non-interest bearing or other discount security will not be deemed the Incurrence of Indebtedness. 
 “Indebtedness” means, with respect to any Person on any date of determination, without duplication: 
 (a) the principal of and premium, if any, in respect of 
 (1) indebtedness of such Person for money borrowed and 
 (2) indebtedness evidenced by notes, debentures, bonds or other similar instruments for the payment of which such Person is responsible or
liable; 
 (b) all Capital Lease Obligations of such Person and all Attributable Debt in respect of Sale/Leaseback
Transactions entered into by such Person; 
 (c) all obligations of such Person issued or assumed as the deferred purchase
price of property, which purchase price is due more than six months after the date of taking delivery of title to such property, including all obligations of such Person for the deferred purchase price of property under any title retention
agreement, but excluding trade accounts payable arising in the ordinary course of business; 
 (d) all obligations of such
Person for the reimbursement of any obligor on any letter of credit, banker’s acceptance or similar credit transaction (other than obligations with respect to letters of credit securing obligations (other than obligations described in
clauses (a) through (c) above) entered into in the ordinary course of business of such Person to the extent such letters of credit are not drawn upon or, if and to the extent drawn upon, such drawing is reimbursed no later than the
tenth Business Day following receipt by such Person of a demand for reimbursement following payment on the letter of credit); 
 (e) the amount of all obligations of such Person with respect to the redemption, repayment or other repurchase of any Disqualified Stock, but excluding any accrued dividends; 
 (f) any Preferred Stock of any Restricted Subsidiary; 
 (g) all obligations of the type referred to in clauses (a) through (f) above of other Persons and all dividends of other
Persons for the payment of which, in either case, such Person is responsible or liable, directly or indirectly, as obligor, guarantor or otherwise, including by means of any Guarantee; 
  

 -14- 

 (h) all obligations of the type referred to in clauses (a) through
(g) above of other Persons secured by any Lien on any Property of such first-mentioned Person, whether or not such obligation is assumed by such first-mentioned Person, the amount of such obligation being deemed to be the lesser of the value of
such Property or the amount of the obligation so secured; 
 (i) to the extent not otherwise included in this definition,
Hedging Obligations of such Person; and 
 (j) any Guarantee by such Person of production or payment with respect to a
Production Payment and Reserve Sale. 
 The amount of Indebtedness of any Person at any date will be the outstanding balance at such date of all
unconditional obligations as described above and the maximum liability, assuming the occurrence on such date of the contingency giving rise to the obligation, of any contingent obligations outstanding at such date. 
 None of the following will constitute Indebtedness: 
 (i) obligations for indemnification or adjustment of purchase price or arising from guarantees securing any obligations of the Company or any of its Subsidiaries incurred or assumed in connection with the disposition of any business, assets
or Subsidiary of the Company, other than guarantees or similar credit support by the Company or any of its Subsidiaries of Indebtedness incurred by any Person acquiring all or any portion of such business, assets or Subsidiary for the purpose of
financing such acquisition; 
 (ii) any trade payables or other similar liabilities to trade creditors and other accrued
current liabilities incurred in the ordinary course of business as the deferred purchase price of property; 
 (iii) any
liability for Federal, state, local or other taxes owed or owing by such Person; 
 (iv) amounts due in the ordinary course of
business to other royalty and working interest owners; 
 (v) obligations arising from guarantees to suppliers, lessors,
licensees, contractors, franchisees or customers incurred in the ordinary course of business; 
 (vi) obligations (other than
express Guarantees of indebtedness for borrowed money) in respect of Indebtedness of other Persons arising in connection with (A) the sale or discount of accounts receivable, (B) trade acceptances and (C) endorsements of instruments
for deposit in the ordinary course of business; 
 (vii) obligations in respect of performance bonds provided by the Company
or any of its Subsidiaries in the ordinary course of business and refinancing thereof; 
 (viii) obligations arising from the
honoring by a bank or other financial institution of a check, draft or similar instrument drawn against insufficient funds in the ordinary course of business, provided, however, that such obligation is extinguished within two Business
Days of its incurrence; 
  

 -15- 

 (ix) any obligations under workers’ compensation laws and similar legislation; and

 (x) except as expressly provided in clause (j) above, obligations relating to Production Payments and Reserve
Sales. 
 “Independent Qualified Party” means an investment banking firm, accounting firm or appraisal firm of national standing;
provided, however, that such firm is not an Affiliate of the Company. 
 “Indenture” means this Indenture as amended
or supplemented from time to time, including the provisions of the TIA that are deemed to be a part of and govern this Indenture and any supplemental indenture, respectively. 
 “Initial Securities” means (1) $150,000,000 aggregate principal amount of Senior Floating Rate Notes due 2013 and $300,000,000 aggregate
principal amount 9.75% Senior Notes due 2014 issued under this Indenture on the Issue Date and (2) Additional Securities, if any, issued in a transaction exempt from the registration requirements of the Securities Act. 
 “Interest Rate Agreement” means any interest rate swap agreement, interest rate cap agreement or other financial agreement or arrangement
designed to protect the Company or any Restricted Subsidiary against fluctuations in interest rates. 
 “Investment” in any Person
means any direct or indirect advance, loan (other than advances to customers or joint interest partners or drilling partnerships sponsored by the Company or any Restricted Subsidiary in the ordinary course of business that are recorded as accounts
receivable on the balance sheet of the lender) or other extensions of credit (including by way of Guarantee or similar arrangement) or capital contribution to (by means of any transfer of cash or other property to others or any payment for property
or services for the account or use of others), or any purchase or acquisition of Capital Stock, Indebtedness or other similar instruments issued by such Person. Except as otherwise provided for herein, the amount of an Investment will be its fair
value at the time the Investment is made and without giving effect to subsequent changes in value. 
 For purposes of the definition of
“Unrestricted Subsidiary,” the definition of “Restricted Payment” and Section 4.05 [Limitation on Restricted Payments]: 
 (a) “Investment” will include the portion (proportionate to the Company’s equity interest in such Subsidiary) of the Fair Market Value of the net assets of any Subsidiary of the Company at the time that
such Subsidiary is designated an Unrestricted Subsidiary; provided, however, that upon a redesignation of such Subsidiary as a Restricted Subsidiary, the Company will be deemed to continue to have a permanent “Investment” in
an Unrestricted Subsidiary equal to an amount (if positive) equal to (1) the Company’s “Investment” in such Subsidiary at the time of such redesignation less (2) the portion (proportionate to the Company’s equity
interest in such Subsidiary) of the Fair Market Value of the net assets of such Subsidiary at the time of such redesignation; and 
 (b) any property transferred to or from an Unrestricted Subsidiary will be valued at its Fair Market Value at the time of such transfer, in each case as determined in good faith by the Board of Directors. 
  

 -16- 

 “Issue Date” means the date on which the Securities are originally issued. 
 “LIBOR” with respect to any interest determination date, will be equal to the offered rate for deposits in United States dollars having an
index maturity of three months, in amounts of at least $1,000,000, as determined by the British Banker’s Association and listed on the Bloomberg L.P. service’s “BBAM; Official BBA LIBOR Fixings” page at approximately 11:00 a.m.,
London time, on such interest determination date. If no offered rate appears on the Bloomberg L.P. service’s “BBAM; Official BBA LIBOR Fixings” page, or if the service is not available on an interest determination date at
approximately 11:00 a.m., London time, then the Calculation Agent (after consultation with the Company) will select four major banks in the London interbank market and will request each of their principal London offices to provide a quotation of the
rate at which three-month deposits in the U.S. dollars of at least $1,000,000 are offered by it to prime banks in the London interbank market, on that date and at that time, that is representative of single transactions at that time. If at least two
quotations are provided, LIBOR will be the arithmetic average of the quotations provided. Otherwise, the Calculation Agent will select three major banks in New York City and shall request each of them to provide a quotation of the rate offered by
them at approximately 11:00 a.m., New York City time, on the interest determination date for loans in United States dollars to leading European banks having an index maturity of three months for the applicable interest period in an amount of at
least $1,000,000 that is representative of single transactions at that time. If three quotations are provided, LIBOR will be the arithmetic average of the quotations provided. Otherwise, the rate of LIBOR for the next interest period will be set
equal to the rate of LIBOR for the then current interest period. 
 “Lien” means any mortgage, pledge, security interest,
encumbrance, lien or charge of any kind, including any conditional sale or other title retention agreement or lease in the nature thereof. 
 “Material Change” means an increase or decrease (excluding changes that result solely from changes in prices and changes resulting from the incurrence of previously estimated future development costs) of more than 25% during a
fiscal quarter in the discounted future net revenues from proved crude oil and natural gas reserves of the Company and its Restricted Subsidiaries, calculated in accordance with clause (a)(1) of the definition of Adjusted Consolidated Net
Tangible Assets; provided, however, that the following will be excluded from the calculation of Material Change: 
 (a) any acquisitions during the fiscal quarter of oil and gas reserves that have been estimated by independent petroleum engineers and with respect to which a report or reports of such engineers exist; and 
 (b) any disposition of properties existing at the beginning of such fiscal quarter that have been disposed of in compliance with
Section 4.07 [Limitation on Sales of Assets and Subsidiary Stock]. 
 “Moody’s” means Moody’s Investor’s
Service, Inc. and its successors. 
 “Net Available Cash” from an Asset Disposition means cash payments received therefrom
(including any cash payments received by way of deferred payment of principal under a note or installment receivable or otherwise, but only as and when received, but excluding any other consideration received in the form of assumption by the
acquiring Person of Indebtedness or other obligations relating to such properties or assets or received in any other noncash form), in each case net of: 
 (a) all legal, title and recording tax expenses, commissions and other fees (including financial and other advisory fees) and expenses incurred, and all Federal, state, provincial, foreign and local taxes required to
be accrued as a liability under GAAP, as a consequence of such Asset Disposition; 
  

 -17- 

 (b) all payments made on any Indebtedness that is secured by any assets subject to such
Asset Disposition, in accordance with the terms of any Lien upon or other security agreement of any kind with respect to such assets, or that must by its terms, or in order to obtain a necessary consent to such Asset Disposition, or by applicable
law, be repaid out of the proceeds from such Asset Disposition; 
 (c) all distributions and other payments required to be
made to minority interest holders in Subsidiaries or joint ventures as a result of such Asset Disposition; and 
 (d) the
deduction of appropriate amounts provided by the seller as a reserve, in accordance with GAAP, against any liabilities associated with the property or other assets disposed of in such Asset Disposition and retained by the Company or any Restricted
Subsidiary after such Asset Disposition. 
 “Net Cash Proceeds,” with respect to any issuance or sale of Capital Stock, means the
cash proceeds of such issuance or sale net of attorneys’ fees, accountants’ fees, underwriters’ or placement agents’ fees, discounts or commissions and brokerage, consultant and other fees actually incurred in connection with
such issuance or sale and net of taxes paid or payable as a result thereof. 
 “Net Working Capital” means (a) all current
assets of the Company and its Restricted Subsidiaries; minus (b) all current liabilities of the Company and its Restricted Subsidiaries, except current liabilities included in Indebtedness and obligations under FAS 133 or FAS 123R; in
each case determined in accordance with GAAP. 
 “Non-recourse Purchase Money Indebtedness” means Indebtedness (other than Capital
Lease Obligations) of the Company or any Subsidiary Guarantor incurred in connection with the acquisition by the Company or such Subsidiary Guarantor in the ordinary course of business of fixed assets used in the Oil and Gas Business (including
office buildings and other real property used by the Company or such Subsidiary Guarantor in conducting its operations) with respect to which: 
 (a) the holders of such Indebtedness agree that they will look solely to the fixed assets so acquired that secure such Indebtedness, and neither the Company nor any Restricted Subsidiary (1) is directly or
indirectly liable for such Indebtedness or (2) provides credit support, including any undertaking, Guarantee, agreement or instrument that would constitute Indebtedness (other than the grant of a Lien on such acquired fixed assets); and

 (b) no default or event of default with respect to such Indebtedness would cause, or permit (after notice or passage of
time or otherwise), any holder of any other Indebtedness of the Company or a Subsidiary Guarantor to declare a default or event of default on such other Indebtedness or cause the payment, repurchase, redemption, defeasance or other acquisition or
retirement for value thereof to be accelerated or payable prior to any scheduled principal payment, scheduled sinking fund payment or maturity. 
 “Obligations” means, with respect to any Indebtedness, all obligations for principal, premium, interest, penalties, fees, indemnifications, reimbursements and other amounts payable pursuant to the documentation governing such
Indebtedness. 
  

 -18- 

 “Officer” means the Chairman of the Board, the President, any Vice President, the Treasurer,
any Assistant Treasurer, the Secretary or any Assistant Secretary of the Company. 
 “Officers’ Certificate” means a
certificate of the Company signed by two Officers. 
 “Oil and Gas Business” means (a) the acquisition, exploration,
exploitation, development, operation or disposition of interests in, or obtaining production from, oil, natural gas or other hydrocarbon properties; (b) the gathering, marketing, treating, processing (but not refining), storage, selling or
transporting of any production from such interests or properties; or (c) any activity that is ancillary, necessary or appropriate to facilitate, or that is incidental to, the activities described in clauses (a) and (b) of this
definition. 
 “Oil and Gas Hedging Contract” 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. 
 “Oil and Gas Liens”
means: 
 (a) Liens on any specific property or any interest therein, construction thereon or improvement thereto to secure
all or any part of the costs incurred for surveying, exploration, drilling, extraction, development, operation, production, construction, alteration, repair or improvement of, in, under or on such property and the plugging and abandonment of wells
located thereon (it being understood that, in the case of oil and gas producing properties, or any interest therein, costs incurred for “development” will include costs incurred for all facilities relating to such properties or to
projects, ventures or other arrangements of which such properties form a part or that relate to such properties or interests); 
 (b) Liens on an oil or gas producing property to secure obligations incurred or guarantees of obligations incurred in connection with or necessarily incidental to commitments for the purchase or sale of, or the transportation or
distribution of, the products derived from such property; 
 (c) Liens arising under partnership agreements, oil and gas
leases, overriding royalty agreements, net profits agreements, production payment agreements, royalty trust agreements, incentive compensation programs on terms that are reasonably customary in the Oil and Gas Business for geologists, geophysicists
and other providers of technical services to the Company or a Restricted Subsidiary, farm-out agreements, farm-in agreements, division orders, contracts for the sale, purchase, exchange, transportation, gathering or processing of oil, gas or other
hydrocarbons, unitizations and pooling designations, declarations, orders and agreements, development agreements, operating agreements, production sales contracts, area of mutual interest agreements, gas balancing or deferred production agreements,
injection, repressuring and recycling agreements, salt water or other disposal agreements, seismic or geophysical permits or agreements, and other agreements that are customary in the Oil and Gas Business; provided, however, that in
all instances such Liens are limited to the assets that are the subject of the relevant agreement, program, order or contract; 
 (d) Liens arising in connection with Production Payments and Reserve Sales; and 
 (e) Liens on pipelines or pipeline
facilities that arise by operation of law. 
  

 -19- 

 “Opinion of Counsel” means a written opinion from legal counsel who is acceptable to the
Trustee. The counsel may be an employee of or counsel to the Company or the Trustee. 
 “Permitted Business Investment” means any
investment or expenditure made in the ordinary course of, and of a nature that is or has become customary in, the Oil and Gas Business including investments or expenditures arising through agreements, transactions, interests or arrangements that
permit one to share risks or costs, comply with regulatory requirements regarding local ownership or satisfy other objectives customarily achieved through the conduct of Oil and Gas Business jointly with third parties, including: 
 (a) ownership interests in oil and gas properties, processing facilities, gathering systems, pipelines or ancillary real property
interests; and 
 (b) Investments in the form of or under operating agreements, processing agreements, farm-in agreements,
farm-out agreements, development agreements, area of mutual interest agreements, unitization agreements, pooling agreements, joint bidding agreements, service contracts, joint venture agreements, partnership agreements (whether general or limited),
subscription agreements, stock purchase agreements and other similar agreements (including for limited liability companies) with third parties, excluding, however, Investments in any corporation, partnership, limited liability company or any other
entity that is not a Restricted Subsidiary. 
 “Permitted Investment” means an Investment by the Company or any Restricted
Subsidiary in: 
 (a) a Restricted Subsidiary or a Person that will, upon the making of such Investment, become a Restricted
Subsidiary; provided, however, that the primary business of such Restricted Subsidiary is the Oil and Gas Business; 
 (b) another Person if as a result of such Investment such other Person is merged or consolidated with or into, or transfers or conveys all or substantially all its assets to, the Company or a Restricted Subsidiary; provided,
however, that such Person’s primary business is the Oil and Gas Business; 
 (c) Temporary Cash Investments;

 (d) receivables owing to the Company or any Restricted Subsidiary if created or acquired in the ordinary course of business
and payable or dischargeable in accordance with customary trade terms; provided, however, that such trade terms may include such concessionary trade terms as the Company or any such Restricted Subsidiary deems reasonable under the
circumstances; 
 (e) payroll, travel and similar advances to cover matters that are expected at the time of such advances
ultimately to be treated as expenses for accounting purposes and that are made in the ordinary course of business; 
 (f)
loans or advances to employees made in the ordinary course of business; 
 (g) stock, obligations or securities received in
settlement of debts created in the ordinary course of business and owing to the Company or any Restricted Subsidiary or in satisfaction of judgments; 
  

 -20- 

 (h) any Person to the extent such Investment represents the noncash portion of the
consideration received for an Asset Disposition as permitted under Section 4.07 [Limitation on Sales of Assets and Subsidiary Stock]; 
 (i) Permitted Business Investments; 
 (j) Investments made pursuant to Hedging Obligations of
the Company and the Restricted Subsidiaries; 
 (k) any Person where such Investment was acquired by the Company or any of its
Restricted Subsidiaries (1) in exchange for any other Investment or accounts receivable held by the Company or any such Restricted Subsidiary in connection with or as a result of a bankruptcy, workout, reorganization or recapitalization of the
issuer of such other Investment or accounts receivable or (2) as a result of a foreclosure by the Company or any of its Restricted Subsidiaries with respect to any secured Investment or other transfer of title with respect to any secured
Investment in default; and 
 (l) any Person, not otherwise permitted to be made under clause (a) through
(k) above, in an aggregate amount, which when taken together with all other Investments made on or after the Issue Date under this clause, does not exceed $20 million at any one time outstanding. 
 “Permitted Liens” means, with respect to any Person: 
 (a) Liens existing as of the Issue Date; 
 (b) Liens securing the Securities, any Subsidiary Guarantee and other obligations arising under this Indenture; 
 (c) any Lien existing on any Property of a Person at the time such Person is merged or consolidated with or into the Company or a Restricted Subsidiary or becomes a Restricted Subsidiary (and not incurred in
anticipation of or in connection with such transaction), provided that such Liens are not extended to other Property of the Company or the Restricted Subsidiaries; 
 (d) any Lien existing on any Property at the time of the acquisition thereof (and not incurred in anticipation of or in connection with
such transaction), provided that such Liens are not extended to other Property of the Company or the Restricted Subsidiaries; 
 (e) any Lien incurred in the ordinary course of business incidental to the conduct of the business of the Company or the Restricted Subsidiaries or the ownership of their property including 
 (1) easements, rights of way and similar encumbrances, 
 (2) rights or title of lessors under leases (other than Capital Lease Obligations), 
 (3) rights of collecting banks having rights of setoff, revocation, refund or chargeback with respect to money or instruments of the
Company or the Restricted Subsidiaries on deposit with or in the possession of such banks, 
  

 -21- 

 (4) Liens imposed by law, including Liens under workers’ compensation or similar
legislation and mechanics’, carriers’, warehousemen’s, materialmen’s, suppliers’ and vendors’ Liens, 
 (5) Liens incurred to secure performance of obligations with respect to statutory or regulatory requirements, performance or return-of-money bonds, surety bonds or other obligations of a like nature and incurred in a manner consistent with
industry practice, and 
 (6) Oil and Gas Liens, in each case which are not incurred in connection with the borrowing of
money, the obtaining of advances or credit or the payment of the deferred purchase price of property (other than trade accounts payable arising in the ordinary course of business); 
 (f) Liens for taxes, assessments and governmental charges not yet due or the validity of which are being contested in good faith by
appropriate proceedings, promptly instituted and diligently conducted, and for which adequate reserves have been established to the extent required by GAAP as in effect at such time; 
 (g) Liens incurred to secure appeal bonds and judgment and attachment Liens, in each case in connection with litigation or legal
proceedings that are being contested in good faith by appropriate proceedings, so long as reserves have been established to the extent required by GAAP as in effect at such time and so long as such Liens do not encumber assets by an aggregate amount
(together with the amount of any unstayed judgments against the Company or any Restricted Subsidiary but excluding any such Liens to the extent securing insured or indemnified judgments or orders) in excess of $5 million; 
 (h) Liens securing Hedging Obligations of the Company and its Restricted Subsidiaries; 
 (i) Liens securing Purchase Money Indebtedness or Capital Lease Obligations Incurred in accordance with this Indenture, provided
that such Liens attach only to the property acquired (or if such property is Capital Stock, to the assets of such Person as well as such Capital Stock) with the proceeds of such Purchase Money Indebtedness or the property that is the subject of such
Capital Lease Obligations; 
 (j) Liens securing Non-recourse Purchase Money Indebtedness granted in connection with the
acquisition by the Company or any Restricted Subsidiary in the ordinary course of business of fixed assets used in the Oil and Gas Business (including the office buildings and other real property used by the Company or such Restricted Subsidiary in
conducting its operations), provided that 
 (1) such Liens attach only to the fixed assets acquired with the proceeds
of such Non-recourse Purchase Money Indebtedness and 
 (2) such Non-recourse Purchase Money Indebtedness is not in excess of
the purchase price of such fixed assets; 
 (k) Liens resulting from the deposit of funds or evidences of Indebtedness in
trust for the purpose of decreasing or legally defeasing Indebtedness of the Company or any Restricted 

  

 -22- 

 
Subsidiary so long as such deposit of funds is permitted under Section 4.05 [Limitation on Restricted Payments]; 
 (l) Liens resulting from a pledge of Capital Stock of a Person that is not a Restricted Subsidiary to secure obligations of such Person
and any refinancings thereof; 
 (m) Liens securing Obligations permitted to be Incurred under paragraph b(1) of
Section 4.03 [Limitation on Indebtedness]; 
 (n) Liens to secure any permitted extension, renewal, refinancing,
refunding or exchange (or successive extensions, renewals, refinancings, refundings or exchanges), in whole or in part, of or for any Indebtedness secured by Liens referred to in clauses (a), (b), (c), (d), (i), (j) and (m) above;
provided, however, that 
 (1) such new Lien must be limited to all or part of the same property (including
future improvements thereon and accessions thereto) subject to the original Lien, and 
 (2) the Indebtedness secured by such
Lien at such time is not increased to any amount greater than the sum of 
 (A) the outstanding principal amount or, if
greater, the committed amount of the Indebtedness secured by such original Lien immediately prior to such extension, renewal, refinancing, refunding or exchange and 
 (B) an amount necessary to pay any fees and expenses, including premiums, related to such refinancing, refunding, extension, renewal or
replacement; and 
 (o) Liens in favor of the Company or a Restricted Subsidiary; and 
 (p) Liens securing any Indebtedness permitted to be Incurred under Section 4.03 [Limitations on Indebtedness]; provided that
at the time any such Lien is Incurred, the aggregate Indebtedness secured by all such Liens under this clause (p) does not exceed 10% of ACNTA. 
 Notwithstanding anything in this definition to the contrary, the term “Permitted Liens” will not include Liens resulting from the creation, incurrence, issuance or assumption of any Production Payments and Reserved Sales other
than 
 (1) any such Liens existing as of the Issue Date; 
 (2) Production Payments and Reserve Sales in connection with the acquisition of any Property after the Issue Date; provided that
any such Lien created in connection therewith is created, incurred, issued, or assumed in connection with the financing of, and within 90 days after the acquisition of, such Property; and 
 (3) Production Payments and Reserve Sales other than those described in clauses (1) and (2) above, to the extent such
Production Payments and Reserve Sales constitute Asset Dispositions made pursuant to and in compliance with Section 4.07 [Limitation on Sales of Assets and Subsidiary Stock]; 
  

 -23- 

 provided, however, that, in the case of the immediately foregoing clauses (1), (2) and (3), any
Lien created in connection with any such Production Payments and Reserve Sales must be limited to the Property that is the subject of such Production Payments and Reserve Sales. 
 “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. 
 “Preferred Stock,”
as applied to the Capital Stock of any Person, means Capital Stock of any class or classes, however designated, that ranks prior, as to the payment of dividends or distributions, or as to the distribution of assets upon any voluntary or involuntary
liquidation, dissolution or winding up of such Person, to shares of Capital Stock of any other class of such Person. 
 The term
“principal” of a Security means the principal of the Security plus the premium, if any, payable on the Security that is due or overdue or is to become due at the relevant time. 
 “Private Exchange Securities” means any Senior Floating Rate Notes due 2013 or 9.75% Senior Notes Due 2014, as the case may be, issued in
connection with a Private Exchange. 
 “Production Payments and Reserve Sales” means the grant or transfer by the Company or a
Restricted Subsidiary to any Person of a royalty, overriding royalty, net profits interest or production payment (whether volumetric or dollar denominated) in oil and natural gas properties, reserves or the right to receive all or a portion of the
production or the proceeds from the sale of production attributable to such properties where the holder of such interest has recourse solely to such production or proceeds of production, subject to the obligation of the grantor or transferor to
operate and maintain, or cause the subject interests to be operated and maintained, in a reasonably prudent manner or other customary standard or subject to the obligation of the grantor or transferor to indemnify for environmental, title or other
matters customary in the Oil and Gas Business. 
 “Property” means, for any Person, any interest of such Person in any kind of
property or asset, whether real, personal or mixed, or tangible or intangible, including Capital Stock and other securities issued by any other Person (but excluding Capital Stock or other securities issued by such first mentioned Person).

 “Purchase Money Indebtedness” means any Indebtedness Incurred in connection with the acquisition, construction or improvement of
property (real or personal) or assets, and whether acquired through the direct acquisition of such property or assets or the acquisition of the Capital Stock or other equity interests of any Person owning such property or assets, or otherwise.

 “Refinance” means, in respect of any Indebtedness, to refinance, extend, renew, refund, repay, prepay, redeem, defease or
retire, or to issue other Indebtedness in exchange or replacement for, such Indebtedness. “Refinanced” and “Refinancing” will have correlative meanings. 
 “Refinancing Indebtedness” means Indebtedness that Refinances any Indebtedness of the Company or any Restricted Subsidiary existing on the
Issue Date or Incurred in compliance with the Indenture, including Indebtedness that Refinances Refinancing Indebtedness; provided, however, that 
 (a) such Refinancing Indebtedness has a Stated Maturity no earlier than the Stated Maturity of the Indebtedness being Refinanced,

  

 -24- 

 (b) such Refinancing Indebtedness has an Average Life at the time such Refinancing
Indebtedness is Incurred that is equal to or greater than the Average Life of the Indebtedness being Refinanced, 
 (c) such
Refinancing Indebtedness has an aggregate principal amount (or if Incurred with original issue discount, an aggregate issue price) that is equal to or less than the aggregate principal amount (or if Incurred with original issue discount, the
aggregate accreted value) then outstanding or committed (plus fees and expenses, including any premium and defeasance costs) under the Indebtedness being Refinanced, and 
 (d) if the Indebtedness being Refinanced is Non-recourse Purchase Money Indebtedness, such Refinancing Indebtedness satisfies
clauses (a) and (b) of the definition of “Non-recourse Purchase Money Indebtedness”; 
 provided further, however,
that Refinancing Indebtedness will not include (x) Indebtedness of a Subsidiary that Refinances Indebtedness of the Company or (y) Indebtedness of the Company or a Restricted Subsidiary that Refinances Indebtedness of an Unrestricted
Subsidiary. 
 “Registration Rights Agreement” means the Registration Rights Agreement dated as of the date hereof among the
Company and the Banc of America Securities LLC, BNP Paribas Securities Corp., Merrill Lynch, Pierce, Fenner & Smith Incorporated, UBS Securities LLC, BMO Capital Markets Corp., Calyon Securities (USA) Inc., Piper Jaffray & Co,
Scotia Capital (USA) Inc., Friedman, Billings, Ramsey & Co., Inc., Johnson Rice & Company L.L.C. and SG Americas Securities, LLC, and any similar agreement entered into in connection with the issuance of Additional Notes.

 “Restricted Payment” with respect to any Person means: 
 (a) the declaration or payment of any dividends or any other distributions of any sort in respect of its Capital Stock (including any
payment in connection with any merger or consolidation involving such Person) or similar payment to the direct or indirect holders of its Capital Stock (other than (1) dividends or distributions payable solely in its Capital Stock (other than
Disqualified Stock), (2) dividends or distributions payable solely to the Company or a Restricted Subsidiary, and (3) pro rata dividends or other distributions made by a Subsidiary that is not a Wholly Owned Subsidiary to minority
stockholders (or owners of an equivalent interest in the case of a Subsidiary that is an entity other than a corporation)); 
 (b) the purchase, redemption or other acquisition or retirement for value of any Capital Stock of the Company held by any Person or of any Capital Stock of a Restricted Subsidiary held by any Affiliate of the Company (other than a
Restricted Subsidiary), including the exercise of any option to exchange any Capital Stock (other than into Capital Stock of the Company that is not Disqualified Stock); 
 (c) the purchase, repurchase, redemption, defeasance or other acquisition or retirement for value, prior to scheduled maturity, scheduled
repayment or scheduled sinking fund payment of any Subordinated Obligations of such Person (other than the purchase, repurchase or other acquisition of Subordinated Obligations purchased in anticipation of satisfying a sinking fund obligation,
principal installment or final maturity, in each case due within one year of the date of acquisition); or 
 (d) the making of
any Investment (other than a Permitted Investment) in any Person. 
  

 -25- 

 “Restricted Subsidiary” means any Subsidiary of the Company that is not an Unrestricted
Subsidiary. 
 “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Company, Inc., and
its successors. 
 “Sale/Leaseback Transaction” means an arrangement relating to property owned on the Issue Date or thereafter
acquired whereby the Company or a Restricted Subsidiary transfers such property to a Person and the Company or a Restricted Subsidiary leases it from such Person. 
 “SEC” means the Securities and Exchange Commission. 
 “Secured Indebtedness” means any
Indebtedness of the Company or of any Subsidiary secured by a Lien. 
 “Senior Indebtedness” means with respect to any Person:

 (a) Indebtedness of such Person, whether outstanding on the Issue Date or thereafter Incurred; and 
 (b) all other Obligations of such Person, including interest accruing on or after the filing of any petition in bankruptcy or for
reorganization relating such Person to the extent post-filing interest is allowed in such proceeding, in respect of Indebtedness described in clause (a) above; 
 unless, with respect to obligations described in the immediately preceding clause (a) or (b), in the instrument creating or evidencing the same or under which the same is outstanding, it is provided
that such Indebtedness or other Obligations are subordinate in right of payment to the Securities or the applicable Subsidiary Guarantee; provided, however, that Senior Indebtedness will not include: 
 (a) any Obligation of such Person to any Subsidiary of such Person; 
 (b) any liability for Federal, state, local or other taxes owed or owing by such Person; 
 (c) any accounts payable or other liability to trade creditors arising in the ordinary course of business, including guarantees thereof or
instruments evidencing such liabilities; 
 (d) any Indebtedness or other Obligations of such Person, and any accrued and
unpaid interest in respect thereof, that is subordinate or junior in any respect to any other Indebtedness or other Obligation of such Person; 
 (e) Subordinated Obligations; 
 (f) that portion of any Indebtedness that at the time of
Incurrence is Incurred in violation of this Indenture (other than, in the case of the Company or any Subsidiary Guarantor that Guarantees or is an obligor under any Credit Facility, Indebtedness under any Credit Facility that is Incurred on the
basis of a representation by the Company or the applicable Subsidiary Guarantor to the applicable lenders that such Person is permitted to Incur such Indebtedness under this Indenture); or 
  

 -26- 

 (g) any Disqualified Stock or obligations with respect to any Capital Stock. 

“Significant Subsidiary” means any Restricted Subsidiary that would be a “Significant Subsidiary” of the Company within the
meaning of Rule 1-02 under Regulation S-X promulgated by the SEC. 
 “Stated Maturity” means, with respect to any
security or obligation, the date specified in such security or obligation as the fixed date on which the final payment of principal of such security or payment on such obligation is due and payable, including under any mandatory redemption provision
(but excluding any provision providing for the repurchase of such security or obligation, at the option of the holder thereof upon the happening of any contingency unless such contingency has occurred). 
 “Subordinated Obligation” means any Indebtedness of the Company or any Subsidiary Guarantor, whether outstanding on the Issue Date or
thereafter Incurred, that is subordinate or junior in right of payment to, in the case of the Company, the Securities or, in the case of a Subsidiary Guarantor, its Subsidiary Guarantee under a written agreement to that effect. 
 “Subsidiary” means, in respect of any Person, any corporation, association, partnership or other business entity of which more than 50% of the
total voting power of shares of Capital Stock or other interests (including partnership interests) entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned
or controlled, directly or indirectly, by (a) such Person, (b) such Person and one or more Subsidiaries of such Person or (c) one or more Subsidiaries of such Person. 
 “Subsidiary Guarantee” means a Guarantee by a Subsidiary Guarantor of the Company’s obligations with respect to the Securities.

 “Subsidiary Guarantor” means each Subsidiary of the Company that executes this Indenture as a guarantor and each other
Subsidiary of the Company that thereafter Guarantees the Securities under the terms of this Indenture, in each case unless and until such Subsidiary is released from its obligations under its Subsidiary Guarantee in accordance with the terms of this
Indenture. Initially, the Subsidiary Guarantors will be EPL Pipeline, L.L.C., EPL of Louisiana, L.L.C., Delaware EPL of Texas, LLC, and EPL Pioneer Houston, Inc. 
 “Temporary Cash Investments” means any of the following: 
 (a) Investments in U. S.
Government Obligations maturing within one year of the date of the acquisition thereof; 
 (b) Investments in (1) time
deposit accounts, certificates of deposit and money market deposits maturing within one year of the date of acquisition thereof issued by a bank or trust company that is organized under the laws of the United States of America or any state thereof
or the District of Columbia that is a member of the Federal Reserve System and which bank or trust company has capital, surplus and undivided profits aggregating in excess of $250 million and whose long-term debt is rated “A” (or such
similar equivalent rating) or higher by Moody’s or S&P or (2) any money-market fund having assets in excess of $500 million all of which consist of obligations of the types described in clauses (a), (b), (c), (d) and
(e) hereof; 
  

 -27- 

 (c) repurchase obligations with a term of not more than 30 days for underlying securities
of the types described in clause (a) above entered into with a bank meeting the qualifications described in clause (b) above; 
 (d) Investments in commercial paper, maturing not more than one year after the date of acquisition, issued by a Person (other than an Affiliate of the Company) organized and in existence under the laws of the United
States of America with a rating at the time as of which any investment therein is made of “P-1” (or higher) according to Moody’s or “A-1” (or higher) according to S&P; and 
 (e) Investments in securities with maturities of six months or less from the date of acquisition issued or fully guaranteed by any state,
commonwealth or territory of the United States of America, or by any political subdivision or taxing authority thereof, and rated at least “A” by S&P or “A” by Moody’s. 
 “TIA” means the Trust Indenture Act of 1939, as amended (15 U.S.C. Sections 77aaa-77bbbb), as in effect on the date of this Indenture
except as provided in Section 9.03; provided, however, that in the event the Trust Indenture Act of 1939 is amended after such date, “TIA” means, to the extent required by any such amendments, the Trust Indenture
Act of 1939 as so amended. 
 “Treasury Yield” means, as of any redemption date, the yield to maturity as of such redemption date
of United States Treasury securities with a constant maturity (as compiled and published in the most recent Federal Reserve Statistical Release H.15 (519) that has become publicly available at least two Business Days prior to the redemption
date (or, if such Statistical Release is no longer published, any publicly available source of similar market date)) most nearly equal to the period from the redemption date to April 15, 2008 (in the case of Floating Rate Notes) or
April 15, 2011 (in the case of Fixed Rate Notes); provided, however, that if the period from the redemption date to April 15, 2008 (in the case of Floating Rate Notes) or April 15, 2011 (in the case of Fixed Rate Notes)
is less than one year, the weekly average yield on actually traded United States Treasury securities adjusted to a constant maturity of one year will be used. 
 “Trustee” means the party named as such in the preamble to this Indenture until a successor replaces it and, thereafter, means the successor. 
 “Trust Officer” means the Chairman of the Board, the President or any other officer or assistant officer of the Trustee assigned by the Trustee
to administer this Indenture. 
 “Uniform Commercial Code” means the New York Uniform Commercial Code as in effect from time to
time. 
 “Unrestricted Subsidiary” means: 
 (a) any Subsidiary of the Company that at the time of determination will be designated an Unrestricted Subsidiary by the Board of
Directors in the manner provided below; and 
 (b) any Subsidiary of an Unrestricted Subsidiary. 
 The Board of Directors may designate any Subsidiary of the Company, including any newly acquired or newly formed Subsidiary, to be an Unrestricted Subsidiary in the
manner and subject to the conditions set forth in Section 4.10 [Restricted and Unrestricted Subsidiaries]. 
  

 -28- 

 “U.S. Government Obligations” means direct obligations, or certificates representing an
ownership interest in such obligations, of the United States of America (including any agency or instrumentality thereof) for the payment of which the full faith and credit of the United States of America is pledged and that are not callable at the
issuer’s option. 
 “Volumetric Production Payments” means production payment obligations recorded as deferred revenue in
accordance with GAAP, together with all undertakings and obligations in connection therewith. 
 “Voting Stock” of a Person means
all classes of Capital Stock or other interests (including partnership interests) of such Person then outstanding and normally entitled, without regard to the occurrence of any contingency, to vote in the election of directors, managers or trustees
thereof. 
 “Wholly Owned Subsidiary” means a Restricted Subsidiary all the Capital Stock of which (other than directors’
qualifying shares) is owned by the Company or one or more Wholly Owned Subsidiaries. 
 SECTION 1.02 Other Definitions. 
  

				
	 TERM
	  	DEFINED IN
SECTION	 
	 “Additional Securities”
	  	2.13	 
	 “Affiliate Transaction”
	  	4.08	(a)
	 “Bankruptcy Law”
	  	6.01	 
	 “Calculation Agent”
	  	2.14	 
	 “covenant defeasance option”
	  	8.01	(b)
	 “Custodian”
	  	6.01	 
	 “Daily Interest Amount”
	  	2.14	 
	 “Event of Default”
	  	6.01	 
	 “Guaranteed Obligations”
	  	10.01	 
	 “Legal defeasance option”
	  	8.01	(b)
	 “Legal Holiday”
	  	11.08	 
	 “Notice of Default”
	  	6.01	 
	 “Paying Agent”
	  	2.03	 
	 “Registrar”
	  	2.03	 
	 “Securities”
	  	Preamble	 
	 “Successor Company”
	  	5.01	(a)

 Terms not defined herein but defined in Appendix A shall have the meaning set forth therein.

 SECTION 1.03 Incorporation by Reference of Trust Indenture Act. 
 This Indenture is subject to the mandatory provisions of the TIA, which are incorporated by reference in and made a part of this Indenture. The following TIA terms have the following meanings: 
 “Commission” means the SEC. 
 “indenture securities” means the Securities. 
  

 -29- 

 “indenture security holder” means a Securityholder. 
 “indenture to be qualified” means this Indenture. 
 “indenture trustee” or “institutional trustee” means the Trustee. 
 “obligor”
on the indenture securities means the Company and any other obligor on the indenture securities. 
 All other TIA terms used in this
Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule have the meanings assigned to them by such definitions. 
 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 unless the context otherwise requires; 
 (d) “including” means
including without limitation; 
 (e) words in the singular include the plural and words in the plural include the singular;

 (f) unsecured Indebtedness shall not be deemed to be subordinate or junior to Secured Indebtedness merely by virtue of its
nature as unsecured Indebtedness; 
 (g) the principal amount of any noninterest bearing or other discount security at any
date shall be the principal amount thereof that would be shown on a balance sheet of the Company dated such date prepared in accordance with GAAP; and 
 (h) the principal amount of any Preferred Stock shall be (1) the maximum liquidation value of such Preferred Stock or (2) the maximum mandatory redemption or mandatory repurchase price with respect to such
Preferred Stock, whichever is greater. 
 ARTICLE II 
 THE SECURITIES 
 SECTION 2.01 Form and Dating. 
 Provisions relating to the Initial Securities, the Private Exchange Securities and the Exchange Securities are set forth in Appendix A hereto which
is hereby incorporated in and expressly made part of this Indenture. The Initial Securities and the Trustee’s certificate of authentication shall be substantially in the form of Exhibit 1 of Appendix A hereto with respect to the Fixed
Rate Notes, and Exhibit 2 of Appendix A hereto with respect to the Floating Rate Notes, which are hereby incorporated in and expressly made a part of this Indenture. The Private Exchange Securities and the Exchange 

  

 -30- 

 
Securities and the Trustee’s certificate of authentication shall be substantially in the form of Exhibit 1 of Appendix A hereto with respect to the
Floating Rate Notes and Exhibit 2 of Appendix A hereto with respect to the Fixed Rate Notes, which are hereby incorporated in and expressly made a part of this Indenture. The Securities may have notations, legends or endorsements required by law,
stock exchange rule, agreements to which the Company is subject, if any, or usage (provided that any such notation, legend or endorsement is in a form acceptable to the Company). Each Security shall be dated the date of its authentication.
The terms of the Securities set forth in Exhibit 1 of Appendix A and Exhibit 2 of Appendix A, relating to the Floating Rate Notes and the Fixed Rate Notes, respectively, are part of the terms of this Indenture. 
 SECTION 2.02 Execution and Authentication. 
 Two
Officers shall sign the Securities for the Company by manual or facsimile signature. 
 If an Officer whose signature is on a Security no
longer holds that office at the time the Trustee authenticates the Security, the Security shall be valid nevertheless. 
 A Security shall
not be valid until an authorized signatory of the Trustee manually signs the certificate of authentication on the Security. The signature shall be conclusive evidence that the Security has been authenticated under this Indenture. 
 On the Issue Date, the Trustee shall authenticate and deliver $150,000,000 million of Senior Floating Rate Notes due 2013 and $300,000,000 million of
9.75% Senior Notes due 2014 and, at any time and from time to time thereafter, the Trustee shall authenticate and deliver Securities for original issue in an aggregate principal amount specified in such order, in each case upon receipt of a written
order of the Company signed by two Officers of the Company; provided that the Trustee shall be entitled to receive an Officers’ Certificate and an Opinion of Counsel of the Company that it may reasonably request in connection with such
authentication of Securities. Such order shall specify the amount of Securities to be authenticated, the date on which the original issue of Securities is to be authenticated and the aggregate principal amount of Securities then authorized and, in
the case of an issuance of Additional Securities pursuant to Section 2.13 [Issuance of Additional Securities] after the Issue Date, shall certify that such issuance is in compliance with Section 4.03 [Limitation on Indebtedness].

 The Trustee may appoint an authenticating agent reasonably acceptable to the Company to authenticate the Securities. Unless limited by the
terms of such appointment, an authenticating agent may authenticate Securities whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes authentication by such agent. An authenticating agent has the
same rights as any Registrar, Paying Agent or agent for service of notices and demands. 
 SECTION 2.03 Registrar and Paying Agent. 
 The Company shall maintain an office or agency where Securities may be presented for registration of transfer or for exchange, which office shall
maintain the names and addresses of Securityholders (the “Registrar”), and an office or agency where Securities may be presented for payment (the “Paying Agent”). The Registrar shall keep a register of the Securities and of their
transfer and exchange. The Company may have one or more co-registrars and one or more additional paying agents. The term “Paying Agent” includes any additional paying agent. 
 The Company shall enter into an appropriate agency agreement with any Registrar, Paying Agent or co-registrar not a party to this Indenture, which shall
incorporate the terms of the TIA. 

  

 -31- 

 
The agreement shall implement the provisions of this Indenture that relate to such agent. The Company shall notify the Trustee of the name and address of any
such agent. If the Company fails to maintain a Registrar or Paying Agent, the Trustee shall act as such and shall be entitled to appropriate compensation therefor pursuant to Section 7.07 [Compensation and Indemnity]. The Company or any of its
domestically incorporated Wholly Owned Subsidiaries may act as Paying Agent, Registrar, co-registrar or transfer agent. 
 The Company
initially appoints the Trustee as Registrar and Paying Agent in connection with the Securities. 
 SECTION 2.04 Paying Agent To Hold Money in Trust.

 Prior to 11:30 a.m., New York City time, on each due date of the principal and interest on any Security, the Company shall deposit with
the Paying Agent a sum sufficient to pay such principal and interest when so becoming due. The Company shall require each Paying Agent (other than the Trustee) to agree in writing that the Paying Agent shall hold in trust for the benefit of
Securityholders or the Trustee all money held by the Paying Agent for the payment of principal of or interest on the Securities and shall notify the Trustee of any default by the Company in making any such payment. If the Company or a Subsidiary
acts as Paying Agent, it shall segregate the money held by it as Paying Agent and hold it as a separate trust fund. The Company at any time may require a Paying Agent to pay all money held by it to the Trustee and to account for any funds disbursed
by the Paying Agent. Upon complying with this Section, the Paying Agent shall have no further liability for the money delivered to the Trustee. 
 SECTION
2.05 Securityholder Lists. 
 The Trustee shall preserve in as current a form as is reasonably practicable the most recent list
available to it of the names and addresses of Securityholders. If the Trustee is not the Registrar, the Company shall furnish to the Trustee, in writing at least five Business Days before each interest payment date and at such other times as the
Trustee may request in writing, a list in such form and as of such date as the Trustee may reasonably require of the names and addresses of Securityholders. 
 SECTION 2.06 Transfer and Exchange. 
 The Securities shall be issued in registered form and shall be transferable only upon
the surrender of a Security for registration of transfer. When a Security is presented to the Registrar or a co-registrar with a request to register a transfer, the Registrar shall register the transfer as requested if the requirements of
Section 8-401(a) of the Uniform Commercial Code and the transfer restriction provisions set forth in Annex A to this Indenture are met. When Securities are presented to the Registrar or a co-registrar with a request to exchange them for an
equal principal amount of Securities of other denominations, the Registrar shall make the exchange as requested if the same requirements are met. 
 SECTION
2.07 Replacement Securities. 
 If a mutilated Security is surrendered to the Registrar or if the Holder of a Security claims that the
Security has been lost, destroyed or wrongfully taken, the Company shall issue and the Trustee shall authenticate and deliver a replacement Security if the requirements of Section 8-405 of the Uniform Commercial Code are met and the Holder
satisfies any other reasonable requirements of the Trustee. If required by the Trustee or the Company, such Holder shall furnish an indemnity bond sufficient in the judgment of the Company and the Trustee to protect the Company, the Trustee, the
Paying Agent, the 

  

 -32- 

 
Registrar and any co-registrar from any loss which any of them may suffer if a Security is replaced. The Company and the Trustee may charge the Holder for
their expenses in replacing a Security. 
 Every replacement Security is an additional obligation of the Company. 
 SECTION 2.08 Outstanding Securities. 
 Securities
outstanding at any time are all Securities authenticated by the Trustee except for those canceled by it, those delivered to it for cancellation and those described in this Section as not outstanding. A Security does not cease to be outstanding
because the Company or an Affiliate of the Company holds the Security. 
 If a Security is replaced pursuant to Section 2.07
[Replacement Securities], it ceases to be outstanding unless the Trustee and the Company receive proof satisfactory to them that the replaced Security is held by a bona fide purchaser. 
 If the Paying Agent segregates and holds in trust, in accordance with this Indenture, on a redemption date or maturity date money sufficient to pay all
principal and interest payable on that date with respect to the Securities (or portions thereof) to be redeemed or maturing, as the case may be, and the Paying Agent is not prohibited from paying such money to the Securityholders on that date
pursuant to the terms of this Indenture, then on and after that date such Securities (or portions thereof) cease to be outstanding and interest on them ceases to accrue. 
 SECTION 2.09 Temporary Securities. 
 Until definitive Securities are ready for delivery, the Company
may prepare and the Trustee shall authenticate and deliver temporary Securities. Temporary Securities shall be substantially in the form of definitive Securities but may have variations that the Company considers appropriate for temporary
Securities. Without unreasonable delay, the Company shall prepare and the Trustee shall authenticate definitive Securities and deliver them in exchange for temporary Securities. 
 SECTION 2.10 Cancellation. 
 The Company at any time may deliver Securities to the Trustee for
cancellation. The Registrar and the Paying Agent shall forward to the Trustee any Securities surrendered to them for registration of transfer, exchange or payment. The Trustee and no one else shall cancel and destroy (subject to the record retention
requirements of the Exchange Act) all Securities surrendered for registration of transfer, exchange, payment or cancellation and deliver a certificate of such destruction to the Company unless the Company directs the Trustee to deliver canceled
Securities to the Company. The Company may not issue new Securities to replace Securities it has redeemed, paid or delivered to the Trustee for cancellation. 
 SECTION 2.11 Defaulted Interest. 
 If the Company defaults in a payment of interest on the Securities, the Company shall pay
defaulted interest (plus interest on such defaulted interest to the extent lawful) in any lawful manner. The Company may pay the defaulted interest to the Persons who are Securityholders on a subsequent special record date. The Company shall fix or
cause to be fixed any such special record date and payment date to the reasonable satisfaction of the Trustee and shall mail promptly to each Securityholder a notice that states the special record date, the payment date and the amount of defaulted
interest to be paid. 
  

 -33- 

 SECTION 2.12 CUSIP Numbers. 
 The Company in issuing the Securities may use “CUSIP” numbers (if then generally in use) and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Holders;
provided, however, that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Securities or as contained in any notice of a redemption and that reliance may be placed
only on the other identification numbers printed on the Securities, and any such redemption shall not be affected by any defect in or omission of such numbers. 
 SECTION 2.13 Issuance of Additional Securities. 
 The Company shall be entitled, subject to its compliance with
Section 4.03, to issue additional securities under this Indenture which shall have identical terms as the Fixed Rate Notes or Floating Rating Notes comprising the Initial Securities issued on the Issue Date, other than with respect to the date
of issuance and issue price (“Additional Securities”). The Initial Securities issued on the Issue Date, any Additional Securities and all Exchange Securities or Private Exchange Securities issued in exchange therefor shall be treated as a
single class for all purposes under this Indenture. 
 With respect to any Additional Securities, the Company shall deliver to the Trustee
the following: 
 (a) a resolution of the Board of Directors setting forth the aggregate principal amount of such Additional
Securities to be authenticated and delivered pursuant to this Indenture and authorizing the appropriate Officers of the Company to furnish to the Trustee the certificates identified in (b) and (c) of this Section 2.13; 
 (b) an Officer’s Certificate setting forth the issue price, the issue date and the CUSIP number of such Additional Securities;
provided, however, that no Additional Securities may be issued unless such Additional Securities are fungible in all respects for federal income tax purposes with the Securities then outstanding; and 
 (c) an Officer’s Certificate setting forth whether such Additional Securities shall be Transfer Restricted Securities and issued in
the form of Initial Securities as set forth in Exhibit 1 of Appendix A and Exhibit 2 of Appendix A relating to the Floating Rate Notes and the Fixed Rate Notes, respectively, to this Indenture or shall be issued in the form of Exchange
Securities also set forth in Exhibit 1 of Appendix A and Exhibit 2 of Appendix A relating to the Floating Rate Notes and the Fixed Rate Notes, respectively. 
 SECTION 2.14 Computation of Interest. 
 (a) Interest on the Fixed Rate Notes shall accrue at the rate of 9.75% per
annum and shall be payable semi-annually in arrears on April 15 and October 15, commencing on October 15, 2007. The Company shall make each interest payment to the Holders of record on the immediately preceding April 1 and
October 1. 
 (b) Interest on the Floating Rate Notes shall be calculated by the calculation agent (the “Calculation Agent”),
which shall initially be the Trustee, as follows: 
 (i) The amount of interest for each day that the Floating Rate Notes are
outstanding (the “Daily Interest Amount”) shall be calculated by dividing the interest rate in effect for such 

  

 -34- 

 
day by 360 and multiplying the result by the principal amount of the Floating Rate Notes outstanding. The amount of interest to be paid on the Floating Rate
Notes for each interest period will be calculated by adding the Daily Interest Amounts for each day in the interest period. 
 (ii) All percentages resulting from any of the above calculations will be rounded, if necessary, to the nearest one hundred-thousandth of a percentage point, with five one-millionths of a percentage point being rounded upwards (e.g.,
9.876545% (or .09876545) being rounded to 9.87655% (or .0987655)) and all dollar amounts used in or resulting from such calculations will be rounded to the nearest cent (with one-half cent being rounded upwards). The interest rate on the Floating
Rate Notes will in no event be higher than the maximum rate permitted by New York law as the same may be modified by United States law of general application; 
 (iii) The Calculation Agent will, upon the request of the Holder of any Floating Rate Note, provide the interest rate then in effect with
respect to the Floating Rate Notes. All calculations made by the Calculation Agent in the absence of manifest error will be conclusive for all purposes and binding on the Company, the Subsidiary Guarantors and the Holders of the Floating Rate Notes.
Interest on the Floating Rate Notes will be payable quarterly on January 15, April 15, July 15 and October 15 of each year, commencing on July 15, 2007 to Holders of record at the close of business on the
January 1, April 1, July 1 and October 1 immediately preceding the relevant interest payment date; provided that if any such interest payment date (other than an interest payment date at maturity) would otherwise be a day
that is not a Business Day, then the interest payment will be postponed to the next succeeding Business Day. If the maturity date of the Floating Rate Notes is a day that is not a Business Day, all payments to be made on such day will be made on the
next succeeding Business Day, with the same force and effect as if made on the maturity date, and no additional interest will be payable as a result of such delay in payment; and 
 (iv) The interest rate on the Floating Rate Notes for a particular interest period will be an annual rate equal to the three-month LIBOR
as determined on the related interest determination date plus 5.125%. The interest determination date for an interest period will be the second London business day preceding such interest period. Promptly upon determination, the Calculation Agent
will inform the Trustee and the Company of the interest rate for the next interest period. A London business day is a day on which dealings in deposits in U.S. dollars are transacted in the London interbank market. 
 (c) Interest on the Securities shall be computed on the basis of a 360-day year comprised of twelve 30-day months. 
 ARTICLE III 
 REDEMPTION 
 SECTION 3.01 Notices to Trustee. 
 If the Company
elects to redeem Fixed Rate Notes or the Floating Rate Notes pursuant to paragraph 5 of the Securities, it shall notify the Trustee in writing of the redemption date, the principal amount of such Securities to be redeemed and the
paragraph of the Securities pursuant to which the redemption will occur. 
  

 -35- 

 The Company shall give each notice to the Trustee provided for in this Section at least 35 days
before the redemption date unless the Trustee consents to a shorter period. Such notice shall be accompanied by an Officers’ Certificate and an Opinion of Counsel from the Company to the effect that such redemption will comply with the
conditions herein. 
 SECTION 3.02 Selection of Securities To Be Redeemed. 
 If fewer than all the Fixed Rate Notes or the Floating Rate Notes are to be redeemed, the Trustee shall select the Securities to be redeemed pro
rata or by lot or by a method that complies with applicable legal and securities exchange requirements, if any, and that the Trustee in its sole discretion considers fair and appropriate. The Trustee shall make the selection from outstanding
Securities not previously called for redemption. The Trustee may select for redemption portions of the principal of Securities that have denominations larger than $1,000. Securities and portions of them the Trustee selects shall be in amounts of
$2,000 or a whole multiple of $1,000 or, in the case of a selected Security of $1,000 in original principal amount or less, such security must be redeemed in full. Provisions of this Indenture that apply to Securities called for redemption also
apply to portions of Securities called for redemption. The Trustee shall notify the Company, the Registrar and each Paying Agent promptly of the Securities or portions of Securities to be redeemed. 
 SECTION 3.03 Notice of Redemption. 
 At least 30 days
but not more than 60 days before a date for redemption of Securities, the Company shall mail a notice of redemption by first-class mail to each Holder of Securities to be redeemed. 
 The notice shall identify the Securities to be redeemed and shall state: 
 (a) the redemption date; 
 (b) the redemption price; 
 (c) the name and address of the Paying Agent; 
 (d) that Securities called for redemption must be surrendered to the Paying Agent to collect the redemption price; 
 (e) if fewer than all the outstanding Securities are to be redeemed, the identification and principal amounts of the particular Securities
to be redeemed; 
 (f) that, unless the Company defaults in making such redemption payment or the Paying Agent is prohibited
from making such payment pursuant to the terms of this Indenture, interest on Securities (or portions thereof) called for redemption ceases to accrue on and after the redemption date; and 
 (g) 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. 
 At the Company’s request, the Trustee shall give the notice of redemption in the Company’s name and at the
Company’s expense. In such event, the Company shall provide the Trustee with the information required by this Section. 
  

 -36- 

 SECTION 3.04 Effect of Notice of Redemption. 
 Once notice of redemption is mailed, Securities called for redemption become due and payable on the redemption date and at the redemption price stated in
the notice, subject to any condition or contingency stated therein. Upon surrender to the Paying Agent, such Securities shall be paid at the redemption price stated in the notice, plus accrued interest to the redemption date. Failure to give notice
or any defect in the notice to any Holder shall not affect the validity of the notice to any other Holder. 
 SECTION 3.05 Deposit of Redemption
Price. 
 On or prior to 11:30 a.m. New York City time on the redemption date, the Company shall deposit with the Paying Agent (or, if
the Company or a Subsidiary is the Paying Agent, shall segregate and hold in trust) money sufficient to pay the redemption price of and accrued interest on all Securities to be redeemed on that date other than Securities or portions of Securities
called for redemption which have been delivered by the Company to the Trustee for cancellation. 
 If the Company complies with the
provisions of the preceding paragraph, on and after the redemption date, interest will cease to accrue on the Securities or the portions of Securities called for redemption, whether or not such Securities are presented for payment, and the Holders
of such Securities shall have no further rights with respect to such Securities except for the right to receive the redemption price, accrued interest and additional interest, if any, upon surrender of such Securities. 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 to the redemption date 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 is not 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 or
purchase date until such principal is paid, and to the extent lawful, on any interest not paid on such unpaid principal, in each case at the rate provided in the 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 execute and the Trustee shall authenticate and deliver to the Holder (at the Company’s expense) a new Security equal in principal amount to the unredeemed portion of the
Security surrendered. 
 ARTICLE IV 
 COVENANTS 
 SECTION 4.01 Payment of Securities. 
 The Company shall promptly pay the principal of and interest on the Securities on the dates and in the manner provided in the Securities and in this Indenture. Principal and interest shall be considered paid on the
date due if on such date the Trustee or the Paying Agent holds in accordance with this Indenture money sufficient to pay all principal and interest then due and the Trustee or the Paying Agent, as the case may be, is not prohibited from paying such
money to the Securityholders on that date pursuant to the terms of this Indenture. 
 The Company shall pay interest on overdue principal at
the rate specified therefor in the Securities, and it shall pay interest on overdue installments of interest at the same rate to the extent lawful. 
  

 -37- 

 SECTION 4.02 SEC Reports. 
 Notwithstanding that the Company may not at any time be subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, the Company shall file with the SEC (to the extent the SEC will
accept such filing) and provide the Trustee and Securityholders with such annual reports and such information, documents and other reports as are specified in Sections 13 and 15(d) of the Exchange Act and applicable to a U.S. corporation
subject to such Sections (but without exhibits in the case of Securityholders), such information, documents and other reports to be so filed and provided at the times specified for the filing of such information, documents and reports under
such Sections. Notwithstanding anything herein to the contrary, the Company will not be deemed to have failed to comply with any of its obligations hereunder for purposes of clause (d) under Section 6.01 [Events of Default and Remedies]
until 90 days after the date any such report is so required to be filed. 
 In addition, the Company shall furnish to the Securityholders and
to prospective investors, upon the request of such Securityholders, any information required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act so long as any Securities are not freely transferable under the Securities
Act. 
 The Company also shall comply with the other provisions of TIA Section 314(a). 
 SECTION 4.03 Limitation on Indebtedness. 
 (a) The
Company shall not, and shall not permit any Restricted Subsidiary to, Incur, directly or indirectly, any Indebtedness; provided, however, that the Company or a Restricted Subsidiary may Incur Indebtedness if, on the date of such
Incurrence and after giving effect thereto, no Default has occurred and is continuing and the Consolidated Coverage Ratio exceeds 2.5 to 1.0. 
 (b) Notwithstanding Section 4.03(a), the Company and any Restricted Subsidiary may Incur the following Indebtedness: 
 (1) Indebtedness Incurred under any Credit Facility, so long as the aggregate amount of all Indebtedness outstanding under all Credit Facilities pursuant to this Section 4.03(b)(1) does not exceed the greater of
(A) $225 million and (B) 20% of ACNTA as of the date of such Incurrence; 
 (2) Indebtedness owed to and held
by the Company or any Restricted Subsidiary; provided, however, that (A) any subsequent issuance or transfer of any Capital Stock that results in any such Restricted Subsidiary ceasing to be a Restricted Subsidiary or any
subsequent transfer of such Indebtedness (other than to the Company or a Restricted Subsidiary) will be deemed, in each case, to constitute the Incurrence of such Indebtedness by the obligor thereon and (B) if the Company is the obligor on such
Indebtedness, unless such Indebtedness is owed to a Subsidiary Guarantor, such Indebtedness is expressly subordinated to the prior payment in full in cash of all obligations with respect to the Securities; 
 (3) the Securities (other than any Additional Securities); 
 (4) Indebtedness outstanding on the Issue Date (other than Indebtedness described in paragraph (b) (1), (2) or (3) of
this Section 4.03); 
  

 -38- 

 (5) Indebtedness of a Restricted Subsidiary Incurred and outstanding on or prior to the
date on which such Restricted Subsidiary became a Restricted Subsidiary or was acquired by the Company (other than Indebtedness Incurred in connection with, or to provide all or any portion of the funds or credit support utilized to consummate, the
transaction or series of related transactions by which such Restricted Subsidiary became a Restricted Subsidiary or was acquired by the Company); provided, however, that on the date of such Incurrence and after giving pro forma effect
thereto, the Company would have been entitled to Incur at least $1.00 of additional Indebtedness under Section 4.03(a); 
 (6) Refinancing Indebtedness in respect of Indebtedness Incurred under Section 4.03(a) or Section 4.03(b)(3), (4), (5), this clause (6) or clause (7) below; provided, however, that to the
extent such Refinancing Indebtedness directly or indirectly Refinances Indebtedness of a Restricted Subsidiary described in Section 4.03(b)(5), such Refinancing Indebtedness will be Incurred only by such Restricted Subsidiary or the Company;

 (7) Non-recourse Purchase Money Indebtedness; 
 (8) Indebtedness arising from any agreement providing for indemnities, Guarantees, purchase price adjustments, holdbacks, contingency
payment obligations based on the performance of the acquired or disposed assets or similar obligations (other than Guarantees of Indebtedness) Incurred by any Person in connection with the acquisition or disposition of assets; 
 (9) Indebtedness consisting of the Subsidiary Guarantees and any Guarantee by the Company or a Subsidiary Guarantor of Indebtedness
permitted by this Indenture to be Incurred by the Company or a Subsidiary other than Non-recourse Purchase Money Indebtedness; 
 (10) Hedging Obligations consisting of Interest Rate Agreements directly related to Indebtedness outstanding on the Issue Date or permitted to be Incurred by the Company and its Restricted Subsidiaries under this Indenture; 
 (11) Hedging Obligations consisting of Oil and Gas Hedging Contracts and Currency Agreements required under the Credit Agreement or
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; 
 (12) obligations in respect of bid, performance or surety bonds including Guarantees and letters of credit functioning as or supporting
such bid, performance or surety bonds, completion guarantees and other reimbursement obligations provided by the Company or any Restricted Subsidiary in the ordinary course of business (in each case other than for an obligation for money borrowed);

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

 (14) Indebtedness in an aggregate amount that, together with the amount of all other Indebtedness of the Company and its
Restricted Subsidiaries outstanding on the date of such Incurrence (other than Indebtedness permitted by Section 4.03(a) or Section 4.03(b)(1) through (13)) above does not exceed $35 million. 
  

 -39- 

 (c) Notwithstanding the foregoing, the Company shall not, and shall not permit any Subsidiary Guarantor
to, Incur any Indebtedness under Section 4.03(b) if the proceeds thereof are used, directly or indirectly, to Refinance any Subordinated Obligations unless such Indebtedness shall be subordinated to the Securities or the relevant
Subsidiary Guarantee, as the case may be, to at least the same extent as such Subordinated Obligations. 
 The Company shall not, and shall
not permit any Subsidiary Guarantor to, directly or indirectly, incur any Indebtedness that by its terms (or by the terms of any agreement governing such Indebtedness) is subordinated to any other Indebtedness of the Company or of such Guarantor, as
the case may be, unless such Indebtedness is also by its terms (or by the terms of any agreement governing such Indebtedness) made expressly subordinate to the Notes or the Subsidiary Guarantee of such Subsidiary Guarantor, as the case may be,
pursuant to terms no less favorable to the Holders of the Securities. 
 (d) For purposes of determining compliance with this
Section 4.03: 
 (1) if an item of Indebtedness meets the criteria of more than one of the types of Indebtedness
described in this Section 4.03, or is entitled to be incurred in compliance with Section 4.03(a), then the Company, in its sole discretion, may classify such item of Indebtedness (or any portion thereof) at the time of Incurrence in any
manner that complies with this Section and will only be required to include the amount and type of such Indebtedness in one of the above clauses of this Section 4.03; and 
 (2) the Company shall be entitled to divide and reclassify from time to time an item of Indebtedness in more than one of the types of
Indebtedness described in this Section 4.03 or treated as having been incurred in compliance with Section 4.03(a). 
 SECTION 4.04
[Reserved] 
 SECTION 4.05 Limitation on Restricted Payments. 
 (a) The Company shall not, and shall not permit any Restricted Subsidiary to, directly or indirectly, make a Restricted Payment if at the time the Company or such Restricted Subsidiary makes such Restricted Payment:

 (1) a Default or an Event of Default has occurred and is continuing (or would result therefrom); 
 (2) the Company is not entitled to Incur an additional $1.00 of Indebtedness under Section 4.03(a); or 
 (3) the aggregate amount of such Restricted Payment and all other Restricted Payments since the Issue Date would exceed the sum of,
without duplication: 
 (A) 50% of the aggregate Consolidated Net Income of the Company accrued during the period (treated as
one accounting period) commencing on the first day of the fiscal quarter during which the Issue Date occurs and ending on the last day of the most recent fiscal quarter for which financial statements of the Company are publicly available prior to
the date of such proposed Restricted Payment (or, if such aggregate Consolidated Net Income is a deficit, minus 100% of such deficit); plus 
  

 -40- 

 (B) 100% of (i) the aggregate Net Cash Proceeds, and (ii) the Fair Market Value
of (a) Capital Stock (other than Capital Stock of the Company) of a Person (other than an Affiliate of the Company) engaged primarily in the Oil and Gas Business, provided that Person becomes a Restricted Subsidiary of the Company, and
(b) other assets used in the Oil and Gas Business, in the case of clauses (i) and (ii) received by the Company from the issuance or sale of its Capital Stock (other than Disqualified Stock) subsequent to the Issue Date (other
than an issuance or sale to a Subsidiary of the Company and other than an issuance or sale to an employee stock ownership plan or to a trust established by the Company or any of its Subsidiaries for the benefit of their employees); plus

 (C) the aggregate Net Cash Proceeds received by the Company subsequent to the Issue Date from the issue or sale of its
Capital Stock (other than Disqualified Stock) to an employee stock ownership plan or to a trust established by the Company or any of its Subsidiaries for the benefit of their employees; 
 provided, however, that if such employee stock ownership plan or trust Incurs any Indebtedness to finance the purchase of such Capital
Stock, such aggregate amount will be limited to the excess of such Net Cash Proceeds over the amount of such Indebtedness plus an amount equal to any increase in the Consolidated Net Worth of the Company resulting from principal repayments made by
such employee stock ownership plan or trust with respect to such Indebtedness; plus 
 (D) the amount by which the
Company’s Indebtedness is reduced on its balance sheet upon the conversion or exchange (other than by a Subsidiary of the Company) subsequent to the Issue Date of any of the Company’s Indebtedness that is convertible or exchangeable for
its Capital Stock (other than Disqualified Stock) (less the amount of any cash, or the fair value of any other Property, distributed by the Company upon such conversion or exchange); provided, however, that the foregoing will not
exceed the Net Cash Proceeds received by the Company or any Restricted Subsidiary from the sale of such Indebtedness (excluding Net Cash Proceeds from sales to a Subsidiary of the Company or to an employee stock ownership plan or to a trust
established by the Company or any of its Subsidiaries for the benefit of their employees); plus 
 (E) an amount equal
to the sum of (i) the net reduction in Investments (other than Permitted Investments) made by the Company or any Restricted Subsidiary in any Person resulting from repurchases, repayments or redemption of such Investments by such Person,
proceeds realized on the sale of such Investment and proceeds representing the return of capital, in each case received by the Company or any Restricted Subsidiary, and (ii) to the extent such Person is an Unrestricted Subsidiary, the portion
(proportionate to the Company’s equity interest in such Subsidiary) of the Fair Market Value of the net assets of such Unrestricted Subsidiary at the time such Unrestricted Subsidiary is designated a Restricted Subsidiary; provided,
however, that to the extent the foregoing sum exceeds, in the case of any such Person or Unrestricted Subsidiary, the amount of Investments (excluding Permitted Investments) previously made (and treated as a Restricted Payment) by the Company
or any Restricted Subsidiary in such Person or Unrestricted Subsidiary, such excess will not be included in this clause (E) unless the amount represented by such excess has not been and will not be taken into account in one of the
foregoing clauses (A) through (D); plus 
  

 -41- 

 (F) $10 million. 
 (b) The provisions of Section 4.05(a) will not prohibit: 
 (1) dividends paid within 60 days after the date of declaration thereof if at such date of declaration such dividend would have complied
with this Section 4.05; provided, however, that such dividend will be included in the calculation of the amount of Restricted Payments at the time of payment; 
 (2) any purchase, repurchase, redemption, defeasance or other acquisition or retirement for value of Capital Stock or Subordinated
Obligations of the Company made by exchange for, or out of the proceeds of the substantially concurrent sale of, Capital Stock of the Company (other than Disqualified Stock and other than Capital Stock issued or sold to a Subsidiary of the Company
or an employee stock ownership plan or to a trust established by the Company or any of its Subsidiaries for the benefit of their employees); provided, however, that (A) such purchase, repurchase, redemption, defeasance or other
acquisition or retirement for value will be excluded in the calculation of the amount of Restricted Payments and (B) the Net Cash Proceeds from such sale will be excluded from the calculation of amounts under
Section 4.05(a)(3)(B) (but only to the extent that such Net Cash Proceeds were used to purchase, repurchase, redeem, defease or otherwise acquire or retire for value such Capital Stock or Subordinated Obligations as provided in this
clause (2)); 
 (3) any purchase, repurchase, redemption, defeasance or other acquisition or retirement for value of
Subordinated Obligations of the Company made by exchange for, or out of the proceeds of the substantially concurrent sale of, Indebtedness that is permitted to be Incurred under Section 4.03 [Limitation on Indebtedness]; provided,
however, that such purchase, repurchase, redemption, defeasance or other acquisition or retirement for value will be excluded in the calculation of the amount of Restricted Payments; 
 (4) so long as no Default or Event of Default has occurred and is continuing, the purchase, redemption or other acquisition or retirement
for value of shares of Capital Stock of the Company or any of its Subsidiaries from employees, former employees, directors or former directors of the Company or any of its Subsidiaries (or permitted transferees of such employees, former employees,
directors or former directors), under the terms of the agreements (including employment agreements) or plans (or amendments thereto) approved by the Board of Directors under which such individuals purchase or sell or are granted the option to
purchase or sell, shares of such Capital Stock; provided, however, that the aggregate amount of such purchases, redemptions and other acquisitions and retirements (excluding amounts representing cancellation of Indebtedness) will not
exceed $2 million in any calendar year; provided further, however, that such purchases, redemptions and other acquisitions and retirements will be excluded in the calculation of the amount of Restricted Payments; 
 (5) so long as no Default or Event of Default has occurred and is continuing, purchases by the Company of common shares of the Company
pursuant to the open market purchase program announced by the Company on March 12, 2007; provided, however, that (A) the aggregate purchase price paid for such shares does not exceed $50 million; (B) such purchases are
made prior to March 12, 2009; and (C) on the date of any such purchase and after giving effect thereto, the Debt to BOE Ratio is less than 10.0 to 1.0; 
  

 -42- 

 (6) repurchases, acquisitions or retirements of shares of Company common stock deemed to
occur upon the exercise of stock options or similar rights issued under employee benefit plans or warrants when shares are surrendered to pay all or a portion of the exercise price or to satisfy any federal income tax obligations; provided,
however, that the aggregate amount of such repurchases, acquisitions or retirements will be excluded in the calculation of the amount of Restricted Payments; 
 (7) the payment of cash in lieu of fractional shares of Capital Stock in connection with any transaction otherwise permitted under this
Section 4.05; provided, however, that such payment will be excluded in the calculation of the amount of Restricted Payments; 
 (8) upon the occurrence of a Change of Control or an Asset Disposition and within 60 days after the completion of the offer to repurchase the Securities under Section 4.09 [Change of Control] or Section 4.07
[Limitation on Sales of Assets and Subsidiary Stock] (including the purchase of all Securities tendered), any purchase, repurchase, redemption, defeasance, acquisition or other retirement for value of Subordinated Obligations required under the
terms thereof as a result of such Change of Control or Asset Disposition at a purchase or redemption price not to exceed 101% of the outstanding principal amount thereof, plus accrued and unpaid interest thereon, if any; provided,
however, that (A) at the time of such purchase, repurchase, redemption, defeasance or other acquisition or retirement for value, no Default or Event of Default has occurred and is continuing (or would result therefrom), and (B) such
purchase, repurchase, redemption, defeasance or other acquisition or retirement for value will be excluded in the calculation of the amount of Restricted Payments; or 
 (9) the purchase of up to 8.7 million shares of Company common stock pursuant to the tender offer commenced by the Company on
March 26, 2007 with the proceeds from the issuance of the Securities; provided, however, that such purchase will be excluded in the calculation of the amount of Restricted Payments. 
 The amount of all Restricted Payments (other than cash) will be the Fair Market Value on the date of the Restricted Payment of the assets proposed to be
transferred by the Company or such Restricted Subsidiary, as the case may be, in accordance with the Restricted Payment. 
 For purposes of
determining compliance with this Section 4.05, if a Restricted Payment meets the criteria of more than one of the types of Restricted Payments described above, the Company, in its sole discretion, may order and classify such Restricted Payment
in any manner in compliance with this Section 4.05. 
 SECTION 4.06 Limitation on Restrictions on Distributions from Restricted Subsidiaries.

 The Company shall not, and shall not permit any Restricted Subsidiary to, create or otherwise cause or permit to exist or become effective
any consensual encumbrance or restriction on the ability of any Restricted Subsidiary: 
 (a) to pay dividends or make any
other distributions on its Capital Stock or pay any Indebtedness owed to the Company or a Restricted Subsidiary, 
 (b) to
make any loans or advances to the Company or a Restricted Subsidiary or 
  

 -43- 

 (c) to transfer any of its Property to the Company or a Restricted Subsidiary, except:

 (1) with respect to clauses (a), (b) and (c), 
 (A) any encumbrance or restriction in the Credit Agreement on the Issue Date or under any other agreement governing Indebtedness or
Capital Stock in effect at or entered into on the Issue Date; 
 (B) any encumbrance or restriction relating to Indebtedness
of a Restricted Subsidiary and existing at the time it became a Restricted Subsidiary, provided that such encumbrance or restriction relates solely to such Restricted Subsidiary and was not created in anticipation of or in connection with the
transactions by which such Restricted Subsidiary became a Restricted Subsidiary; 
 (C) any encumbrance or restriction under
an agreement effecting a Refinancing of Indebtedness Incurred under an agreement referred to in clause (A) or (B) of clause (1) of this Section 4.06 or this clause (C) or contained in any amendment to, or
modification, restatement, renewal, increase, supplement, replacement or extension of, an agreement referred to in clause (A) or (B) of clause (1) of this Section 4.06 or this clause (C); provided,
however, that the encumbrances and restrictions with respect to such Restricted Subsidiary contained in any such refinancing agreement or amendment, modification, restatement, renewal, increase, supplement, replacement or extension are not
materially more restrictive, taken as a whole, to the Securityholders than encumbrances and restrictions with respect to such Restricted Subsidiary contained in such predecessor agreements; 
 (D) customary restrictions with respect to a Restricted Subsidiary imposed under an agreement entered into for the sale or disposition of
all or substantially all the Capital Stock or assets of such Restricted Subsidiary pending the closing of such sale or disposition; 
 (E) customary restrictions contained in agreements entered into in the ordinary course of business of the types described in the definition of the term “Permitted Business Investments”; and 
 (2) with respect to clause (c) only, 
 (A) customary nonassignment provisions, including provisions forbidding subletting or sublicensing, in leases governing leasehold
interests and licenses to the extent such provisions restrict the transfer of the lease or license or the property leased or licensed thereunder; 
 (B) any encumbrance or restriction under Liens permitted to be in effect without also securing the Securities as described under Section 4.11 [Limitation on Liens] that limit the right of the debtor to dispose of
the Property subject to such Lien; 
  

 -44- 

 (C) any encumbrance or restriction with respect to Property at the time it is acquired
by the Company or a Restricted Subsidiary, provided that such encumbrance or restriction relates solely to the Property so acquired and was not created in anticipation of or in connection with such acquisition; 
 (D) restrictions on cash or other deposits imposed by customers under contracts entered into in the ordinary course of business;

 (E) encumbrances and restrictions contained in contracts entered into in the ordinary course of business, not relating to
any Indebtedness, and that do not, individually or in the aggregate, detract from the value of, or from the ability of the Company and the Restricted Subsidiaries to realize the value of, property or assets of the Company or any Restricted
Subsidiary in any manner material to the Company or any Restricted Subsidiary; and 
 (F) restrictions on the transfer of
property or assets required by any regulatory authority having jurisdiction over the Company or such Restricted Subsidiary. 
 SECTION 4.07 Limitation on
Sales of Assets and Subsidiary Stock. 
 (a) The Company shall not, and shall not permit any Restricted Subsidiary to, directly or
indirectly, consummate any Asset Disposition unless: 
 (1) the Company receives or such Restricted Subsidiary receives
consideration at the time of such Asset Disposition at least equal to the fair market value (including as to the value of all non-cash consideration) (as determined in good faith by the Board of Directors or an Officer with responsibility for such
transaction), of the shares and assets subject to such Asset Disposition; 
 (2) at least 75% of the consideration thereof
received by the Company or such Restricted Subsidiary is in the form of (A) cash or cash equivalents, (B) oil and natural gas properties, (C) Capital Stock of a Person that becomes a Restricted Subsidiary as a result of such
acquisition and all or substantially all of whose assets consist of oil and natural gas properties or (D) capital assets to be used by the Company or any Restricted Subsidiary in the Oil and Gas Business; and 
 (3) an amount equal to 100% of the Net Available Cash from such Asset Disposition is applied by the Company (or such Restricted
Subsidiary, as the case may be): 
 (A) to the extent the Company elects (or is required by the terms of any Indebtedness), to
prepay, repay, redeem or purchase Senior Indebtedness of the Company or any Subsidiary Guarantor or Indebtedness of a Wholly Owned Subsidiary that is not a Subsidiary Guarantor (in each case other than Indebtedness owed to the Company or a
Subsidiary of the Company) within one year from the later of the date of such Asset Disposition or the receipt of such Net Available Cash; 
  

 -45- 

 (B) to the extent the Company elects, to acquire Additional Assets or to make capital
expenditures in the Oil and Gas Business within one year from the later of the date of such Asset Disposition or the receipt of such Net Available Cash; and 
 (C) to the extent of the balance of such Net Available Cash after application in accordance with clauses (A) and/or (B), to make
an offer to the Holders of the Securities (and to holders of other Senior Indebtedness of the Company designated by the Company) to purchase Securities (and such other Senior Indebtedness of the Company) pursuant to and subject to the conditions
contained in Sections 4.07(b) and 4.07(c); 
 provided, however, that in connection with any prepayment, repayment,
purchase, repurchase, redemption, defeasance or other acquisition or retirement for value of Indebtedness under clause (A) or (C) above (other than out of the proceeds of the asset disposition announced by the Company on
March 12, 2007), the Company or such Restricted Subsidiary must permanently retire such Indebtedness and cause the related loan commitment (if any) to be permanently reduced in an amount equal to the principal amount so prepaid, repaid or
purchased. 
 Notwithstanding the foregoing provisions of this Section 4.07, the Company and the Restricted Subsidiaries will not be
required to apply any Net Available Cash in accordance with this Section 4.07 except to the extent that the aggregate Net Available Cash from all Asset Dispositions that is not applied in accordance with this Section 4.07 exceeds
$15 million. 
 For the purposes of this Section 4.07, the following shall be deemed to be cash or cash equivalents: 
 (1) the assumption of Indebtedness of the Company or any Restricted Subsidiary and the release of the Company or such Restricted
Subsidiary from all liability on such Indebtedness in connection with such Asset Disposition; and 
 (2) securities received
by the Company or any Restricted Subsidiary from the transferee that are converted by the Company or such Restricted Subsidiary into cash within 120 days of receipt. 
 Notwithstanding the foregoing, the 75% limitation referred to in clause (a)(2) above shall be deemed satisfied with respect to any Asset Disposition in which the cash or cash equivalents portion of the
consideration received therefrom, determined in accordance with the foregoing provision on an after-tax basis, is equal to or greater than what the after-tax proceeds would have been had such Asset Disposition complied with such 75% limitation.

 The requirement of clause (a)(3)(B) above shall be deemed to be satisfied if an agreement (including a lease, whether a capital
lease or an operating lease) committing to make the acquisitions or expenditures referred to therein is entered into by the Company or a Restricted Subsidiary within the time period specified in such clause and such Net Available Cash is
subsequently applied in accordance with such agreement within six months following such agreement. 
  

 -46- 

 (b) If an Asset Disposition occurs that requires the purchase of Securities (and other Senior
Indebtedness of the Company) under clause (a)(3)(C) above, the Company shall 
 (1) make such offer to purchase
Securities on or before the 366th day after the later of the date of such Asset Disposition or the receipt of such Net Available Cash, and 
 (2) purchase Securities tendered under an offer by the Company for the Securities (and such other Senior Indebtedness of the Company) at a purchase price of 100% of their principal amount (or, in the event such other
Senior Indebtedness of the Company was issued with significant original issue discount, 100% of the accreted value thereof) without premium, plus accrued but unpaid interest (or, in respect of such other Senior Indebtedness of the Company, such
lesser price, if any, as may be provided for by the terms of such Senior Indebtedness of the Company) in accordance with the procedures (including prorating in the event of oversubscription) set forth in this Section 4.07. 
 If the aggregate purchase price of the securities tendered exceeds the Net Available Cash allotted to their purchase, the Company shall select the securities to be
purchased on a pro rata basis but in round denominations, which in the case of the Securities will be denominations of $2,000 and any integral multiples of $1,000 thereof. The Company will not be required to make such an offer to purchase
Securities (and other Senior Indebtedness of the Company) under this Section 4.07 if the Net Available Cash available therefor is less than $15 million (which lesser amount will be carried forward for purposes of determining whether such
an offer is required with respect to the Net Available Cash from any subsequent Asset Disposition). Upon completion of such an offer to purchase, Net Available Cash will be deemed to be reduced by the aggregate amount of such offer. 
 (c) The Company will comply, to the extent applicable, with the requirements of Section 14(e) of the Exchange Act and any other securities laws
or regulations in connection with the repurchase of Securities under this Section 4.07. To the extent that the provisions of any securities laws or regulations conflict with the provisions of this Section 4.07, the Company shall comply
with the applicable securities laws and regulations and shall not be deemed to have breached its obligations under this Section 4.07 by virtue thereof. 
 SECTION 4.08 Limitation on Affiliate Transactions. 
 (a) The Company shall not, and shall not permit any Restricted
Subsidiary to, enter into or permit to exist any transaction (including the purchase, sale, lease or exchange of any Property or the rendering of any service) with any Affiliate of the Company (an “Affiliate Transaction”) unless:

 (1) the terms thereof are no less favorable to the Company or such Restricted Subsidiary than those that could be obtained
at the time of such transaction in arm’s-length dealings with a Person who is not such an Affiliate; 
 (2) if such
Affiliate Transaction involves an amount in excess of $10 million, the Company delivers an Officers’ Certificate to the Trustee certifying that such transaction or series of related transactions complies with the criteria set forth in
clause (1); and 
 (3) if such Affiliate Transaction involves an amount in excess of $20 million, (a) the terms
of the Affiliate Transaction are set forth in writing and a majority of the non-employee directors of the Company who are disinterested with respect to such Affiliate Transaction have determined in good faith that the criteria set forth in clause
(1) are satisfied and have approved the relevant Affiliate Transaction as evidenced by a resolution of the Board of Directors, or (b) the Board of Directors has received a written opinion from an Independent Qualified Party to the effect
that such Affiliate Transaction is fair, from a financial standpoint, to the Company and its 

  

 -47- 

 
Restricted Subsidiaries or is not less favorable to the Company and its Restricted Subsidiaries than could reasonably be expected to be obtained at the time
in an arm’s-length transaction with a Person who was not an Affiliate. 
 (b) The provisions of the Section 4.08(a) will not
prohibit: 
 (1) the sale to an Affiliate of the Company of Capital Stock of the Company that does not constitute Disqualified
Stock, and the sale to an Affiliate of the Company of Indebtedness (including Disqualified Stock) of the Company in connection with an offering of such Indebtedness in a market transaction and on terms substantially identical to those of other
purchasers in such market transaction; 
 (2) transactions contemplated by any employment agreement or other compensation plan
or arrangement existing on the Issue Date or thereafter entered into by the Company or any of its Restricted Subsidiaries in the ordinary course of business; 
 (3) the payment of reasonable fees to directors of the Company or any of its Restricted Subsidiaries who are not employees of the Company
or any Restricted Subsidiary; 
 (4) indemnities of officers and directors of the Company or any Restricted Subsidiary
consistent with such Person’s charter, bylaws and applicable statutory provisions; 
 (5) the payment of reasonable
compensation to officers of the Company or any Restricted Subsidiary as determined in good faith by the Board of Directors; 
 (6) Restricted Payments that are permitted by Section 4.05 [Limitation on Restricted Payments); and 
 (7) any
transaction between or among the Company and a Restricted Subsidiary or joint venture or similar entity that would constitute an Affiliate Transaction solely because the Company or a Restricted Subsidiary owns an equity interest in or otherwise
controls such Restricted Subsidiary, joint venture or similar entity; provided that no more than 10% of the total voting power of the Voting Stock of any such Restricted Subsidiary, joint venture or similar entity is owned by an Affiliate of
the Company (other than the Company or a Restricted Subsidiary). 
 SECTION 4.09 Change of Control. 
 (a) Upon the occurrence of a Change of Control, each Holder shall have the right to require that the Company purchase such Holder’s Securities at a
purchase price in cash equal to 101% of the principal amount thereof plus accrued and unpaid interest, if any, to the date of purchase (subject to the right of Holders of record on the relevant record date to receive interest on the relevant
interest payment date), in accordance with the terms contemplated in Section 4.09(b). 
 If at the time a Change of Control occurs the
terms of the Indebtedness under the Credit Agreement restrict or prohibit the repurchase of Securities pursuant to this Section 4.09, then prior to the mailing of the notice to Holders provided for in Section 4.09(b) below, but in any
event within 30 days following any Change of Control, the Company shall: 
 (1) repay in full the Indebtedness under the
Credit Agreement; or 
  

 -48- 

 (2) obtain the requisite consent under the agreements governing the Indebtedness under
the Credit Agreement to permit the repurchase of the Securities as provided for in Section 4.09(b). 
 (b) Within 30 days following a
Change of Control, the Company shall mail a notice to each Holder with a copy to the Trustee stating: 
 (1) that a Change of
Control has occurred and that such Holder has the right to require the Company to purchase such Holder’s Securities at a purchase price in cash equal to 101% of the principal amount thereof plus accrued and unpaid interest, if any, to the date
of purchase (subject to the right of Holders of record on the relevant record date to receive interest on the relevant interest payment date); 
 (2) the circumstances and relevant facts regarding such Change of Control (including reasonably available information with respect to pro forma historical income, cash flow and capitalization, in each case after
giving effect to such Change of Control); 
 (3) the purchase date, which shall be no earlier than 30 days nor later than 60
days from the date such notice is mailed; and 
 (4) the instructions determined by the Company, consistent with this
Section 4.09, that a Holder must follow in order to have its Securities purchased. 
 (c) Holders electing to have a Security purchased
will be required to surrender the Security, with an appropriate form duly completed, to the Company at the address specified in the notice at least three Business Days prior to the purchase date. Holders will be entitled to withdraw their election
if the Trustee or the Company receives not later than three Business Days prior to the purchase date, a telegram, facsimile transmission or letter setting forth the name of the Holder, the principal amount of the Security that was delivered for
purchase by the Holder and a statement that such Holder is withdrawing his election to have such Security purchased. 
 (d) On the purchase
date, all Securities purchased by the Company under this Section 4.09 shall be delivered to the Trustee for cancellation, and the Company shall pay the purchase price plus accrued and unpaid interest, if any, to the Holders entitled thereto.

 (e) The Company shall comply, to the extent applicable, with the requirements of Section 14(e) of the Exchange Act and any other
securities laws or regulations in connection with the repurchase of Securities pursuant to this Section 4.09. To the extent that the provisions of any securities laws or regulations conflict with the provisions of this Section 4.09, the
Company shall comply with the applicable securities laws and regulations and shall not be deemed to have breached its obligations under this Section 4.09 by virtue thereof. 
 (f) The Company will not be required to make an offer to purchase Securities as a result of a Change of Control pursuant to this Section 4.09 if a
third party (1) makes such offer in the manner, at the times and otherwise in compliance with the requirements set forth in Section 4.09(b) and (2) purchases all Securities validly tendered and not withdrawn under such an offer.

  

 -49- 

 SECTION 4.10 Restricted and Unrestricted Subsidiaries. 
 Unless defined or designated as an Unrestricted Subsidiary, any Person that becomes a Subsidiary of the Company or any of its Restricted Subsidiaries
will be classified as a Restricted Subsidiary subject to the provisions of the next paragraph. The Company may designate a Subsidiary, including a newly formed or newly acquired Subsidiary, or any of its Restricted Subsidiaries as an Unrestricted
Subsidiary if: 
 (a) such Subsidiary does not at such time own any Capital Stock or Indebtedness of, or own or hold any Lien
on any Property of, the Company or any other Restricted Subsidiary of the Company that is not a Subsidiary of the Subsidiary to be so designated: 
 (b) such Subsidiary does not at such time have any Indebtedness or other obligations that, if in default, would permit any holder of any Indebtedness or other obligations of the Company or any Restricted Subsidiary to
declare a default on such Indebtedness or obligations or cause the payment thereof to be accelerated or payable prior to its Stated Maturity; and 
 (c) (x) such designation is effective immediately upon such Subsidiary becoming a Subsidiary of the Company or of a Restricted Subsidiary. 
 (1) the Subsidiary to be so designated has total assets of $1,000 or less, or 
 (2) if such Subsidiary has assets greater than $1,000, then such redesignation as an Unrestricted Subsidiary will be deemed to constitute
a Restricted Payment in an amount equal to the Fair Market Value of the Company’s direct and indirect ownership interest in such Subsidiary, and such Restricted Payment would be permitted to be made at the time of such designation under
Section 4.05 [Limitation on Restricted Payments]. 
 Except as provided in the immediately preceding sentence, no Restricted Subsidiary may be
redesignated as an Unrestricted Subsidiary. The designation of an Unrestricted Subsidiary or removal of such designation shall be made by the Board of Directors or a committee thereof under a certified resolution delivered to the Trustee and will be
effective as of the date specified in the applicable certified resolution, which will not be prior to the date such certified resolution is delivered to the Trustee. 
 The Company shall not, and shall not permit any Unrestricted Subsidiaries to, take any action or enter into any transaction or series of transactions that would result in a Person becoming a Restricted Subsidiary
(whether through an acquisition or otherwise) unless, after giving effect to such action, transaction or series of transactions, on a pro forma basis: 
 (a) the Company could Incur at least $1.00 of additional Indebtedness under clause (a) of the first paragraph under Section 4.03 [Limitation on Indebtedness]; and 
 (b) no Default or Event of Default would occur or be continuing. 
 SECTION 4.11 Limitation on Liens. 
 The Company shall not, and shall not permit any Restricted
Subsidiary to, directly or indirectly, enter into, create, incur, assume or suffer to exist or become effective any Lien securing Indebtedness, except for Permitted Liens, on or with respect to any Property of the Company or such Restricted
Subsidiary, whether owned on the Issue Date or acquired after the Issue Date, or any interest therein or any income or profits therefrom, unless the Securities or any Subsidiary Guarantee of such Restricted Subsidiary, as applicable, are secured
equally and ratably with such Indebtedness. 
  

 -50- 

 SECTION 4.12 Compliance Certificate. 
 The Company shall deliver to the Trustee within 120 days after the end of each fiscal year of the Company an Officers’ Certificate stating that in
the course of the performance by the signers of their duties as Officers of the Company they would normally have knowledge of any Default and whether or not the signers know of any Default that occurred during such fiscal year. If they do, the
certificate shall describe the Default, its status and what action the Company is taking or proposes to take with respect thereto. The Company also shall comply with TIA Section 314(a)(4). 
 SECTION 4.13 Further Instruments and Acts. 
 Upon
reasonable request of the Trustee, the Company shall execute and deliver such further instruments and do such further acts as may be reasonably necessary or proper to carry out more effectively the purpose of this Indenture. 
 SECTION 4.14 Future Subsidiary Guarantors. 
 The
Company shall cause each Restricted Subsidiary that: (a) incurs Indebtedness or issues Preferred Stock following the Issue Date; or (b) has Indebtedness or Preferred Stock outstanding on the date on which such Restricted Subsidiary becomes
a Restricted Subsidiary, to execute and deliver to the Trustee a Subsidiary Guarantee pursuant to a Supplemental Indenture substantially in the form of Appendix B at the time such Restricted Subsidiary Incurs such Indebtedness, issues such
Preferred Stock or becomes a Restricted Subsidiary; provided, however, that such Restricted Subsidiary will not be required to deliver a supplemental indenture providing for a Subsidiary Guarantee if the aggregate amount of such
Indebtedness or Preferred Stock, together with all other Indebtedness and Preferred Stock then outstanding among Restricted Subsidiaries that are not Subsidiary Guarantors, does not exceed $20 million. 
 SECTION 4.15 Limitation on Line of Business. 
 The
Company shall not engage in any business other than the Oil and Gas Business; provided, however, that this restriction will not prevent the Company from acquiring an entity that is primarily engaged in the Oil and Gas Business if that
entity does not have either (a) a Significant Subsidiary that is not in the Oil and Gas Business or (b) an amount of assets or operations not used in the Oil and Gas Business such that, if such assets or operations were held in or
conducted through a single Subsidiary, they would represent a Significant Subsidiary of that entity. 
 ARTICLE V 
 SUCCESSOR COMPANY 
 SECTION 5.01 When Company
May Merge or Transfer Assets. 
 The Company shall not consolidate with or merge with or into, or convey, transfer, lease or
otherwise dispose of, in one transaction or a series of transactions, all or substantially all the assets of the Company and its Restricted Subsidiaries, taken as a whole, to, any Person, unless: 
 (a) (1) the resulting, surviving or transferee Person (the “Successor Company”) is a Person organized and existing under
the laws of the United States of America, any State thereof or the District of Columbia and (2) the Successor Company (if not the Company) expressly assumes, by an indenture supplemental hereto, executed and delivered to the Trustee, in form
satisfactory to the Trustee, all the obligations of the Company under the Securities and this Indenture; 
  

 -51- 

 (b) immediately after giving pro forma effect to such transaction (and treating any
Indebtedness that becomes an obligation of the Successor Company or such Subsidiary as a result of the transaction as having been Incurred by such Successor Company or such Subsidiary at the time of such transaction), no Default shall have occurred
and be continuing; 
 (c) immediately after giving pro forma effect to such transaction, the Successor Company would be able
to Incur an additional $1.00 of Indebtedness pursuant to Section 4.03(a); 
 (d) in the case of a conveyance, transfer or
lease of all or substantially all the assets of the Company and its Restricted Subsidiaries, taken as a whole, such assets shall have been so conveyed, transferred or leased as an entirety or virtually as an entirety to one Person; and 

(e) the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such
consolidation, merger or transfer and such supplemental indenture (if any) comply with this Indenture; 
 provided, however, that
clause (c) shall not be applicable to any such transaction solely between the Company and any Restricted Subsidiary. 
 The
Successor Company shall be the successor to the Company and shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture, and the predecessor company, except in the case of a lease, shall be
released from the obligation to pay the principal of and interest on the Securities. 
 SECTION 5.02 When Subsidiary Guarantors May Merge or Transfer
Assets. 
 The Company shall not permit any Subsidiary Guarantor to consolidate with or merge with or into, or convey, transfer or lease,
in one transaction or a series of transactions, all or substantially all of its assets to any Person unless: 
 (a) the
resulting, surviving or transferee Person (if not such Subsidiary) is a Person organized and existing under the laws of the jurisdiction under which such Subsidiary was organized or under the laws of the United States of America, or any State
thereof or the District of Columbia, and, if such Person is not the Company, such Person shall expressly assume, by executing a Guarantee Agreement, all the obligations of such Subsidiary, if any, under its Subsidiary Guarantee; 
 (b) immediately after giving effect to such transaction or transactions on a pro forma basis (and treating any Indebtedness that becomes
an obligation of the resulting, surviving or transferee Person as a result of such transaction as having been issued by such Person at the time of such transaction), no Default shall have occurred and be continuing; 
 (c) in the case of a conveyance, transfer or lease of all or substantially all the assets of a Subsidiary Guarantor, such assets shall
have been so conveyed, transferred or leased as an entirety or virtually as an entirety to one Person; and 
  

 -52- 

 (d) the Company delivers to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that such consolidation, merger or transfer and such Guarantee Agreement, if any, complies with this Indenture. 
 The
provisions of the preceding paragraph shall not apply to any one or more transactions that constitute an Asset Disposition if the Company has complied with the applicable provisions of Section 4.07 [Limitation on Sales of Assets and
Subsidiary Stock]. 
 ARTICLE VI 
 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 due and such default continues for a period of 30 days; 
 (b) the Company defaults in the
payment of the principal of any Security when the same becomes due at its Stated Maturity, upon optional redemption, upon required purchase, upon declaration of acceleration or otherwise; 
 (c) the Company fails to comply with Section 5.01 [When Company May Merge or Transfer Assets]; 
 (d) the Company fails to comply with Section 4.02, 4.03, 4.05, 4.06, 4.07 (other than a failure to purchase Securities when required
under Section 4.07), 4.08, 4.09 (other than a failure to purchase Securities when required under Section 4.09), 4.11 or 4.14 and such failure continues for 60 days after the notice specified below; 
 (e) the Company or any Subsidiary Guarantor fails to comply with any of its agreements contained in the Securities or in this Indenture
(other than those referred to in clause (a), (b), (c) or (d) above) and such failure continues for 60 days after the notice specified below; 
 (f) Indebtedness of the Company, any Subsidiary Guarantor or any Significant Subsidiary (other than Production Payments and Reserve Sales and Non-recourse Purchase Money Indebtedness) is not paid within any applicable
grace period after final maturity or the maturity of such Indebtedness is accelerated by the holders thereof because of a default (and such acceleration is not rescinded or annulled) and the total amount of such Indebtedness unpaid or accelerated
exceeds $10 million; 
 (g) the Company, a Subsidiary Guarantor or a Significant Subsidiary pursuant to or within the
meaning of any Bankruptcy Law: 
 (1) commences a voluntary case; 
 (2) consents to the entry of an order for relief against it in an involuntary case; 
  

 -53- 

 (3) consents to the appointment of a Custodian of it or for any substantial part of its
property; or 
 (4) makes a general assignment for the benefit of its creditors; or takes any comparable action under any
foreign laws relating to insolvency; 
 (h) a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that: 
 (1) is for relief against the Company, a Subsidiary Guarantor or any Significant Subsidiary in an involuntary
case; 
 (2) appoints a Custodian of the Company, a Subsidiary Guarantor or any Significant Subsidiary or for any substantial
part of its property; or 
 (3) orders the winding up or liquidation of the Company, a Subsidiary Guarantor or any Significant
Subsidiary; 
 or any similar relief is granted under any foreign laws and the order or decree remains unstayed and in effect for 60 days; 
 (i) any judgment or decree for the payment of money in an uninsured or unindemnified amount in excess of $10 million or its foreign
currency equivalent at the time is rendered against the Company, a Subsidiary Guarantor or a Significant Subsidiary, remains outstanding for a period of 60 days following the entry of such judgment or decree and such judgment or decree is not
discharged, waived, bonded or the execution thereof stayed within 10 days after the notice from the Company to the Trustee specified below; or 
 (j) any Subsidiary Guarantee ceases to be in full force and effect (other than in accordance with the terms of such Subsidiary Guarantee) for a period of five days after the notice specified below or any Subsidiary
Guarantor denies or disaffirms its obligations under its Subsidiary Guarantee. 
 The foregoing will constitute “Events of Default”
whatever the reason for any such Event of Default and whether it is voluntary or involuntary or is effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or
governmental body. 
 The term “Bankruptcy Law” means Title 11, United States Code, or any similar Federal or state law for the
relief of debtors. The term “Custodian” means any receiver, trustee, assignee, liquidator, custodian or similar official under any Bankruptcy Law. 
 A Default under clause (d), (e) or (j) is not an Event of Default until the Trustee or the Holders of at least 25% in principal amount of the Securities notify the Company of the Default and the Company
does not cure such Default within the time specified after receipt of such notice. Such notice must specify the Default, demand that it be remedied and state that such notice is a “Notice of Default.” 
 The Company shall deliver to the Trustee, within 30 days after the occurrence thereof, written notice, in the form of an Officers’ Certificate, of
any Event of Default under clause (c) or (f) and any event which with the giving of notice or the lapse of time would become an Event of Default under 

  

 -54- 

 
clause (d), (e) or (i), describing its status and what action the Company is taking or proposes to take with respect thereto. The Trustee shall not
be deemed to have knowledge of any Default or Event of Default unless one of its Trust Officers having specific responsibility for the administration of this Indenture receives written notice thereof from the Company or any of the Holders, which
notice must specify the Default or Event of Default and state that such notice is a “Notice of Default”. 
 SECTION 6.02 Acceleration.

 If an Event of Default (other than an Event of Default specified in Section 6.01(g) or (h) with respect to the Company)
occurs and is continuing as it relates to the Floating Rate Notes or the Fixed Rate Notes, the Trustee by written notice to the Company, or the Holders of at least 25% in principal amount of the outstanding Floating Rate Notes or Fixed Rate Notes,
respectively, by written notice to the Company and the Trustee, may declare the principal of and accrued but unpaid interest on all of the Floating Rate Notes or the Fixed Rate Notes, as the case may be, to be due and payable. Upon such a
declaration, such principal and interest shall be due and payable immediately. If an Event of Default specified in Section 6.01(g) or (h) with respect to the Company occurs and is continuing, the principal of and interest on all the
Securities shall ipso facto become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Securityholders. The Holders of a majority in principal amount of the outstanding Securities as to which a
written notice of acceleration has been given to the Trustee may rescind any such acceleration and its consequences if the rescission would not conflict with any judgment or decree and if all existing Events of Default have been cured or waived
except nonpayment of principal or interest that has become due solely because of acceleration. No such rescission shall affect any subsequent Default or impair any right consequent thereto. 
 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 of or 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 Securityholder in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a waiver of or acquiescence in the Event of Default. No remedy is exclusive of any
other remedy. All available remedies are cumulative. 
 SECTION 6.04 Waiver of Past Defaults. 
 The Holders of a majority in principal amount of the Securities by written notice to the Trustee may waive an existing or past Default and its
consequences except (a) a Default in the payment of the principal of or interest on a Security or (b) a Default in respect of a provision that under Section 9.02 [Amendments With Consent of Holders] cannot be amended without the
consent of each Securityholder affected. When a Default is waived, it is deemed cured, but no such waiver shall extend to any subsequent or other Default or impair any consequent right. 
 SECTION 6.05 Control by Majority. 
 The Holders of a majority in principal amount of the outstanding
Floating Rate Notes and Fixed Rate Notes, as the case may be, may direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or of exercising any trust or power conferred on the 

  

 -55- 

 
Trustee with regard to the Floating Rate Notes and Fixed Rate Notes, respectively. The Trustee, however, may refuse to follow any direction that conflicts
with law or this Indenture or, subject to Section 7.01 [Duties of Trustee], that the Trustee determines is unduly prejudicial to the rights of other Securityholders or would involve the Trustee in personal liability; provided,
however, that the Trustee may take any other action deemed proper by the Trustee that is not inconsistent with such direction. Prior to taking or not taking any action hereunder, the Trustee shall have been offered by the Securityholders
reasonable indemnification or security against all losses, liabilities or expenses caused by taking or not taking such action. 
 SECTION 6.06 Limitation
on Suits. 
 A Securityholder may not pursue any remedy with respect to this Indenture or the Securities unless: 
 (a) the Holder gives to the Trustee written notice stating that an Event of Default is continuing; 
 (b) the Holders of at least 25% in principal amount of the outstanding Securities of the same tenor as those of such Holder make a written
request to the Trustee to pursue the remedy; 
 (c) such Holder or Holders furnish, if required by the Trustee, to the Trustee
reasonable security or indemnity against any loss, liability or expense; 
 (d) the Trustee does not comply with the request
within 60 days after receipt of the request and the offer of the required security or indemnity; and 
 (e) the Holders of a
majority in principal amount of such outstanding Securities do not give the Trustee a direction inconsistent with the request within such 60-day period. 
 A Securityholder may not use this Indenture to prejudice the rights of another Securityholder or to obtain a preference or priority over another Securityholder. 
 SECTION 6.07 Rights of Holders To Receive Payment. 
 Notwithstanding any other provision of this Indenture, the right of any Holder to receive payment of principal of, premium (if any) or interest on the Securities held by such Holder, on or after the respective due dates expressed in the
Securities, or to bring suit for the enforcement of any such payment on or after such respective dates, shall not be impaired or affected without the consent of such Holder. 
 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 may recover judgment in its own name and as trustee of an express trust against the Company for the whole amount then due and owing (together with interest on any unpaid
interest to the extent lawful) and the amounts provided for in Section 7.07 [Compensation and Indemnity]. 
  

 -56- 

 SECTION 6.09 Trustee May File Proofs of Claim. 
 The Trustee may file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Trustee and
the Securityholders allowed in any judicial proceedings relative to the Company or any Subsidiary Guarantor or their respective creditors or their respective properties and, unless prohibited by law or applicable regulations, may vote on behalf of
the Holders in any election of a trustee in bankruptcy or other Person performing similar functions, and any Custodian in any such judicial proceeding is hereby authorized by each Holder to make payments to the Trustee and, in the event that the
Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and its counsel, and any other
amounts due the Trustee under Section 7.07 [Compensation and Indemnity]. 
 SECTION 6.10 Priorities. 
 If the Trustee collects any money or property pursuant to this Article VI, it shall pay out the money or property in the following order:

 FIRST: to the Trustee for amounts due under Section 7.07 [Compensation and Indemnity]; 
 SECOND: to Securityholders for amounts due and unpaid on the Securities for principal and interest, ratably, without preference or
priority of any kind, according to the amounts due and payable on the Securities for principal and interest, respectively; and 
 THIRD: to the Company. 
 The Trustee may fix a record date and payment date for any payment to Securityholders pursuant to this
Section 6.10. At least 15 days before such record date, the Company shall mail to each Securityholder and the Trustee a notice that states the record date, the payment date and amount to be paid. 
 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 Trustee, a court in its discretion may require the filing by any party litigant in the suit of an undertaking to
pay the costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made
by the party litigant. This Section 6.11 does not apply to a suit by the Trustee, a suit by a Holder pursuant to Section 6.07 [Rights of Holders to Receive Payment] or a suit by Holders of more than an aggregate of 10% in principal amount
of the Securities. 
 SECTION 6.12 Waiver of Stay or Extension Laws. 
 The Company (to the extent it may lawfully do so) shall not at any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law wherever enacted, now or
at any time hereafter in force, which may affect the covenants or the performance of this Indenture; and the Company (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and shall not 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 had been enacted. 
  

 -57- 

 ARTICLE VII 
 TRUSTEE 
 SECTION 7.01 Duties of Trustee. 
 (a) If an Event of Default has occurred and is continuing, the Trustee shall exercise the rights and powers vested in it by this Indenture and use the
same degree of care and skill in their exercise as a prudent Person would exercise or use under the circumstances in the conduct of such Person’s own affairs. 
 (b) Except during the continuance of an Event of Default: 
 (1) the Trustee undertakes to
perform such duties and only such duties as are specifically set forth in this Indenture and no implied covenants or obligations shall be read into this Indenture against the Trustee; the permissive rights of the Trustee enumerated in this Indenture
shall not be construed as duties; and 
 (2) in the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture. However, the Trustee shall examine such certificates and
opinions to determine whether or not they conform to the requirements of this Indenture. 
 (c) The Trustee may not be relieved from
liability for its own negligent action, its own negligent failure to act or its own willful misconduct, except that: 
 (1)
this paragraph does not limit the effect of paragraph (b) of this Section 7.01; 
 (2) the Trustee shall
not be liable for any error of judgment made in good faith by a Trust Officer unless it is proved that the Trustee was negligent in ascertaining the pertinent facts; and 
 (3) the Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction
received by it pursuant to Section 6.05 [Control by Majority] or Section 6.06 [Limitation on Suits]. 
 (d) Every provision of this
Indenture that in any way relates to the Trustee is subject to paragraphs (a), (b) and (c) of this Section 7.01. 
 (e) The
Trustee shall not be liable for interest on any money received by it except as the Trustee may agree in writing with the Company. 
 (f)
Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law. 
 (g) No provision of this
Indenture shall require the Trustee to advance, expend or risk its own funds or otherwise incur financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers. The Trustee, however, may so
advance or expend its own funds if, in its own reasonable judgment, the Trustee believes that repayment of such funds or adequate indemnity against such risk or liability has been reasonably assured to it. 
  

 -58- 

 (h) Every provision of this Indenture relating to the conduct or affecting the liability of or affording
protection to the Trustee shall be subject to the provisions of this Section 7.01 and to the provisions of the TIA. 
 (i)
Notwithstanding anything to the contrary herein, the Trustee shall have no duty to review the reports and information documents required to be provided by Section 4.02 [SEC Reports] for the purposes of determining compliance with any provisions
of this Indenture. 
 SECTION 7.02 Rights of Trustee. 
 (a) The Trustee may rely on any document believed by it to be genuine and to have been signed or presented by the proper person. The Trustee need not investigate any fact or matter stated in the document. 

(b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate or an Opinion of Counsel. The Trustee shall not be
liable for any action it takes or omits to take in good faith in reliance on the Officers’ Certificate or Opinion of Counsel. 
 (c) The
Trustee may act through agents and shall not be responsible for the misconduct or negligence of any agent appointed with due care. 
 (d) The
Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within its rights or powers; provided, however, that the Trustee’s conduct does not constitute willful
misconduct or negligence. 
 (e) The Trustee may consult with counsel, and the advice or opinion of counsel with respect to legal matters
relating to this Indenture and the Securities shall be full and complete authorization and protection from liability in respect to any action taken, omitted or suffered by it hereunder in good faith and in accordance with the advice or opinion of
such counsel. 
 (f) The Trustee shall not be deemed to have knowledge of any Default or Event of Default unless one of its Trust Officers
having specific responsibility for the administration of this Indenture receives written notice thereof from the Company or any of the Holders, which notice must specify the Default or Event of Default and state that such notice is a “Notice of
Default”. 
 SECTION 7.03 Individual Rights of Trustee. 
 The Trustee in its individual or any other capacity may become the owner or pledgee of Securities and may otherwise deal with the Company or its Affiliates with the same rights it would have if it were not Trustee.
Any Paying Agent, Registrar, co-registrar or co-paying agent may do the same with like rights. However, the Trustee must comply with Sections 7.10 [Eligibility; Disqualification] and 7.11 [Preferential Collection of Claims against Company].

 SECTION 7.04 Trustee’s Disclaimer. 
 The Trustee shall not be responsible for and makes no representation as to the validity or adequacy of this Indenture or the Securities, it shall not be accountable for the Company’s use of the proceeds from the Securities, and it
shall not be responsible for any statement of the Company in the Indenture or in any document issued in connection with the sale of the Securities or in the Securities other than the Trustee’s certificate of authentication. 
  

 -59- 

 SECTION 7.05 Notice of Defaults. 
 If a Default occurs and is continuing and if it is known to the Trustee, the Trustee shall mail to each Securityholder affected thereby notice of the Default within 90 days after the Trustee is made aware of such
Default. Except in the case of a Default in payment of principal of or interest on any Security (including payments pursuant to the mandatory redemption provisions of such Security, if any), the Trustee may withhold the notice if and so long as a
Committee of its trust officers determines that withholding notice is not opposed to the interests of Securityholders. The Trustee shall not be required to take notice or be deemed to have notice of any Event of Default, except failure of the
obligor to cause to be made any of the payments to the Trustee required to be made, unless the Trustee shall be specifically notified by a writing of such default by the Company or by the Holders of at least 25% in aggregate principal amount of the
then outstanding Notes delivered to the Corporate Trust Office of the Trustee and, in the absence of such notice so delivered the Trustee may conclusively assume no Default exists. 
 SECTION 7.06 Reports by Trustee to Holders. 
 Within 60 days after May 15 of each year,
beginning with May 15, 2007, the Trustee shall mail to each Securityholder a brief report dated as of May 15 of such year, that complies with TIA Section 313(a). The Trustee also shall comply with TIA Section 313(b). 

A copy of each report at the time of its mailing to Securityholders shall be filed with the SEC and each stock exchange (if any) on which the
Securities are listed. The Company agrees to notify promptly the Trustee whenever the Securities become listed on any stock exchange and of any delisting thereof. 
 SECTION 7.07 Compensation and Indemnity. 
 The Company shall pay to the Trustee from time to time reasonable compensation
for its services, including 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 shall reimburse the Trustee upon request
for all reasonable out-of-pocket expenses incurred or made by it, including costs of collection, in addition to the compensation for its services. Such expenses shall include the reasonable compensation and expenses, disbursements and advances of
the Trustee’s agents, counsel, accountants and experts. The Company shall indemnify the Trustee against any and all loss, liability or expense (including attorneys’ fees) arising out of its acceptance of this trust or incurred by it in
connection with the administration of this trust and the performance of its duties hereunder, including the costs and expenses of enforcing this Indenture against the Company (including under this Section 7.07). The Trustee shall notify the
Company promptly of any claim (whether asserted by any Securityholder or the Company) for which it may seek indemnity. Failure by the Trustee to so notify the Company shall not relieve the Company of its obligations hereunder. The Company shall
defend the claim and the Trustee may have separate counsel and the Company shall pay the fees and expenses of such counsel. The Company need not reimburse any expense or indemnify against any loss, liability or expense incurred by the Trustee
through the Trustee’s own willful misconduct, negligence or bad faith. 
 To secure the Company’s payment obligations in this
Section 7.07, the Trustee shall have a lien prior to the Securities on all money or property held or collected by the Trustee other than money or property held in trust to pay principal of and interest on particular Securities. 
 The Company’s payment obligations pursuant to this Section shall survive the resignation or removal of the Trustee and the discharge of this
Indenture. When the Trustee incurs expenses after the 

  

 -60- 

 
occurrence of a Default specified in Section 6.01(g) or (h) with respect to the Company, the expenses are intended to constitute expenses of
administration under the Bankruptcy Law. 
 SECTION 7.08 Replacement of Trustee. 
 The Trustee may resign at any time by so notifying the Company. The Holders of a majority in principal amount outstanding of the Securities may remove
the Trustee by so notifying the Trustee and may appoint a successor Trustee. A holder may petition a court of competent jurisdiction to remove the Trustee in the manner and under the circumstances contemplated by TIA Section 310(b)(iii). The
Company shall remove the Trustee if: 
 (a) the Trustee fails to comply with Section 7.10 [Eligibility;
Disqualification]; 
 (b) the Trustee is adjudged bankrupt or insolvent; 
 (c) a receiver or other public officer takes charge of the Trustee or its property; or 
 (d) the Trustee otherwise becomes incapable of acting. 
 If the Trustee resigns, is removed by the Company or by the Holders of a majority in principal amount outstanding of the Securities and such Holders do not reasonably promptly appoint a successor Trustee, or if a
vacancy exists in the office of Trustee for any reason (the Trustee in such event being referred to herein as the retiring Trustee), the Company shall promptly appoint a successor Trustee. 
 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 Securityholders. The
retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee, subject to the lien provided for in Section 7.07 [Compensation and Indemnity]. 
 If a successor Trustee does not take office within 60 days after the retiring Trustee resigns or is removed, the retiring Trustee or the Holders of 10%
in principal amount of the Securities may petition any court of competent jurisdiction for the appointment of a successor Trustee. 
 If the
Trustee fails to comply with Section 7.10 [Eligibility; Disqualification], any Securityholder may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee. 
 Notwithstanding the replacement of the Trustee pursuant to this Section, the Company’s obligations under Section 7.07 [Compensation and
Indemnity] shall continue for the benefit of the retiring Trustee. 
 SECTION 7.09 Successor Trustee by Merger. 
 If the Trustee consolidates with, merges or converts into, or transfers all or substantially all its corporate trust business or assets to, another
corporation or banking association, the resulting, surviving or transferee corporation without any further act shall be the successor Trustee. 
  

 -61- 

 In case at the time such successor or successors by merger, conversion or consolidation to the Trustee
shall succeed to the trusts created by this Indenture any of the Securities shall have been authenticated but not delivered, any such successor to the Trustee may adopt the certificate of authentication of any predecessor trustee, and deliver such
Securities so authenticated; and in case at that time any of the Securities shall not have been authenticated, any successor to the Trustee may authenticate such Securities either in the name of any predecessor hereunder or in the name of the
successor to the Trustee; and in all such cases such certificates shall have the full force which it is anywhere in the Securities or in this Indenture. 
 SECTION 7.10 Eligibility; Disqualification. 
 The Trustee shall at all times satisfy the requirements of TIA
Section 310(a). The Trustee shall have a combined capital and surplus of at least $50.0 million as set forth in its most recent annual report of condition. The Trustee shall comply with TIA Section 310(b); provided,
however, that there shall be excluded from the operation of TIA Section 310(b)(1) any indenture or indentures under which other securities or certificates of interest or participation in other securities of the Company are
outstanding if the requirements for such exclusion set forth in TIA Section 310(b)(1) are met. 
 SECTION 7.11 Preferential Collection of Claims
Against Company. 
 The Trustee shall comply with TIA Section 311(a), excluding any creditor relationship listed in TIA
Section 311(b). A Trustee who has resigned or been removed shall be subject to TIA Section 311(a) to the extent indicated. 
 ARTICLE VIII 
 DISCHARGE OF INDENTURE; DEFEASANCE 
 SECTION 8.01 Discharge of Liability on Securities; Defeasance. 
 (a) When (1) the Company
delivers to the Trustee all outstanding Securities (other than Securities replaced pursuant to Section 2.07 [Replacement Securities]) for cancellation or (2) all outstanding Securities have become due and payable, whether at maturity or as
a result of the mailing of a notice of redemption pursuant to Article III hereof and the Company irrevocably deposits with the Trustee funds sufficient to pay at maturity or upon redemption all outstanding Securities, including interest thereon
to maturity or such redemption date (other than Securities replaced pursuant to Section 2.07 [Replacement Securities]), and if in either case the Company pays all other sums payable hereunder by the Company, then this Indenture shall, subject
to Section 8.01(c), cease to be of further effect. The Trustee shall acknowledge satisfaction and discharge of this Indenture on demand of the Company accompanied by an Officers’ Certificate and an Opinion of Counsel and at the cost and
expense of the Company. 
 (b) Subject to Sections 8.01(c) and 8.02, the Company at any time may terminate (i) all its
obligations under the Securities and this Indenture (“legal defeasance option”) in regard to either or both of the Floating Rate Notes or the Fixed Rate Notes or (ii) its obligations under Sections 4.02, 4.03, 4.05, 4.06, 4.07,
4.08, 4.09, 4.11, 4.12 and 4.14 and the operation of Sections 6.01(f), 6.01(g) (but only with respect to Subsidiary Guarantors and Significant Subsidiaries), 6.01(h) (but only with respect to Subsidiary Guarantors and Significant
Subsidiaries), 6.01(i) and 6.01(j) and its obligations under Sections 5.01(c) and (d) (“covenant defeasance option”). The Company may exercise its legal defeasance option notwithstanding its prior exercise of its
covenant defeasance option. 
  

 -62- 

 If the Company exercises its legal defeasance option, payment of the Securities which have been defeased
may not be accelerated because of an Event of Default. If the Company exercises its covenant defeasance option, payment of the Securities which have been defeased may not be accelerated because of an Event of Default specified in
Section 6.01(d), 6.01(e), 6.01(f), 6.01(g) (but only with respect to Subsidiary Guarantors and Significant Subsidiaries), 6.01(h) (but only with respect to Subsidiary Guarantors and Significant Subsidiaries), 6.01(i) (but only
with respect to Subsidiary Guarantors and Significant Subsidiaries) or 6.01(j) or because of the failure of the Company to comply with Section 5.01(c) or (d). If the Company exercises its legal defeasance option or its covenant
defeasance option, each Subsidiary Guarantor will be released from all its obligations with respect to its Subsidiary Guarantee. 
 Upon
satisfaction of the conditions set forth herein and upon request of the Company, the Trustee shall acknowledge in writing the discharge of those obligations that the Company terminates. 
 (c) Notwithstanding clauses (a) and (b) above, the Company’s obligations in Sections 2.03, 2.04, 2.05, 2.07, 7.07, 7.08 and this
Article VIII shall survive until the Securities have been paid in full. Thereafter, the Company’s obligations in Sections 7.07, 8.04 and 8.05 shall survive. 
 SECTION 8.02 Conditions to Defeasance. 
 The Company may exercise its legal defeasance option or its
covenant defeasance option only if: 
 (a) the Company irrevocably deposits in trust with the Trustee money or U.S. Government
Obligations for the payment of principal and interest on the Securities to maturity or redemption, as the case may be; 
 (b)
the Company delivers to the Trustee a certificate from a nationally recognized firm of independent accountants expressing its opinion that the payments of principal of and interest when due and without reinvestment on the deposited U.S. Government
Obligations plus any deposited money without investment will provide cash at such times and in such amounts as will be sufficient to pay principal and interest when due on all the Securities being defeased to maturity or redemption, as the case may
be; 
 (c) 123 days pass after the deposit is made and during the 123-day period no Default specified in
Section 6.01(g) or (h) with respect to the Company occurs which is continuing at the end of the period; 
 (d)
the deposit does not constitute a default under any other agreement binding on the Company; 
 (e) the Company delivers to the
Trustee an Opinion of Counsel to the effect that the trust resulting from the deposit does not constitute, or is qualified as, a regulated investment company under the Investment Company Act of 1940; 
 (f) in the case of the legal defeasance option, the Company shall have delivered to the Trustee an Opinion of Counsel stating 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 Securityholders will not 

  

 -63- 

 
recognize income, gain or loss for Federal income tax purposes as a result of such 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; 
 (g) in the
case of the covenant defeasance option, the Company shall have delivered to the Trustee an Opinion of Counsel to the effect that the Securityholders of such 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; and 
 (h) the Company delivers to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions
precedent to the defeasance and discharge of the Securities as contemplated by this Article VIII have been complied with. 
 Before or
after a deposit, the Company may make arrangements satisfactory to the Trustee for the redemption of Securities at a future date in accordance with Article III. 
 SECTION 8.03 Application of Trust Money. 
 The Trustee shall hold in trust money or U.S. Government Obligations deposited
with it pursuant to this Article VIII. It shall apply the deposited money and the money from U.S. Government Obligations through the Paying Agent and in accordance with this Indenture to the payment of principal of and interest on the
Securities. Money and securities so held in trust are not subject to Article X. 
 SECTION 8.04 Repayment to Company. 
 The Trustee and the Paying Agent shall promptly turn over to the Company upon request any money or securities held by them at any time which, in the
opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, are in excess of the amount thereof that would then be required for the Company to exercise its legal
defeasance option or its covenant defeasance option pursuant to this Article VIII. 
 Subject to any applicable abandoned property law,
the Trustee and the Paying Agent shall pay to the Company upon written request any money held by them for the payment of principal or interest that remains unclaimed for two years, and, thereafter, Securityholders entitled to the money must look to
the Company for payment as general creditors. 
 SECTION 8.05 Indemnity for Government Obligations. 
 The Company shall pay and shall indemnify the Trustee against any tax, fee or other charge imposed on or assessed against deposited U.S. Government
Obligations or the principal and interest received on such U.S. Government Obligations. 
 SECTION 8.06 Reinstatement. 
 If the Trustee or Paying Agent is unable to apply any money or U.S. Government Obligations in accordance with this Article VIII by reason of any
legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the Company’s obligations under this Indenture and the Securities shall be revived
and 

  

 -64- 

 
reinstated as though no deposit had occurred pursuant to this Article VIII until such time as the Trustee or Paying Agent is permitted to apply all such
money or U.S. Government Obligations in accordance with this Article VIII; provided, however, that, if the Company has made any payment of interest on or principal of any Securities because of the reinstatement of its obligations,
the Company shall be subrogated to the rights of the Holders of such Securities to receive such payment from the money or U.S. Government Obligations held by the Trustee or Paying Agent. 
 ARTICLE IX 
 AMENDMENTS 
 SECTION 9.01 Without Consent of Holders. 
 The Company, the Subsidiary Guarantors and the Trustee may
amend this Indenture or the Securities without notice to or consent of any Securityholder: 
 (a) to cure any ambiguity,
omission, defect or inconsistency; 
 (b) to comply with Article V; 
 (c) to provide for uncertificated Securities in addition to or in place of certificated Securities; provided, however, that
the uncertificated Securities are issued in registered form for purposes of Section 163(f) of the Code or in a manner such that the uncertificated Securities are described in Section 163(f)(2)(B) of the Code; 
 (d) to add guarantees with respect to the Securities (including any Subsidiary Guarantee); 
 (e) to secure the Securities; 
 (f) to add to the covenants of the Company or a Subsidiary Guarantor for the benefit of the Holders or to surrender any right or power herein conferred upon the Company or any Subsidiary Guarantor; 
 (g) to make any change that does not adversely affect the rights of any Securityholder; 
 (h) to comply with any requirements of the SEC in connection with qualifying this Indenture under the TIA; or 
 (i) to conform the text of this Indenture or the Securities to any provision of the “Description of the Notes” as set forth in
the offering memorandum dated April 18, 2007 to the extent that such provision was intended to be a verbatim recitation of such text. 
 After an amendment under this Section becomes effective, the Company shall mail to Securityholders a notice briefly describing such amendment. The failure to give such notice to all Securityholders, or any defect therein, shall not impair
or affect the validity of an amendment under this Section. 
  

 -65- 

 SECTION 9.02 With Consent of Holders. 
 The Company, the Subsidiary Guarantors and the Trustee may amend this Indenture or the Securities without notice to any Securityholder but with the
written consent of the Holders of at least a majority in principal amount of the Securities then outstanding. Without the consent of each Securityholder affected, however, an amendment may not: 
 (a) reduce the amount of Securities whose Holders must consent to an amendment; 
 (b) reduce the rate of or extend the time for payment of interest on any Security; 
 (c) reduce the principal of or extend the Stated Maturity of any Security; 
 (d) reduce the amount payable upon the redemption of any Security or change the time at which any Security may be redeemed in accordance
with Article II hereof and paragraph 5 of the Securities; 
 (e) make any Security payable in money other than that
stated in the Security; 
 (f) make any change in Section 6.04 [Waiver of Past Defaults] or 6.07 [Rights of Holders to
Receive Payment] or the second sentence of this Section 9.02; 
 (g) make any change in the ranking or priority of any
Security that would adversely affect the Securityholders; or 
 (h) make any change in any Subsidiary Guarantee that would
adversely affect the Securityholders. 
 (i) It shall not be necessary for the consent of the Holders under this
Section to approve the particular form of any proposed amendment, but it shall be sufficient if such consent approves the substance thereof. 
 After an amendment under this Section 9.02 becomes effective, the Company shall mail to Securityholders a notice briefly describing such amendment. The failure to give such notice to all Securityholders, or any defect therein, shall
not impair or affect the validity of an amendment under this Section 9.02. 
 SECTION 9.03 Compliance with Trust Indenture Act. 
 Every amendment to this Indenture or the Securities shall comply with the TIA as then in effect. 
 SECTION 9.04 Revocation and Effect of Consents and Waivers. 
 A consent to an amendment or a waiver by a Holder of a Security shall bind the Holder and every subsequent Holder of that Security or portion of the Security that evidences the same debt as the consenting Holder’s Security, even if
notation of the consent or waiver is not made on the Security. However, any such Holder or subsequent Holder may revoke the consent or waiver as to such Holder’s Security or portion of the Security if the Trustee receives the notice of
revocation before the date the amendment or waiver becomes effective. After an amendment or waiver becomes effective, it shall bind every Securityholder. 
  

 -66- 

 The Company may, but shall not be obligated to, fix a record date for the purpose of determining the
Securityholders entitled to give their consent or take any other action described above or required or permitted to be taken pursuant to this Indenture. If a record date is fixed, then notwithstanding the immediately preceding paragraph, those
Persons who were Securityholders at such record date (or their duly designated proxies), and only those Persons, shall be entitled to give such consent or to revoke any consent previously given or to take any such action, whether or not such Persons
continue to be Holders after such record date. 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. 
 If an amendment changes the terms of a Security, the Trustee may require the Holder of the
Security to deliver it to the Trustee. The Trustee may place an appropriate notation on the Security regarding the changed terms and return it to the Holder. Alternatively, if the Company or the Trustee so determines, the Company in exchange for the
Security shall issue and the Trustee shall authenticate a new Security that reflects the changed terms. Failure to make the appropriate notation or to issue a new Security shall not affect the validity of such amendment. 
 SECTION 9.06 Trustee To Sign Amendments. 
 The
Trustee shall sign any amendment authorized pursuant to this Article IX if the amendment does not adversely affect the rights, duties, liabilities or immunities of the Trustee. If it does, the Trustee may but need not sign it. In signing such
amendment the Trustee shall be entitled to receive indemnity reasonably satisfactory to it and to receive, and (subject to Section 7.01 [Duties of Trustee]) shall be fully protected in relying upon, an Officers’ Certificate and an Opinion
of Counsel stating that such amendment is authorized or permitted by this Indenture. 
 ARTICLE X 
 SUBSIDIARY GUARANTEES 
 SECTION 10.01 Subsidiary
Guarantees. 
 Each Subsidiary Guarantor, jointly and severally, as primary obligor and not merely as surety, hereby irrevocably, fully
and unconditionally Guarantees on a senior unsecured basis to each Holder and to the Trustee and its successors and assigns the full and punctual payment of principal of and interest on the Securities when due, whether at Stated Maturity, by
acceleration, by redemption or otherwise, and all other monetary obligations of the Company under this Indenture and the Securities (all the foregoing obligations hereinafter collectively called the “Guaranteed Obligations”). Each
Subsidiary Guarantor further agrees that the Guaranteed Obligations may be extended or renewed, in whole or in part, without notice or further assent from such Subsidiary Guarantor, and that such Subsidiary Guarantor shall remain bound under this
Article X notwithstanding any extension or renewal of any such Guaranteed Obligation. 
 Each Subsidiary Guarantor waives presentation
to, demand of, payment from and protest to the Company of any of the Guaranteed Obligations and also waives notice of protest for nonpayment. Each Subsidiary Guarantor waives notice of any default under the Securities or the Guaranteed Obligations.
The obligations of each Subsidiary Guarantor hereunder shall not be affected by (a) the failure of any Holder or the Trustee to assert any claim or demand or to enforce any right or remedy against the Company or any other Person under this
Indenture, the Securities or any other agreement or otherwise; (b) any extension or renewal of any thereof; (c) any rescission, waiver, amendment or 

  

 -67- 

 
modification of any of the terms or provisions of this Indenture, the Securities or any other agreement; (d) the release of any security held by any
Holder or the Trustee for the Guaranteed Obligations or any of them; (e) the failure of any Holder or Trustee to exercise any right or remedy against any other guarantor of the Guaranteed Obligations; or (f) except as provided in
Section 10.06 [Release of Subsidiary Guarantor], any change in the ownership of such Subsidiary Guarantor. 
 Each Subsidiary Guarantor
further agrees that its Subsidiary Guarantee herein constitutes a Guarantee of payment, performance and compliance when due (and not a Guarantee of collection) and waives any right to require that any resort be had by any Holder or the Trustee to
any security held for payment of the Guaranteed Obligations. 
 Except as expressly set forth in Sections 8.01(b), 10.02 [Limitation on
Liability] and 10.06 [Release of Subsidiary Guarantor], the obligations of each Subsidiary Guarantor hereunder shall not be subject to any reduction, limitation, impairment or termination for any reason, including any claim of waiver, release,
surrender, alteration or compromise, and shall not be subject to any defense of setoff, counterclaim, recoupment or termination whatsoever or by reason of the invalidity, illegality or unenforceability of the Guaranteed Obligations or otherwise.
Without limiting the generality of the foregoing, the obligations of each Subsidiary Guarantor herein shall not be discharged or impaired or otherwise affected by the failure of any Holder or the Trustee to assert any claim or demand or to enforce
any remedy under this Indenture, the Securities or any other agreement, by any waiver or modification of any thereof, by any default, failure or delay, willful or otherwise, in the performance of the Guaranteed Obligations, or by any other act or
thing or omission or delay to do any other act or thing that may or might in any manner or to any extent vary the risk of such Subsidiary Guarantor or would otherwise operate as a discharge of such Subsidiary Guarantor as a matter of law or equity.

 Each Subsidiary Guarantor further agrees that its Subsidiary Guarantee shall continue to be effective or be reinstated, as the case may
be, if at any time payment, or any part thereof, of principal of or interest on any Guaranteed Obligation is rescinded or must otherwise be restored by any Holder or the Trustee upon the bankruptcy or reorganization of the Company or otherwise.

 In furtherance of the foregoing and not in limitation of any other right that any Holder or the Trustee has at law or in equity against
any Subsidiary Guarantor by virtue hereof, upon the failure of the Company to pay the principal of or interest on any Guaranteed Obligation when and as the same shall become due, whether at maturity, by acceleration, by redemption or otherwise, each
Subsidiary Guarantor shall, upon receipt of written demand by the Trustee, forthwith pay, or cause to be paid, in cash, to the Holders or the Trustee an amount equal to the sum of (a) the unpaid principal amount of such Guaranteed Obligations,
(b) accrued and unpaid interest on such Guaranteed Obligations (but only to the extent not prohibited by law) and (c) all other monetary Guaranteed Obligations of the Company to the Holders and the Trustee. 
 Each Subsidiary Guarantor agrees that, as between it, on the one hand, and the Holders and the Trustee, on the other hand, (a) the maturity of the
Guaranteed Obligations Guaranteed hereby may be accelerated as provided in Article VI for the purposes of such Subsidiary Guarantor’s Subsidiary Guarantee, notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the Guaranteed Obligations Guaranteed hereby, and (b) in the event of any declaration of acceleration of such Guaranteed Obligations as provided in Article VI, such Guaranteed Obligations (whether or not due and
payable) shall forthwith become due and payable by such Subsidiary Guarantor for the purposes of this Section 10.01. 
  

 -68- 

 Each Subsidiary Guarantor also agrees to pay any and all costs and expenses (including reasonable
attorneys’ fees) incurred by the Trustee or any Holder in enforcing any rights under this Section 10.01. 
 SECTION 10.02 Limitation on
Liability. 
 Any term or provision of this Indenture to the contrary notwithstanding, the maximum, aggregate amount of the obligations
guaranteed hereunder by any Subsidiary Guarantor shall not exceed the maximum amount that can be hereby guaranteed without rendering this Indenture, as it relates to such Subsidiary Guarantor, voidable under applicable law relating to fraudulent
conveyance or fraudulent transfer or similar laws affecting the rights of creditors generally. 
 SECTION 10.03 Successors and Assigns. 
 This Article X shall be binding upon each Subsidiary Guarantor and its successors and assigns and shall inure to the benefit of the successors and
assigns of the Trustee and the Holders and, in the event of any transfer or assignment of rights by any Holder or the Trustee, the rights and privileges conferred upon that party in this Indenture and in the Securities shall automatically extend to
and be vested in such transferee or assignee, all subject to the terms and conditions of this Indenture. 
 SECTION 10.04 No Waiver. 
 Neither a failure nor a delay on the part of either the Trustee or the Holders in exercising any right, power or privilege under this Article X
shall operate as a waiver thereof, nor shall a single or partial exercise thereof preclude any other or further exercise of any right, power or privilege. The rights, remedies and benefits of the Trustee and the Holders herein expressly specified
are cumulative and not exclusive of any other rights, remedies or benefits which either may have under this Article X at law, in equity, by statute or otherwise. 
 SECTION 10.05 Modification. 
 No modification, amendment or waiver of any provision of this
Article X, nor the consent to any departure by any Subsidiary Guarantor therefrom, shall in any event be effective unless the same shall be in writing and signed by the Trustee, and then such waiver or consent shall be effective only in the
specific instance and for the purpose for which given. No notice to or demand on any Subsidiary Guarantor in any case shall entitle such Subsidiary Guarantor to any other or further notice or demand in the same, similar or other circumstances.

 SECTION 10.06 Release of Subsidiary Guarantor. 
 This Subsidiary Guarantee as to any Subsidiary Guarantor shall terminate and be of no further force or effect upon the sale or other disposition (including by way of consolidation or merger) of all or substantially
all of the assets or all of the Capital Stock of such Subsidiary Guarantor, in each case other than to the Company or a Subsidiary of the Company; provided, however, that such sale or transfer is permitted by, and the proceeds from any
such disposition are applied in accordance with, Section 4.07 [Limitation on Sales of Assets and Subsidiary Stock]. In addition, if the Board of Directors designates a Subsidiary Guarantor to be an Unrestricted Subsidiary in accordance with the
applicable provisions of this Indenture, then such Subsidiary Guarantor will be released and relieved of any obligations under its Subsidiary Guarantee. 
  

 -69- 

 SECTION 10.07 Contribution among Subsidiaries. 
 Each Subsidiary Guarantor that makes a payment under its Subsidiary Guarantee will be entitled to a contribution from each other Subsidiary Guarantor in
an amount equal to such other Subsidiary Guarantor’s pro rata portion of such payment based on the respective net assets of all the Subsidiary Guarantors, determined in accordance with GAAP, at the time of such payment. 
 ARTICLE XI 
 MISCELLANEOUS 
 SECTION 11.01 Trust Indenture Act Controls. 
 If any
provision of this Indenture limits, qualifies or conflicts with another provision which is required to be included in this Indenture by the TIA, the required provision shall control. 
 SECTION 11.02 Notices. 
 Any notice or communication shall be in writing and delivered in person or
mailed by first-class mail addressed as follows: 
 if to the Company or any Subsidiary Guarantor: 
 Energy Partners, Ltd. 
 201 St. Charles Avenue

 Suite 3400 
 New Orleans,
Louisiana 70170 
 Attention: Corporate Secretary 
 if to the Trustee: 
 U.S. Bank National Association 
 5555 San Felipe, Suite 1150 
 Houston, Texas
77056 
 Attention: Corporate Trust Services 
 The Company or the Trustee by notice to the other may designate additional or different addresses for subsequent notices or communications. 
 Any notice or communication mailed to a Securityholder shall be mailed to the Securityholder at the Securityholder’s address as it appears on the
registration books of the Registrar and shall be sufficiently given if so mailed within the time prescribed. 
 Failure to mail a notice or
communication to a Securityholder or any defect in it shall not affect its sufficiency with respect to other Securityholders. If a notice or communication is mailed in the manner provided above, it is duly given, whether or not the addressee
receives it. 
 SECTION 11.03 Communication by Holders with Other Holders. 
 Securityholders may communicate pursuant to TIA Section 312(b) with other Securityholders with respect to their rights under this Indenture or
the Securities. The Company, the Trustee, the Registrar and anyone else shall have the protection of TIA Section 312(c). 
  

 -70- 

 SECTION 11.04 Certificate and Opinion as to Conditions Precedent. 
 Upon any request or application by the Company to the Trustee to take or refrain from taking any action under this Indenture, the Company shall furnish
to the Trustee: 
 (a) an Officers’ Certificate in form and substance reasonably satisfactory to the Trustee stating
that, in the opinion of the signers, all conditions precedent, 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 stating that, in the opinion of such counsel, all
such conditions precedent have been complied with. 
 SECTION 11.05 Statements Required in Certificate or Opinion. 
 Each certificate or opinion with respect to compliance with a covenant or condition provided for in this Indenture shall include: 
 (a) a statement that the individual 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 individual, he has made such
examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with; and 
 (d) a statement as to whether or not, in the opinion of such individual, such covenant or condition has been complied with. 
 Any Officers’ Certificate may be based, insofar as it relates to legal matters, upon an Opinion of Counsel, unless any such Officer knows or in the
exercise of reasonable care should have known that such Opinion of Counsel is erroneous. Any Opinion of Counsel may be based, insofar as it relates to factual matters, information with respect to which is in possession of the Company, upon an
Officers’ Certificate, unless such counsel knows or in the exercise of reasonable care should have known that such Officers’ Certificate is erroneous. 
 SECTION 11.06 When Securities Disregarded. 
 In determining whether the Holders of the required principal amount of
Securities have concurred in any direction, waiver or consent, Securities owned by the Company or by any Person directly or indirectly controlling or controlled by or under direct or indirect common control with the Company shall be disregarded and
deemed not to be outstanding, except that, for the purpose of determining whether the Trustee shall be protected in relying on any such direction, waiver or consent, only Securities which the Trustee actually knows are so owned shall be so
disregarded. Also, subject to the foregoing, only Securities outstanding at the time shall be considered in any such determination. 
  

 -71- 

 SECTION 11.07 Rules by Trustee, Paying Agent and Registrar. 
 The Trustee may make reasonable rules for action by or a meeting of Securityholders. The Registrar and the Paying Agent may make reasonable rules for
their functions. 
 SECTION 11.08 Legal Holidays. 
 A “Legal Holiday” is a Saturday, a Sunday or a day on which banking institutions are not required to be open in the State of New York or in the State of Texas. If a payment date is a Legal Holiday, payment
shall be made on the next succeeding day that is not a Legal Holiday, and no interest shall accrue with respect to such payment for the intervening period. If a regular record date is a Legal Holiday, the record date shall not be affected.

 SECTION 11.09 Governing Law. 
 This
Indenture and the Securities shall be governed by, and construed in accordance with, the laws of the State of New York but without giving effect to applicable principles of conflicts of law to the extent that the application of the laws of another
jurisdiction would be required thereby. 
 SECTION 11.10 No Recourse Against Others. 
 No director, officer, member, employee, incorporator or stockholder, as such, of the Company or any Subsidiary Guarantor shall have any liability for any
obligations of the Company or any Subsidiary Guarantor under the Securities, the Subsidiary Guarantees or this Indenture or for any claim based on, in respect of, or by reason of such obligations or their creation. By accepting a Security, each
Securityholder shall waive and release all such liability. The waiver and release shall be part of the consideration for the issue of the Securities. 
 SECTION 11.11 Successors. 
 All agreements of the Company in this Indenture and the Securities shall bind its successors.
All agreements of the Trustee in this Indenture shall bind its successors. 
 SECTION 11.12 Multiple 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. One signed copy is enough to prove this Indenture. 
 SECTION 11.13 Table of Contents; Headings. 
 The table of contents, cross-reference sheet and headings of the Articles and Sections of this Indenture have been inserted for convenience of
reference only, are not intended to be considered a part hereof and shall not modify or restrict any of the terms or provisions hereof. 
 SECTION 11.14
Severability. 
 If any one or more of the provisions contained herein, or the application thereof in any circumstance, is held
invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained herein shall not be affected or impaired thereby. 
  

 -72- 

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

			
	ENERGY PARTNERS, LTD.
		
	By:	 	/s/ Phillip A. Gobe
		 	Name: Phillip A. Gobe
		 	Title: President and Chief Operating Officer
	
	SUBSIDIARY GUARANTORS:
	
	 EPL PIPELINE, L.L.C.,
 a
Delaware Limited Liability Company

		
	By:	 	/s/ Phillip A. Gobe
		 	Name: Phillip A. Gobe
		 	Title: President and Chief Operating Officer
	
	 EPL OF LOUISIANA, L.L.C.,
 a Louisiana Limited Liability Company

		
	By:	 	/s/ Phillip A. Gobe
		 	Name: Phillip A. Gobe
		 	Title: President and Chief Operating Officer
	
	 DELAWARE EPL OF TEXAS, LLC,
 a Delaware Limited Liability Company

		
	By:	 	/s/ Jay Lehman
		 	Name: Jay Lehman
		 	Title: President
	
	 EPL PIONEER HOUSTON, INC.,
 a Texas Corporation

		
	By:	 	/s/ Phillip A. Gobe
		 	Name: Phillip A. Gobe
		 	Title: President and Chief Operating Officer

  

 -73- 

			
	 Trustee:
  
 U.S. BANK NATIONAL ASSOCIATION, AS TRUSTEE

		
	By:	 	/s/ Steven A. Finklea
		 	Name: Steven A. Finklea, CCTS
		 	Title: Vice President

  

 -74- 

 APPENDIX A 
 PROVISIONS RELATING TO INITIAL SECURITIES, 
 EXCHANGE SECURITIES, PRIVATE EXCHANGE SECURITIES 
 AND OTHER SECURITIES 
 1. Definitions 
 1.1 Definitions. For the purposes of this Appendix A the following terms shall have the meanings indicated below: 
 “Applicable Procedures” means, with respect to any transfer or transaction involving a Temporary Regulation S Global
Security or beneficial interest therein, the rules and procedures of the Depository, Euroclear and Clearstream for such a Temporary Regulation S Global Security, in each case to the extent applicable to such transaction and as in effect from
time to time. 
 “Clearstream” means Clearstream Banking, societe anonyme, or any successor securities clearing
agency. 
 “Definitive Security” means a certificated Initial Security or Exchange Security or Private Exchange
Security bearing, if required, the restricted securities legend set forth in Section 2.3(e). 
 “Depository”
means The Depository Trust Company, its nominees and their respective successors. 
 “Distribution Compliance
Period,” with respect to any Securities, means the period of 40 consecutive days beginning on and including the later of (i) the day on which such Securities are first offered to persons other than distributors (as defined in
Regulation S under the Securities Act) in reliance on Regulation S and (ii) the date on which such Securities are issued. 
 “Euroclear” means the Euroclear Clearance System or any successor securities clearing agency. 
 “Exchange Securities” means (1) the Senior Floating Rate Notes due 2013 or the 9.75% Senior Notes due 2014, as the case may be, to be issued pursuant to this Indenture in connection with a Registered
Exchange Offer pursuant to the Registration Agreement and (2) Additional Securities, if any, issued pursuant to a registration statement filed with the SEC under the Securities Act. 
 “Initial Purchasers” means (1) with respect to the Initial Securities issued on the Issue Date, Banc of America Securities
LLC, BNP Paribas Securities Corp., Merrill Lynch, Pierce, Fenner & Smith Incorporated, UBS Securities LLC, BMO Capital Markets Corp., Calyon Securities (USA) Inc., Piper Jaffray & Co., Scotia Capital (USA) Inc., Friedman, Billings,
Ramsey & Co., Inc., Johnson Rice & Company L.L.C. and SG Americas Securities, LLC, and (2) with respect to each issuance of Additional Securities, the Persons purchasing such Additional Securities under the related Purchase
Agreement. 
 “Initial Securities” means (1) $150,000,000 aggregate principal amount of Senior Floating Rate
Notes due 2013 and $300,000,000 aggregate principal amount 9.75% Senior Notes due 

  

 Appendix A-1 

 
2014 issued under this Indenture on the Issue Date and (2) Additional Securities, if any, issued in a transaction exempt from the registration
requirements of the Securities Act. 
 “Private Exchange” means the offer by the Company, pursuant to a Registration
Agreement, to the Initial Purchasers to issue and deliver to each Initial Purchaser, in exchange for the Initial Securities held by the Initial Purchaser as part of its initial distribution, a like aggregate principal amount of Private Exchange
Securities. 
 “Private Exchange Securities” means any Senior Floating Rate Notes due 2013 or 9.75% Senior Notes Due
2014, as the case may be, issued in connection with a Private Exchange. 
 “Purchase Agreement” means (1) with
respect to the Initial Securities issued on the Issue Date, the Purchase Agreement dated April 18, 2007, among the Company, the Subsidiary Guarantors and the Initial Purchasers and (2) with respect to each issuance of Additional
Securities, the purchase agreement or underwriting agreement among the Company and the Persons purchasing such Additional Securities. 
 “QIB” means a “qualified institutional buyer” as defined in Rule 144A. 
 “Registered Exchange Offer” means the offer by the Company, pursuant to a Registration Agreement, to certain Holders of Initial Securities, to issue and deliver to such Holders, in exchange for the Initial Securities, a like
aggregate principal amount of Exchange Securities registered under the Securities Act. 
 “Registration Agreement”
means (1) with respect to the Initial Securities issued on the Issue Date, the Registration Rights Agreement, among the Company, the Subsidiary Guarantors and the Initial Purchasers and (2) with respect to each issuance of Additional
Securities issued in a transaction exempt from the registration requirements of the Securities Act, the registration rights agreement, if any, among the Company and the Persons purchasing such Additional Securities under the related Purchase
Agreement. 
 “Rule 144A Securities” means all Initial Securities offered and sold to QIBs in reliance on
Rule 144A. 
 “Securities” means the Initial Securities, the Exchange Securities and the Private Exchange
Securities, treated as a single class. 
 “Securities Act” means the Securities Act of 1933, as amended. 

“Securities Custodian” means the custodian with respect to a Global Security (as appointed by the Depository), or any
successor person thereto and shall initially be the Trustee. 
 “Shelf Registration Statement” means the
registration statement issued by the Company in connection with the offer and sale of Initial Securities or Private Exchange Securities pursuant to a Registration Agreement. 
 “Transfer Restricted Securities” means Definitive Securities and any other Securities that bear or are required to bear the
legend set forth in Section 2.3(e) hereto. 
  

 Appendix A-2 

 1.2 Other Definitions. 
  

				
	 Term
	  	Defined in
Section	 
	 “Agent Members”
	  	2.1	(b)
	 “Global Security”
	  	2.1	(a)
	 “Institutional Accredited Investors
	  	2.1	(a)
	 “Other Global Security
	  	2.1	(a)
	 “Other Security”
	  	2.1	(a)
	 “Permanent Regulation S Global Security”
	  	2.1	(a)
	 “Regulation S”
	  	2.1	(a)
	 “Rule 144A”
	  	2.1	(a)
	 “Rule 144A Global Security”
	  	2.1	(a)
	 “Temporary Regulation S Global Security”
	  	2.1	(a)

 2. The Securities 
 2.1(a) Form and Dating. The Initial Securities will be offered and sold by the Company, from time to time, pursuant to one or more Purchase
Agreements. The Initial Securities will be resold initially only to QIBs in reliance on Rule 144A under the Securities Act (“Rule 144A”) and in reliance on Regulation S under the Securities Act
(“Regulation S”). Initial Securities may thereafter be transferred to, among others, QIBs, purchasers in reliance on Regulation S and institutional “accredited investors” within the meaning of Rule 501(a)(1), (2),
(3) or (7) of Regulation D under the Securities Act (“Institutional Accredited Investors”) in transactions exempt from registration under the Securities Act not made in reliance on Rule 144A or Regulation S (as so
transferred to Institutional Accredited Investors, “Other Securities”), subject to the restrictions on transfer set forth herein. Initial Securities initially resold pursuant to Rule 144A shall be issued initially in the form of one
or more temporary global Securities in definitive, fully registered form (collectively, the “Rule 144A Global Security”) and Initial Securities initially resold pursuant to Regulation S shall be issued initially in the form of
one or more temporary global securities in definitive, fully registered form (collectively, the “Temporary Regulation S Global Security”), in each case without interest coupons and with the global securities legend and restricted
securities legend set forth in Exhibit 1 hereto, which shall be deposited on behalf of the purchasers of the Initial Securities represented thereby with the Securities Custodian, and registered in the name of the Depository or a nominee of the
Depository, duly executed by the Company and authenticated by the Trustee as provided in this Indenture. Beneficial ownership interests in the Temporary Regulation S Global Security will not be exchangeable for interests in the Rule 144A
Global Security, a permanent global security (the “Permanent Regulation S Global Security”), or any other Security without a legend containing restrictions on transfer of such Security prior to the expiration of the Distribution
Compliance Period and then only upon certification in form reasonably satisfactory to the Trustee that beneficial ownership interests in such Temporary Regulation S Global Security are owned either by non-U.S. persons or U.S. persons who
purchased such interests in a transaction that did not require registration under the Securities Act. The Other Securities will initially be represented by one or more global securities in registered form without interest coupons (collectively, the
“Other Global Securities”). The Other Global Securities (and any securities issued in exchange therefor), including beneficial interests in the Other Global Securities, will be subject to certain restrictions on transfer set forth herein
and will bear the global securities legend and the restrictive securities legend set forth in 

  

 Appendix A-3 

 
Exhibit 1 hereto. The Rule 144A Global Security, the Temporary Regulation S Global Security, the Permanent Regulation S Global Security
and the Other Global Security are collectively referred to herein as “Global Securities.” The aggregate principal amount of the Global Securities may from time to time be increased or decreased by adjustments made on the records of the
Trustee and the Depository or its nominee as hereinafter provided. 
 (b) Book-Entry Provisions. This
Section 2.1(b) shall apply only to a Global Security deposited with or on behalf of the Depository. 
 The Company
shall execute and the Trustee shall, in accordance with this Section 2.1(b), authenticate and deliver initially one or more Global Securities that (a) shall be registered in the name of the Depository for such Global Security or Global
Securities or the nominee of such Depository and (b) shall be delivered by the Trustee to such Depository or pursuant to such Depository’s instructions or held by the Trustee as custodian for the Depository. 
 Members of, or participants in, the Depository (“Agent Members”) shall have no rights under this Indenture with respect to any
Global Security held on their behalf by the Depository or by the Trustee as the custodian of the Depository or under such Global Security, and the Company, the Trustee and any agent of the Company or the Trustee shall be entitled to treat the
Depository as the absolute owner of such Global Security for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Company, the Trustee or any agent of the Company or the Trustee from giving effect to any written
certification, proxy or other authorization furnished by the Depository or impair, as between the Depository and its Agent Members, the operation of customary practices of such Depository governing the exercise of the rights of a holder of a
beneficial interest in any Global Security. 
 (c) Definitive Securities. Except as provided in Section 2.3 or
2.4, owners of beneficial interests in Global Securities shall not be entitled to receive physical delivery of Definitive Securities. 
 2.2
Authentication. The Trustee shall authenticate and deliver: (1) on the Issue Date, an aggregate principal amount of $150,000,000 Senior Floating Rate Notes due 2013 and $300,000,000 9.75% Senior Notes due 2014, (2) any Additional
Securities for an original issue in an aggregate principal amount specified in the written order of the Company pursuant to Section 2.02 of the Indenture and (3) Exchange Securities or Private Exchange Securities for issue only in a
Registered Exchange Offer or a Private Exchange, respectively, pursuant to a Registration Agreement, for a like principal amount of Initial Securities, upon a written order of the Company signed by two Officers or by an Officer and either an
Assistant Treasurer or an Assistant Secretary of the Company. Such order shall specify the amount of the Securities to be authenticated, the date on which the original issue of Securities is to be authenticated and whether the Securities are to be
Initial Securities, Exchange Securities or Private Exchange Securities. In the case of any issuance of Additional Securities pursuant to Section 2.13 of the Indenture, such order shall certify that such issuance is in compliance with
Section 4.03 of the Indenture. 
 2.3 Transfer and Exchange. 
 (a) Transfer and Exchange of Definitive Securities. When Definitive Securities are presented to the Registrar or a co-registrar
with a request: 
 (x) to register the transfer of such Definitive Securities; or 
  

 Appendix A-4 

 (y) to exchange such Definitive Securities for an equal principal amount of Definitive
Securities of other authorized denominations, 
 the Registrar or co-registrar shall register the transfer or make the exchange as requested if its
reasonable requirements for such transaction are met; provided, however, that the Definitive Securities surrendered for transfer or exchange: 
 (i) shall be duly endorsed or accompanied by a written instrument of transfer in form reasonably satisfactory to the Company and the Registrar or co-registrar, duly executed by the Holder thereof or his attorney duly
authorized in writing; and 
 (ii) if such Definitive Securities are required to bear a restricted securities legend, they are
being transferred or exchanged pursuant to an effective registration statement under the Securities Act, pursuant to Section 2.3(b) or pursuant to clause (A), (B) or (C) below, and are accompanied by the following additional
information and documents, as applicable: 
 (A) if such Definitive Securities are being delivered to the Registrar by a
Holder for registration in the name of such Holder, without transfer, a certification from such Holder to that effect; or 
 (B) if such Definitive Securities are being transferred to the Company, a certification to that effect; or 
 (C) if
such Definitive Securities are being transferred (x) pursuant to an exemption from registration in accordance with Rule 144A, Regulation S or Rule 144 under the Securities Act; or (y) in reliance upon another exemption from
the requirements of the Securities Act: (i) a certification to that effect (in the form set forth on the reverse of the Security or, in the case of Other Securities, in the form set forth in Appendix C to the Indenture) and (ii) in
the case of a transfer pursuant to an exemption from registration under the Securities Act provided by Rule 144 thereunder (if available), an opinion of counsel as to the compliance with the restrictions set forth in the legend set forth in
Section 2.3(e)(i). 
 (b) Restrictions on Transfer of a Definitive Security for a Beneficial Interest in a Global
Security. A Definitive Security may not be exchanged for a beneficial interest in a Rule 144A Global Security, Permanent Regulation S Global Security or Other Global Security except upon satisfaction of the requirements set forth
below. Upon receipt by the Trustee of a Definitive Security, duly endorsed or accompanied by appropriate instruments of transfer, in form satisfactory to the Trustee, together with: 
 (i) certification (A) in the form set forth on the reverse of the Security, that such Definitive Security is either (1) being
transferred to a QIB in accordance with Rule 144A or (2) is being transferred after expiration of the “distribution compliance period” of Regulation S by a Person who initially purchased such Security in reliance on
Regulation S to a buyer who elects to hold its interest in such security in the form of a beneficial interest in the Permanent Regulation S Global Security, or (B) in the form set forth in Appendix C to the Indenture, that such
Definitive Security is being transferred to an Institutional Accredited Investor pursuant to an exemption from registration under the Securities Act; and 
  

 Appendix A-5 

 (ii) written instructions directing the Trustee to make, or to direct the Securities
Custodian to make, an adjustment on its books and records with respect to such Rule 144A Global Security (in the case of a transfer pursuant to clause (b)(i)(A)(1)), Permanent Regulation S Global Security (in the case of a transfer
pursuant to clause (b)(i)(A)(2)), or Other Global Security (in the case of a transfer pursuant to clause (b)(i)(B)) to reflect an increase in the aggregate principal amount of the Securities represented by the Rule 144A Global
Security, Permanent Regulation S Global Security or Other Global Security, as applicable, such instructions to contain information regarding the Depository account to be credited with such increase, 
 then the Trustee shall cancel such Definitive Security and cause, or direct the Securities Custodian to cause, in accordance with the standing instructions and
procedures existing between the Depository and the Securities Custodian, the aggregate principal amount of Securities represented by the Rule 144A Global Security, Permanent Regulation S Global Security or Other Global Security, as
applicable, to be increased by the aggregate principal amount of the Definitive Security to be exchanged and shall credit or cause to be credited to the account of the Person specified in such instructions a beneficial interest in the Rule 144A
Global Security, Permanent Regulation S Global Security or Other Global Security, as applicable, equal to the principal amount of the Definitive Security so canceled. If no Rule 144A Global Securities, Permanent Regulation S Global
Securities or Other Global Securities, as applicable, are then outstanding, the Company shall issue and the Trustee shall authenticate, upon written order of the Company in the form of an Officers’ Certificate, a new Rule 144A Global
Security, Permanent Regulation S Global Security or Other Global Security, as applicable, in the appropriate principal amount. 
 (c) Transfer and Exchange of Global Securities. 
 (i) The transfer and exchange of Global Securities or
beneficial interests therein shall be effected through the Depository, in accordance with this Indenture (including applicable restrictions on transfer set forth herein, if any) and the procedures of the Depository therefor. A transferor of a
beneficial interest in a Global Security shall deliver to the Registrar a written order given in accordance with the Depository’s procedures containing information regarding the participant account of the Depository to be credited with a
beneficial interest in the Global Security. The Registrar shall, in accordance with such instructions instruct the Depository to credit to the account of the Person specified in such instructions a beneficial interest in the Global Security and to
debit the account of the Person making the transfer the beneficial interest in the Global Security being transferred. 
 (ii)
If the proposed transfer is a transfer of a beneficial interest in one Global Security to a beneficial interest in another Global Security, the Registrar shall reflect on its books and records the date and an increase in the principal amount of the
Global Security to which such interest is being transferred in an amount equal to the principal amount of the interest to be so transferred, and the Registrar shall reflect on its books and records the date and a corresponding decrease in the
principal amount of the Global Security from which such interest is being transferred. 
 (iii) Notwithstanding any other
provisions of this Appendix A (other than the provisions set forth in Section 2.4), a Global Security may not be transferred as a whole except by the Depository to a nominee of the Depository or by a nominee of the Depository to the
Depository or another nominee of the Depository or by the Depository or any such nominee to a successor Depository or a nominee of such successor Depository. 
  

 Appendix A-6 

 (iv) In the event that a Global Security is exchanged for Definitive Securities pursuant
to Section 2.4 prior to the consummation of a Registered Exchange Offer or the effectiveness of a Shelf Registration Statement with respect to such Securities, such Securities may be exchanged only in accordance with such procedures as are
substantially consistent with the provisions of this Section 2.3 (including the certification requirements set forth on the reverse of the Initial Securities intended to ensure that such transfers comply with Rule 144A or
Regulation S, as the case may be) and such other procedures as may from time to time be adopted by the Company. 
 (d)
Restrictions on Transfer of Temporary Regulation S Global Securities. During the Distribution Compliance Period, beneficial ownership interests in Temporary Regulation S Global Securities may only be sold, pledged or transferred
through Euroclear or Clearstream in accordance with the Applicable Procedures and only (i) to the Company, (ii) so long as such Security is eligible for resale pursuant to Rule 144A, to a person whom the selling holder reasonably
believes is a QIB that purchases for its own account or for the account of a QIB to whom notice is given that the resale, pledge or transfer is being made in reliance on Rule 144A, (iii) in the United States to an Institutional Accredited
Investor that is acquiring the securities for its own account or for the account of another Institutional Accredited Investor for investment purposes and not with a view to, or for offer or sale in connection with, any distribution thereof in
violation of the Securities Act and that, prior to such transfer, furnishes (or has furnished on its behalf by a U.S. broker-dealer) to the Trustee a certificate containing certain representations and agreements relating to restrictions on transfer
of the securities (the form of which certificate can be found in Appendix C to the Indenture), (iv) in an offshore transaction in accordance with Regulation S, (v) pursuant to an exemption from registration provided by
Rule 144 under the Securities Act (if applicable) or (vi) pursuant to an effective registration statement under the Securities Act, in each case in accordance with any applicable securities laws of any state of the United States.

 (e) Legend. 
 (i) Except as permitted by the following paragraphs (ii), (iii) and (iv), each Security certificate evidencing the Global Securities and the Definitive Securities (and all Securities issued in exchange
therefor or in substitution thereof) shall bear a legend in substantially the following form: 
 THIS NOTE (OR ITS
PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THIS NOTE MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE
OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A
THEREUNDER. 
 THE HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS NOTE MAY BE OFFERED, RESOLD,
PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) TO THE COMPANY, (II) IN THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION
MEETING THE REQUIREMENTS OF RULE 144A, (III) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (IV) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
PROVIDED BY RULE 144 

  

 Appendix A-7 

 
THEREUNDER (IF AVAILABLE), (V) IN THE UNITED STATES TO AN INSTITUTIONAL “ACCREDITED INVESTOR” (AS DEFINED IN RULE 501(A)(1), (2),
(3) OR (7) UNDER THE SECURITIES ACT) THAT IS ACQUIRING THIS NOTE FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF ANOTHER INSTITUTIONAL ACCREDITED INVESTOR FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH,
ANY DISTRIBUTION THEREOF IN VIOLATION OF THE SECURITIES ACT AND THAT, PRIOR TO SUCH TRANSFER, FURNISHES (OR HAS FURNISHED ON ITS BEHALF BY A U.S. BROKER-DEALER) TO THE TRUSTEE A CERTIFICATE IN THE FORM PRESCRIBED BY THE INDENTURE CONTAINING CERTAIN
REPRESENTATIONS AND AGREEMENTS RELATING TO RESTRICTIONS ON TRANSFER OF THIS NOTE, (VI) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES (I) THROUGH (VI) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES
LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS NOTE FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE. 
 Each Definitive Security will also bear an additional legend in substantially the following form: 
 IN ADDITION WITH RESPECT TO ANY TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER PURSUANT TO CLAUSE (A)(VI) ABOVE), THE HOLDER WILL
DELIVER TO THE COMPANY AND THE TRUSTEE SUCH CERTIFICATES AND OTHER INFORMATION AND, IN THE CASE OF A TRANSFER PURSUANT TO CLAUSE (A)(IV) ABOVE, A LEGAL OPINION AS THEY MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER BY IT COMPLIES WITH THE
FOREGOING RESTRICTIONS. 
 (ii) Upon any sale or transfer of a Transfer Restricted Security (including any Transfer Restricted
Security represented by a Global Security) pursuant to Rule 144 under the Securities Act, the Registrar shall permit the transferee thereof to exchange such Transfer Restricted Security for a certificated Security that does not bear the legend
set forth above and rescind any restriction on the transfer of such Transfer Restricted Security, if the transferor thereof certifies in writing to the Registrar that such sale or transfer was made in reliance on Rule 144 (such certification to
be in the form set forth on the reverse of the Security). 
 (iii) After a transfer of any Initial Securities or Private
Exchange Securities pursuant to and during the period of the effectiveness of a Shelf Registration Statement with respect to such Initial Securities or Private Exchange Securities, as the case may be, all requirements pertaining to legends on such
Initial Securities or such Private Exchange Securities will cease to apply, the requirements that Initial Securities or Private Exchange Securities issued to certain Holders be issued in global form will cease to apply to such Initial Securities or
Private Exchange Securities, and certificated Initial Securities or Private Exchange Securities or Initial Securities or Private Exchange Securities in global form, in each case without restrictive transfer legends, will be available to the
transferee of the Holder of such Initial Securities or Private Exchange Securities upon exchange of such transferring Holder’s certificated Initial Securities or Private Exchange Securities or directions to transfer such Holder’s interest
in the Global Security, as applicable. 
 (iv) Upon the consummation of a Registered Exchange Offer with respect to the
Initial Securities, all requirements pertaining to such Initial Securities that Initial Securities issued to certain Holders be issued in global form will still apply with respect to Holders of such Initial Securities 

  

 Appendix A-8 

 
that do not exchange their Initial Securities, and Exchange Securities in certificated or global form will be available to Holders that exchange such Initial
Securities in such Registered Exchange Offer. 
 (v) Upon the consummation of a Private Exchange with respect to the Initial
Securities pursuant to which Holders of such Initial Securities are offered Private Exchange Securities in exchange for their Initial Securities, all requirements pertaining to such Initial Securities that Initial Securities issued to certain
Holders be issued in global form will still apply with respect to Holders of such Initial Securities that do not exchange their Initial Securities, and Private Exchange Securities in global form with the global securities legend and the restricted
securities legend set forth in Exhibit I hereto will be available to Holders that exchange such Initial Securities in such Private Exchange. 
 (f) Cancellation or Adjustment of Global Security. At such time as all beneficial interests in a Global Security have either been exchanged for Definitive Securities, redeemed, repurchased or canceled, such
Global Security shall be returned to the Depository for cancellation or retained and canceled by the Trustee. At any time prior to such cancellation, if any beneficial interest in a Global Security is exchanged for certificated Securities, redeemed,
repurchased or canceled, the principal amount of Securities represented by such Global Security shall be reduced and an adjustment shall be made on the books and records of the Trustee (if it is then the Securities Custodian for such Global
Security) with respect to such Global Security, by the Trustee or the Securities Custodian, to reflect such reduction. 
 (g)
Obligations with Respect to Transfers and Exchanges of Securities. 
 (i) To permit registrations of transfers and
exchanges, the Company shall execute and the Trustee shall authenticate certificated Securities and Global Securities at the Registrar’s or co-registrar’s request. 
 (ii) No service charge shall be made for any registration of transfer or exchange, but the Company may require payment of a sum sufficient
to cover any transfer tax, assessments, or similar governmental charge payable in connection therewith (other than any such transfer taxes, assessments or similar governmental charge payable upon exchange or transfer pursuant to Sections 3.06,
4.09 and 9.05 of the Indenture). 
 (iii) The Registrar or co-registrar shall not be required to register the transfer of or
exchange of (a) any Definitive Security selected for redemption in whole or in part pursuant to Article 3 of this Indenture, except the unredeemed portion of any Definitive Security being redeemed in part, or (b) any Security for a
period beginning 15 Business Days before the mailing of a notice of an offer to repurchase or redeem Securities or 15 Business Days before an interest payment date. 
 (iv) Prior to the due presentation for registration of transfer of any Security, the Company, the Trustee, the Paying Agent, the Registrar
or any co-registrar may deem and treat the person in whose name a Security is registered as the absolute owner of such Security for the purpose of receiving payment of principal of and interest on such Security and for all other purposes whatsoever,
whether or not such Security is overdue, and none of the Company, the Trustee, the Paying Agent, the Registrar or any co-registrar shall be affected by notice to the contrary. 
  

 Appendix A-9 

 (v) All Securities issued upon any transfer or exchange pursuant to the terms of this
Indenture shall evidence the same debt and shall be entitled to the same benefits under this Indenture as the Securities surrendered upon such transfer or exchange. 
 (h) No Obligation of the Trustee. 
 (i) The Trustee shall have no responsibility or obligation to any beneficial owner of a Global Security, a member of, or a participant in the Depository or other Person with respect to the accuracy of the records of
the Depository or its nominee or of any participant or member thereof, with respect to any ownership interest in the Securities or with respect to the delivery to any participant, member, beneficial owner or other Person (other than the Depository)
of any notice (including any notice of redemption) or the payment of any amount, under or with respect to such Securities. AU notices and communications to be given to the Holders and all payments to be made to Holders under the Securities shall be
given or made only to or upon the order of the registered Holders (which shall be the Depository or its nominee in the case of a Global Security). The rights of beneficial owners in any Global Security shall be exercised only through the Depository
subject to the applicable rules and procedures of the Depository. The Trustee may rely and shall be fully protected in relying upon information furnished by the Depository with respect to its members, participants and any beneficial owners.

 (ii) The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions
on transfer imposed under this Indenture or under applicable law with respect to any transfer of any interest in any Security (including any transfers between or among Depository participants, members or beneficial owners in any Global Security)
other than to require delivery of such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by, the terms of this Indenture, and to examine the same to determine substantial
compliance as to form with the express requirements hereof. 
 2.4 Definitive Securities. 
 (a) A Global Security deposited with the Depository or with the Trustee as Securities Custodian for the Depository pursuant to
Section 2.1 shall be transferred to the beneficial owners thereof in the form of Definitive Securities in an aggregate principal amount equal to the principal amount of such Global Security, in exchange for such Global Security, only if such
transfer complies with Section 2.3 and (i) the Depository (a) notifies the Company that it is unwilling or unable to continue as Depository for such Global Security and the Depository fails to appoint a successor depository within 90
days of such notice or (b) ceases to be a “clearing agency” registered under the Exchange Act, or (ii) the Company, in its sole discretion, notifies the Trustee in writing that it elects to cause the issuance of Definitive
Securities under this Indenture, or (iii) an Event of Default has occurred and is continuing. 
 (b) Any Global Security
that is transferable to the beneficial owners thereof pursuant to this Section shall be surrendered by the Depository to the Trustee located at its corporate trust office in the Borough of Manhattan, The City of New York, or in Houston, Texas,
to be so transferred, in whole or from time to time in part, without charge, and the Trustee shall authenticate and deliver, upon such transfer of each portion of such Global Security, an equal aggregate principal amount of Definitive Securities of
authorized denominations. Any portion of a Global Security transferred pursuant to this Section shall be executed, authenticated and delivered only in denominations of $2,000 principal amount and any integral multiple thereof and registered in
such names as the Depository shall direct. Any 

  

 Appendix A-10 

 
Definitive Security delivered in exchange for an interest in the Global Security shall, except as otherwise provided by Section 2.3(e), bear the
restricted securities legend set forth in Exhibit 1 hereto. 
 (c) Subject to the provisions of Section 2.4(b), the
registered Holder of a Global Security shall be entitled to grant proxies and otherwise authorize any Person, including Agent Members and Persons that may hold interests through Agent Members, to take any action which a Holder is entitled to take
under this Indenture or the Securities. 
 (d) In the event of the occurrence of either of the events specified in
Section 2.4(a), the Company shall promptly make available to the Trustee a reasonable supply of Definitive Securities in definitive, fully registered form without interest coupons. 
  

 Appendix A-11 

 EXHIBIT 1 TO APPENDIX A 
 [FORM OF FACE OF INITIAL SECURITY - FLOATING RATE NOTE] 
 [Global Securities Legend]

 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
(“DTC”), NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS 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 AN INTEREST HEREIN. 
 TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED
TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH
IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF. 
 [Restricted Securities Legend] 
 THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933 (THE
“SECURITIES ACT”), AND THIS NOTE MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE
RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. 
 THE HOLDER OF THIS
NOTE AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS NOTE MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) TO THE COMPANY, (II) IN THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (III) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES
ACT, (IV) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), (V) IN THE UNITED STATES TO AN INSTITUTIONAL “ACCREDITED INVESTOR” (AS DEFINED IN
RULE 501(A)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT) THAT IS ACQUIRING THIS NOTE FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF ANOTHER INSTITUTIONAL ACCREDITED INVESTOR FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR
SALE IN CONNECTION WITH, ANY DISTRIBUTION THEREOF IN VIOLATION OF THE SECURITIES ACT AND THAT, PRIOR TO SUCH TRANSFER, FURNISHES (OR HAS FURNISHED ON ITS 

  

 Exhibit 1-1 

 
BEHALF BY A U.S. BROKER-DEALER) TO THE TRUSTEE A CERTIFICATE IN THE FORM PRESCRIBED BY THE INDENTURE CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS
RELATING TO RESTRICTIONS ON TRANSFER OF THIS NOTE, (VI) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES (I) THROUGH (VI) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE
UNITED STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS NOTE FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE. 
 [Temporary Regulation S Global Security Legend] 
 [BENEFICIAL OWNERSHIP INTERESTS
IN THIS TEMPORARY REGULATION S GLOBAL NOTE WILL NOT BE EXCHANGEABLE FOR INTERESTS IN THE RULE 144A GLOBAL NOTE OR THE PERMANENT REGULATION S GLOBAL NOTE OR ANY OTHER NOTE REPRESENTING AN INTEREST IN THE NOTES REPRESENTED HEREBY WHICH
DO NOT CONTAIN A LEGEND CONTAINING RESTRICTIONS ON TRANSFER, UNTIL THE EXPIRATION OF THE “40-DAY DISTRIBUTION COMPLIANCE PERIOD” (WITHIN THE MEANING OF RULE 903(b)(2) OF REGULATION S UNDER THE SECURITIES ACT) AND THEN ONLY UPON
CERTIFICATION IN FORM REASONABLY SATISFACTORY TO THE TRUSTEE THAT SUCH BENEFICIAL INTERESTS ARE OWNED EITHER BY NON-U.S. PERSONS OR U.S. PERSONS WHO PURCHASED SUCH INTERESTS IN A TRANSACTION THAT DID NOT REQUIRE REGISTRATION UNDER THE SECURITIES
ACT. DURING SUCH 40-DAY DISTRIBUTION COMPLIANCE PERIOD, BENEFICIAL OWNERSHIP INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL NOTE MAY ONLY BE SOLD, PLEDGED OR TRANSFERRED THROUGH THE EUROCLEAR SYSTEM OR CLEARSTREAM AND ONLY (I) TO THE
COMPANY, (II) INSIDE THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A,
(III) OUTSIDE THE UNITED STATES IN A TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, OTHER THAN IN CANADA, OR TO OR FOR THE BENEFIT OF A RESIDENT OF CANADA PURSUANT TO A PROSPECTUS QUALIFYING THE NOTES FOR SALE UNDER THE
SECURITIES LAW IN ANY PROVINCE OR TERRITORY OF CANADA IN WHICH THE PURCHASER RESIDES OR AN EXEMPTION FROM THE PROSPECTUS REQUIREMENTS OF SUCH LAWS, (IV) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY
RULE 144 THEREUNDER (IF AVAILABLE), (V) IN THE UNITED STATES TO AN INSTITUTIONAL “ACCREDITED INVESTOR” (AS DEFINED IN RULE 501(A)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT) THAT IS ACQUIRING THIS NOTE FOR ITS
OWN ACCOUNT OR FOR THE ACCOUNT OF ANOTHER INSTITUTIONAL ACCREDITED INVESTOR FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION THEREOF IN VIOLATION OF THE SECURITIES ACT AND THAT, PRIOR TO SUCH
TRANSFER, FURNISHES (OR HAS FURNISHED ON ITS BEHALF BY A U.S. BROKER-DEALER) TO THE TRUSTEE A CERTIFICATE IN THE FORM PRESCRIBED BY THE INDENTURE CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO RESTRICTIONS ON TRANSFER OF THIS NOTE OR
(VI) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT. HOLDERS OF INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL NOTE WILL NOTIFY ANY PURCHASER OF SUCH RESALE RESTRICTIONS, IF THEN APPLICABLE.] 
  

 Exhibit 1-2 

 [Definitive Securities Legend] 
 [IF CERTIFICATED: IN ADDITION WITH RESPECT TO ANY TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER PURSUANT TO CLAUSE A(VI) ABOVE), THE HOLDER WILL
DELIVER TO THE COMPANY AND THE TRUSTEE SUCH CERTIFICATES AND OTHER INFORMATION AND, IN THE CASE OF A TRANSFER PURSUANT TO CLAUSE (A)(IV) ABOVE, A LEGAL OPINION AS THEY MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER BY IT COMPLIES WITH THE
FOREGOING RESTRICTIONS.] 
 [OID Legend] 
 FOR PURPOSES OF SECTION 1273 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), THIS SECURITY HAS ORIGINAL ISSUE DISCOUNT. FOR PURPOSES OF SECTION 1273 OF THE CODE, THE ISSUE PRICE IS $[ ] AND THE AMOUNT OF
ORIGINAL ISSUE DISCOUNT IS $[ ], IN EACH CASE PER $1000 PRINCIPAL AMOUNT OF THIS SECURITY. FOR PURPOSES OF SECTION 1275 OF THE CODE, THE ISSUE DATE OF THIS SECURITY IS [  ]. FOR PURPOSES OF SECTION 1272 OF THE CODE, THE
YIELD TO MATURITY (COMPOUNDED QUARTERLY) IS [  ]%. 
  

 Exhibit 1-3 

 CUSIP No.
                     
 ISIN No.
                     
 Up to
$                     
 No.
                     
 Senior
Floating Rate Notes Due 2013 
 ENERGY PARTNERS, LTD., a Delaware corporation, for value received, promises to pay to CEDE & CO., or
registered assigns, the principal sum of [        ] Dollars or such greater or lesser amount as indicated on the Schedule of Increases or Decreases in Global Security hereto, on April 15, 2013.

  

			
	 Interest Payment Dates:
	  	 January 15, April 15, July 15
 and October 15.

		
	Record Dates:	  	 January 1, April 1, July 1
 and October
1.

 Additional provisions of this Floating Rate Note are set forth on the other side of this Floating Rate Note.

 Dated: 
  

 Exhibit 1-4 

			
	ENERGY PARTNERS, LTD.
		
	By:	 	  
		 	Name:
		 	Title:
		
	By:	 	  
		 	Name:
		 	Title:

 Dated: 
  

 Exhibit 1-5 

 TRUSTEE’S CERTIFICATE OF 
 AUTHENTICATION 
 This is one of the Securities 
 referred to in the Indenture. 
  

			
	U.S. BANK NATIONAL ASSOCIATION, as Trustee
		
	By:	 	  
	Authorized Signatory

  

 Exhibit 1-6 

 [FORM OF REVERSE SIDE OF INITIAL SECURITY FLOATING RATE NOTE] 
 Senior Floating Rate Notes Due 2013 
  

	1.	Interest 

 Energy Partners, Ltd., a Delaware
corporation (such corporation, and its successors and assigns under the Indenture hereinafter referred to, being herein called the “Company”), promises to pay interest on the principal amount of this Floating Rate Note at an interest rate
per annum, reset quarterly, equal to LIBOR (as defined in the Indenture) plus 5.125% (as determined by the Calculation Agent and calculated in accordance with Section 2.14 of the Indenture); provided, however, that if a
Registration Default (as defined in the Registration Rights Agreement) occurs, additional interest will accrue on this Security at a rate of 0.25% per annum (increasing by an additional 0.25% per annum after each consecutive 90-day period
that occurs after the date on which such Registration Default occurs up to a maximum additional interest rate of 2.00%) from and including the date on which any such Registration Default shall occur to but excluding the date on which all
Registration Defaults have been cured. The Company will pay interest quarterly on January 15, April 15, July 15 and October 15 of each year. Interest on the Floating Rate Notes will accrue from the most recent date to
which interest has been paid or, if no interest has been paid, from April 23, 2007. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Company shall pay interest on overdue principal at the rate borne by the
Floating Rate Notes plus 1% per annum, and it shall pay interest on overdue installments of interest at the same rate to the extent lawful. 
  

	2.	Method of Payment 

 The Company will pay interest on
the Floating Rate Notes (except defaulted interest) to the Persons who are registered holders of Floating Rate Notes at the close of business on the January 1, April 1, July 1 and October 1 immediately preceding the interest
payment date even if Floating Rate Notes are canceled after the record date and on or before the interest payment date. Holders must surrender Floating Rate Notes to a Paying Agent to collect principal payments. The Company will pay principal and
interest in money of the United States that at the time of payment is legal tender for payment of public and private debts. 
 Payments in
respect of Floating Rate Notes (including principal, premium and interest) will be made by wire transfer of immediately available funds to the accounts specified by the holders thereof or, if no U.S. dollar account maintained by the payee with a
bank in the United States is designated by any holder to the Trustee or the Paying Agent at least 30 days prior to the relevant due date for payment (or such other date as the Trustee may accept in its discretion), by mailing a check to the
registered address of such holder. 
  

	3.	Paying Agent and Registrar 

 Initially, the Trustee
will act as Paying Agent and Registrar. The Company may appoint and change any Paying Agent, Registrar or co-registrar without notice. The Company or any of its domestically incorporated Wholly Owned Subsidiaries may act as Paying Agent, Registrar
or co-registrar. 
  

 Exhibit 1-7 

	4.	Indenture 

 The Company issued the Floating Rate
Notes under an Indenture dated as of April 23, 2007 among the Company, the Subsidiary Guarantors and the Trustee. The terms of the Floating Rate Notes include those stated in the Indenture and those made part of the Indenture by reference to
the Trust Indenture Act of 1939, as amended (15 U.S.C. Sections 77aaa-77bbbb) as in effect on the date of the Indenture (the “Act”). Terms defined in the Indenture and not defined herein have the meanings ascribed thereto in the
Indenture. The Floating Rate Notes are subject to all such terms, and Securityholders are referred to the Indenture and the Act for a statement of those terms. 
 The Floating Rate Notes are general unsecured, senior obligations of the Company. The Company may, subject to Article 4 of the Indenture, issue additional Floating Rate Notes under the Indenture. The Initial
Securities issued on the Issue Date, any Additional Securities and all Exchange Securities or Private Exchange Securities issued in exchange therefor will be treated as a single class for all purposes under the Indenture. The Indenture imposes
certain limitations on the Incurrence of Indebtedness by the Company and certain of its Subsidiaries, the payment of dividends and other distributions on the Capital Stock of the Company and certain of its Subsidiaries, the purchase or redemption of
Capital Stock of the Company and of certain Capital Stock of such Subsidiaries, the sale or transfer of assets and Subsidiary stock, the creation of Liens and transactions with Affiliates. In addition, the Indenture limits the ability of the Company
and certain of its Subsidiaries to restrict distributions and dividends from Subsidiaries. The Indenture also restricts the ability of the Company and the Subsidiary Guarantors to consolidate or merge with or into, or to transfer all or
substantially all their assets to, another Person. 
  

	5.	Optional Redemption 

 At any time prior to
April 15, 2008, the Company may redeem all or, from time to time, a part of the Floating Rate Notes, upon not less than 30 nor more than 60 days’ prior notice, at a redemption price equal to 100% of the principal amount of Floating Rate
Notes redeemed plus the Applicable Premium as of, and accrued and unpaid interest, if any, to the redemption date (subject to the right of Holders of record on the relevant record date to receive interest due on the relevant interest payment date).

 On and after April 15, 2008, the Floating Rate Notes shall be redeemable, at the Company’s option, in whole or in part, at any
time or from time to time at the following redemption prices (expressed in percentages of principal amount), plus accrued and unpaid interest to the redemption date (subject to the right of Holders of record on the relevant record date to receive
interest due on the relevant interest payment date), if redeemed during the 12-month period commencing on April 15 of the years set forth below: 
  

				
	 Period
	  	Percentage	 
	 2008
	  	102.00	%
	 2009
	  	101.00	%
	 2010 and thereafter
	  	100.000	%

 Prior to April 15, 2008, the Company may at its option on one or more occasions redeem (which
includes Additional Securities that are Floating Rate Notes, if any) in an aggregate principal amount not to exceed 35% of the aggregate principal amount of the Securities that are Floating Rate Notes (which includes Additional Securities that are
Floating Rate Notes, if any) originally issued at a 

  

 Exhibit 1-8 

 
redemption price (expressed as a percentage of principal amount) of 100% plus a premium equal to the interest rate per annum on the Securities that are
Floating Rate Notes applicable on the date on which notice of redemption was given, plus accrued and unpaid interest to the redemption date, with the Net Cash Proceeds from one or more Equity Offerings; provided that: 
 (1) at least 65% of such aggregate principal amount of Securities that are Floating Rate Notes (which includes Additional Securities, if
any) remains outstanding immediately after the occurrence of each such redemption (other than Securities held, directly or indirectly, by the Company or its Affiliates); and 
 (2) each such redemption occurs within 90 days after the date of consummation of the related Equity Offering. 
 In the case of any partial redemption, the Trustee will select the Securities that are Floating Rate Notes for redemption on a pro rata basis, by
lot or by such other method as the Trustee in its sole discretion deems to be fair and appropriate, although no Security of $2,000 in original principal amount or less will be redeemed in part. If any Security is to be redeemed in part only, the
notice of redemption relating to such Note will state the portion of the principal amount thereof to be redeemed. A new Security in principal amount equal to the unredeemed portion thereto will be issued in the name of the Holder thereof upon
cancellation of the original Security. Securities called for redemption become due on the date fixed for redemption. On and after the redemption date, interest will cease to accrue on the Securities or portions thereof called for redemption.

  

	6.	Notice of Redemption 

 Notice of redemption will be
mailed at least 30 days but not more than 60 days before the redemption date to each Holder of Securities to be redeemed at his registered address. Securities in denominations larger than $2,000 may be redeemed in part but only in whole multiples of
$1,000. If money sufficient to pay the redemption price of and accrued interest on all Securities (or portions thereof) to be redeemed on the redemption date is deposited with the Paying Agent on or before the redemption date and certain other
conditions are satisfied, on and after such date interest ceases to accrue on such Securities (or such portions thereof) called for redemption. 
  

	7.	Put Provisions 

 Upon a Change of Control, any
Holder of Securities will have the right, subject to certain conditions, to cause the Company to purchase all or any part of the Securities of such Holder at a purchase price equal to 101% of the principal amount of the Securities to be purchased
plus accrued interest to the date of purchase (subject to the right of Holders of record on the relevant record date to receive interest due on the related interest payment date) as provided in, and subject to the terms of, the Indenture.

  

	8.	Denominations; Transfer; Exchange 

 The Securities
are in registered form without coupons in denominations of $2,000 and whole multiples of $1,000. A Holder may register the transfer of or exchange Securities in accordance with the Indenture. The Registrar may require a Holder, among other things,
to furnish appropriate endorsements or transfer documents and to pay any taxes and fees required by law or permitted by the Indenture. The Registrar need not register the transfer of or exchange any Securities selected for 

  

 Exhibit 1-9 

 
redemption (except, in the case of a Security to be redeemed in part, the portion of the Security not to be redeemed) or any Securities for a period of 15
days before a selection of Securities to be redeemed or 15 days before an interest payment date. 
  

	9.	Persons Deemed Owners 

 The registered Holder of
this Security shall be treated as the owner of it for all purposes. 
  

	10.	Unclaimed Money 

 If money for the payment of
principal or interest remains unclaimed for two years, the Trustee or Paying Agent shall pay the money back to the Company at its request unless an abandoned property law designates another Person. After any such payment, Holders entitled to the
money must look only to the Company and not to the Trustee for payment. 
  

	11.	Discharge and Defeasance 

 Subject to certain
conditions, the Company at any time may terminate some or all of its obligations under the Securities and the Indenture, including the Subsidiary Guarantees, if the Company deposits with the Trustee money or U.S. Government Obligations for the
payment of principal and interest on the Securities to redemption or maturity, as the case may be. 
  

	12.	Amendment, Waiver 

 Subject to certain exceptions
set forth in the Indenture, (i) the Indenture or the Securities may be amended (including in connection with a tender or exchange offer), and (ii) any past default or noncompliance with any provisions may be waived, with the written
consent of the Holders of at least a majority in outstanding principal amount of the Securities affected by such amendment or waiver. Subject to certain exceptions set forth in the Indenture, without notice to or the consent of any Securityholder,
the Company, the Subsidiary Guarantors and the Trustee may amend the Indenture or the Securities to cure any ambiguity, omission, defect or inconsistency, or to comply with Article 5 of the Indenture, or to provide for uncertificated Securities
in addition to or in place of certificated Securities (provided that the uncertificated Securities are issued in registered form for purposes of Section 163(f) of the Code, or in a manner such that the uncertificated Securities are
described in Section 163(f)(2)(B) of the Code), or to add guarantees (including Subsidiary Guarantees) with respect to the Securities, or to secure the Securities, or to add to the covenants of the Company for the benefit of the Holders,
or to surrender any right or power conferred on the Company or any Subsidiary Guarantor, or to make any change that does not adversely affect the rights of any Securityholder, or to comply with any requirement of the SEC in connection with
qualifying the Indenture under the Act or this Security, or to conform the text of the Indenture or this Security to any provision of the “Description of the Notes” as set forth in the Offering Memorandum dated April 18, 2007 to the
extent that such provision was intended to be a verbatim recitation of such text. 
  

	13.	Defaults and Remedies 

 Under the Indenture, Events
of Default include 
 (i) default in the payment of interest on the Securities when due and such default continues for a
period of 30 days; 
  

 Exhibit 1-10 

 (ii) default in payment of principal on the Securities at Stated Maturity, upon
redemption pursuant to paragraph 5 of the Securities, upon required purchase, upon declaration of acceleration or otherwise; 
 (iii) failure by the Company to comply with its obligations under certain covenants subject to notice and lapse of time; 
 (iv) failure by the Company to comply with other agreements in the Indenture or the Securities, in certain cases subject to notice and lapse of time; 
 (v) certain accelerations (including failure to pay within any grace period after final maturity) of other Indebtedness of the Company, a
Subsidiary Guarantor or a Significant Subsidiary (other than Production Payments and Reserve Sales and Non-recourse Purchase Money Indebtedness) if the amount accelerated (or so unpaid) exceeds $10 million; 
 (vi) certain events of bankruptcy, insolvency or reorganization with respect to the Company, a Subsidiary Guarantor or a Significant
Subsidiary; 
 (vii) any judgment or decree for the payment of money in excess of $10 million is rendered against the
Company, any Subsidiary Guarantor or a Significant Subsidiary, remains outstanding for a period of 60 days following such judgment or decree and is not discharged, waived or stayed within 10 days after notice; or 
 (viii) any Subsidiary Guarantee ceases to be in full force and effect (other than in accordance with the terms of such Subsidiary
Guarantee) if such default continues for a period of 5 days after notice thereof to the Company or any Subsidiary Guarantor denies or disaffirms its obligations under its Subsidiary Guarantee. 
 If an Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the outstanding Floating Rate Notes may declare the
principal of and accrued but unpaid interest on this Security to be due and payable immediately. Certain events of bankruptcy, insolvency or reorganization with respect to the Company are Events of Default which will result in the Securities being
due and payable immediately upon the occurrence of such Events of Default. A default under clauses (iii), (iv) or (viii) will not constitute an Event of Default until the Trustee or the Holders of 25% in principal amount of the
outstanding Floating Rate Notes notifies the Company of the default and the Company does not cure such default within the time specified after receipt of such notice. 
 Securityholders may not enforce the Indenture or the Securities except as provided in the Indenture. The Trustee may refuse to enforce the Indenture or the Securities unless it receives reasonable indemnity or
security. Subject to certain limitations, Holders of a majority in principal amount of the Floating Rate Notes may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Securityholders notice of any continuing
Default (except a Default in payment of principal or interest) if it determines that withholding notice is in the interest of the Holders. 
  

	14.	Subsidiary Guarantees 

 As more particularly set
forth in the Indenture, certain subsidiaries of the Company, as Guarantors, jointly and severally, as primary obligor and not merely as surety, irrevocably, fully and unconditionally guarantee on a senior unsecured basis the performance and the
punctual payment when 

  

 Exhibit 1-11 

 
due, whether at Stated Maturity, by acceleration or otherwise, of all of the obligations of the Company under the Indenture and this Security. 
  

	15.	Trustee Dealings with the Company 

 Subject to
certain limitations imposed by the Act, the Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwise deal with and collect obligations owed to it by the Company or its
Affiliates and may otherwise deal with the Company or its Affiliates with the same rights it would have if it were not Trustee. 
  

	16.	No Recourse Against Others 

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

	17.	Authentication 

 This Security shall not be valid
until an authorized signatory of the Trustee (or an authenticating agent) manually signs the certificate of authentication on the other side of this Security. 
  

	18.	Abbreviations 

 Customary abbreviations may be used
in the name of a Securityholder or an assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by the entireties), JT TEN (=joint tenants with rights of survivorship and not as tenants in common), CUST (=custodian), and
U/G/M/A (=Uniform Gift to Minors Act). 
  

	19.	CUSIP Numbers 

 Pursuant to a recommendation
promulgated by the Committee on Uniform Security Identification Procedures the Company has caused CUSIP numbers to be printed on the Securities and has directed the Trustee to use CUSIP numbers in notices of redemption as a convenience to
Securityholders. No representation is made as to the accuracy of such numbers either as printed on the Securities or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon.

  

	20.	Holders’ Compliance with Registration Agreement 

 Each Holder of a Security, by acceptance hereof, acknowledges and agrees to the provisions of the Registration Agreement, including the obligations of the Holders with respect to a registration and the indemnification of the Company to the
extent provided therein. 
  

 Exhibit 1-12 

	21.	Governing Law 

 THIS SECURITY SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. 

The Company will furnish to any Securityholder upon written request and without charge to the Securityholder a copy of the Indenture. Requests may be
made to: 
 Energy Partners, Ltd. 
 201 St. Charles Avenue 
 Suite 3400 
 New Orleans, Louisiana 70170 
 Attention of Corporate Secretary 
  

 Exhibit 1-13 

 ASSIGNMENT FORM 
 To assign this Security, fill in the form below: 
 I or we assign and transfer this Security to 
 (Print or type assignee’s name, address and zip code) 
 (Insert assignee’s soc. sec. or tax I.D. No.) 
 and irrevocably appoint
                     agent to transfer this Security on the books of the Company. The agent may substitute another to act for him. 
  

									
	 	 	 	 	 
	Date:	 	  	 		 	Your Signature:	 	  
					
	 	 	 	 	 	 	 	 	 
	Sign exactly as your name appears on the other side of this Security

 In connection with any transfer of any of the Securities evidenced by this certificate occurring prior to the
expiration of the period referred to in Rule 144(k) under the Securities Act of 1933, as amended (the “Securities Act”), after the later of the date of original issuance of such Securities and the last date, if any, on which such
Securities were owned by the Company or any Affiliate of the Company, the undersigned confirms that such Securities are being transferred in accordance with its terms: 
 CHECK ONE BOX BELOW 
  

					
	 (1)
	  	 ̈	  	to the Company; or
			
	 (2)
	  	 ̈	  	pursuant to an effective registration statement under the Securities Act of 1933; or
			
	 (3)
	  	 ̈	  	inside the United States to a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act) that purchases for its own account or for the account of a
qualified institutional buyer to whom notice is given that such transfer is being made in reliance on Rule 144A, in each case pursuant to and in compliance with Rule 144A under the Securities Act;
			
	 (4)
	  	 ̈	  	in the United States to an institutional “accredited investor” within the meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act that is acquiring the
securities for its own account or for the account of another institutional accredited investor for investment purposes and not with a view to, or for offer or sale in connection with, any distribution thereof in violation of the Securities Act and
that, prior to such transfer, furnishes (or has furnished on its behalf by a U.S. broker-dealer) to the trustee a certificate containing certain representations and agreements relating to restrictions on transfer of the securities (the form of which
certificate can be found in Appendix C to the Indenture);

  

 Exhibit 1-14 

					
	 (5)
	  	 ̈	  	outside the United States in an offshore transaction within the meaning of Regulation S under the Securities Act in compliance with Rule 904 under the Securities Act;
or
			
	 (6)
	  	 ̈	  	pursuant to the exemption from registration provided by Rule 144 under the Securities Act of 1933.

 If such transfer is being made pursuant to an offshore transaction in accordance with
Rule 904 under the Securities Act, the undersigned further certifies that: 
 (i) the offer of the Securities was not
made to a person in the United States; 
 (ii) either (a) at the time the buy offer was originated, the transferee was
outside the United States or we and any person acting on our behalf reasonably believed that the transferee was outside the United States, or (b) the transaction was executed in, on or through the facilities of a designated off-shore securities
market and neither we nor any person acting on our behalf knows that the transaction has been pre-arranged with a buyer in the United States; 
 (iii) no directed selling efforts have been made in the United States in contravention of the requirements of Rule 903 or Rule 904 of Regulation S, as applicable; 
 (iv) the transaction is not part of a plan or scheme to evade the registration requirements of the Securities Act; 
 (v) we have advised the transferee of the transfer restrictions applicable to the Securities; and 
 (vi) if the circumstances set forth in Rule 904(b) under the Securities Act are applicable, we have complied with the additional
conditions therein, including (if applicable) sending a confirmation or other notice stating that the Securities may be offered and sold during the distribution compliance period specified in Rule 903 of Regulation S only in accordance
with the provisions of Regulation S; pursuant to registration of the Securities under the Securities Act; or pursuant to an available exemption from the registration requirements under the Securities Act. 
  

 Exhibit 1-15 

 Unless one of the boxes is checked, the Trustee will refuse to register any of the Securities evidenced
by this certificate in the name of any person other than the registered holder thereof; provided, however, that if box (4) or (5) is checked, the Trustee may require, prior to registering any such transfer of the Securities,
such legal opinions, certifications and other information as the Company has reasonably requested to confirm that such transfer is being made pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the
Securities Act of 1933, such as the exemption provided by Rule 144 under such Act. 
  

			
		
	Signature:	 	  

  

					
	Signature Guarantee:	 		 	
			
	   	 		 	   
	Signature must be guaranteed	 		 	Signature

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

 Exhibit 1-16 

 TO BE COMPLETED BY PURCHASER IF (3) ABOVE IS CHECKED. 
 The undersigned represents and warrants that it is purchasing this Security for its own account or an account with respect to which it exercises sole
investment discretion and that it and any such account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities Act of 1933, and is aware that the sale to it is being made in reliance on Rule 144A
and acknowledges that it has received such information regarding the Company as the undersigned has requested pursuant to Rule 144A or has determined not to request such information and that it is aware that the transferor is relying upon the
undersigned’s foregoing representations in order to claim the exemption from registration provided by Rule 144A. 
  

					
			
	Dated:                                     
                                        
                        	 		 	  
		 		 	NOTICE: To be executed by an executed officer

  

 Exhibit 1-17 

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

									
	 Date of
Exchange
	  	Amount of
decrease in
Principal Amount
of this Global
Security	  	Amount of
increase in
Principal Amount
of this Global
Security	  	Principal amount
of this Global
Security following
such decrease or
increase	  	Signature of
authorized
signatory of
Trustee or
Securities
Custodian
		  		  		  		  	

  

 Exhibit 1-18 

 OPTION OF HOLDER TO ELECT PURCHASE 
 If you want to elect to have this Security purchased by the Company pursuant to Section 4.06 or Section 4.09 of the Indenture, check the box:
 ̈ 
 If you want to elect to have
only part of this Security purchased by the Company pursuant to Section 4.06 or Section 4.09 of the Indenture, state the amount in principal amount: 
 $ 
  

									
					
	Date:	 	                                      
                                        
              	 		 	Your Signature:	 	  
		 		 		 		 	 (Sign exactly as your name appears
 on the other side
of this Security.)

 Signature Guarantee:                                  
                                        
                                        
                                        
                                        
                   
 (Signature must be guaranteed)

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

 Exhibit 1-19 

 [FORM OF FACE OF EXCHANGE SECURITY 
 OR PRIVATE EXCHANGE SECURITY - FLOATING RATE NOTE] 
 [OID Legend] 
 FOR PURPOSES OF SECTION 1273 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), THIS
SECURITY HAS ORIGINAL ISSUE DISCOUNT. FOR PURPOSES OF SECTION 1273 OF THE CODE, THE ISSUE PRICE IS $[ ] AND THE AMOUNT OF ORIGINAL ISSUE DISCOUNT IS $[ ], IN EACH CASE PER $1000 PRINCIPAL AMOUNT OF THIS SECURITY. FOR PURPOSES OF SECTION 1275 OF
THE CODE, THE ISSUE DATE OF THIS SECURITY IS [ ]. FOR PURPOSES OF SECTION 1272 OF THE CODE, THE YIELD TO MATURITY (COMPOUNDED QUARTERLY) IS [ ]%.1,2 
  

	 1
	 If the Security is to be issued in global form add the Global securities Legend from Exhibit 1 to
Appendix A and the attachment from such Exhibit 1 captioned “[TO BE ATTACHED TO GLOBAL SECURITIES] – SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY.” 

  

	 2
	 If the Security is a Private Exchange Security issued in a Private Exchange to an Initial Purchaser
holding an unsold portion of its initial allotment, add the Restricted Securities Legend from Exhibit 1 to Appendix A and replace the Assignment Form included in this Exhibit A with the Assignment Form included in such Exhibit 1.

  

 Exhibit 1-20 

 CUSIP No.
                     
 ISIN No.
                     
 Up to
$                     
 No.
                         
 Senior Floating Rate Notes Due 2013 
 ENERGY PARTNERS, LTD., a Delaware corporation, for value received,
promises to pay to CEDE & CO., or registered assigns, the principal sum of [            ] Dollars or such greater or lesser amount as indicated on the Schedule of Increases or
Decreases in Global Security hereto, on April 15, 2013. 
  

			
	Interest Payment Dates:	  	 January 15, April 15, July 15
 and October 15.

		
	Record Dates:	  	 January 1, April 1, July 1
 and October
1.

 Additional provisions of this Floating Rate Note are set forth on the other side of this Floating Rate Note.

 Dated: [                    ] 
  

			
	ENERGY PARTNERS, LTD.
		
	By:	 	  
		 	Name:
		 	Title:
		
	By:	 	  
		 	Name:
		 	Title:

  

 Exhibit 1-21 

			
	TRUSTEE’S CERTIFICATE OF AUTHENTICATION
	
	 This is one of the Securities
 referred to in
the Indenture.

	
	 U.S. BANK NATIONAL ASSOCIATION, as Trustee

		
	By:	 	  
	Authorized Signatory

  

 Exhibit 1-22 

 [FORM OF REVERSE SIDE OF EXCHANGE SECURITY 
 OR PRIVATE EXCHANGE SECURITY FLOATING RATE NOTE] 
 Senior Floating Rate Notes Due 2013

  

	1.	Interest. 

 Energy Partners, Ltd., a Delaware corporation (such corporation, and its successors and assigns under the Indenture hereinafter referred to, being herein called the “Company”), promises to pay interest on
the principal amount of this Floating Rate Note at an interest rate per annum, reset quarterly, equal to LIBOR (as defined in the Indenture) plus 5.125% (as determined by the Calculation Agent and calculated in accordance with Section 2.14 of
the Indenture) [; provided, however, that if a Registration Default (as defined in the Registration Rights Agreement) occurs, additional interest will accrue on this Security at a rate of 0.25% per annum (increasing by an
additional 0.25% per annum after each consecutive 90-day period that occurs after the date on which such Registration Default occurs up to a maximum additional interest rate of 2.00%) from and including the date on which any such Registration
Default shall occur to but excluding the date on which all Registration Defaults have been cured.]3 The Company will
pay interest quarterly on January 15, April 15, July 15 and October 15 of each year. Interest on the Floating Rate Notes will accrue from the most recent date to which interest has been paid or, if no interest has been
paid, from April 23, 2007. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Company shall pay interest on overdue principal at the rate borne by the Floating Rate Notes plus 1% per annum, and it shall
pay interest on overdue installments of interest at the same rate to the extent lawful. 
  

	2.	Method of Payment. 

 The Company will pay interest
on the Floating Rate Notes (except defaulted interest) to the Persons who are registered holders of Floating Rate Notes at the close of business on the January 1, April 1, July 1 and October 1 immediately preceding the interest
payment date even if Floating Rate Notes are canceled after the record date and on or before the interest payment date. Holders must surrender Floating Rate Notes to a Paying Agent to collect principal payments. The Company will pay principal and
interest in money of the United States that at the time of payment is legal tender for payment of public and private debts. 
 Payments in
respect of Securities (including principal, premium and interest) will be made by wire transfer of immediately available funds to the accounts specified by the holders thereof or, if no U.S. dollar account maintained by the payee with a bank in the
United States is designated by any holder to the Trustee or the Paying Agent at least 30 days prior to the relevant due date for payment (or such other date as the Trustee may accept in its discretion), by mailing a check to the registered address
of such holder. 
  

	 3
	 Insert if at the date of issuance of the Exchange Security or Private Exchange Security (as the case may
be) any Registration Default has occurred with respect to the related Initial Securities during the interest period in which such date of issuance occurs. 

  

 Exhibit 1-23 

	3.	Paying Agent and Registrar. 

 Initially, the Trustee
will act as Paying Agent and Registrar. The Company may appoint and change any Paying Agent, Registrar or co-registrar without notice. The Company or any of its domestically incorporated Wholly Owned Subsidiaries may act as Paying Agent, Registrar
or co-registrar. 
  

	4.	Indenture. 

 The Company issued the Floating Rate
Notes under an Indenture dated as of April 23, 2007 among the Company, the Subsidiary Guarantors and the Trustee. The terms of the Floating Rate Notes include those stated in the Indenture and those made part of the Indenture by reference to
the Trust Indenture Act of 1939, as amended (15 U.S.C. Sections 77aaa-77bbbb) as in effect on the date of the Indenture (the “Act”). Terms defined in the Indenture and not defined herein have the meanings ascribed thereto in the
Indenture. The Securities are subject to all such terms, and Securityholders are referred to the Indenture and the Act for a statement of those terms. 
 The Floating Rate Notes are general unsecured, senior subordinated obligations of the Company. The Company may, subject to Article 4 of the Indenture, issue additional Floating Rate Notes under the Indenture. The
Initial Securities issued on the Issue Date, any Additional Securities and all Exchange Securities or Private Exchange Securities issued in exchange therefor will be treated as a single class for all purposes under the Indenture. The Indenture
imposes certain limitations on the Incurrence of Indebtedness by the Company and certain of its Subsidiaries, the payment of dividends and other distributions on the Capital Stock of the Company and certain of its Subsidiaries, the purchase or
redemption of Capital Stock of the Company and of certain Capital Stock of such Subsidiaries, the sale or transfer of assets and Subsidiary stock, the creation of Liens and transactions with Affiliates. In addition, the Indenture limits the ability
of the Company and certain of its Subsidiaries to restrict distributions and dividends from Subsidiaries. The Indenture also restricts the ability of the Company and the Subsidiary Guarantors to consolidate or merge with or into, or to transfer all
or substantially all their assets to, another Person. 
  

	5.	Optional Redemption. 

 At any time prior to
April 15, 2008, the Company may redeem all or, from time to time, a part of the Floating Rate Notes, upon not less than 30 nor more than 60 days’ prior notice, at a redemption price equal to 100% of the principal amount of Floating Rate
Notes redeemed plus the Applicable Premium as of, and accrued and unpaid interest, if any, to the redemption date (subject to the right of Holders of record on the relevant record date to receive interest due on the relevant interest payment date).

 On and after April 15, 2008, the Floating Rate Notes shall be redeemable, at the Company’s option, in whole or in part, at any
time or from time to time at the following redemption prices (expressed in percentages of principal amount), plus accrued and unpaid interest to the redemption date (subject to the right of Holders of record on the relevant record date to receive
interest due on the relevant interest payment date), if redeemed during the 12-month period commencing on April 15 of the years set forth below: 
  

				
	 Period
	  	Percentage	 
	 2008
	  	102.00	%
	 2009
	  	101.00	%
	 2010 and thereafter
	  	100.000	%

  

 Exhibit 1-24 

 Prior to April 15, 2008, the Company may at its option on one or more occasions redeem (which
includes Additional Securities that are Floating Rate Notes, if any) in an aggregate principal amount not to exceed 35% of the aggregate principal amount of the Securities that are Floating Rate Notes (which includes Additional Securities that are
Floating Rate Notes, if any) originally issued at a redemption price (expressed as a percentage of principal amount) of 100%, plus a premium equal to the interest rate per annum on the Floating Rate Notes applicable on the date on which notice of
redemption was given, plus accrued and unpaid interest to the redemption date, with the Net Cash Proceeds from one or more Equity Offerings; provided that 
 (1) at least 65% of such aggregate principal amount of Securities that are Floating Rate Notes (which includes Additional Securities, if
any) remains outstanding immediately after the occurrence of each such redemption (other than Securities held, directly or indirectly, by the Company or its Affiliates); and 
 (2) each such redemption occurs within 90 days after the date of consummation of the related Equity Offering. 
 In the case of any partial redemption, the Trustee will select the Securities that are Floating Rate Notes for redemption on a pro rata basis, by
lot or by such other method as the Trustee in its sole discretion deems to be fair and appropriate, although no Security of $2,000 in original principal amount or less will be redeemed in part. If any Security is to be redeemed in part only, the
notice of redemption relating to such Note will state the portion of the principal amount thereof to be redeemed. A new Security in principal amount equal to the unredeemed portion thereto will be issued in the name of the Holder thereof upon
cancellation of the original Security. Securities called for redemption become due on the date fixed for redemption. On and after the redemption date, interest will cease to accrue on the Securities or portions thereof called for redemption.

  

	6.	Notice of Redemption. 

 Notice of redemption will be
mailed at least 30 days but not more than 60 days before the redemption date to each Holder of Securities to be redeemed at his registered address. Securities in denominations larger than $2,000 may be redeemed in part but only in whole multiples of
$1,000. If money sufficient to pay the redemption price of and accrued interest on all Securities (or portions thereof) to be redeemed on the redemption date is deposited with the Paying Agent on or before the redemption date and certain other
conditions are satisfied, on and after such date interest ceases to accrue on such Securities (or such portions thereof) called for redemption. 
  

	7.	Put Provisions. 

 Upon a Change of Control, any
Holder of Securities will have the right, subject to certain conditions, to cause the Company to purchase all or any part of the Securities of such Holder at a purchase price equal to 101% of the principal amount of the Securities to be purchased
plus accrued interest to the date of purchase (subject to the right of Holders of record on the relevant record date to receive interest due on the related interest payment date) as provided in, and subject to the terms of, the Indenture.

  

 Exhibit 1-25 

	8.	Denominations; Transfer; Exchange. 

 The Securities
are in registered form without coupons in denominations of $2,000 and whole multiples of $1,000. A Holder may register the transfer of or exchange Securities in accordance with the Indenture. The Registrar may require a Holder, among other things,
to furnish appropriate endorsements or transfer documents and to pay any taxes and fees required by law or permitted by the Indenture. The Registrar need not register the transfer of or exchange any Securities selected for redemption (except, in the
case of a Security to be redeemed in part, the portion of the Security not to be redeemed) or any Securities for a period of 15 days before a selection of Securities to be redeemed or 15 days before an interest payment date. 
  

	9.	Persons Deemed Owners. 

 The registered Holder of
this Security shall be treated as the owner of it for all purposes. 
  

	10.	Unclaimed Money. 

 If money for the payment of
principal or interest remains unclaimed for two years, the Trustee or Paying Agent shall pay the money back to the Company at its request unless an abandoned property law designates another Person. After any such payment, Holders entitled to the
money must look only to the Company and not to the Trustee for payment. 
  

	11.	Discharge and Defeasance. 

 Subject to certain
conditions, the Company at any time may terminate some or all of its obligations under the Securities and the Indenture, including the Subsidiary Guarantees, if the Company deposits with the Trustee money or U.S. Government Obligations for the
payment of principal and interest on the Securities to redemption or maturity, as the case may be. 
  

	12.	Amendment; Waiver. 

 Subject to certain exceptions
set forth in the Indenture, (i) the Indenture or the Securities may be amended (including in connection with a tender or exchange offer) and (ii) any past default or noncompliance with any provisions may be waived with the written consent
of the Holders of at least a majority in outstanding principal amount of Securities offered by such amendment or waiver. Subject to certain exceptions set forth in the Indenture, without notice to or the consent of any Securityholder, the Company,
the Subsidiary Guarantors and the Trustee may amend the Indenture or the Securities to cure any ambiguity, omission, defect or inconsistency, or to comply with Article 5 of the Indenture, or to provide for uncertificated Securities in addition
to or in place of certificated Securities (provided that the uncertificated Securities are issued in registered form for purposes of Section 163(f) of the Code, or in a manner such that the uncertificated Securities are described in
Section 163(f)(2)(B) of the Code), or to make any change to the subordination provisions of the Indenture that would limit or terminate the benefits available to any holder of Senior Indebtedness (or its representative) of the Company or
any Subsidiary Guarantor, or to add guarantees (including Subsidiary Guarantees) with respect to the Securities, or to secure the Securities, or to add to the covenants of the Company for the benefit of the Holders, or to surrender any right or
power conferred on the Company or any Subsidiary Guarantor, or to 

  

 Exhibit 1-26 

 
make any change that does not adversely affect the rights of any Securityholder, or to comply with any requirement of the SEC in connection with qualifying
the Indenture under the Act or this Security, or to conform the text of the Indenture or this Security to any provision of the “Description of the Notes” as set forth in the Offering Memorandum dated April 18, 2007 to the extent that
such provision was intended to be a verbatim recitation of such text. No amendment may be made to the subordination provisions of the Indenture that adversely affects the rights of any holder of Senior Indebtedness of the Company or of any
Subsidiary Guarantor then outstanding unless the holders of such Senior Indebtedness (or their representative) consent to such change. 
  

	13.	Defaults and Remedies. 

 Under the Indenture, Events
of Default include 
 (i) default in the payment of interest on the Securities when due and such default continues for a
period of 30 days; 
 (ii) default in payment of principal on the Securities at Stated Maturity, upon redemption pursuant to
paragraph 5 of the Securities, upon required purchase, upon declaration of acceleration or otherwise; 
 (iii) failure by
the Company to comply with its obligations under certain covenants subject to notice and lapse of time; 
 (iv) failure by the
Company to comply with other agreements in the Indenture or the Securities, in certain cases subject to notice and lapse of time; 
 (v) certain accelerations (including failure to pay within any grace period after final maturity) of other Indebtedness of the Company, any Subsidiary Guarantor or a Significant Subsidiary (other than Production Payments and Reserve Sales
and Non-recourse Purchase Money Indebtedness) if the amount accelerated (or so unpaid) exceeds $10 million; 
 (vi)
certain events of bankruptcy, insolvency or reorganization with respect to the Company, a Subsidiary Guarantor or a Significant Subsidiary; 
 (vii) any judgment or decree for the payment of money in excess of $10 million is rendered against the Company, any Subsidiary Guarantor or a Significant Subsidiary, remains outstanding for a period of 60 days
following such judgment or decree and is not discharged, waived or stayed within 10 days after notice; or 
 (viii) any
Subsidiary Guarantee ceases to be in full force and effect (other than in accordance with the terms of such Subsidiary Guarantee) if such default continues for a period of 5 days after notice thereof to the Company or any Subsidiary Guarantor denies
or disaffirms its obligations under its Subsidiary Guarantee. 
 If an Event of Default occurs and is continuing, the Trustee or the Holders of at least 25%
in principal amount of the outstanding Floating Rate Notes may declare the principal of and accrued but unpaid interest on this Security to be due and payable immediately. Certain events of bankruptcy, insolvency or reorganization with respect to
the Company are Events of Default which will result in the Securities being due and payable immediately upon the occurrence of such Events of Default. A default under 

  

 Exhibit 1-27 

 
clauses (iii), (iv) or (viii) will not constitute an Event of Default until the Trustee or the Holders of 25% in principal amount of the
outstanding Floating Rate Notes notifies the Company of the default and the Company does not cure such default within the time specified after receipt of such notice. 
 Securityholders may not enforce the Indenture or the Securities except as provided in the Indenture. The Trustee may refuse to enforce the Indenture or the Securities unless it receives reasonable indemnity or
security. Subject to certain limitations, Holders of a majority in principal amount of the Floating Rate Notes may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Securityholders notice of any continuing
Default (except a Default in payment of principal or interest) if it determines that withholding notice is in the interest of the Holders. 
  

	14.	Subsidiary Guarantees 

 As more particularly set
forth in the Indenture, certain subsidiaries of the Company, as Guarantors, jointly and severally, as primary obligor and not merely as surety, irrevocably, fully and unconditionally guarantee on a senior unsecured basis the performance and the
punctual payment when due, whether at Stated Maturity, by acceleration or otherwise, of all of the obligations of the Company under the Indenture and this Security. 
  

	15.	Trustee Dealings with the Company. 

 Subject to
certain limitations imposed by the Act, the Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwise deal with and collect obligations owed to it by the Company or its
Affiliates and may otherwise deal with the Company or its Affiliates with the same rights it would have if it were not Trustee. 
  

	16.	No Recourse Against Others. 

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

	17.	Authentication. 

 This Security shall not be valid
until an authorized signatory of the Trustee (or an authenticating agent) manually signs the certificate of authentication on the other side of this Security. 
  

	18.	Abbreviations. 

 Customary abbreviations may be used
in the name of a Securityholder or an assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by the entireties), JT TEN (joint tenants with rights of survivorship and not as tenants in common), CUST (=custodian), and
U/G/M/A (=Uniform Gift to Minors Act). 
  

 Exhibit 1-28 

	19.	CUSIP Numbers. 

 Pursuant to a recommendation
promulgated by the Committee on Uniform Security Identification Procedures the Company has caused CUSIP numbers to be printed on the Securities and has directed the Trustee to use CUSIP numbers in notices of redemption as a convenience to
Securityholders. No representation is made as to the accuracy of such numbers either as printed on the Securities or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon.

  

	20.	Holders’ Compliance with Registration Agreement. 

 Each Holder of a Security, by acceptance hereof, acknowledges and agrees to the provisions of the
Registration Agreement, including the obligations of the Holders with respect to a registration and the indemnification of the Company to the extent provided therein.4 
  

	21.	Governing Law. 

 THIS SECURITY SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. 

The Company will furnish to any Securityholder upon written request and without charge to the Securityholder a copy of the Indenture. Requests may be
made to: 
 Energy Partners, Ltd. 
 201 St. Charles Avenue 
 Suite 3400 
 New Orleans, Louisiana 70170 
 Attention of Corporate Secretary 

	 4
	 Delete if this Security is not being issued in exchange for an Initial Security.

  

 Exhibit 1-29 

 ASSIGNMENT FORM 
 To assign this Security, fill in the form below: 
 I or we assign and transfer this Security to 
 (Print or type assignee’s name, address and zip code) 
 (Insert assignee’s soc. sec. or tax I.D. No.) 
 and irrevocably appoint
                     agent to transfer this Security on the books of the Company. The agent may substitute another to act for him. 
  
  

 Date:                                     
                                        
                                 Your Signature:    
                                        
                                        
       
  

					
	                                      
                                      	 	                                      
                                       
 	 	

  
  

 Sign exactly as your name appears on the other side of this Security 
  

 Exhibit 1-30 

 OPTION OF HOLDER TO ELECT PURCHASE 
 If you want to elect to have this Security purchased by the Company pursuant to Section 4.06 or Section 4.09 of the Indenture, check the box:
 ̈ 
 If you want to elect to have
only part of this Security purchased by the Company pursuant to Section 4.06 or Section 4.09 of the Indenture, state the amount in principal amount: 
 $ 
  

									
	Date:	 	                                      
                                        
                 	 		 	Your Signature:	 	  
		 		 		 		 	 (Sign exactly as your name
 appears on the other side
of this Security.)

 Signature Guarantee:                                  
                                        
                                        
                                        
                                        
                 
 (Signature must be guaranteed) 

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

 Exhibit 1-31 

 EXHIBIT 2 TO APPENDIX A 
 [FORM OF FACE OF INITIAL SECURITY - FIXED RATE NOTE] 
 [Global Securities Legend] 
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK,
NEW YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS 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 AN INTEREST HEREIN. 
 TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN
PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON
THE REVERSE HEREOF. 
 [Restricted Securities Legend] 
 THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933 (THE “SECURITIES ACT”), AND THIS NOTE MAY NOT BE OFFERED, SOLD OR
OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE
SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. 
 THE HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS
NOTE MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) TO THE COMPANY, (II) IN THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (III) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (IV) PURSUANT TO AN EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), (V) IN THE UNITED STATES TO AN INSTITUTIONAL “ACCREDITED INVESTOR” (AS DEFINED IN RULE 501(A)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT)
THAT IS ACQUIRING 

  

 Exhibit 2-1 

 
THIS NOTE FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF ANOTHER INSTITUTIONAL ACCREDITED INVESTOR FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR
SALE IN CONNECTION WITH, ANY DISTRIBUTION THEREOF IN VIOLATION OF THE SECURITIES ACT AND THAT, PRIOR TO SUCH TRANSFER, FURNISHES (OR HAS FURNISHED ON ITS BEHALF BY A U.S. BROKER-DEALER) TO THE TRUSTEE A CERTIFICATE IN THE FORM PRESCRIBED BY THE
INDENTURE CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO RESTRICTIONS ON TRANSFER OF THIS NOTE, (VI) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES (I) THROUGH (VI) IN ACCORDANCE
WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS NOTE FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.

 [Temporary Regulation S Global Security Legend] 
 [BENEFICIAL OWNERSHIP INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL NOTE WILL NOT BE EXCHANGEABLE FOR INTERESTS 1N THE RULE 144A GLOBAL NOTE OR THE PERMANENT REGULATION S GLOBAL NOTE OR ANY OTHER NOTE
REPRESENTING AN INTEREST IN THE NOTES REPRESENTED HEREBY WHICH DO NOT CONTAIN A LEGEND CONTAINING RESTRICTIONS ON TRANSFER, UNTIL THE EXPIRATION OF THE “40-DAY DISTRIBUTION COMPLIANCE PERIOD” (WITHIN THE MEANING OF
RULE 903(b)(2) OF REGULATION S UNDER THE SECURITIES ACT) AND THEN ONLY UPON CERTIFICATION IN FORM REASONABLY SATISFACTORY TO THE TRUSTEE THAT SUCH BENEFICIAL INTERESTS ARE OWNED EITHER BY NON-U.S. PERSONS OR U.S. PERSONS WHO PURCHASED SUCH
INTERESTS IN A TRANSACTION THAT DID NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT. DURING SUCH 40-DAY DISTRIBUTION COMPLIANCE PERIOD, BENEFICIAL OWNERSHIP INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL NOTE MAY ONLY BE SOLD, PLEDGED OR
TRANSFERRED THROUGH THE EUROCLEAR SYSTEM OR CLEARSTREAM AND ONLY (I) TO THE COMPANY, (II) INSIDE THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (III) OUTSIDE THE UNITED STATES IN A TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, OTHER THAN IN CANADA, OR TO OR FOR THE BENEFIT OF A RESIDENT OF
CANADA PURSUANT TO A PROSPECTUS QUALIFYING THE NOTES FOR SALE UNDER THE SECURITIES LAW IN ANY PROVINCE OR TERRITORY OF CANADA IN WHICH THE PURCHASER RESIDES OR AN EXEMPTION FROM THE PROSPECTUS REQUIREMENTS OF SUCH LAWS, (IV) PURSUANT TO AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), (V) IN THE UNITED STATES TO AN INSTITUTIONAL “ACCREDITED INVESTOR” (AS DEFINED IN RULE 501(A)(1), (2), (3) OR
(7) UNDER THE SECURITIES ACT) THAT IS ACQUIRING THIS NOTE FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF ANOTHER INSTITUTIONAL ACCREDITED INVESTOR FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY
DISTRIBUTION THEREOF IN VIOLATION OF THE SECURITIES ACT AND THAT, PRIOR TO SUCH TRANSFER, FURNISHES (OR HAS FURNISHED ON ITS BEHALF BY A U.S. BROKER-DEALER) TO THE 

  

 Exhibit 2-2 

 
TRUSTEE A CERTIFICATE IN THE FORM PRESCRIBED BY THE INDENTURE CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO RESTRICTIONS ON TRANSFER OF THIS
NOTE OR (VI) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT. HOLDERS OF INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL NOTE WILL NOTIFY ANY PURCHASER OF SUCH RESALE RESTRICTIONS, IF THEN APPLICABLE.] 

[Definitive Securities Legend] 
 [IF
CERTIFICATED: IN ADDITION WITH RESPECT TO ANY TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER PURSUANT TO CLAUSE A(VI) ABOVE), THE HOLDER WILL DELIVER TO THE COMPANY AND THE TRUSTEE SUCH CERTIFICATES AND OTHER INFORMATION AND, IN THE CASE OF A
TRANSFER PURSUANT TO CLAUSE (A)(IV) ABOVE, A LEGAL OPINION AS THEY MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER BY IT COMPLIES WITH THE FOREGOING RESTRICTIONS.] 
 [OID Legend] 
 FOR PURPOSES OF SECTION 1273 OF THE INTERNAL REVENUE CODE OF 1986,
AS AMENDED (THE “CODE”), THIS SECURITY HAS ORIGINAL ISSUE DISCOUNT. FOR PURPOSES OF SECTION 1273 OF THE CODE, THE ISSUE PRICE IS $[ ] AND THE AMOUNT OF ORIGINAL ISSUE DISCOUNT IS $[ ], IN EACH CASE PER $1000 PRINCIPAL AMOUNT OF
THIS SECURITY. FOR PURPOSES OF SECTION 1275 OF THE CODE, THE ISSUE DATE OF THIS SECURITY IS [ ]. FOR PURPOSES OF SECTION 1272 OF THE CODE, THE YIELD TO MATURITY (COMPOUNDED QUARTERLY) IS [ ]%. 
  

 Exhibit 2-3 

 CUSIP No.
                     
 ISIN No.
                     
 Up to
$                     
 No.
                     
 9.75%
Senior Notes Due 2014 
 ENERGY PARTNERS, LTD., a Delaware corporation, for value received, promises to pay to CEDE & CO., or
registered assigns, the principal sum of [ ] Dollars or such greater or lesser amount as indicated on the Schedule of Increases or Decreases in Global Security hereto, on April 15, 2014. 
  

			
	Interest Payment Dates:	  	April 15 and October 15.
		
	Record Dates:	  	April 1 and October 1.

 Additional provisions of this Fixed Rate Note are set forth on the other side of this Fixed Rate Note. 

Dated: 
  

			
	ENERGY PARTNERS, LTD.
		
	By:	 	  
		 	Name:
		 	Title:
		
	By:	 	  
		 	Name:
		 	Title:

  

 Exhibit 2-4 

			
	TRUSTEE’S CERTIFICATE OF AUTHENTICATION
	
	 This is one of the Securities
 referred to in
the Indenture.

	
	U.S. BANK NATIONAL ASSOCIATION, as Trustee
		
	By:	 	  
	Authorized Signatory

  

 Exhibit 2-5 

 [FORM OF REVERSE SIDE OF INITIAL SECURITY FIXED RATE NOTE] 
 9.75% Senior Notes Due 2014 
  

	1.	Interest 

 Energy Partners, Ltd., a Delaware
corporation (such corporation, and its successors and assigns under the Indenture hereinafter referred to, being herein called the “Company”), promises to pay interest on the principal amount of this Fixed Rate Note at the rate per annum
shown above; provided, however, that if a Registration Default (as defined in the Registration Rights Agreement) occurs, additional interest will accrue on this Security at a rate of 0.25% per annum (increasing by an additional
0.25% per annum after each consecutive 90-day period that occurs after the date on which such Registration Default occurs up to a maximum additional interest rate of 2.00%) from and including the date on which any such Registration Default
shall occur to but excluding the date on which all Registration Defaults have been cured. The Company will pay interest semiannually on April 15 and October 15 of each year. Interest on the Fixed Rate Notes will accrue from the most recent
date to which interest has been paid or, if no interest has been paid, from April 23, 2007. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Company shall pay interest on overdue principal at the rate borne
by the Fixed Rate Notes plus 1% per annum, and it shall pay interest on overdue installments of interest at the same rate to the extent lawful. 
  

	2.	Method of Payment 

 The Company will pay interest on
the Fixed Rate Notes (except defaulted interest) to the Persons who are registered holders of Fixed Rate Notes at the close of business on the April 1 and October 1 next preceding the interest payment date even if Fixed Rate Notes are
canceled after the record date and on or before the interest payment date. Holders must surrender Fixed Rate Notes to a Paying Agent to collect principal payments. The Company will pay principal and interest in money of the United States that at the
time of payment is legal tender for payment of public and private debts. 
 Payments in respect of Fixed Rate Notes (including principal,
premium and interest) will be made by wire transfer of immediately available funds to the accounts specified by the holders thereof or, if no U.S. dollar account maintained by the payee with a bank in the United States is designated by any holder to
the Trustee or the Paying Agent at least 30 days prior to the relevant due date for payment (or such other date as the Trustee may accept in its discretion), by mailing a check to the registered address of such holder. 
  

	3.	Paying Agent and Registrar 

 Initially, the Trustee
will act as Paying Agent and Registrar. The Company may appoint and change any Paying Agent, Registrar or co-registrar without notice. The Company or any of its domestically incorporated Wholly Owned Subsidiaries may act as Paying Agent, Registrar
or co-registrar. 
  

	4.	Indenture 

 The Company issued the Fixed Rate Notes
under an Indenture dated as of April 23, 2007 among the Company, the Subsidiary Guarantors and the Trustee. The terms of the Fixed Rate 

  

 Exhibit 2-6 

 
Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (15 U.S.C.
Sections 77aaa-77bbbb) as in effect on the date of the Indenture (the “Act”). Terms defined in the Indenture and not defined herein have the meanings ascribed thereto in the Indenture. The Fixed Rate Notes are subject to all such
terms, and Securityholders are referred to the Indenture and the Act for a statement of those terms. 
 The Fixed Rate Notes are general
unsecured, senior obligations of the Company. The Company may, subject to Article 4 of the Indenture, issue additional Fixed Rate Notes under the Indenture. The Initial Securities issued on the Issue Date, any Additional Securities and all
Exchange Securities or Private Exchange Securities issued in exchange therefor will be treated as a single class for all purposes under the Indenture. The Indenture imposes certain limitations on the Incurrence of Indebtedness by the Company and
certain of its Subsidiaries, the payment of dividends and other distributions on the Capital Stock of the Company and certain of its Subsidiaries, the purchase or redemption of Capital Stock of the Company and of certain Capital Stock of such
Subsidiaries, the sale or transfer of assets and Subsidiary stock, the creation of Liens and transactions with Affiliates. In addition, the Indenture limits the ability of the Company and certain of its Subsidiaries to restrict distributions and
dividends from Subsidiaries. The Indenture also restricts the ability of the Company and the Subsidiary Guarantors to consolidate or merge with or into, or to transfer all or substantially all their assets to, another Person. 
  

	5.	Optional Redemption 

 At any time prior to
April 15, 2011, the Company may redeem all or, from time to time, a part of the Fixed Rate Notes, upon not less than 30 nor more than 60 days’ prior notice, at a redemption price equal to 100% of the principal amount of Fixed Rate Notes
redeemed plus the Applicable Premium as of, and accrued and unpaid interest, if any, to the redemption date (subject to the right of Holders of record on the relevant record date to receive interest due on the relevant interest payment date).

 On and after April 15, 2011, the Fixed Rate Notes shall be redeemable, at the Company’s option, in whole or in part, at any time
or from time to time at the following redemption prices (expressed in percentages of principal amount), plus accrued and unpaid interest to the redemption date (subject to the right of Holders of record on the relevant record date to receive
interest due on the relevant interest payment date), if redeemed during the 12-month period commencing on April 15 of the years set forth below: 
  

				
	 Period
	  	Percentage	 
	 2011
	  	104.875	%
	 2012
	  	102.438	%
	 2013 and thereafter
	  	100.000	%

 Prior to April 15, 2010, the Company may at its option on one or more occasions redeem (which
includes Additional Securities that are Fixed Rate Notes, if any) in an aggregate principal amount not to exceed 35% of the aggregate principal amount of the Securities that are Fixed Rate Notes that are Fixed Rate Notes (which includes Additional
Securities that are Fixed Rate Notes, if any) originally issued at a redemption price (expressed as a percentage of principal amount) of 

  

 Exhibit 2-7 

 
109.750%, plus accrued and unpaid interest to the redemption date, with the Net Cash Proceeds from one or more Equity Offerings; provided that

 (1) at least 65% of such aggregate principal amount of Securities that are Fixed Rate Notes (which includes Additional
Securities, if any) remains outstanding immediately after the occurrence of each such redemption (other than Securities held, directly or indirectly, by the Company or its Affiliates); and 
 (2) each such redemption occurs within 90 days after the date of consummation of the related Equity Offering. 
 In the case of any partial redemption, the Trustee will select the Securities that are Fixed Rate Notes for redemption on a pro rata basis, by lot
or by such other method as the Trustee in its sole discretion deems to be fair and appropriate, although no Security of $2,000 in original principal amount or less will be redeemed in part. If any Security is to be redeemed in part only, the notice
of redemption relating to such Note will state the portion of the principal amount thereof to be redeemed. A new Security in principal amount equal to the unredeemed portion thereto will be issued in the name of the Holder thereof upon cancellation
of the original Security. Securities called for redemption become due on the date fixed for redemption. On and after the redemption date, interest will cease to accrue on the Securities or portions thereof called for redemption. 
  

	6.	Notice of Redemption 

 Notice of redemption will be
mailed at least 30 days but not more than 60 days before the redemption date to each Holder of Securities to be redeemed at his registered address. Securities in denominations larger than $2,000 may be redeemed in part but only in whole multiples of
$1,000. If money sufficient to pay the redemption price of and accrued interest on all Securities (or portions thereof) to be redeemed on the redemption date is deposited with the Paying Agent on or before the redemption date and certain other
conditions are satisfied, on and after such date interest ceases to accrue on such Securities (or such portions thereof) called for redemption. 
  

	7.	Put Provisions 

 Upon a Change of Control, any
Holder of Securities will have the right, subject to certain conditions, to cause the Company to purchase all or any part of the Securities of such Holder at a purchase price equal to 101% of the principal amount of the Securities to be purchased
plus accrued interest to the date of purchase (subject to the right of Holders of record on the relevant record date to receive interest due on the related interest payment date) as provided in, and subject to the terms of, the Indenture.

  

	8.	Denominations; Transfer; Exchange 

 The Securities
are in registered form without coupons in denominations of $2,000 and whole multiples of $1,000. A Holder may register the transfer of or exchange Securities in accordance with the Indenture. The Registrar may require a Holder, among other things,
to furnish appropriate endorsements or transfer documents and to pay any taxes and fees required by law or permitted by the Indenture. The Registrar need not register the transfer of or exchange any Securities selected for redemption (except, in the
case of a Security to be redeemed in part, the portion of the Security not to 

  

 Exhibit 2-8 

 
be redeemed) or any Securities for a period of 15 days before a selection of Securities to be redeemed or 15 days before an interest payment date.

  

	9.	Persons Deemed Owners 

 The registered Holder of
this Security shall be treated as the owner of it for all purposes. 
  

	10.	Unclaimed Money 

 If money for the payment of
principal or interest remains unclaimed for two years, the Trustee or Paying Agent shall pay the money back to the Company at its request unless an abandoned property law designates another Person. After any such payment, Holders entitled to the
money must look only to the Company and not to the Trustee for payment. 
  

	11.	Discharge and Defeasance 

 Subject to certain
conditions, the Company at any time may terminate some or all of its obligations under the Securities and the Indenture, including the Subsidiary Guarantees, if the Company deposits with the Trustee money or U.S. Government Obligations for the
payment of principal and interest on the Securities to redemption or maturity, as the case may be. 
  

	12.	Amendment, Waiver 

 Subject to certain exceptions
set forth in the Indenture, (i) the Indenture or the Securities may be amended (including in connection with a tender or exchange offer), and (ii) any past default or noncompliance with any provisions may be waived, with the written
consent of the Holders of at least a majority in outstanding principal amount of the Securities affected by such amendment or waiver. Subject to certain exceptions set forth in the Indenture, without notice to or the consent of any Securityholder,
the Company, the Subsidiary Guarantors and the Trustee may amend the Indenture or the Securities to cure any ambiguity, omission, defect or inconsistency, or to comply with Article 5 of the Indenture, or to provide for uncertificated Securities
in addition to or in place of certificated Securities (provided that the uncertificated Securities are issued in registered form for purposes of Section 163(f) of the Code, or in a manner such that the uncertificated Securities are
described in Section 163(f)(2)(B) of the Code), or to add guarantees (including Subsidiary Guarantees) with respect to the Securities, or to secure the Securities, or to add to the covenants of the Company for the benefit of the Holders,
or to surrender any right or power conferred on the Company or any Subsidiary Guarantor, or to make any change that does not adversely affect the rights of any Securityholder, or to comply with any requirement of the SEC in connection with
qualifying the Indenture under the Act or this Security, or to conform the text of the Indenture or this Security to any provision of the “Description of the Notes” as set forth in the Offering Memorandum dated April 18, 2007 to the
extent that such provision was intended to be a verbatim recitation of such text. 
  

	13.	Defaults and Remedies 

 Under the Indenture, Events
of Default include 
 (i) default in the payment of interest on the Securities when due and such default continues for a
period of 30 days; 
  

 Exhibit 2-9 

 (ii) default in payment of principal on the Securities at Stated Maturity, upon
redemption pursuant to paragraph 5 of the Securities, upon required purchase, upon declaration of acceleration or otherwise; 
 (iii) failure by the Company to comply with its obligations under certain covenants subject to notice and lapse of time; 
 (iv) failure by the Company to comply with other agreements in the Indenture or the Securities, in certain cases subject to notice and lapse of time; 
 (v) certain accelerations (including failure to pay within any grace period after final maturity) of other Indebtedness of the Company, a
Subsidiary Guarantor or a Significant Subsidiary (other than Production Payments and Reserve Sales and Non-recourse Purchase Money Indebtedness) if the amount accelerated (or so unpaid) exceeds $10 million; 
 (vi) certain events of bankruptcy, insolvency or reorganization with respect to the Company, a Subsidiary Guarantor or a Significant
Subsidiary; 
 (vii) any judgment or decree for the payment of money in excess of $10 million is rendered against the
Company, any Subsidiary Guarantor or a Significant Subsidiary, remains outstanding for a period of 60 days following such judgment or decree and is not discharged, waived or stayed within 10 days after notice; or 
 (viii) any Subsidiary Guarantee ceases to be in full force and effect (other than in accordance with the terms of such Subsidiary
Guarantee) if such default continues for a period of 5 days after notice thereof to the Company or any Subsidiary Guarantor denies or disaffirms its obligations under its Subsidiary Guarantee. 
 If an Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the outstanding Fixed Rate Notes may declare the
principal of and accrued but unpaid interest on this Security to be due and payable immediately. Certain events of bankruptcy, insolvency or reorganization with respect to the Company are Events of Default which will result in the Securities being
due and payable immediately upon the occurrence of such Events of Default. A default under clauses (iii), (iv) or (viii) will not constitute an Event of Default until the Trustee or the Holders of 25% in principal amount of the
outstanding Fixed Rate Notes notifies the Company of the default and the Company does not cure such default within the time specified after receipt of such notice. 
 Securityholders may not enforce the Indenture or the Securities except as provided in the Indenture. The Trustee may refuse to enforce the Indenture or the Securities unless it receives reasonable indemnity or
security. Subject to certain limitations, Holders of a majority in principal amount of the Fixed Rate Notes may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Securityholders notice of any continuing Default
(except a Default in payment of principal or interest) if it determines that withholding notice is in the interest of the Holders. 
  

 Exhibit 2-10 

	14.	Subsidiary Guarantees 

 As more particularly set
forth in the Indenture, certain subsidiaries of the Company, as Guarantors, jointly and severally, as primary obligor and not merely as surety, irrevocably, fully and unconditionally guarantee on a senior unsecured basis the performance and the
punctual payment when due, whether at Stated Maturity, by acceleration or otherwise, of all of the obligations of the Company under the Indenture and this Security. 
  

	15.	Trustee Dealings with the Company 

 Subject to
certain limitations imposed by the Act, the Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwise deal with and collect obligations owed to it by the Company or its
Affiliates and may otherwise deal with the Company or its Affiliates with the same rights it would have if it were not Trustee. 
  

	16.	No Recourse Against Others 

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

	17.	Authentication 

 This Security shall not be valid
until an authorized signatory of the Trustee (or an authenticating agent) manually signs the certificate of authentication on the other side of this Security. 
  

	18.	Abbreviations 

 Customary abbreviations may be used
in the name of a Securityholder or an assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by the entireties), JT TEN (=joint tenants with rights of survivorship and not as tenants in common), CUST (=custodian), and
U/G/M/A (=Uniform Gift to Minors Act). 
  

	19.	CUSIP Numbers 

 Pursuant to a recommendation
promulgated by the Committee on Uniform Security Identification Procedures the Company has caused CUSIP numbers to be printed on the Securities and has directed the Trustee to use CUSIP numbers in notices of redemption as a convenience to
Securityholders. No representation is made as to the accuracy of such numbers either as printed on the Securities or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon.

  

 Exhibit 2-11 

	20.	Holders’ Compliance with Registration Agreement 

 Each Holder of a Security, by acceptance hereof, acknowledges and agrees to the provisions of the Registration Agreement, including the obligations of the Holders with respect to a registration and the indemnification of the Company to the
extent provided therein. 
  

	21.	Governing Law 

 THIS SECURITY SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. 

The Company will furnish to any Securityholder upon written request and without charge to the Securityholder a copy of the Indenture. Requests may be
made to: 
 Energy Partners, Ltd. 
 201 St. Charles Avenue 
 Suite 3400 
 New Orleans, Louisiana 70170 
 Attention of Corporate Secretary 
  

 Exhibit 2-12 

 ASSIGNMENT FORM 
 To assign this Security, fill in the form below: 
 I or we assign and transfer this Security to 
 (Print or type assignee’s name, address and zip code) 
 (Insert assignee’s soc. sec. or tax I.D. No.) 
 and irrevocably appoint
                     agent to transfer this Security on the books of the Company. The agent may substitute another to act for him. 
                                       
                                        
                                        
                                        
                                        
                                        
                    

									
					
	Date:	 	                                      
                                        
                  	 		 	Your Signature:	 	  
		 		 		 		 	

                                       
                                        
                                        
                                        
                                        
                                        
                    
 Sign exactly as your name appears on
the other side of this Security 
 In connection with any transfer of any of the Securities evidenced by this certificate occurring prior to the expiration
of the period referred to in Rule 144(k) under the Securities Act of 1933, as amended (the “Securities Act”), after the later of the date of original issuance of such Securities and the last date, if any, on which such Securities
were owned by the Company or any Affiliate of the Company, the undersigned confirms that such Securities are being transferred in accordance with its terms: 
 CHECK ONE BOX BELOW 
  

					
	(1)	 	 ̈	 	to the Company; or
			
	(2)	 	 ̈	 	pursuant to an effective registration statement under the Securities Act of 1933; or
			
	(3)	 	 ̈	 	inside the United States to a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act) that purchases for its own account or for the account of a
qualified institutional buyer to whom notice is given that such transfer is being made in reliance on Rule 144A, in each case pursuant to and in compliance with Rule 144A under the Securities Act;
			
	(4)	 	 ̈	 	in the United States to an institutional “accredited investor” within the meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act that is acquiring the
securities for its own account or for the account of another institutional accredited investor for investment purposes and not with a view to, or for offer or sale in connection with, any distribution thereof in violation of the Securities Act and
that, prior to such transfer, furnishes (or has furnished on its behalf by a U.S. broker-dealer) to the trustee a certificate containing certain representations and agreements relating to restrictions on transfer of the securities (the form of which
certificate can be found in Appendix C to the Indenture);

  

 Exhibit 2-13 

					
	(5)	 	 ̈	 	outside the United States in an offshore transaction within the meaning of Regulation S under the Securities Act in compliance with Rule 904 under the Securities Act;
or
			
	(6)	 	 ̈	 	pursuant to the exemption from registration provided by Rule 144 under the Securities Act of 1933.

 If such transfer is being made pursuant to an offshore transaction in accordance with
Rule 904 under the Securities Act, the undersigned further certifies that: 
 (i) the offer of the Securities was not
made to a person in the United States; 
 (ii) either (a) at the time the buy offer was originated, the transferee was
outside the United States or we and any person acting on our behalf reasonably believed that the transferee was outside the United States, or (b) the transaction was executed in, on or through the facilities of a designated off-shore securities
market and neither we nor any person acting on our behalf knows that the transaction has been pre-arranged with a buyer in the United States; 
 (iii) no directed selling efforts have been made in the United States in contravention of the requirements of Rule 903 or Rule 904 of Regulation S, as applicable; 
 (iv) the transaction is not part of a plan or scheme to evade the registration requirements of the Securities Act; 
 (v) we have advised the transferee of the transfer restrictions applicable to the Securities; and 
 (vi) if the circumstances set forth in Rule 904(b) under the Securities Act are applicable, we have complied with the additional
conditions therein, including (if applicable) sending a confirmation or other notice stating that the Securities may be offered and sold during the distribution compliance period specified in Rule 903 of Regulation S only in accordance
with the provisions of Regulation S; pursuant to registration of the Securities under the Securities Act; or pursuant to an available exemption from the registration requirements under the Securities Act. 
  

 Exhibit 2-14 

 Unless one of the boxes is checked, the Trustee will refuse to register any of the Securities evidenced
by this certificate in the name of any person other than the registered holder thereof; provided, however, that if box (4) or (5) is checked, the Trustee may require, prior to registering any such transfer of the Securities,
such legal opinions, certifications and other information as the Company has reasonably requested to confirm that such transfer is being made pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the
Securities Act of 1933, such as the exemption provided by Rule 144 under such Act. 
  

			
		
	Signature:	 	  

  

					
	Signature Guarantee:	 		 	
			
	   	 		 	   
	Signature must be guaranteed	 		 	Signature

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

 Exhibit 2-15 

 TO BE COMPLETED BY PURCHASER IF (3) ABOVE IS CHECKED. 
 The undersigned represents and warrants that it is purchasing this Security for its own account or an account with respect to which it exercises sole
investment discretion and that it and any such account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities Act of 1933, and is aware that the sale to it is being made in reliance on Rule 144A
and acknowledges that it has received such information regarding the Company as the undersigned has requested pursuant to Rule 144A or has determined not to request such information and that it is aware that the transferor is relying upon the
undersigned’s foregoing representations in order to claim the exemption from registration provided by Rule 144A. 
  

					
			
	Dated:                                     
                                        
                         	 		 	  
		 		 	NOTICE: To be executed by an executive officer

  

 Exhibit 2-16 

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

									
	 Date of
Exchange
	  	Amount of
decrease in
Principal Amount
of this Global
Security	  	Amount of
increase in
Principal Amount
of this Global
Security	  	Principal amount
of this Global
Security following
such decrease or
increase	  	Signature of
authorized
signatory of
Trustee or
Securities
Custodian
		  		  		  		  	

  

 Exhibit 2-17 

 OPTION OF HOLDER TO ELECT PURCHASE 
 If you want to elect to have this Security purchased by the Company pursuant to Section 4.06 or Section 4.09 of the Indenture, check the box:
 ̈ 
 If you want to elect to have
only part of this Security purchased by the Company pursuant to Section 4.06 or Section 4.09 of the Indenture, state the amount in principal amount: 
 $ 
  

							
				
	Date:                                     
                                        
            	 		 	Your Signature:	 	  
		 		 		 	 (Sign exactly as your name
 appears on the other side of
this Security.)

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

 Exhibit 2-18 

 [FORM OF FACE OF EXCHANGE SECURITY 
 OR PRIVATE EXCHANGE SECURITY - FIXED RATE NOTE] 
 [OID Legend] 
 FOR PURPOSES OF SECTION 1273 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), THIS
SECURITY HAS ORIGINAL ISSUE DISCOUNT. FOR PURPOSES OF SECTION 1273 OF THE CODE, THE ISSUE PRICE IS $[ ] AND THE AMOUNT OF ORIGINAL ISSUE DISCOUNT IS $[ ], IN EACH CASE PER $1000 PRINCIPAL AMOUNT OF THIS SECURITY. FOR PURPOSES OF
SECTION 1275 OF THE CODE, THE ISSUE DATE OF THIS SECURITY IS [ ]. FOR PURPOSES OF SECTION 1272 OF THE CODE, THE YIELD TO MATURITY (COMPOUNDED SEMI-ANNUALLY) IS [ ]%.5,6 
  

	 5
	 If the Security is to be issued in global form add the Global securities Legend from Exhibit 2 to
Appendix A and the attachment from such Exhibit 2 captioned “[TO BE ATTACHED TO GLOBAL SECURITIES] – SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY.” 

  

	 6
	 If the Security is a Private Exchange Security issued in a Private Exchange to an Initial Purchaser
holding an unsold portion of its initial allotment, add the Restricted Securities Legend from Exhibit 1 to Appendix A and replace the Assignment Form included in this Exhibit A with the Assignment Form included in such Exhibit 1.

  

 Exhibit 2-19 

 CUSIP No.
                     
 ISIN No.
                     
 Up to
$                     
 No.
                     
 9.75%
Senior Notes Due 2014 
 ENERGY PARTNERS, LTD., a Delaware corporation, for value received, promises to pay to CEDE & CO., or
registered assigns, the principal sum of [ ] Dollars or such greater or lesser amount as indicated on the Schedule of Increases or Decreases in Global Security hereto, on April 15, 2014. 
  

			
	Interest Payment Dates:	  	April 15 and October 15.
		
	Record Dates:	  	April 1 and October 1.

 Additional provisions of this Fixed Rate Note are set forth on the other side of this Fixed Rate Note. 

Dated: 
  

			
	ENERGY PARTNERS, LTD.
		
	By:	 	  
		 	Name:
		 	Title:
		
	By:	 	  
		 	Name:
		 	Title:

  

 Exhibit 2-20 

			
	TRUSTEE’S CERTIFICATE OF AUTHENTICATION
	
	 This is one of the Securities
 referred to in
the Indenture.

	
	U.S. BANK NATIONAL ASSOCIATION, as Trustee
		
	By:	 	  
	Authorized Signatory

  

 Exhibit 2-21 

 [FORM OF REVERSE SIDE OF EXCHANGE SECURITY 
 OR PRIVATE EXCHANGE SECURITY FIXED RATE NOTE] 
 9.75% Senior Notes Due 2014 

 

	1.	Interest. 

 Energy Partners, Ltd., a Delaware corporation (such corporation, and its successors and assigns under the Indenture hereinafter referred to, being herein called the “Company”), promises to pay interest on
the principal amount of this Fixed Rate Note at the rate per annum shown above[; provided, however, that if a Registration Default (as defined in the Registration Rights Agreement) occurs, additional interest will accrue on this
Security at a rate of 0.25% per annum (increasing by an additional 0.25% per annum after each consecutive 90-day period that occurs after the date on which such Registration Default occurs up to a maximum additional interest rate of 2.00%)
from and including the date on which any such Registration Default shall occur to but excluding the date on which all Registration Defaults have been cured.]7 The Company will pay interest semiannually on April 15 and October 15 of each year. Interest on the Fixed Rate Notes will accrue from the most recent date to which interest has been paid or,
if no interest has been paid, from April 23, 2007. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Company shall pay interest on overdue principal at the rate borne by the Fixed Rate Notes plus 1% per
annum, and it shall pay interest on overdue installments of interest at the same rate to the extent lawful. 
  

	2.	Method of Payment. 

 The Company will pay interest
on the Fixed Rate Notes (except defaulted interest) to the Persons who are registered holders of Fixed Rate Notes at the close of business on the April 1 and October 1 next preceding the interest payment date even if Fixed Rate Notes are
canceled after the record date and on or before the interest payment date. Holders must surrender Fixed Rate Notes to a Paying Agent to collect principal payments. The Company will pay principal and interest in money of the United States that at the
time of payment is legal tender for payment of public and private debts. 
 Payments in respect of Fixed Rate Notes (including principal,
premium and interest) will be made by wire transfer of immediately available funds to the accounts specified by the holders thereof or, if no U.S. dollar account maintained by the payee with a bank in the United States is designated by any holder to
the Trustee or the Paying Agent at least 30 days prior to the relevant due date for payment (or such other date as the Trustee may accept in its discretion), by mailing a check to the registered address of such holder. 
  

	 7
	 Insert if at the date of issuance of the Exchange Security or Private Exchange Security (as the case may
be) any Registration Default has occurred with respect to the related Initial Securities during the interest period in which such date of issuance occurs. 

  

 Exhibit 2-22 

	3.	Paying Agent and Registrar. 

 Initially, the Trustee
will act as Paying Agent and Registrar. The Company may appoint and change any Paying Agent, Registrar or co-registrar without notice. The Company or any of its domestically incorporated Wholly Owned Subsidiaries may act as Paying Agent, Registrar
or co-registrar. 
  

	4.	Indenture. 

 The Company issued the Fixed Rate Notes
under an Indenture dated as of April 23, 2007 among the Company, the Subsidiary Guarantors and the Trustee. The terms of the Fixed Rate Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939, as amended (15 U.S.C. Sections 77aaa-77bbbb) as in effect on the date of the Indenture (the “Act”). Terms defined in the Indenture and not defined herein have the meanings ascribed thereto in the Indenture.
The Fixed Rate Notes are subject to all such terms, and Securityholders are referred to the Indenture and the Act for a statement of those terms. 
 The Fixed Rate Notes are general unsecured, senior subordinated obligations of the Company. The Company may, subject to Article 4 of the Indenture, issue additional Fixed Rate Notes under the Indenture. The Initial Securities issued on
the Issue Date, any Additional Securities and all Exchange Securities or Private Exchange Securities issued in exchange therefor will be treated as a single class for all purposes under the Indenture. The Indenture imposes certain limitations on the
Incurrence of Indebtedness by the Company and certain of its Subsidiaries, the payment of dividends and other distributions on the Capital Stock of the Company and certain of its Subsidiaries, the purchase or redemption of Capital Stock of the
Company and of certain Capital Stock of such Subsidiaries, the sale or transfer of assets and Subsidiary stock, the creation of Liens and transactions with Affiliates. In addition, the Indenture limits the ability of the Company and certain of its
Subsidiaries to restrict distributions and dividends from Subsidiaries. The Indenture also restricts the ability of the Company and the Subsidiary Guarantors to consolidate or merge with or into, or to transfer all or substantially all their assets
to, another Person. 
  

	5.	Optional Redemption. 

 At any time prior to
April 15, 2011, the Company may redeem all or, from time to time, a part of the Fixed Rate Notes, upon not less than 30 nor more than 60 days’ prior notice, at a redemption price equal to 100% of the principal amount of Fixed Rate Notes
redeemed plus the Applicable Premium as of, and accrued and unpaid interest, if any, to the redemption date (subject to the right of Holders of record on the relevant record date to receive interest due on the relevant interest payment date).

 On and after April 15, 2011, the Fixed Rate Notes shall be redeemable, at the Company’s option, in whole or in part, at any time
or from time to time at the following redemption prices (expressed in percentages of principal amount), plus accrued and unpaid interest to the redemption date (subject to the right of Holders of record on the relevant record date to receive
interest due on the relevant interest payment date), if redeemed during the 12-month period commencing on April 15 of the years set forth below: 
  

				
	 Period
	  	Percentage	 
	 2011
	  	104.875	%
	 2012
	  	102.438	%
	 2013 and thereafter
	  	100.000	%

  

 Exhibit 2-23 

 Prior to April 15, 2010, the Company may at its option on one or more occasions redeem (which
includes Additional Securities that are Fixed Rate Notes, if any) in an aggregate principal amount not to exceed 35% of the aggregate principal amount of the Securities that are Fixed Rate Notes that are Fixed Rate Notes (which includes Additional
Securities that are Fixed Rate Notes, if any) originally issued at a redemption price (expressed as a percentage of principal amount) of 109.750%, plus accrued and unpaid interest to the redemption date, with the Net Cash Proceeds from one or more
Equity Offerings; provided that 
 (1) at least 65% of such aggregate principal amount of Securities that are Fixed
Rate Notes (which includes Additional Securities, if any) remains outstanding immediately after the occurrence of each such redemption (other than Securities held, directly or indirectly, by the Company or its Affiliates); and 
 (2) each such redemption occurs within 90 days after the date of consummation of the related Equity Offering. 
 In the case of any partial redemption, the Trustee will select the Securities that are Fixed Rate Notes for redemption on a pro rata basis, by lot
or by such other method as the Trustee in its sole discretion deems to be fair and appropriate, although no Security of $2,000 in original principal amount or less will be redeemed in part. If any Security is to be redeemed in part only, the notice
of redemption relating to such Note will state the portion of the principal amount thereof to be redeemed. A new Security in principal amount equal to the unredeemed portion thereto will be issued in the name of the Holder thereof upon cancellation
of the original Security. Securities called for redemption become due on the date fixed for redemption. On and after the redemption date, interest will cease to accrue on the Securities or portions thereof called for redemption. 
  

	6.	Notice of Redemption. 

 Notice of redemption will be
mailed at least 30 days but not more than 60 days before the redemption date to each Holder of Securities to be redeemed at his registered address. Securities in denominations larger than $2,000 may be redeemed in part but only in whole multiples of
$1,000. If money sufficient to pay the redemption price of and accrued interest on all Securities (or portions thereof) to be redeemed on the redemption date is deposited with the Paying Agent on or before the redemption date and certain other
conditions are satisfied, on and after such date interest ceases to accrue on such Securities (or such portions thereof) called for redemption. 
  

	7.	Put Provisions. 

 Upon a Change of Control, any
Holder of Securities will have the right, subject to certain conditions, to cause the Company to purchase all or any part of the Securities of such Holder at a purchase price equal to 101% of the principal amount of the Securities to be purchased
plus accrued interest to the date of purchase (subject to the right of Holders of record on the relevant record date to 

  

 Exhibit 2-24 

 
receive interest due on the related interest payment date) as provided in, and subject to the terms of, the Indenture. 
  

	8.	Denominations; Transfer; Exchange. 

 The Securities
are in registered form without coupons in denominations of $2,000 and whole multiples of $1,000. A Holder may register the transfer of or exchange Securities in accordance with the Indenture. The Registrar may require a Holder, among other things,
to furnish appropriate endorsements or transfer documents and to pay any taxes and fees required by law or permitted by the Indenture. The Registrar need not register the transfer of or exchange any Securities selected for redemption (except, in the
case of a Security to be redeemed in part, the portion of the Security not to be redeemed) or any Securities for a period of 15 days before a selection of Securities to be redeemed or 15 days before an interest payment date. 
  

	9.	Persons Deemed Owners. 

 The registered Holder of
this Security shall be treated as the owner of it for all purposes. 
  

	10.	Unclaimed Money. 

 If money for the payment of
principal or interest remains unclaimed for two years, the Trustee or Paying Agent shall pay the money back to the Company at its request unless an abandoned property law designates another Person. After any such payment, Holders entitled to the
money must look only to the Company and not to the Trustee for payment. 
  

	11.	Discharge and Defeasance. 

 Subject to certain
conditions, the Company at any time may terminate some or all of its obligations under the Securities and the Indenture, including the Subsidiary Guarantees, if the Company deposits with the Trustee money or U.S. Government Obligations for the
payment of principal and interest on the Securities to redemption or maturity, as the case may be. 
  

	12.	Amendment; Waiver. 

 Subject to certain exceptions
set forth in the Indenture, (i) the Indenture or the Securities may be amended with the written consent of the Holders of at least a majority in principal amount of the Securities then outstanding and (ii) any default or noncompliance with
any provisions may be waived with the written consent of the Holders of at least a majority in principal amount of the Securities then outstanding. Subject to certain exceptions set forth in the Indenture, without notice to or the consent of any
Securityholder, the Company, the Subsidiary Guarantors and the Trustee may amend the Indenture or the Securities to cure any ambiguity, omission, defect or inconsistency, or to comply with Article 5 of the Indenture, or to provide for
uncertificated Securities in addition to or in place of certificated Securities (provided that the uncertificated Securities are issued in registered form for purposes of Section 163(f) of the Code, or in a manner such that the
uncertificated Securities are described in Section 163(f)(2)(B) of the Code), or to make any change to the subordination provisions of the Indenture that would limit or terminate the benefits available to any holder of Senior Indebtedness
(or its representative) of the Company or any Subsidiary Guarantor, or to add guarantees 

  

 Exhibit 2-25 

 
(including Subsidiary Guarantees) with respect to the Securities, or to secure the Securities, or to add to the covenants of the Company for the benefit of
the Holders, or to surrender any right or power conferred on the Company or any Subsidiary Guarantor, or to make any change that does not adversely affect the rights of any Securityholder, or to comply with any requirement of the SEC in connection
with qualifying the Indenture under the Act or this Security, or to conform the text of the Indenture or this Security to any provision of the “Description of the Notes” as set forth in the Offering Memorandum dated April 18, 2007 to
the extent that such provision was intended to be a verbatim recitation of such text. No amendment may be made to the subordination provisions of the Indenture that adversely affects the rights of any holder of Senior Indebtedness of the Company or
of any Subsidiary Guarantor then outstanding unless the holders of such Senior Indebtedness (or their representative) consent to such change. 
  

	13.	Defaults and Remedies. 

 Under the Indenture, Events
of Default include 
 (i) default in the payment of interest on the Securities when due and such default continues for a
period of 30 days; 
 (ii) default in payment of principal on the Securities at Stated Maturity, upon redemption pursuant to
paragraph 5 of the Securities, upon required purchase, upon declaration of acceleration or otherwise; 
 (iii) failure by
the Company to comply with its obligations under certain covenants subject to notice and lapse of time; 
 (iv) failure by the
Company to comply with other agreements in the Indenture or the Securities, in certain cases subject to notice and lapse of time; 
 (v) certain accelerations (including failure to pay within any grace period after final maturity) of other Indebtedness of the Company, any Subsidiary Guarantor or a Significant Subsidiary (other than Production Payments and Reserve Sales
and Non-recourse Purchase Money Indebtedness) if the amount accelerated (or so unpaid) exceeds $10 million; 
 (vi)
certain events of bankruptcy, insolvency or reorganization with respect to the Company, a Subsidiary Guarantor or a Significant Subsidiary; 
 (vii) any judgment or decree for the payment of money in excess of $10 million is rendered against the Company, any Subsidiary Guarantor or a Significant Subsidiary, remains outstanding for a period of 60 days
following such judgment or decree and is not discharged, waived or stayed within 10 days after notice; or 
 (viii) any
Subsidiary Guarantee ceases to be in full force and effect (other than in accordance with the terms of such Subsidiary Guarantee) if such default continues for a period of 5 days after notice thereof to the Company or any Subsidiary Guarantor denies
or disaffirms its obligations under its Subsidiary Guarantee. 
  

 Exhibit 2-26 

 If an Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the
outstanding Fixed Rate Notes may declare the principal of and accrued but unpaid interest on this Security to be due and payable immediately. Certain events of bankruptcy, insolvency or reorganization with respect to the Company are Events of
Default which will result in the Securities being due and payable immediately upon the occurrence of such Events of Default. A default under clauses (iii), (iv) or (viii) will not constitute an Event of Default until the Trustee or
the Holders of 25% in principal amount of the outstanding Fixed Rate Notes notifies the Company of the default and the Company does not cure such default within the time specified after receipt of such notice. 
 Securityholders may not enforce the Indenture or the Securities except as provided in the Indenture. The Trustee may refuse to enforce the Indenture or
the Securities unless it receives reasonable indemnity or security. Subject to certain limitations, Holders of a majority in principal amount of the Fixed Rate Notes may direct the Trustee in its exercise of any trust or power. The Trustee may
withhold from Securityholders notice of any continuing Default (except a Default in payment of principal or interest) if it determines that withholding notice is in the interest of the Holders. 
  

	14.	Subsidiary Guarantees. 

 As more particularly set
forth in the Indenture, certain subsidiaries of the Company, as Guarantors, jointly and severally, as primary obligor and not merely as surety, irrevocably, fully and unconditionally guarantee on a senior unsecured basis the performance and the
punctual payment when due, whether at Stated Maturity, by acceleration or otherwise, of all of the obligations of the Company under the Indenture and this Security. 
  

	15.	Trustee Dealings with the Company. 

 Subject to
certain limitations imposed by the Act, the Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwise deal with and collect obligations owed to it by the Company or its
Affiliates and may otherwise deal with the Company or its Affiliates with the same rights it would have if it were not Trustee. 
  

	16.	No Recourse Against Others. 

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

	17.	Authentication. 

 This Security shall not be valid
until an authorized signatory of the Trustee (or an authenticating agent) manually signs the certificate of authentication on the other side of this Security. 
  

 Exhibit 2-27 

	18.	Abbreviations. 

 Customary abbreviations may be used
in the name of a Securityholder or an assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by the entireties), JT TEN (joint tenants with rights of survivorship and not as tenants in common), CUST (=custodian), and
U/G/M/A (=Uniform Gift to Minors Act). 
  

	19.	CUSIP Numbers. 

 Pursuant to a recommendation
promulgated by the Committee on Uniform Security Identification Procedures the Company has caused CUSIP numbers to be printed on the Securities and has directed the Trustee to use CUSIP numbers in notices of redemption as a convenience to
Securityholders. No representation is made as to the accuracy of such numbers either as printed on the Securities or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon.

  

	20.	Holders’ Compliance with Registration Agreement. 

 Each Holder of a Security, by acceptance hereof, acknowledges and agrees to the provisions of the
Registration Agreement, including the obligations of the Holders with respect to a registration and the indemnification of the Company to the extent provided therein.8 
  

	21.	Governing Law 

 THIS SECURITY SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. 

The Company will furnish to any Securityholder upon written request and without charge to the Securityholder a copy of the Indenture. Requests may be
made to: 
 Energy Partners, Ltd. 
 201 St. Charles Avenue 
 Suite 3400 
 New Orleans, Louisiana 70170 
 Attention of Corporate Secretary 

	 8
	 Delete if this Security is not being issued in exchange for an Initial Security.

  

 Exhibit 2-28 

 ASSIGNMENT FORM 
 To assign this Security, fill in the form below: 
 I or we assign and transfer this Security to 
 (Print or type assignee’s name, address and zip code) 
 (Insert assignee’s soc. sec. or tax I.D. No.) 
 and irrevocably appoint
                     agent to transfer this Security on the books of the Company. The agent may substitute another to act for him. 
  

									
	 	 	 	 	 
	Date:	 	  	 		 	Your Signature:	 	  
					
	 	 	 	 	 	 	 	 	 
	Sign exactly as your name appears on the other side of this Security

  

 Exhibit 2-29 

 OPTION OF HOLDER TO ELECT PURCHASE 
 If you want to elect to have this Security purchased by the Company pursuant to Section 4.06 or Section 4.09 of the Indenture, check the box:
 ̈ 
 If you want to elect to have
only part of this Security purchased by the Company pursuant to Section 4.06 or Section 4.09 of the Indenture, state the amount in principal amount: 
  

									
	$	 		 	
					
	Date:	 	  	 		 	Your Signature:	 	  
		 		 		 		 	(Sign exactly as your name appears on the other side of this Security.)

									
		
	Signature Guarantee:	 	  
		 	(Signature must be guaranteed)

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

 Exhibit 2-30 

 APPENDIX B 
 FORM OF SUPPLEMENTAL INDENTURE 
 SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as
of             , 20__, among [SUBSIDIARY GUARANTOR] (the “New Subsidiary Guarantor”), a subsidiary of Energy Partners, Ltd. (or its successor) (the “Company”),
ENERGY PARTNERS, LTD., a Delaware corporation, on behalf of itself and the Subsidiary Guarantors (the “Existing Subsidiary Guarantors”) under the Indenture referred to below, and U.S. Bank National Association, as trustee under the
indenture referred to below (the “Trustee”). 
 WITNESSETH: 
 WHEREAS the Company has heretofore executed and delivered to the Trustee an Indenture (the “Indenture”), dated as of April 23, 2007,
providing for the issuance of Senior Floating Rate Notes due 2013 and 9.75% Senior Notes due 2014 (together, the “Securities”); 
 WHEREAS Section 4.14 of the Indenture provides that under certain circumstances the Company is required to cause the New Subsidiary Guarantor to execute and deliver to the Trustee a supplemental indenture pursuant to which the New
Subsidiary Guarantor shall unconditionally guarantee all of the Company’s obligations under the Securities pursuant to a Subsidiary Guarantee on the terms and conditions set forth herein; and 
 WHEREAS pursuant to Section 9.01 of the Indenture, the Trustee, the Company and Existing Subsidiary Guarantors are authorized to execute and deliver
this Supplemental Indenture; 
 NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt
of which is hereby acknowledged, the New Subsidiary Guarantor, the Company, the Existing Subsidiary Guarantors and the Trustee mutually covenant and agree for the equal and ratable benefit of the holders of the Securities as follows: 
 1. Definitions. 
 (a) Capitalized
terms used herein without definition shall have the meanings assigned to them in the Indenture. 
 (b) For all purposes of this Supplement,
except as otherwise herein expressly provided or unless the context otherwise requires: (i) the terms and expressions used herein shall have the same meanings as corresponding terms and expressions used in the Indenture; and (ii) the words
“herein,” “hereof’ and “hereby” and other words of similar import used in this Supplement refer to this Supplement as a whole and not to any particular section hereof. 
 2. Agreement to Guarantee. The New Subsidiary Guarantor hereby agrees, jointly and severally with all other Subsidiary Guarantors, to guarantee
the Company’s obligations under the Securities on the term and subject to the conditions set forth in Article 11 of the Indenture and to be bound by all other applicable provisions of the Indenture. 
 3. Ratification of Indenture; Supplemental Indentures Part of Indenture. Except as expressly amended hereby, the Indenture is in all respects
ratified and confirmed and all the terms, 

  

 Appendix B-1 

 
conditions and provisions thereof shall remain in full force and effect. This Supplemental Indenture shall form a part of the Indenture for all purposes, and
every holder of Securities heretofore or hereafter authenticated and delivered shall be bound hereby. 
 4. Governing Law. THIS
SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION WOULD BE REQUIRED THEREBY. 
 5. Trustee Makes No Representation. The Trustee makes no representation as to the validity
or sufficiency of this Supplemental Indenture. 
 6. Counterparts. The parties may sign any number of copies of this Supplemental
Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. 
 7. Effect of Headings. The
Section headings herein are for convenience only and shall not effect the construction thereof. 
  

 Appendix B-2 

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

			
	[NEW SUBSIDIARY GUARANTOR]
		
	By:	 	  
		 	Name:
		 	Title:
	
	 ENERGY PARTNERS, LTD, on behalf
 of itself
and the Existing Subsidiary
 Guarantors

		
	By:	 	  
		 	Name:
		 	Title:
	
	 U.S. Bank National Association
 as
Trustee

		
	By:	 	  
		 	Name:
		 	Title:

  

 Appendix B-3 

 APPENDIX C 
 FORM OF CERTIFICATE FROM 
 ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR 
 Energy Partners, Ltd. 
 201 St. Charles Avenue, Suite 3400 
 New Orleans, LA 70170 
 U.S. Bank National Association, as Trustee

 5555 San Felipe, Suite 1150 
 Houston, Texas 77056 

Attention: Corporate Trust Services 
  

	 	Re:	Senior Floating Rate Notes due 2013 and 9.75% Senior Notes due 2014 

 Reference is hereby made to the Indenture, dated as of April 23, 2007 (the “Indenture”), among Energy Partners, Ltd., as issuer (the “Company”), the Guarantors named on the signature pages thereto and
U.S. Bank National Association, as trustee. Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture and the Company’s Offering Memorandum dated as of April 18, 2007. 
 In connection with our proposed purchase of
$                     aggregate principal amount of: 
  

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

  

	(b)	 ̈    a Certificated Note, 

 we confirm that: 
 1. We understand that any subsequent transfer of the
Notes or any interest therein is subject to certain restrictions and conditions set forth in the Indenture and the undersigned agrees to be bound by, and not to resell, pledge or otherwise transfer the Notes or any interest therein except in
compliance with, such restrictions and conditions and the Securities Act of 1933, as amended (the “Securities Act”). 
 2. We understand
that the offer and sale of the Notes have not been registered under the Securities Act, and that the Notes and any interest therein may not be offered, resold, pledged or otherwise transferred in the absence of such registration or an applicable
exemption therefrom. 
 3. We understand that for the benefit of the Company that the Notes may be offered, sold, or otherwise transferred only (i) to
the Company, (ii) in the United States to a person whom we reasonably believe is a qualified institutional buyer (as defined in Rule 144A under the Securities Act) in a transaction meeting the requirements of Rule 144A,
(iii) outside the United States in an offshore transaction in accordance with Rule 904 under the Securities Act, (iv) pursuant to an exemption from registration under the Securities Act provided by Rule 144 (if available),
(v) in the United States to an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act) that is acquiring the Notes for its own account or for the
account of another institutional accredited investor for investment purposes and not with a view to, or for offer or sale in connection with, any distribution thereof in violation of the Securities Act and that, prior to such transfer, furnishes (or
has 

  

 Appendix C-1 

 
furnished on its behalf by a U.S. broker-dealer) to the trustee an executed certificate substantially in the form of this certificate or (vi) pursuant
to an effective registration statement under the Securities Act, in each of cases (i) through (vi) in accordance with any applicable securities laws of any state of the United States. 
 4. We understand that we will notify any purchaser of the Notes of the resale restrictions referred to in (3) above. 
 5. We understand that, on any proposed resale of the Notes or beneficial interest therein, we will be required to furnish to you and the Company such certificates, legal
opinions and other information as you and the Company may reasonably require to confirm that the proposed sale complies with the foregoing restrictions. We further understand that the Notes purchased by us will bear a legend to the foregoing effect.

 6. We are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the
Securities Act) and have such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of our investment in the Notes, and we and any accounts for which we are acting are each able to bear the
economic risk of our or its investment. 
 7. We are acquiring the Notes or beneficial interest therein purchased by us for our own account or for one or
more accounts (each of which is an institutional “accredited investor” as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act) as to each of which we exercise sole investment discretion.

 You and the Company are entitled to rely upon this certificate and are irrevocably authorized to produce this certificate or a copy hereof to any
interested party in any administrative or legal proceedings or official inquiry with respect to the matters covered hereby. 
  

			
	  
	[Insert Name of Accredited Investor]
		
	By:	 	  
		 	Name:
		 	Title:

 Dated:
                             
  

 Appendix C-2Registration Rights Agreement.

 Exhibit 10.1 
 EXECUTION COPY 
 REGISTRATION RIGHTS AGREEMENT 
 by and among 
 Energy Partners, Ltd.

 EPL Pipeline, L.L.C. 
 EPL of Louisiana, L.L.C. 
 Delaware EPL of Texas, LLC 
 EPL Pioneer Houston, Inc. 
 and 
 Banc of America Securities LLC 
 Dated
as of April 23, 2007 

 REGISTRATION RIGHTS AGREEMENT 
 This Registration Rights Agreement (this “Agreement”) is made and entered into as of April 23, 2007, by and among Energy Partners, Ltd., a
Delaware corporation (the “Company”), EPL Pipeline, L.L.C, EPL of Louisiana, L.L.C., Delaware EPL of Texas, LLC, EPL Pioneer Houston, Inc. (collectively, the “Guarantors”), and Banc of America Securities LLC, BNP Paribas
Securities Corp., Merrill Lynch, Pierce, Fenner & Smith Incorporated, UBS Securities LLC, BMO Capital Markets Corp., Calyon Securities (USA) Inc., Piper Jaffray & Co., Scotia Capital (USA) Inc., Friedman, Billings, Ramsey
& Co., Inc., Johnson Rice & Company L.L.C. and SG Americas Securities, LLC (collectively, the “Initial Purchasers”), each of whom has agreed to purchase the Company’s Senior Floating Rate Notes due 2013 (the
“Floating Rate Notes”) and 9.75% Senior Notes due 2014 (the “Senior Notes” and together with the Floating Rate Notes, the “Initial Notes”) fully and unconditionally guaranteed by the Guarantors (the
“Guarantees”), pursuant to the Purchase Agreement (as defined below). The Initial Notes and the Guarantees attached thereto are herein collectively referred to as the “Initial Securities.” 
 This Agreement is made pursuant to the Purchase Agreement, dated April 18, 2007 (the “Purchase Agreement”), among the Company, the
Guarantors and the Initial Purchasers (i) for the benefit of the Initial Purchasers and (ii) for the benefit of the holders from time to time of the Initial Securities, including the Initial Purchasers. In order to induce the Initial
Purchasers to purchase the Initial Securities, the Company has agreed to provide the registration rights set forth in this Agreement. The execution and delivery of this Agreement is a condition to the obligations of the Initial Purchasers set forth
in Section 5(h) of the Purchase Agreement. 
 The parties hereby agree as follows: 
 Section 1. Definitions. As used in this Agreement, the following capitalized terms shall have the following meanings: 
 Additional Interest Payment Date: With respect to the Initial Securities, each Interest Payment Date. 
 Broker-Dealer: Any broker or dealer registered under the Exchange Act. 
 Business Day: Any day other than a Saturday, Sunday or U.S. federal holiday or a day on which banking institutions or trust companies located in
New York, New York are authorized or obligated to be closed. 
 Closing Date: The date of this Agreement. 
 Commission: The Securities and Exchange Commission. 

 Consummate: A registered Exchange Offer shall be deemed “Consummated” for purposes of
this Agreement upon the occurrence of (i) the filing and effectiveness under the Securities Act of the Exchange Offer Registration Statement relating to the Exchange Securities to be issued in the Exchange Offer, (ii) the maintenance of
such Registration Statement continuously effective and the keeping of the Exchange Offer open for a period not less than the minimum period required pursuant to Section 3(b) hereof, and (iii) the delivery by the Company to the
Registrar under the Indenture of Exchange Securities in the same aggregate principal amount as the aggregate principal amount of Initial Securities that were tendered by Holders thereof pursuant to the Exchange Offer. 
 Effectiveness Target Date: As defined in Section 5 hereof. 
 Exchange Act: The Securities Exchange Act of 1934, as amended. 
 Exchange Offer: The
registration by the Company under the Securities Act of the Exchange Securities pursuant to a Registration Statement pursuant to which the Company offers the Holders of all outstanding Transfer Restricted Securities the opportunity to exchange all
such outstanding Transfer Restricted Securities held by such Holders for Exchange Securities in an aggregate principal amount equal to the aggregate principal amount of the Transfer Restricted Securities tendered in such exchange offer by such
Holders and not withdrawn. 
 Exchange Offer Registration Statement: The Registration Statement relating to the Exchange Offer,
including the related Prospectus. 
 Exempt Resales: The transactions in which the Initial Purchasers propose to sell the Initial
Securities to certain “qualified institutional buyers,” as such term is defined in Rule 144A under the Securities Act, and to certain non-U.S. persons pursuant to Regulation S under the Securities Act. 
 Exchange Securities: The Senior Floating Rate Notes due 2013 and the 9.75% Senior Notes due 2014, each of the same series under the Indenture as
the Initial Notes and the Guarantees attached thereto, to be issued to Holders in exchange for Transfer Restricted Securities pursuant to this Agreement. 
 Holders: As defined in Section 2(b) hereof. 
 Indemnified Holder: As defined in
Section 8(a) hereof. 
 Indenture: The Indenture, dated as of April 23, 2007, by and among the Company, the Guarantors and
U.S. Bank National Association, as trustee (the “Trustee”), pursuant to which the Securities are to be issued, as such Indenture is amended or supplemented from time to time in accordance with the terms thereof. 
 Initial Purchaser: As defined in the preamble hereto. 
 Initial Notes: As defined in the preamble hereto. 
  

 -2- 

 Initial Placement: The issuance and sale by the Company of the Initial Securities to the Initial
Purchasers pursuant to the Purchase Agreement. 
 Initial Securities: As defined in the preamble hereto. 
 Interest Payment Date: As defined in the Indenture and the Securities. 
 NASD: NASD Inc. 
 Person: An
individual, partnership, corporation, trust or unincorporated organization, or a government or agency or political subdivision thereof. 
 Prospectus: The prospectus included in a Registration Statement, as amended or supplemented by any prospectus supplement and by all other amendments thereto, including post-effective amendments, and all material incorporated by
reference into such Prospectus. 
 Registration Default: As defined in Section 5 hereof. 
 Registration Statement: Any registration statement of the Company relating to (a) an offering of Exchange Securities pursuant to an Exchange
Offer or (b) the registration for resale of Transfer Restricted Securities pursuant to the Shelf Registration Statement, which is filed pursuant to the provisions of this Agreement, in each case, including the Prospectus included therein, all
amendments and supplements thereto (including post-effective amendments) and all exhibits and material incorporated by reference therein. 
 Securities: As defined in the preamble hereto. 
 Securities Act: The Securities Act of 1933, as amended. 

Shelf Filing Deadline: As defined in Section 4(a) hereof. 
 Shelf Registration Statement: As defined in Section 4(a) hereof. 
 Trust Indenture Act:
The Trust Indenture Act of 1939, as amended. 
 Transfer Restricted Securities: Each Initial Security, until the earliest to occur
of (a) the date on which such Initial Security is exchanged in the Exchange Offer for an Exchange Security entitled to be resold to the public by the Holder thereof without complying with the prospectus delivery requirements of the Securities
Act, (b) the date on which such Initial Security has been effectively registered under the Securities Act and disposed of in accordance with a Shelf Registration Statement and (c) the date on which such Initial Security is distributed to
the public pursuant to Rule 144 under the Securities Act or by a Broker-Dealer pursuant to the “Plan of Distribution” contemplated by the Exchange Offer Registration Statement (including delivery of the Prospectus contained therein).

  

 -3- 

 Underwritten Registration or Underwritten Offering: A registration in which securities of the
Company are sold to an underwriter for reoffering to the public. 
 Section 2. Securities Subject to this Agreement. 
 (a) Transfer Restricted Securities. The securities entitled to the benefits of this Agreement are the Transfer Restricted Securities. 

(b) Holders of Transfer Restricted Securities. A Person is deemed to be a holder of Transfer Restricted Securities (each, a “Holder”)
whenever such Person owns Transfer Restricted Securities. 
 Section 3. Registered Exchange Offer. 
 (a) Unless the Exchange Offer shall not be permissible under applicable law or Commission policy (after the procedures set forth in Section 6
(a) hereof have been complied with), each of the Company and the Guarantors shall (i) cause to be filed with the Commission within 120 days after the Closing Date (or if such 120th day is not a Business Day, the next succeeding Business
Day), a Registration Statement under the Securities Act relating to the Exchange Securities and the Exchange Offer, (ii) use its commercially reasonable efforts to cause such Registration Statement to become effective within 210 days after the
Closing Date (or if such 210th day is not a Business Day, the next succeeding Business Day), (iii) in connection with the foregoing, file (A) all pre-effective amendments to such Registration Statement as may be necessary in order to
cause such Registration Statement to become effective, (B) if applicable, a post-effective amendment to such Registration Statement pursuant to Rule 430A under the Securities Act and (C) cause all necessary filings in connection with
the registration and qualification of the Exchange Securities to be made under the state securities or blue sky laws of such jurisdictions as are necessary to permit Consummation of the Exchange Offer, and (iv) upon the effectiveness of such
Registration Statement, commence the Exchange Offer. The Exchange Offer shall be on the appropriate form permitting registration of the Exchange Securities to be offered in exchange for the Transfer Restricted Securities and to permit resales of
Initial Securities held by Broker-Dealers as contemplated by Section 3(c) hereof. 
 (b) The Company and the Guarantors shall cause
the Exchange Offer Registration Statement to be effective continuously and shall keep the Exchange Offer open for a period of not less than the minimum period required under applicable federal and state securities laws to Consummate the Exchange
Offer; provided, however, that in no event shall such period be less than 30 days after the date notice of the Exchange Offer is mailed to the Holders. The Company shall cause the Exchange Offer to comply with all applicable federal
and state securities laws. No securities other than the Exchange Securities shall be included in the Exchange Offer Registration Statement. The Company shall use its commercially reasonable efforts to cause the Exchange Offer to be Consummated on
the earliest practicable date after the Exchange Offer Registration Statement has become effective, but in no event later than 250 days after the Closing Date (or if such 250th day is not a Business Day, the next succeeding Business Day).

  

 -4- 

 (c) The Company shall indicate in a “Plan of Distribution” section contained in the Prospectus
forming a part of the Exchange Offer Registration Statement that any Broker-Dealer who holds Initial Securities that are Transfer Restricted Securities and that were acquired for its own account as a result of market-making activities or other
trading activities (other than Transfer Restricted Securities acquired directly from the Company), may exchange such Initial Securities pursuant to the Exchange Offer; however, such Broker-Dealer may be deemed to be an “underwriter” within
the meaning of the Securities Act and must, therefore, deliver a prospectus meeting the requirements of the Securities Act in connection with any resales of the Exchange Securities received by such Broker-Dealer in the Exchange Offer, which
prospectus delivery requirement may be satisfied by the delivery by such Broker-Dealer of the Prospectus contained in the Exchange Offer Registration Statement. Such “Plan of Distribution” section shall also contain all other information
with respect to such resales by Broker-Dealers that the Commission may require in order to permit such resales pursuant thereto, but such “Plan of Distribution” shall not name any such Broker-Dealer or disclose the amount of Initial
Securities held by any such Broker-Dealer except to the extent required by the Commission as a result of a change in policy after the date of this Agreement. 
 Each of the Company and the Guarantors shall use its commercially reasonable efforts to keep the Exchange Offer Registration Statement continuously effective, supplemented and amended as required by the provisions of
Section 6(c) hereof to the extent necessary to ensure that it is available for resales of Initial Securities acquired by Broker-Dealers for their own accounts as a result of market-making activities or other trading activities, and to
ensure that it conforms with the requirements of this Agreement, the Securities Act and the policies, rules and regulations of the Commission as announced from time to time, for a period ending on the earlier of (i) 180 days from the date
on which the Exchange Offer Registration Statement is declared effective and (ii) the date on which a Broker-Dealer is no longer required to deliver a prospectus in connection with market-making or other trading activities. 
 The Company shall provide sufficient copies of the latest version of such Prospectus to Broker-Dealers promptly upon request at any time during such
180-day (or shorter as provided in the foregoing sentence) period in order to facilitate such resales. 
 Section 4. Shelf
Registration. 
 (a) Shelf Registration. If (i) the Company is not required to file an Exchange Offer Registration Statement
or to consummate the Exchange Offer because the Exchange Offer is not permitted by applicable law or Commission policy (after the procedures set forth in Section 6(a) hereof have been complied with), (ii) for any reason the Exchange
Offer is not Consummated within 250 days after the Closing Date (or if such 250th day is not a Business Day, the next succeeding Business Day), or (iii) with respect to any Holder of Transfer Restricted Securities (A) such Holder
is prohibited by applicable law or Commission policy from participating in the Exchange Offer, or (B) such Holder may not resell the Exchange Securities 

  

 -5- 

 
acquired by it in the Exchange Offer to the public without delivering a prospectus and that the Prospectus contained in the Exchange Offer Registration
Statement is not appropriate or available for such resales by such Holder, or (C) such Holder is a Broker-Dealer and holds Initial Securities acquired directly from the Company or one of its affiliates, then, upon such Holder’s request,
the Company and the Guarantors shall 
 (x) promptly cause to be filed a shelf registration statement pursuant to
Rule 415 under the Securities Act, which may be an amendment to the Exchange Offer Registration Statement (in either event, the “Shelf Registration Statement”), provided that, in the case of clause (ii) or
(iii) above, the Company shall use its commercially reasonable efforts to file such Shelf Registration Statement within 90 days after the obligation to file a Shelf Registration Statement arises (or if such 90th day is not a Business Day,
the next succeeding Business Day) (such date being the “Shelf Filing Deadline”), which Shelf Registration Statement shall provide for resales of all Transfer Restricted Securities the Holders of which shall have provided the information
required pursuant to Section 4(b) hereof; and 
 (y) use their commercially reasonable efforts to cause such Shelf
Registration Statement to be declared effective by the Commission on or before (1) in the case of clause (i) above, the 210th day after the Closing Date, or (2) in the case of clause (ii) or (iii) above, the
90th day after the Shelf Filing Deadline (or if such 210th or 90th day, as applicable, is not a Business Day, the next succeeding Business Day). 
 Each of the Company and the Guarantors shall use its commercially reasonable efforts to keep such Shelf Registration Statement continuously effective, supplemented and amended as required by the provisions of
Sections 6(b) and (c) hereof to the extent necessary to ensure that it is available for resales of Initial Securities by the Holders of Transfer Restricted Securities entitled to the benefit of this Section 4(a), and to ensure that it
conforms with the requirements of this Agreement, the Securities Act and the policies, rules and regulations of the Commission as announced from time to time, until the earliest of (A) the time when the Transfer Restricted Securities covered by
the Shelf Registration Statement can be sold under Rule 144 without any limitations under clauses (c), (e), (f), and (h) of Rule 144, and (B) two years following the effective date of such Shelf Registration Statement (or shorter
period that will terminate when all the Initial Securities covered by such Shelf Registration Statement have been sold pursuant to such Shelf Registration Statement). 
 (b) Provision by Holders of Certain Information in Connection with the Shelf Registration Statement. No Holder of Transfer Restricted Securities may include any of its Transfer Restricted Securities in any
Shelf Registration Statement pursuant to this Agreement unless and until such Holder furnishes to the Company in writing, within 10 Business Days after receipt of a request therefor, such information as the Company may reasonably request for
use in connection with any Shelf Registration Statement or Prospectus or preliminary Prospectus included therein. Each Holder as to which any Shelf Registration Statement is being effected agrees to furnish promptly to the Company all information
required to be disclosed in order to make the information previously furnished to the Company by such Holder not materially misleading. 
  

 -6- 

 Section 5. Additional Interest. If (i) the Exchange Offer Registration Statement required by
this Agreement is not filed with the Commission on or prior to the date specified for such filing in this Agreement, (ii) any of such Registration Statements has not been declared effective by the Commission on or prior to the date specified
for such effectiveness in this Agreement (the “Effectiveness Target Date”), (iii) the Exchange Offer has not been Consummated within 40 days after the Effectiveness Target Date with respect to the Exchange Offer Registration Statement
or (iv) any Registration Statement required by this Agreement is filed and declared effective but shall thereafter cease to be effective or fail to be usable for its intended purpose without being succeeded immediately by a post-effective
amendment to such Registration Statement that cures such failure and that is itself immediately declared effective (each such event referred to in clauses (i) through (iv), a “Registration Default”), the Company hereby agrees that the
interest rate borne by the Transfer Restricted Securities shall be increased by 0.25% per annum during the 90-day period immediately following the occurrence of any Registration Default and shall increase by 0.25% per annum at the end of
each subsequent 90-day period, but in no event shall such increase exceed 2.00% per annum. Following the cure of all Registration Defaults relating to any particular Transfer Restricted Securities, the interest rate borne by the relevant
Transfer Restricted Securities will be reduced to the original interest rate borne by such Transfer Restricted Securities; provided, however, that, if after any such reduction in interest rate, a different Registration Default occurs,
the interest rate borne by the relevant Transfer Restricted Securities shall again be increased pursuant to the foregoing provisions. 
 All
payment obligations of the Company and the Guarantors set forth in the preceding paragraph that are outstanding with respect to any Transfer Restricted Security at the time such security ceases to be a Transfer Restricted Security shall survive
until such time as all such obligations with respect to such security shall have been satisfied in full. 
 Section 6. Registration
Procedures. 
 (a) Exchange Offer Registration Statement. In connection with the Exchange Offer, the Company and the Guarantors
shall comply with all of the provisions of Section 6(c) hereof, shall use their commercially reasonable efforts to effect such exchange to permit the sale of Transfer Restricted Securities being sold in accordance with the intended method
or methods of distribution thereof, and shall comply with all of the following provisions: 
 (i) If in the reasonable opinion
of counsel to the Company there is a question as to whether the Exchange Offer is permitted by applicable law, each of the Company and the Guarantors hereby agrees to seek a no-action letter or other favorable decision from the Commission allowing
the Company and the Guarantors to Consummate an Exchange Offer for such Initial Securities. Each of the Company and the Guarantors hereby agrees to pursue the issuance of such a decision to the Commission 

  

 -7- 

 
staff level but shall not be required to take commercially unreasonable action to effect a change of Commission policy. Each of the Company and the
Guarantors hereby agrees, however, to (A) participate in telephonic conferences with the Commission, (B) deliver to the Commission staff an analysis prepared by counsel to the Company setting forth the legal bases, if any, upon which such
counsel has concluded that such an Exchange Offer should be permitted and (C) diligently pursue a favorable resolution by the Commission staff of such submission. 
 (ii) As a condition to its participation in the Exchange Offer pursuant to the terms of this Agreement, each Holder of Transfer Restricted
Securities shall furnish, upon the request of the Company, prior to the Consummation thereof, a written representation to the Company (which may be contained in the letter of transmittal contemplated by the Exchange Offer Registration Statement) to
the effect that (A) it is not an affiliate of the Company, (B) it is not engaged in, and does not intend to engage in, and has no arrangement or understanding with any Person to participate in, a distribution of the Exchange Securities to
be issued in the Exchange Offer and (C) it is acquiring the Exchange Securities in its ordinary course of business. In addition, all such Holders of Transfer Restricted Securities shall otherwise cooperate in the Company’s preparations for
the Exchange Offer. Each Holder hereby acknowledges and agrees that any Broker-Dealer and any such Holder using the Exchange Offer to participate in a distribution of the securities to be acquired in the Exchange Offer (1) could not under
Commission policy as in effect on the date of this Agreement rely on the position of the Commission enunciated in Morgan Stanley and Co., Inc. (available June 5, 1991) and Exxon Capital Holdings Corporation (available May 13,
1988), as interpreted in the Commission’s letter to Shearman & Sterling dated July 2, 1993, and similar no-action letters (which may include any no-action letter obtained pursuant to clause (i) above), and (2) must
comply with the registration and prospectus delivery requirements of the Securities Act in connection with a secondary resale transaction and that such a secondary resale transaction should be covered by an effective registration statement
containing the selling security holder information required by Item 507 or 508, as applicable, of Regulation S-K if the resales are of Exchange Securities obtained by such Holder in exchange for Initial Securities acquired by such Holder
directly from the Company. 
 (b) Shelf Registration Statement. In connection with the Shelf Registration Statement, each of the
Company and the Guarantors shall comply with all the provisions of Section 6(c) hereof and shall use its commercially reasonable efforts to effect such registration to permit the sale of the Transfer Restricted Securities being sold in
accordance with the intended method or methods of distribution thereof, and pursuant thereto each of the Company and the Guarantors will as expeditiously as possible prepare and file with the Commission a Registration Statement relating to the
registration on any appropriate form under the Securities Act, which form shall be available for the sale of the Transfer Restricted Securities in accordance with the intended method or methods of distribution thereof. 
  

 -8- 

 (c) General Provisions. In connection with any Registration Statement and any Prospectus required
by this Agreement to permit the sale or resale of Transfer Restricted Securities (including, without limitation, any Registration Statement and the related Prospectus required to permit resales of Initial Securities by Broker-Dealers), each of the
Company and the Guarantors shall: 
 (i) use its commercially reasonable efforts to keep such Registration Statement
continuously effective and provide all requisite financial statements (including, if required by the Securities Act or any regulation thereunder, financial statements of the Guarantors for the period specified in Section 3 or 4 hereof, as
applicable; upon the occurrence of any event that would cause any such Registration Statement or the Prospectus contained therein (A) to contain a material misstatement or omission or (B) not to be effective and usable for resale of
Transfer Restricted Securities during the period required by this Agreement, the Company shall file promptly an appropriate amendment to such Registration Statement, in the case of clause (A), correcting any such misstatement or omission, and,
in the case of either clause (A) or (B), use its commercially reasonable efforts to cause such amendment to be declared effective and such Registration Statement and the related Prospectus to become usable for their intended purpose(s) as soon
as practicable thereafter; 
 (ii) prepare and file with the Commission such amendments and post-effective amendments to the
applicable Registration Statement as may be necessary to keep the Registration Statement effective for the applicable period set forth in Section 3 or 4 hereof, as applicable, or such shorter period as will terminate when all Transfer
Restricted Securities covered by such Registration Statement have been sold; cause the Prospectus to be supplemented by any required Prospectus supplement, and as so supplemented to be filed pursuant to Rule 424 under the Securities Act, and to
comply fully with the applicable provisions of Rules 424 and 430A under the Securities Act in a timely manner; and comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such Registration
Statement during the applicable period in accordance with the intended method or methods of distribution by the sellers thereof set forth in such Registration Statement or supplement to the Prospectus; 
 (iii) in the case of a Shelf Registration Statement or if a Prospectus is required to be delivered by a Broker-Dealer in the case of any
Exchange Offer Registration Statement, advise the underwriter(s), if any, and such Broker-Dealers promptly and, if requested by such Persons, to confirm such advice in writing, (A) when the Prospectus or any Prospectus supplement or
post-effective amendment has been filed, and, with respect to any Registration Statement or any post-effective amendment thereto, when the same has become effective, (B) of any request by the Commission for amendments to the Registration
Statement or amendments or supplements to the Prospectus or for additional information relating thereto, (C) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement under the Securities Act
or of the suspension by any state securities commission 

  

 -9- 

 
of the qualification of the Transfer Restricted Securities for offering or sale in any jurisdiction, or the initiation of any proceeding for any of the
preceding purposes, (D) of the existence of any fact or the happening of any event that makes any statement of a material fact made in the Registration Statement, the Prospectus, any amendment or supplement thereto, or any document incorporated
by reference therein untrue, or that requires the making of any additions to or changes in the Registration Statement or the Prospectus in order to make the statements therein not misleading. If at any time the Commission shall issue any stop order
suspending the effectiveness of the Registration Statement, or any state securities commission or other regulatory authority shall issue an order suspending the qualification or exemption from qualification of the Transfer Restricted Securities
under state securities or blue sky laws, each of the Company and the Guarantors shall use its commercially reasonable efforts to obtain the withdrawal or lifting of such order at the earliest possible time; 
 (iv) in the case of a Shelf Registration Statement or if a Prospectus is required to be delivered by a Broker-Dealer in the case of any
Exchange Offer Registration Statement, furnish without charge to each of the Initial Purchasers and each of the underwriter(s), if any, before filing with the Commission, copies of any Registration Statement or any Prospectus included therein or any
amendments or supplements to any such Registration Statement or Prospectus (excluding all documents incorporated by reference after the initial filing of such Registration Statement), which documents will be subject to the review and comment of such
Persons in connection with such sale, if any, for a period of at least two Business Days; 
 (v) in the case of a Shelf
Registration Statement or if a Prospectus is required to be delivered by a Broker-Dealer in the case of any Exchange Offer Registration Statement, if practicable, prior to the filing of any document that is to be incorporated by reference into a
Registration Statement or Prospectus, provide copies of such document to each Broker-Dealer named in any Registration Statement, and to the underwriter(s), if any, and make the Company’s and the Guarantors’ representatives available for
discussion of such document and other customary due diligence matters, provided that each such Person who receives any such documents hereby agrees to maintain any nonpublic information in confidence until the filing of such information.

 (vi) in the case of a Shelf Registration Statement or if a Prospectus is required to be delivered by a Broker-Dealer in the
case of any Exchange Offer Registration Statement, make available at reasonable times for inspection by each Broker-Dealer named in such Registration Statement, the managing underwriter(s), if any, participating in any disposition pursuant to such
Registration Statement and any attorney or accountant retained by such Persons, all financial and other records, pertinent corporate documents and properties of each of the Company and the Guarantors and cause the Company’s and the
Guarantors’ officers and employees to supply all information reasonably requested by any such Person in connection with such Registration Statement or any post-effective amendment thereto subsequent to the filing thereof and prior to its
effectiveness and to participate in meetings with investors to the extent 

  

 -10- 

 
requested by the managing underwriter(s), if any, provided that each such Person who receives any such documents hereby agrees to maintain any
nonpublic information in confidence until the filing of such information; 
 (vii) if requested by any selling Holders or the
underwriter(s), if any, promptly incorporate in any Registration Statement or Prospectus, pursuant to a supplement or post-effective amendment if necessary, such information as such selling Holders and underwriter(s), if any, may reasonably request
to have included therein relating to the “Plan of Distribution” of the Transfer Restricted Securities, information with respect to the principal amount of Transfer Restricted Securities being sold to such underwriter(s), the purchase price
being paid therefor and any other terms of the offering of the Transfer Restricted Securities to be sold in such offering; and make all required filings of such Prospectus supplement or post-effective amendment as soon as practicable after the
Company is notified of the matters to be incorporated in such Prospectus supplement or post-effective amendment; 
 (viii)
cause the Transfer Restricted Securities covered by the Registration Statement to be rated with the appropriate rating agencies, if so requested by the Holders of a majority in aggregate principal amount of Securities covered thereby or the
underwriter(s), if any; 
 (ix) furnish to each of the underwriter(s), if any, without charge, at least one copy of the
Registration Statement, as first filed with the Commission, and of each amendment thereto, including financial statements and schedules, all documents incorporated by reference therein and all exhibits (including exhibits incorporated therein by
reference); 
 (x) deliver to each selling Holder and each of the underwriter(s), if any, without charge, as many copies of
the Prospectus (including each preliminary prospectus) and any amendment or supplement thereto as such Persons reasonably may request; each of the Company and the Guarantors hereby consents to the use of the Prospectus and any amendment or
supplement thereto by each of the selling Holders and each of the underwriter(s), if any, in connection with the offering and the sale of the Transfer Restricted Securities covered by the Prospectus or any amendment or supplement thereto;

  

 -11- 

 (xi) in the case of an Underwritten Offering enter into such customary agreements
(including an underwriting agreement), and make such customary representations and warranties, and take all such other actions in connection therewith in order to expedite or facilitate the disposition of the Transfer Restricted Securities pursuant
to such Registration Statement all to such extent as may be requested by any underwriter in connection with any sale or resale pursuant to such Registration Statement, including: 
 (A) furnishing to each underwriter and as are customarily made by issuers to underwriters in primary underwritten offerings, upon the date
of consummation of such Underwritten Offering: 
 (1) a certificate, dated the date of consummation of such Underwritten
Offering, signed by (y) the President or any Vice President and (z) a principal financial or accounting officer of each of the Company and the Guarantors, confirming, as of the date thereof, such matters as such parties may reasonably
request; 
 (2) an opinion, dated the date of consummation of such Underwritten Offering of counsel for the Company and the
Guarantors, covering such matters as such parties may reasonably request, and in any event including a statement to the effect that such counsel has participated in conferences with officers and other representatives of the Company and the
Guarantors, representatives of the independent public accountants for the Company and the Guarantors, representatives of the underwriter(s), if any, and counsel to the underwriter(s), if any, in connection with the preparation of such Registration
Statement and the related Prospectus and have considered the matters required to be stated therein and the statements contained therein, although such counsel has not independently verified the accuracy, completeness or fairness of such statements;
and that such counsel advises that, on the basis of the foregoing, no facts came to such counsel’s attention that caused such counsel to believe that the applicable Registration Statement, at the time such Registration Statement or any
post-effective amendment thereto became effective, contained an untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein not misleading, or that the Prospectus
contained in such Registration Statement as of its date and, as of the date of consummation, contained an untrue statement of a material fact or omitted to state a material fact necessary in order to make the statements therein not misleading.
Without limiting the foregoing, such counsel may state further that such counsel assumes no responsibility for, and has not independently verified, the accuracy, completeness or fairness of the financial statements, notes and schedules and other
financial or reserve data included in any Registration Statement contemplated by this Agreement or the related Prospectus; and 
 (3) a customary comfort letter, dated the date of consummation of such Underwritten Offering, from the Company’s independent accountants, in the customary form and covering matters of the type customarily requested to be covered in
comfort letters by underwriters in connection with primary underwritten offerings; 
  

 -12- 

 (B) customary indemnification provisions and procedures; and 
 (C) deliver such other documents and certificates as may be reasonably requested by such parties to evidence compliance with any customary
conditions contained in the underwriting agreement. 
 If at any time the representations and warranties of the Company and
the Guarantors contemplated in Section 6(c)(xi)(A)(1) hereof cease to be true and correct, the Company or the Guarantors shall so advise the underwriter(s), if any, and, if requested by such Persons, shall confirm such advice in writing;

 (xii) prior to any public offering of Transfer Restricted Securities, cooperate with the selling Holders, the
underwriter(s), if any, and their respective counsel in connection with the registration and qualification of the Transfer Restricted Securities under the state securities or blue sky laws of such jurisdictions as the selling Holders or
underwriter(s), if any, may request and do any and all other acts or things necessary or advisable to enable the disposition in such jurisdictions of the Transfer Restricted Securities covered by the Shelf Registration Statement; provided,
however, that none of the Company or the Guarantors shall be required to register or qualify as a foreign corporation where it is not then so qualified or to take any action that would subject it to the service of process in suits or to
taxation, in any jurisdiction where it is not then so subject; 
 (xiii) shall issue, upon the request of any Holder of
Initial Securities covered by the Shelf Registration Statement, Exchange Securities having an aggregate principal amount equal to the aggregate principal amount of Initial Securities surrendered to the Company by such Holder in exchange therefor or
being sold by such Holder; such Exchange Securities to be registered in the name of such Holder or in the name of the purchaser(s) of such Securities, as the case may be; in return, the Initial Securities held by such Holder shall be surrendered to
the Company for cancellation; 
 (xiv) cooperate with the selling Holders and the underwriter(s), if any, to facilitate the
timely preparation and delivery of certificates representing Transfer Restricted Securities to be sold and not bearing any restrictive legends; and enable such Transfer Restricted Securities to be in such denominations and registered in such names
as the Holders or the underwriter(s), if any, may request at least two Business Days prior to any sale of Transfer Restricted Securities made by such Holders or underwriter(s); 
 (xv) use its commercially reasonable efforts to cause the Transfer Restricted Securities covered by the Registration Statement to be
registered with or approved by such other state securities commissions or other regulatory authorities with respect to state securities or blue sky laws as may be necessary to enable the seller or sellers thereof or the underwriter(s), if any, to
consummate the disposition of such Transfer Restricted Securities, subject to the proviso contained in Section 6(c)(xii) hereof; 
  

 -13- 

 (xvi) if any fact or event contemplated by Section 6(c)(iii)(D) hereof shall exist
or have occurred, prepare a supplement or post-effective amendment to the Registration Statement or related Prospectus or any document incorporated therein by reference or file any other required document so that, as thereafter delivered to the
purchasers of Transfer Restricted Securities, the Prospectus will not contain an untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein not misleading; 
 (xvii) provide a CUSIP number for all Securities not later than the effective date of the Registration Statement covering such Securities
and provide the Trustee under the Indenture with printed certificates for such Securities which are in a form eligible for deposit with the Depository Trust Company and take all other action necessary to ensure that all such Securities are eligible
for deposit with the Depository Trust Company; 
 (xviii) cooperate and assist in any filings required to be made with the
NASD and in the performance of any due diligence investigation by any underwriter (including any “qualified independent underwriter”) that is required to be retained in accordance with the rules and regulations of the NASD; 
 (xix) otherwise use its commercially reasonable efforts to comply with all applicable rules and regulations of the Commission, and make
generally available to its security holders, as soon as practicable, a consolidated earnings statement meeting the requirements of Rule 158 (which need not be audited) for the twelve-month period (A) commencing at the end of any fiscal
quarter in which Transfer Restricted Securities are sold to underwriters in a firm commitment or best efforts Underwritten Offering or (B) if not sold to underwriters in such an offering, beginning with the first month of the Company’s
first fiscal quarter commencing after the effective date of the Registration Statement; 
 (xx) cause the Indenture to be
qualified under the Trust Indenture Act not later than the effective date of the first Registration Statement required by this Agreement, and, in connection therewith, cooperate with the Trustee and the Holders of Securities to effect such changes
to the Indenture as may be required for such Indenture to be so qualified in accordance with the terms of the Trust Indenture Act; and execute and use its commercially reasonable efforts to cause the Trustee to execute, all documents that may be
required to effect such changes and all other forms and documents required to be filed with the Commission to enable such Indenture to be so qualified in a timely manner; 
 (xxi) cause all Securities covered by the Registration Statement to be listed on each securities exchange or automated quotation system on
which similar securities issued by the Company are then listed if requested by the Holders of a majority in aggregate principal amount of Initial Securities or the managing underwriter(s), if any; and 
  

 -14- 

 (xxii) provide promptly to each Holder upon request each document filed by the Company
with the Commission pursuant to the requirements of Section 13 and Section 15 of the Exchange Act. 
 Each Holder agrees by
acquisition of a Transfer Restricted Security that, upon receipt of any notice from the Company of the existence of any fact of the kind described in Section 6(c)(iii)(D) hereof, such Holder will forthwith discontinue disposition of Transfer
Restricted Securities pursuant to the applicable Registration Statement until such Holder’s receipt of the copies of the supplemented or amended Prospectus contemplated by Section 6(c)(xvi) hereof, or until it is advised in writing (the
“Advice”) by the Company that the use of the Prospectus may be resumed, and has received copies of any additional or supplemental filings that are incorporated by reference in the Prospectus. If so directed by the Company, each Holder will
deliver to the Company (at the Company’s expense) all copies, other than permanent file copies then in such Holder’s possession, of the Prospectus covering such Transfer Restricted Securities that was current at the time of receipt of such
notice. In the event the Company shall give any such notice, the time period regarding the effectiveness of such Registration Statement set forth in Section 3 or 4 hereof, as applicable, shall be extended by the number of days during the period
from and including the date of the giving of such notice pursuant to Section 6(c)(iii)(D) hereof to and including the date when each selling Holder covered by such Registration Statement shall have received the copies of the supplemented or
amended Prospectus contemplated by Section 6(c)(xvi) hereof or shall have received the Advice; provided, however, that no such extension shall be taken into account in determining whether Additional Interest is due pursuant to
Section 5 hereof or the amount of such Additional Interest, it being agreed that the Company’s option to suspend use of a Registration Statement pursuant to this paragraph shall be treated as a Registration Default for purposes of
Section 5 hereof. 
 Section 7. Registration Expenses. 
 (a) All expenses incident to the Company’s and the Guarantor’s performance of or compliance with this Agreement will be borne by the Company
and the Guarantors, jointly and severally, regardless of whether a Registration Statement becomes effective, including, without limitation: (i) all registration and filing fees and expenses (including filings made by any Initial Purchaser or
Holder with the NASD (and, if applicable, the fees and expenses of any “qualified independent underwriter” and its counsel that may be required by the rules and regulations of the NASD)); (ii) all fees and expenses of compliance with
federal securities and state securities or blue sky laws; (iii) all expenses of printing (including printing certificates for the Exchange Securities to be issued in the Exchange Offer and printing of Prospectuses), messenger and delivery
services and telephone; (iv) all fees and disbursements of counsel for the Company, the Guarantors and, subject to Section 7(b) hereof, the Holders of Transfer Restricted Securities; (v) all application and filing fees in connection
with listing the Exchange Securities on a securities exchange or automated quotation system pursuant to the requirements thereof; and (vi) all fees and disbursements of independent registered public accountants of the Company and the Guarantors
(including the expenses of any special audit and comfort letters required by or incident to such performance). 
  

 -15- 

 Each of the Company and the Guarantors will, in any event, bear its internal expenses (including, without
limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expenses of any annual audit and the fees and expenses of any Person, including special experts, retained by the Company or the
Guarantors. 
 (b) In connection with any Registration Statement required by this Agreement (including, without limitation, the Exchange
Offer Registration Statement and the Shelf Registration Statement), the Company and the Guarantors, jointly and severally, will reimburse the Initial Purchasers and the Holders of Transfer Restricted Securities being tendered in the Exchange Offer
and/or resold pursuant to the “Plan of Distribution” contained in the Exchange Offer Registration Statement or registered pursuant to the Shelf Registration Statement, as applicable, for the reasonable fees and disbursements of not more
than one counsel (not to exceed $25,000), who shall be Shearman & Sterling LLP or such other counsel as may be chosen by the Holders of a majority in principal amount of the Transfer Restricted Securities for whose benefit such Registration
Statement is being prepared. 
 Section 8. Indemnification. 
 (a) The Company and the Guarantors, jointly and severally, agree to indemnify and hold harmless (i) each Holder and (ii) each Person, if any,
who controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) any Holder (any of the Persons referred to in this clause (ii) being hereinafter referred to as a “controlling person”)
and (iii) the respective officers, directors, partners, employees, representatives and agents of any Holder or any controlling person (any Person referred to in clause (i), (ii) or (iii) may hereinafter be referred to as an
“Indemnified Holder”), to the fullest extent lawful, from and against any and all losses, claims, damages, liabilities, judgments, actions and expenses (including, without limitation, and as incurred, reimbursement of all reasonable costs
of investigating, preparing, pursuing, settling, compromising, paying or defending any claim or action, or any investigation or proceeding by any governmental agency or body, commenced or threatened, including the reasonable fees and expenses of
counsel to any Indemnified Holder), joint or several, directly or indirectly caused by, related to, based upon, arising out of or in connection with any untrue statement or alleged untrue statement of a material fact contained in any Registration
Statement or Prospectus (or any amendment or supplement thereto), or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as such
losses, claims, damages, liabilities or expenses are caused by an untrue statement or omission or alleged untrue statement or omission that is made in reliance upon and in conformity with information relating to any of the Holders furnished in
writing to the Company by any of the Holders expressly for use therein. This indemnity agreement shall be in addition to any liability which the Company or any of the Guarantors may otherwise have. 
 In case any action or proceeding (including any governmental or regulatory investigation or proceeding) shall be brought or asserted against any of the
Indemnified Holders with respect to which indemnity may be sought against the Company or the Guarantors, such Indemnified Holder (or the Indemnified Holder controlled by such controlling person) shall 

  

 -16- 

 
promptly notify the Company and the Guarantors in writing; provided, however, that the failure to give such notice shall not relieve any of the
Company or the Guarantors of its obligations pursuant to this Agreement, except to the extent they have been prejudiced thereby. In case any such action is brought against any Indemnified Holder and such Indemnified Holder seeks or intends to seek
indemnity from the Company and the Guarantors, the Company or the Guarantors will be entitled to participate in and, to the extent that it shall elect, jointly with all other indemnifying parties similarly notified, by written notice delivered to
the Indemnified Holder promptly after receiving the aforesaid notice from such Indemnified Holder, to assume the defense thereof with counsel reasonably satisfactory to such Indemnified Holder; provided, however, if the defendants in
any such action include both the Indemnified Holder and the Company or the Guarantors and the Indemnified Holder shall have reasonably concluded (based on the advice of counsel) that a conflict may arise between the positions of the Company or the
Guarantors and the Indemnified Holder in conducting the defense of any such action or that there may be legal defenses available to it and/or other Indemnified Holders which are different from or additional to those available to the Company or the
Guarantors, the Indemnified Holder or Holders shall have the right to select separate counsel reasonably satisfactory to the Company to assume such legal defenses and to otherwise participate in the defense of such action on behalf of such
Indemnified Holder or Holders. Upon receipt of notice from the Company or Guarantors to such Indemnified Holder of the Company’s or the Guarantors’ election so to assume the defense of such action and approval by the Indemnified Holder of
counsel, the Company or the Guarantors will not be liable to such Indemnified Holder under this Section 8 for any legal or other expenses subsequently incurred by such Indemnified Holder in connection with the defense thereof unless
(i) the Indemnified Holder shall have employed separate counsel in accordance with the proviso to the next preceding sentence or (ii) the Company or the Guarantors shall not have employed counsel reasonably satisfactory to the Indemnified
Holder to represent the Indemnified Holder within a reasonable time after notice of commencement of the action, in each of which cases the fees and expenses of counsel shall be at the expense of the Company and the Guarantors. It is understood and
agreed that the Company or the Guarantors shall not, in connection with any proceeding or related proceeding in the same jurisdiction, be liable for the reasonable fees and expenses of more than one separate firm (together with any local counsel)
for all Indemnified Holders. Each Indemnified Holder, as a condition to indemnification hereunder, shall use all reasonable efforts to cooperate with the Company and the Guarantors in the defense of any such action or claim. The Company shall not be
liable for any settlement of any such action or proceeding effected without the Company’s prior written consent, but if settled with such consent or there be a final judgment for the plaintiff, the Company and the Guarantors agree to indemnify
and hold harmless any Indemnified Holder from and against any loss, claim, damage, liability or expense by reason of such settlement or judgment. The Company and the Guarantors shall not, without the prior written consent of each Indemnified Holder,
settle or compromise or consent to the entry of judgment in or otherwise seek to terminate any pending or threatened action, claim, litigation or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not
any Indemnified Holder is a party thereto), unless such settlement, compromise, consent or termination includes an unconditional release of each Indemnified Holder from all liability arising out of such action, claim, litigation or proceeding.

  

 -17- 

 (b) Each Holder of Transfer Restricted Securities agrees, severally and not jointly, to indemnify and
hold harmless the Company, the Guarantors and their respective directors, officers of the Company and the Guarantors who sign a Registration Statement, and any Person controlling (within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act) the Company or any of the Guarantors, and the respective officers, directors, partners, employees, representatives and agents of each such Person, to the same extent as the foregoing indemnity from the Company
and the Guarantors to each of the Indemnified Holders, but only with respect to claims and actions based on information relating to such Holder furnished in writing by such Holder expressly for use in any Registration Statement. In case any action
or proceeding shall be brought against the Company, the Guarantors or their respective directors or officers or any such controlling person in respect of which indemnity may be sought against a Holder of Transfer Restricted Securities, such Holder
shall have the rights and duties given the Company and the Guarantors, and the Company, the Guarantors, their respective directors and officers and such controlling person shall have the rights and duties given to each Holder by the preceding
paragraph. 
 (c) If the indemnification provided for in this Section 8 is unavailable to an indemnified party under Section 8(a)
or (b) hereof (other than by reason of exceptions provided in those Sections) in respect of any losses, claims, damages, liabilities, judgments, actions or expenses referred to therein, then each applicable indemnifying party, in lieu of
indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative benefits
received by the Company and the Guarantors, on the one hand, and the Holders, on the other hand, from the Initial Placement (which in the case of the Company and the Guarantors shall be deemed to be equal to the total gross proceeds to the Company
and the Guarantors from the Initial Placement), or if such allocation is not permitted by applicable law, the relative fault of the Company and the Guarantors, on the one hand, and the Holders, on the other hand, in connection with the statements or
omissions which resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative fault of the Company on the one hand and of the Indemnified Holder on the other shall be
determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or any of the Guarantors,
on the one hand, or the Indemnified Holders, on the other hand, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a
result of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in the second paragraph of Section 8(a) hereof, any legal or other fees or expenses
reasonably incurred by such party in connection with investigating or defending any action or claim. 
  

 -18- 

 The Company, the Guarantors and each Holder of Transfer Restricted Securities agree that it would not be
just and equitable if contribution pursuant to this Section 8(c) were determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method of allocation which does not take account of the
equitable considerations referred to in the immediately preceding paragraph. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities or expenses referred to in the immediately preceding paragraph
shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions
of this Section 8, none of the Holders (and its related Indemnified Holders) shall be required to contribute, in the aggregate, any amount in excess of the amount by which the total discount received by such Holder with respect to the Initial
Securities exceeds the amount of any damages which such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No Person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The Holders’ obligations to contribute pursuant to this Section 8(c) are
several in proportion to the respective principal amount of Initial Securities held by each of the Holders hereunder and not joint. 
 Section 9. Rule 144A. Each of the Company and the Guarantors hereby agrees with each Holder, for so long as any Transfer Restricted Securities remain outstanding, to make available to any Holder or beneficial owner of Transfer
Restricted Securities in connection with any sale thereof and any prospective purchaser of such Transfer Restricted Securities from such Holder or beneficial owner, the information required by Rule 144A(d)(4) under the Securities Act in order
to permit resales of such Transfer Restricted Securities pursuant to Rule 144A under the Securities Act. 
 Section 10. Participation
in Underwritten Registrations. No Holder may participate in any Underwritten Registration hereunder unless such Holder (a) agrees to sell such Holder’s Transfer Restricted Securities on the basis provided in any underwriting
arrangements approved by the Persons entitled hereunder to approve such arrangements and (b) completes and executes all reasonable questionnaires, powers of attorney, indemnities, underwriting agreements, lock-up letters and other documents
required under the terms of such underwriting arrangements. 
 Section 11. Selection of Underwriters. The Holders of Transfer
Restricted Securities covered by the Shelf Registration Statement who desire to do so may sell such Transfer Restricted Securities in an Underwritten Offering. In any such Underwritten Offering, the investment banker(s) and managing underwriter(s)
that will administer such offering will be selected by the Holders of a majority in aggregate principal amount of the Transfer Restricted Securities included in such offering; provided, however, that such investment banker(s) and
managing underwriter(s) must be satisfactory to the Company. 
  

 -19- 

 Section 12. Miscellaneous. 
 (a) Remedies. Each of the Company and the Guarantors hereby agrees that monetary damages would not be adequate compensation for any loss incurred
by reason of a breach by it of the provisions of this Agreement and hereby agree to waive the defense in any action for specific performance that a remedy at law would be adequate. 
 (b) No Inconsistent Agreements. Each of the Company and the Guarantors will not on or after the date of this Agreement enter into any agreement
with respect to its securities that is inconsistent with the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof. Neither the Company nor any of the Guarantors has previously entered into any agreement
granting any registration rights with respect to its securities to any Person. The rights granted to the Holders hereunder do not in any way conflict with and are not inconsistent with the rights granted to the holders of the Company’s or any
of the Guarantors’ securities under any agreement in effect on the date hereof. 
 (c) Adjustments Affecting the Securities. The
Company will not take any action, or permit any change to occur, with respect to the Securities that would materially and adversely affect the ability of the Holders to Consummate any Exchange Offer. 
 (d) Amendments and Waivers. The provisions of this Agreement may not be amended, modified or supplemented, and waivers or consents to or
departures from the provisions hereof may not be given unless the Company has (i) in the case of Section 5 hereof and this Section 12(d)(i), obtained the written consent of Holders of all outstanding Transfer Restricted
Securities and (ii) in the case of all other provisions hereof, obtained the written consent of Holders of a majority of the outstanding principal amount of Transfer Restricted Securities (excluding any Transfer Restricted Securities held by
the Company or its Affiliates). Notwithstanding the foregoing, a waiver or consent to departure from the provisions hereof that relates exclusively to the rights of Holders whose securities are being tendered pursuant to the Exchange Offer and that
does not affect directly or indirectly the rights of other Holders whose securities are not being tendered pursuant to such Exchange Offer may be given by the Holders of a majority of the outstanding principal amount of Transfer Restricted
Securities being tendered or registered; provided, however, that, with respect to any matter that directly or indirectly affects the rights of any Initial Purchaser hereunder, the Company shall obtain the written consent of each such
Initial Purchaser with respect to which such amendment, qualification, supplement, waiver, consent or departure is to be effective. 
 (e)
Notices. All notices and other communications provided for or permitted hereunder shall be made in writing by hand-delivery, first-class mail (registered or certified, return receipt requested), telex, telecopier, or air courier guaranteeing
overnight delivery: 
 (i) if to a Holder, at the address set forth on the records of the Registrar under the Indenture, with
a copy to the Registrar under the Indenture; and 
  

 -20- 

 (ii) if to the Company: 
 Energy Partners, Ltd. 
 201 St. Charles
Avenue, Suite 3400 
 New Orleans, Louisiana 70170 
 Facsimile No.: (504)569-1875 
 Attention: General Counsel 
 With a copy to: 
 Cahill
Gordon & Reindel LLP 
 80 Pine Street 
 New York, NY 10005 
 Facsimile No.: (212)269-5420 
 Attention: John Schuster, Esq. 
 All such
notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if mailed; when answered back, if telexed; when
receipt acknowledged, if telecopied; and on the next Business Day, if timely delivered to an air courier guaranteeing overnight delivery. 
 Copies of all such notices, demands or other communications shall be concurrently delivered by the Person giving the same to the Trustee at the address specified in the Indenture. 
 (f) Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the parties,
including, without limitation, and without the need for an express assignment, subsequent Holders of Transfer Restricted Securities; provided, however, that this Agreement shall not inure to the benefit of or be binding upon a
successor or assign of a Holder unless and to the extent such successor or assign acquired Transfer Restricted Securities from such Holder. 
 (g) Counterparts. This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement. 
 (h) Headings. The headings in this Agreement are for convenience of reference only and shall
not limit or otherwise affect the meaning hereof. 
 (i) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICTS OF LAW RULES THEREOF. 
 (j) Severability. In the
event that any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of
the remaining provisions contained herein shall not be affected or impaired thereby. 
  

 -21- 

 (k) Entire Agreement. This Agreement is intended by the parties as a final expression of their
agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein. There are no restrictions, promises, warranties or undertakings, other than
those set forth or referred to herein with respect to the registration rights granted by the Company with respect to the Transfer Restricted Securities. This Agreement supersedes all prior agreements and understandings between the parties with
respect to such subject matter. 
  

 -22- 

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

  

			
	ENERGY PARTNERS, LTD.
		
	By:	 	/s/ Phillip A. Gobe
		 	Name: Phillip A. Gobe
		 	Title: President and Chief Operating Officer

  

			
	EPL PIPELINE, L.L.C.
		
	By:	 	/s/ Phillip A. Gobe
		 	Name: Phillip A. Gobe
		 	Title: President and Chief Operating Officer

  

			
	EPL OF LOUISIANA, L.L.C.
		
	By:	 	/s/ Phillip A. Gobe
		 	Name: Phillip A. Gobe
		 	Title: President and Chief Operating Officer

  

			
	DELAWARE EPL OF TEXAS, LLC
		
	By:	 	/s/ Jay Lehman
		 	Name: Jay Lehman
		 	Title: President

  

			
	EPL PIONEER HOUSTON, INC.
		
	By:	 	/s/ Phillip A. Gobe
		 	Name: Phillip A. Gobe
		 	Title: President and Chief Operating Officer

 The foregoing Registration Rights Agreement is hereby confirmed and accepted as of the date first above
written: 
 BANC OF AMERICA SECURITIES LLC 
 BNP PARIBAS
SECURITIES CORP. 
 MERRILL LYNCH, PIERCE, FENNER, & SMITH INCORPORATED 
 UBS SECURITIES LLC 
 BMO CAPITAL MARKETS CORP. 
 SCOTIA CAPITAL (USA) INC. 
 CALYON SECURITIES (USA) INC. 
 PIPER JAFFRAY & CO. 
 FRIEDMAN, BILLINGS, RAMSEY & CO., INC. 
 JOHNSON RICE & COMPANY L.L.C. 
 SG AMERICAS SECURITIES, LLC

  

			
		
	By:	 	 Banc of America Securities LLC
 on behalf of itself and
the several Initial Purchasers

		
	By:	 	/s/ Lex Maultsby
		 	Name: Lex Maultsby
		 	Title: Managing Director

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]