Document:

Prepared by R.R. Donnelley Financial -- Indenture

  
  
  
  
 Louis Dreyfus Natural Gas Corp., 
 as Issuer 
  
 and 
  
 Bank of Montreal Trust Company, 
 as Trustee 
  
 INDENTURE 
  
 Dated as of June 15, 1994 
  
 $100,000,000 
  
 9  1/4% Senior Subordinated Notes Due
2004 
 

  
  
 TABLE OF CONTENTS 
  
 
 
 
	  	  	  	  	 Page
 

	 PARTIES
 	  	  	  	 1
 
	 RECITALS
 	  	  	  	  
	  	  	 Authorization of Indenture
 	  	 1
 
	  	  	 Form of Face of Security
 	  	 1
 
	  	  	 Form of Reverse of Security
 	  	 3
 
	  	  	 Form of Trustee’s Certificate of Authentication
 	  	 7
 
	  	  	 Option of Holder to Elect Purchase Upon Change of Control 
 	  	 7
 
	  	  	 Option of Holder to Elect Purchase Upon a Asset Disposition
 	  	 7
 
	  	  	 Compliance with Legal Requirements
 	  	 8
 
	  	  	 Purpose of and Consideration for Indenture
 	  	 8
 
	 
	  	  	 ARTICLE ONE
 	  	  
	 
	  	  	 DEFINITIONS.
  
 	  	  
	 SECTION 1.1.
 	  	 Certain Terms Defined
 	  	 8
 
	  	  	 Affiliate
 	  	 9
 
	  	  	 Asset Disposition
 	  	             9            
 
	  	  	 Average Life
 	  	             9            
 
	  	  	 Board of Directors
 	  	             9            
 
	  	  	 Board Resolution
 	  	 10
 
	  	  	 Business Day
 	  	 10
 
	  	  	 Capital Stock
 	  	 10
 
	  	  	 Capitalized Lease Obligations
 	  	 10
 
	  	  	 Change of Control
 	  	 10
 
	  	  	 Change of Control Offer
 	  	 11
 
	  	  	 Consolidated Interest Expense
 	  	 11
 
	  	  	 Consolidated Net Income
 	  	 11
 
	  	  	 Consolidated Net Worth
 	  	 12
 
	  	  	 Continuing Directors
 	  	 12
 
	  	  	 Corporate Trust Officer
 	  	 12
 
	  	  	 Credit Agreement
 	  	 13
 
	  	  	 Default
 	  	 13
 
	  	  	 Depository
 	  	 13
 
	  	  	 Designated Senior Debt
 	  	 13
 
	  	  	 Disqualified Capital Stock
 	  	 13
 
	  	  	 EBITDA
 	  	 13
 
	  	  	 EBITDA/Interest Ratio
 	  	             14            
 
	  	  	 Event of Default
 	  	             14            
 

 
  
 

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	  	  	  	  	 Page
 

	 
	  	  	 Exchange Act
 	  	 14
 
	 
	  	  	 Existing Agreements
 	  	 14
 
	 
	  	  	 GAAP
 	  	 15
 
	 
	  	  	 Global Security
 	  	 15
 
	 
	  	  	 Holder
 	  	 15
 
	 
	  	  	 Indebtedness
 	  	 15
 
	 
	  	  	 Indenture
 	  	 16
 
	 
	  	  	 Investment
 	  	 16
 
	 
	  	  	 Issue Date
 	  	 16
 
	 
	  	  	 Issuer
 	  	 16
 
	 
	  	  	 Lien
 	  	 16
 
	 
	  	  	 Material Change
 	  	 17
 
	 
	  	  	 Maturity Date
 	  	 17
 
	 
	  	  	 Net Available Proceeds
 	  	 17
 
	 
	  	  	 Net Proceeds Offer
 	  	 17
 
	 
	  	  	 Officer
 	  	 17
 
	 
	  	  	 Officers’ Certificate
 	  	 17
 
	 
	  	  	 Opinion of Counsel
 	  	 17
 
	 
	  	  	 Original Issue Date
 	  	 18
 
	 
	  	  	 Outstanding
 	  	 18
 
	 
	  	  	 Payment Restriction
 	  	 18
 
	 
	  	  	 Permitted Business Investments
 	  	 18
 
	 
	  	  	 Permitted Capital Stock
 	  	 18
 
	 
	  	  	 Permitted Financial Investments
 	  	 19
 
	 
	  	  	 Permitted Investments
 	  	 19
 
	 
	  	  	 Person
 	  	 20
 
	 
	  	  	 Preferred Stock
 	  	 20
 
	 
	  	  	 Principal
 	  	 20
 
	 
	  	  	 Qualified Capital Stock
 	  	 20
 
	 
	  	  	 Redemption Date
 	  	 20
 
	 
	  	  	 Reference Period
 	  	 20
 
	 
	  	  	 Representative
 	  	 20
 
	 
	  	  	 Reserve Value
 	  	 20
 
	 
	  	  	 Responsible Officer
 	  	 20
 
	 
	  	  	 Restricted Payment
 	  	 21
 
	 
	  	  	 Restricted Subsiiary
 	  	 21
 
	 
	  	  	 SEC
 	  	 22
 
	 
	  	  	 Security or Securities
 	  	 22
 
	 
	  	  	 Senior Debt
 	  	 22
 
	 
	  	  	 Subordinated Indebtedness
 	  	 23
 
	 
	  	  	 Subsidiary
 	  	 23
 
	 
	  	  	 Tangible Business Properties
 	  	 24
 
	 
	  	  	 Trust Indenture Act of 1939
 	  	 24
 
	 
	  	  	 Trustee
 	  	 24
 
	 
	  	  	 U.S. Government Obligations
 	  	 24
 
	 
	  	  	 U.S. Legal Tender
 	  	 24
 
	 
	  	  	 Unrestricted Subsidiary
 	  	 24
 

 
 

 ii 

  
  
  
  
 
	  	 	  	 	 Page
 

	  	 	 Voting Stock
 	 	 25
 
	  	 	 Wholly owned Subsidiary
 	 	 25
 
	 
	  	 	 ARTICLE TWO
 	 	  
	 
	  	 	 ISSUE, EXECUTION, FORM AND REGISTRATION OF SECURITIES.
  
 	 	  
	 SECTION      2.1.
 	 	 Authentication and Delivery of Securities
 	 	 25
 
	 SECTION      2.2.
 	 	 Execution of Securities
 	 	 25
 
	 SECTION      2.3.
 	 	 Certificate of Authentication
 	 	 26
 
	 SECTION      2.4.
 	 	 Form, Denomination and Date of Securities; Payments of Interest
 	 	 26
 
	 SECTION      2.5.
 	 	 Registration, Transfer and Exchange,Generally
 	 	 27
 
	 SECTION      2.6.
 	 	 Registration, Transfer and Exchange of a Global Security
 	 	 28
 
	 SECTION      2.7.
 	 	 Transfer and Exchange of Securities in Definitive Form .
 	 	 31
 
	 SECTION      2.8.
 	 	 Mutilated, Defaced, Destroyed, Lost and Stolen Securities
 	 	 31
 
	 SECTION      2.9.
 	 	 Cancellation of Securities; Destruction Thereof
 	 	 32
 
	 SECTION    2.10.
 	 	 Temporary Securities
 	 	 33
 
	 SECTION    2.11.
 	 	 Default Interest
 	 	 33
 
	 
	  	 	 ARTICLE THREE
 	 	  
	 
	  	 	 COVENANTS OF THE ISSUER AND THE TRUSTEE
  
 	 	  
	 SECTION      3.1.
 	 	 Payment of Principal and Interest
 	 	 34
 
	 SECTION      3.2.
 	 	 Offices for Payments, etc
 	 	 34
 
	 SECTION      3.3.
 	 	 Appointment to Fill a Vacancy in Office of Trustee
 	 	 34
 
	 SECTION      3.4.
 	 	 Paying Agents
 	 	 34
 
	 SECTION      3.5.
 	 	 Certificate to Trustee
 	 	 35
 
	 SECTION      3.6.
 	 	 Securityholders Lists
 	 	 36
 
	 SECTION      3.7.
 	 	 Limitation on Incurrence of Additional Indebtedness
 	 	 36
 
	 SECTION      3.8.
 	 	 Limitation on Restricted Payments
 	 	 37
 
	 SECTION      3.9.
 	 	 Limitation on Disposition of Assets
 	 	 37
 
	 SECTION    3.10.
 	 	 Limitation on Transactions with Affiliates
 	 	 41
 

 
  
  
 

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	  	  	  	  	 Page
 

	 SECTION 3.11.
 	  	 Limitation on Conduct of Business
 	  	 42
 
	 
	 SECTION 3.12.
 	  	 Limitation on Dividend and Other Payment Restrictions Affecting Subsidiaries
 	  	 43
 
	 SECTION 3.13.
 	  	 Senior Subordinated Debt
 	  	 43
 
	 SECTION 3.14.
 	  	 Reports by the Issuer
 	  	 44
 
	 SECTION 3.15.
 	  	 Reports by the Trustee
 	  	 44
 
	 
	  	  	 ARTICLE FOUR
 	  	  
	 
	  	  	 REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT.
  
 	  	  
	 SECTION 4.1.
 	  	 Event of Default Defined; Acceleration of Maturity; Waiver of Default
 	  	 44
 
	 SECTION 4.2.
 	  	 Collection of Indebtedness by Trustee; Trustee May Prove Debt
 	  	 47
 
	 SECTION 4.3.
 	  	 Application of Proceeds
 	  	 50
 
	 SECTION 4.4.
 	  	 Suits for Enforcement
 	  	 51
 
	 SECTION 4.5.
 	  	 Restoration of Rights on Abandonment of Proceedings
 	  	 51
 
	 SECTION 4.6.
 	  	 Limitations on Suits by Securityholders
 	  	 52
 
	 SECTION 4.7.
 	  	 Powers and Remedies Cumulative; Delay or Omission Not Waiver of Default
 	  	 52
 
	 SECTION 4.8.
 	  	 Control by Securityholders
 	  	 53
 
	 SECTION 4.9.
 	  	 Waiver of Past Defaults
 	  	 53
 
	 
	  	  	 ARTICLE FIVE
 	  	  
	 
	  	  	 CONCERNING THE TRUSTEE.
  
 	  	  
	 SECTION 5.1.
 	  	 Duties and Responsibilities of the Trustee; During Default; Prior to Default 
 	  	 54
 
	 SECTION 5.2.
 	  	 Certain Rights of the Trustee
 	  	 55
 
	 SECTION 5.3.
 	  	 Trustee Not Responsible for Recitals, Disposition of Securities or Application of Proceeds Thereof
 	  	 57
 
	 SECTION 5.4.
 	  	 Trustee and Agents May Hold Securities; Collections, etc
 	  	 57
 
	 SECTION 5.5.
 	  	 Moneys Held by Trustee
 	  	 58
 
	 SECTION 5.6.
 	  	 Compensation and Indemnification of Trustee and Its Prior Claim
 	  	 58
 

 
  
  
 

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	  	 	  	 	 Page
 

	 SECTION 5.7.
 	 	 Right of Trustee to Rely on Officers’ Certificate, etc
 	 	 58
 
	 SECTION 5.8.
 	 	 Persons Eligible for Appointment as Trustee
 	 	 59
 
	 SECTION 5.9.
 	 	 Resignation and Removal; Appointment of Successor Trustee
 	 	 59
 
	 SECTION 5.10.
 	 	 Acceptance of Appointment by Successor Trustee
 	 	 61
 
	 SECTION 5.11.
 	 	 Merger, Conversion, Consolidation or Succession to Business of Trustee
 	 	 61
 
	 
	  	 	 ARTICLE SIX
  
 	 	  
	 
	  	 	 CONCERNING THE SECURITYHOLDERS.
  
 	 	  
	 SECTION 6.1.
 	 	 Evidence of Action Taken by Securityholders
 	 	 62
 
	 SECTION 6.2.
 	 	 Proof of Execution of Instruments and of Holding of Securities; Record Date
 	 	 62
 
	 SECTION 6.3.
 	 	 Holders to Be Treated as Owners
 	 	 63
 
	 SECTION 6.4.
 	 	 Securities Owned by Issuer Deemed Not Outstanding
 	 	 63
 
	 SECTION 6.5.
 	 	 Right of Revocation of Action Taken
 	 	 64
 
	 
	  	 	 ARTICLE SEVEN
  
 	 	  
	 
	  	 	 SUPPLEMENTAL INDENTURES.
  
 	 	  
	 SECTION 7.1.
 	 	 Supplemental Indentures Without Consent of Securityholders
 	 	 64
 
	 SECTION 7.2.
 	 	 Supplemental Indentures With Consent of Securityholders
 	 	 66
 
	 SECTION 7.3.
 	 	 Effect of Supplemental Indenture
 	 	 67
 
	 SECTION 7.4.
 	 	 Documents to Be Given to Trustee
 	 	 68
 
	 SECTION 7.5.
 	 	 Notation on Securities in Respect of Supplemental Indentures
 	 	 68
 

 
  
  
 

 v 

  
  
 ARTICLE EIGHT 
  
 CONSOLIDATION, MERGER, SALE OR CONVEYANCE. 
  
 
	  	  	  	  	 Page
 

	 SECTION 8.1.
 	  	 Covenant Not to Merge, Consolidate, Sell or Convey Property Except Under Certain Conditions
 	  	 68
 
	 SECTION 8.2.
 	  	 Successor Corporation Substituted
 	  	 68
 
	 SECTION 8.3.
 	  	 Opinion of Counsel to Trustee
 	  	 69
 

 
  
 ARTICLE NINE 
  
 SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS. 
  
 
	 SECTION 9.1.
 	  	 Satisfaction and Discharge of Indenture
 	  	 70
 
	 SECTION 9.2.
 	  	 Defeasance and Discharge of Indenture
 	  	 71
 
	 SECTION 9.3.
 	  	 Defeasance of Certain Obligations
 	  	 73
 
	 SECTION 9.4.
 	  	 Application by Trustee of Funds Deposited for Payment of Securities
 	  	 75
 
	 SECTION 9.5.
 	  	 Repayment of Moneys Held by Paying Agent
 	  	 75
 
	 SECTION 9.6.
 	  	 Return of Moneys Held By Trustee and Paying Agent Unclaimed for Three Years
 	  	 75
 

 
  
 ARTICLE TEN 
  
 MISCELLANEOUS PROVISIONS. 
  
 
	 SECTION 10.1.
 	  	 Incorporators, Stockholders, Officers and Directors of Issuer Exempt from Individual Liability
 	  	 76
 
	 SECTION 10.2.
 	  	 Provisions of Indenture for the Sole Benefit of Parties and Security-holders
 	  	 76
 
	 SECTION 10.3.
 	  	 Successors and Assigns of Issuer Bound by Indenture
 	  	 76
 
	 SECTION 10.4.
 	  	 Notices and Demands on Issuer, Trustee and Security holders
 	  	 76
 
	 SECTION 10.5.
 	  	 Officers’ Certificates and Opinions of Counsel; Statements to Be Contained Therein
 	  	 77
 

 
 

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	  	  	  	  	 Page
 

	 SECTION 10.6.
 	  	 Payments Due on Saturdays, Sundays and Holidays
 	  	 78
 
	 SECTION 10.7.
 	  	 Conflict of Any Provision of Indenture with Trust Indenture Act of 1939
 	  	 79
 
	 SECTION 10.8.
 	  	 New York Law to Govern
 	  	 79
 

 
  
 ARTICLE ELEVEN 
  
 REDEMPTION OF SECURITIES 
  
 
	 SECTION 11.1.
 	  	 Net Proceeds of Certain Public Offerings
 	  	 79
 
	 SECTION 11.2.
 	  	 Notice of Redemption; Partial Redemptions
 	  	 79
 
	 SECTION 11.3.
 	  	 Payment of Securities Called for Redemption
 	  	 81
 
	 SECTION 11.4.
 	  	 Exclusion of Certain Securities from Eligibility for Selection for Redemption
 	  	 82
 

 
  
 ARTICLE TWELVE 
  
 SUBORDINATION OF SECURITIES 
  
 
	 SECTION 12.1.
 	  	 Securities Subordinated to Senior Debt
 	  	 82
 
	 SECTION 12.2.
 	  	 No Payments on Securities in Certain Circumstances
 	  	 82
 
	 SECTION 12.3.
 	  	 Payment Over of Proceeds Upon Dissolution, Etc.
 	  	 84
 
	 SECTION 12.4.
 	  	 Payments May Be Paid Prior to Dissolution
 	  	 86
 
	 SECTION 12.5.
 	  	 Subrogation of Securities
 	  	 86
 
	 SECTION 12.6.
 	  	 Obligations of the Issuer Unconditional
 	  	 86
 
	 SECTION 12.7.
 	  	 Notice to Trustee
 	  	 87
 
	 SECTION 12.8.
 	  	 Reliance on Judicial Order or Certificate of Liquidating Agent
 	  	 88
 
	 SECTION 12.9.
 	  	 Trustee’s Relation to Senior Debt
 	  	 88
 
	 SECTION 12.10.
 	  	 Subordination Rights Not Impaired by Acts or Omissions of the Issuer or Holders of Senior Debt
 	  	 89
 
	 SECTION 12.11.
 	  	 Security holders Authorize Trustee to Effectuate Subordination of Securities
 	  	 89
 

 
  
  
 

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	  	  	  	  	 Page
 

	 SECTION 12.12.
 	  	 This Article 12 Not to Prevent Events of Default
 	  	 90
 
	 SECTION 12.13.
 	  	 Trustee’s Compensation Not Prejudiced
 	  	 90
 

 
  
 ARTICLE THIRTEEN 
  
 CHANGE OF CONTROL 
  
 
	 SECTION 13.1.
 	  	 Repurchase of Securities Upon Change of Control
 	  	 90
 
	 TESTIMONIUM
 	  	 93
 
	 SIGNATURES
 	  	 93
 
	 ACKNOWLEDGMENTS
 	  	 93
 

 
  
 

 vii 

  
  
 THIS INDENTURE, dated as of June 15, 1994 between Louis
Dreyfus Natural Gas Corp., an Oklahoma corporation (the “Issuer”), and Bank of Montreal Trust Company (the “Trustee”), 
  
 W I T N E S S E T H : 
  
 WHEREAS, the Issuer has duly authorized the issue of its 9 l/4% Senior Subordinated Notes Due
2004 (the “Securities”) and, to provide, among other things, for the authentication, delivery and administration thereof, the Issuer has duly authorized the execution and delivery of this Indenture; and 
  
 WHEREAS, the Securities and the Trustee’s certificate of authentication shall be in substantially the following form: 
  
 [FORM OF FACE OF SECURITY] 
  

	No.             
                                        
          $             
 

 
 Louis Dreyfus Natural Gas Corp. 
 9  1/4% Senior Subordinated Note Due 2004 
  
 Louis Dreyfus Natural Gas Corp., an Oklahoma
corporation (the “Issuer”), for value received hereby promises to pay to              or registered assigns the principal
sum             of Dollars at the Issuer’s office or agency for said purpose in The City of New York, on June 15, 2004, in such coin or currency of the United States of America as at
the time of payment shall be legal tender for the payment of public and private debts, and to pay interest, semi-annually on June 15 and December 15 of each year, on said principal sum in like coin or currency at the rate per annum set forth above
at said office or agency from the June 15 or the December 15, as the case may be, next preceding the date of this Security to which interest on the Securities has been paid or duly provided for, unless the date hereof is a date to which interest on
the Securities has been paid or duly provided for, in which case from the date of this Security, or unless no interest has been paid or duly provided for on the Securities, in which case from June 16, 1994, until payment of said principal sum has
been made or duly provided for. Notwithstanding the foregoing, if the date hereof is after 
  
 

 June 15 or December 15, as the case may be, and before the following December 15 or June 15, this Security shall bear interest from such June 15 or December 15;
provided that if the Issuer shall have defaulted in the payment of interest due on such June 15 or December 15, then this Security shall bear interest from the next preceding June 15 or December 15 to which interest on the Securities has been paid
or duly provided for, or, if no interest has been paid or duly provided for on the Securities since the original issue date of this Security, from June 16, 1994. The interest so payable on any June 15 or December 15 will, except as otherwise
provided in the Indenture referred to on the reverse hereof, be paid to the person in whose name this Security is registered at the close of business on the June 1 or December 1 preceding such June 15 or December 15, whether or not such day is a
business day; provided that interest may be paid, at the option of the Issuer, by mailing a check therefor payable to the registered holder entitled thereto at his last address as it appears on the Security register. Interest shall be computed on
the basis of a 360-day year of twelve 30-day months. 
  
 Reference is made to the further provisions set forth on the reverse
hereof including without limitation provisions subordinating the payment of principal, premium, if any, and interest on the Securities to the payment in full of all Senior Debt as defined in said Indenture. Such further provisions shall for all
purposes have the same effect as though fully set forth at this place. 
  
 This Security shall not be valid or obligatory until the
certificate of authentication hereon shall have been duly signed by the Trustee by manual signature acting under the Indenture. 
  
 IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed under its corporate seal. 
  
 Dated: 
  
 [Seal] 
  

	 	                                      
           
 

  

	 	                                      
           
 

 

 11 

  
 [FORM OF REVERSE OF SECURITY] 
  
 Louis Dreyfus Natural Gas Corp. 
  
 9  1/4% Senior Subordinated Note due 2004 
  
 This Security is one of a duly authorized issue of debt securities of the Issuer, limited to the aggregate principal amount of $100,000,000 (except as otherwise provided in the Indenture
mentioned below), issued or to be issued pursuant to an indenture dated as of June 15, 1994 (the “Indenture”), duly executed and delivered by the Issuer to Bank of Montreal Trust Company, Trustee (herein called the “Trustee”).
Reference is hereby made to the Indenture and all indentures supplemental thereto for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Issuer and the Holders (the words
“Holders” or “Holder” meaning the registered holders or registered holder) of the Securities. 
  
 1.  Event of Default.    In case an Event of Default, as defined in the Indenture, shall have occurred and be continuing, the principal of and premium, if any, and accrued but unpaid interest on all the
Securities may be declared due and payable, in the manner and with the effect, and subject to the conditions, provided in the Indenture. The Indenture provides that in certain events such declaration and its consequences may be waived by the Holders
of a majority in aggregate principal amount of the Securities then outstanding and that, prior to any such declaration, such Holders may waive any past default under the Indenture and its consequences except a default in the payment of principal of
or premium, if any, or interest on any of the Securities.Any such consent or waiver by the Holder of this Security (unless revoked as provided in the Indenture) shall be conclusive and binding upon such Holder and upon all future Holders and owners
of this Security and any Security which may be issued in exchange or substitution herefor, whether or not any notation thereof is made upon this Security or such other Securities. 
  
 2.  Supplemental Indentures.    The Indenture permits the Issuer and the Trustee, with the consent of the Holders of not less than a majority in
aggregate principal amount of the Securities at the time outstanding, evidenced as in the Indenture provided, to execute supplemental indentures adding any provisions to or changing in any manner or eliminating any of the provisions of the Indenture
or of any supplemental indenture or modifying in any manner 
 

 12 

 the rights of the Holders of the Securities; provided that no such amendment may, without the consent of the Holder of each Security then outstanding affected
thereby, (i) reduce the percentage of principal amount of Securities whose Holders must consent to an amendment, supplement or waiver, (ii) reduce the rate or change the time for payment of interest, including default interest, on any Security;
(iii) reduce the principal amount of any Security or change the Maturity Date of the Securities; (iv) reduce the redemption price, including premium, if any, payable upon redemption of any Security or change the time at which any Security may or
shall be redeemed; (v) reduce the repurchase price, including premium, if any, payable upon the repurchase of any Security or change the time at which any Security may or shall be repurchased; (vi) make any Securities payable in .money other than
that stated in the Security; (vii) impair the right to institute suit-for the enforcementof any payment of principal of, or premium if any, or interest on, any Security; (viii) make any change in the percentage of principal amount of Securities
necessary to waive compliance with certain provisions of the Indenture; or (ix) waive a continuing Default or Event of Default in the payment of principal of, premium, if any, or interest on the Securities. 
  
 3.  Subordination.     The indebtedness evidenced by the Securities is, to the extent and in the manner provided in
the Indenture, expressly subordinate and subject in right of payment to the prior payment in full of all Senior Debt of the Issuer as defined in the Indenture, whether outstanding at the date of the Indenture or thereafter incurred, and this
Security is issued subject to the provisions of the Indenture with respect to such subordination. Each Holder of this Security, by accepting the same, agrees to and shall be bound by such provisions and authorizes the Trustee in his behalf to take
such action as may be necessary or appropriate to effectuate the subordination so provided and appoints the Trustee his attorney-in-fact for such purpose. 
  
 4.  Oblisation of Issuer to Pav Amounts Owed.     No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of
the Issuer, which is absolute and unconditional, to pay the principal of and premium, if any, and interest on this Security at the place, times, and rate, and in the currency, herein prescribed. 
  

5.  Form and Denomination.    The Securities are issuable only as registered Securities without coupons in denominations of $1,000 and any
multiple of $1,000. 
 

 13 

 6.  Registration, Transfer and Exchange.    At the office or agency of the Issuer referred to on
the face hereof and in the manner and subject to the limitations provided in the Indenture, Securities may be exchanged for a like aggregate principal amount of Securities of other authorized denominations. 
  
 Upon due presentment for registration of transfer of this Security at the above-mentioned office or agency of the Issuer, a new Security or Securities
of authorized denominations, for a like aggregate principal amount, will be issued to the transferee as provided in the Indenture. No service charge shall be made for any such transfer, but the Issuer may require payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in relation thereto. 
  
 7.  Subject to the limitations set
forth in the Indenture, at any time prior to June 15, 1997, the Issuer may use all or a portion of the net proceeds from one public offering of its Qualified Capital Stock to redeem up to 30% of the Securities originally issued at a redemption price
equal to 109.25% of the principal thereof, plus accrued and unpaid interest to the Redemption Date. Any such redemption will be required to occur on or prior to the 180th day following the receipt of the proceeds of such public offering.

  
 Payment of Securities called for redemption shall occur in the manner and subject to the limitations provided in the Indenture.

  
 The Trustee shall select, either pro rata or by lot, Securities or portions thereof to be redeemed in whole or in part.
Securities may be redeemed in part in multiples of $1,000 principal amount only. 
  
 Notice of redemption to the Holders of
Securities to be redeemed as a whole or in part shall be given to the extent and in the manner provided in the Indenture. 
  
 8.  Persons Deemed Owners.     Prior to due presentment for registration of transfer, the Issuer, the Trustee, and any authorized agent of the Issuer or the Trustee, may deem and treat the registered
Holder hereof as the absolute owner of this Security (whether or not this Security shall be overdue and notwithstanding any notation of ownership or other writing hereon made by anyone other than the Issuer or the Trustee or any authorized agent of
the Issuer or the Trustee), for the purpose of receiving payment of, or on account of, the principal hereof and 
 

 14 

 premium, if any, and, subject to the provisions on the face hereof, interest hereon and for all other purposes, and neither the Issuer nor the Trustee
nor any authorized agent of the Issuer or the Trustee shall be affected by any notice to the contrary. 
  
 9.  No
Recourse.     No recourse shall be had for the payment of the principal of or premium, if any, or the interest on this Security, for any claim based hereon, or otherwise in respect hereof, or based on or in
respect of the Indenture or any indenture supplemental thereto, against any incorporator, shareholder, officer or director, as such, past, present or future, of the Issuer or of any successor corporation, either directly or through the
Issuer or any successor corporation, whether by virtue of any constitution, statute or rule of law or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as.part of the consideration
for the issue hereof, expressly waived and released. 
  
 10.  Change of Control.    The
Securities are subject to repurchase upon a Change of Control (as defined in the Indenture) to the extent and in the manner provided therein. 
  
 11.  Limitation on Disposition of Assets.    Under certain circumstances the Issuer is required to apply the net proceeds from Asset Dispositions to offer to repurchase
Securities at a price equal to 100% of the aggregate principal amount thereof, plus accrued interest to the date of purchase. 
  
 12.  Discharge and Termination.    Subject to the limitations of the Indenture and satisfaction of certain conditions described therein, the Issuer may at any time terminate its obligations under the
Securities and the Indenture, by irrevocably depositing in trust cash or obligations of the United States government and its agencies for payment of principal of, premium, if any, and interest on, the Securities to redemption or maturity.

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

 

 15 

  
 [FORM OF TRUSTEE’S CERTIFICATE OF AUTHENTICATION] 
  
 This is one of the Securities described in the within-mentioned Indenture. 
  

	 	BA
	NK OF MONTREAL TRUST 
 

	 	CO
	MPANY, as Trustee 
 

  

	 	                          
	 
 	 

	 	Au
	thorized Signature 
 

  
 [OPTION OF HOLDER TO
ELECT PURCHASE 
 UPON CHANGE OF CONTROL] 
  
 If
you wish to have this Security purchased by the Issuer pursuant to Section 13.1 of the Indenture, check the Box:   ̈. 

 
 If you wish to have a portion of this Security purchased by the Issuer pursuant to Section 13.1 of the Indenture, state the amount (in
original principal amount): 
  
 $
[                                ] 
  
 Date:
[                                ]       
                                 Your Signature:
[                                ] 
  
 (Sign exactly as your name appears on the other side of this Security) 
  
 Signature
Guarantee: [                                ] 
  
 [OPTION OF HOLDER TO ELECT PURCHASE 
 UPON ASSET DISPOSITION] 

 
 If you wish to have this Security purchased by the Issuer pursuant to Section 3.9 of the Indenture, check the Box:  ̈. 
 

 16 

  
 If you wish to have a portion of this Security purchased by the Issuer pursuant to Section 3.9
of the Indenture, state the amount (in original principal amount): 
  
 $
[                                ] 
  
 Date:
[                                ]      
                                  Your Signature:
[                                ] 
  
 (Sign exactly as your name appears on the other side of this Security) 
  
 Signature Guarantee:
[                                ] 
  
 AND WHEREAS, all things necessary to make the -Securities, when executed by the Issuer and authenticated and delivered by the Trustee as in this
Indenture provided, the valid, binding and legal obligations of the Issuer, and to constitute these presents a valid indenture and agreement according to its terms, have been done; 
  
 NOW, THEREFORE: 
  
 In consideration of the premises and the
purchases of the Securities by the Holders thereof, the Issuer and the Trustee mutually covenant and agree for the equal and proportionate benefit of the respective Holders from time to time of the Securities as follows: 
  
 ARTICLE ONE 
  
 DEFINITIONS

  
 SECTION 1.1  (Certain Terms Defined.)    The following terms
(except as otherwise expressly provided or unless the context otherwise clearly requires) for all purposes of this Indenture and of any indenture supplemental hereto shall have the respective meanings specified in this Section. All other 1939 or the
definitions of which in the Securities Act of 1933 are referred to in the Trust Indenture Act of 1939 (except as herein otherwise expressly provided or unless the context otherwise clearly requires), shall have the meanings assigned to such terms in
said Trust Indenture Act and in said Securities Act as in force at the date of this Indenture. All accounting terms used herein and not expressly defined shall have the meanings given to them in accordance with generally accepted accounting
principles, and the term (generally accepted accounting) 
 

 17 

 principles” shall mean such accounting principles which are generally accepted at the date or time of any computation. The words
“herein”, “hereof” and “hereunder” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision. The terms defined in this
Article include the plural as well as the singular. 
  
 “Affiliate” of any specified Persons means any other
Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person. For the purposes of this definition, “control” when used with respect to any specified Person means the power
to direct the management and policies of such Person directly or indirectly, whether through the ownership of Voting Stock, by contract or otherwise, and the terms “controlling” and “controlled” have meanings correlative to the
foregoing. 
  
 “Asset Disposition” means any sale, lease, transfer, exchange or other disposition (or series of
related sales, leases, transfers, exchanges or dispositions) of shares of Capital Stock of a Subsidiary (other than directors’ qualifying shares), or of property or assets (including any interests therein) (each referred to for purposes of this
definition as a ‘disposition”) by the Issuer or any of its Subsidiaries, including any disposition by means of a merger, consolidation or similar transaction (other than (A) by the Issuer to a Restricted Subsidiary that is a Wholly Owned
Subsidiary or by a Subsidiary to the Issuer or a Restricted Subsidiary that is aWholly Owned Subsidiary, (B) a disposition of hydrocarbons or other mineral products in the ordinary course of business (including, without limitation, pursuant to
production payments or pursuant to long term fixed price delivery contracts and energy swaps entered into by the Issuer on terms consistent with its past practice) and (C) the disposition of all or substantially all of the assets of the Issuer in
compliance with Article Eight hereof. 
  
 “Average Life” means, as of the date of determination, with respect to
any Indebtedness, the quotient obtained by dividing (i) the sum of the products of (x) the number of years from such date to the date of each successive scheduled principal payment of such Indebtedness multiplied by (y) the amount of such principal
payment by (ii) the sum of all such principal payments. 
  
 “Board of Directors” means, with respect to any
Person, the board of directors of such Person or (except for purposes of the definition of “Change of Control” and 
  
 

 18 

 “Continuing Directors”) any committee of the board of directors of such Person duly authorized to act on behalf of the board of directors of such
Person. 
  
 “Board Resolution means a copy of a resolution certified by the Secretary or an Assistant Secretary of the
Issuer to have been duly adopted by the Board of Directors and to be in full force of effect on the date of such certification, and delivered to the Trustee. 
  
 ‘‘Business Day” means a day which in the city (or in any of the cities, if more than one) where amounts are payable in respect of the Securities, as specified on
the face of the form of Security recited above, is neither a legal holiday nor a day on which banking institutions are authorized by law or regulation to close. 
  
 “Capital Stock” means, with respect to any Person, any and all shares, interests, participations or other equivalents (however designated) of corporate stock or
partnership interests and any and all warrants, options and rights with respect thereto (whether or not currently exercisable), including each class of common stock and Preferred Stock of such Person. 
  
 “Capitalized Lease Obligations” of any Person means the obligations of such Person to pay rent or other amounts under a lease of
property, real or personal, that is required to be capitalized for financial reporting purposes in accordance with GAAP, and the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP.

  
 “Change of Control” means any event or series of events by which (i) any Person or other entity or group
of Persons or other entities acting in concert as a partnership or other group (a group of Persons”) other than S.A. Louis Dreyfus et Cie or its Affiliates as a group shall, as a result of a tender or exchange offer, open market purchases,
privately negotiated purchases, merger, consolidation or otherwise, have become the beneficial owner (within the meaning of Rule 13d-3 under the Exchange Act) of more than 50% of the combined voting power of the then outstanding Voting Stock of the
Issuer, (ii) Continuing Directors cease for any reason to constitute a majority of the Board of Directors of the Issuer then in office, .or (iii) all or substantially all of the assets of the Issuer are, directly or indirectly sold, leased,
exchanged or otherwise transferred to any Person or Group of Persons, other than to a Restricted Subsidiary, in compliance with Article Eight of this Indenture. 
  
 

 19 

 “Change of Control Offer” has the meaning Set forth in Section 13.1(a). 
  
 Consolidated Interest Expense” means, with respect to any Person, for any period, the aggregate amount (without duplication) of (a) interest
expense in accordance with GAAP (including, in accordance with the following sentence, interest attributable to Capitalized Lease Obligations) during such period in respect of all Indebtedness of such Person and its restricted Subsidiaries,
(including (i) amortization of original issue discount n any Indebtedness, (ii) the interest portion of all deferred payment obligations, calculated in accordance with GAAP, and (iii) all commissions, discounts and other fees and charges owed with
respect to bankers’ acceptance financings and currency and interest rate swap arrangements, in each case to the extent attributable to such period), and (b) dividend requirements of such Person and its Subsidiaries’ with respect to
Disqualified Capital Stock and with respect to all Preferred Stock of such Person’s Restricted Subsidiaries (in each case whether in cash or otherwise (except dividends payable solely in shares of Qualified Capital Stock)) paid, declared,
accrued or accumulated during such period, in each case to the extent attributable to such period and excluding items eliminated in consolidation. For purposes of this definition, (a) interest on a Capitalized Lease Obligation shall be deemed to
accrue at an interest rate reasonably. determined by the Issuer to be the rate of interest implicit in such Capitalized Lease Obligation in accordance with GAAP and (b) interest expense attributable to any Indebtedness represented by the guaranty by
such Person or a Restricted Subsidiary of such Person of an obligation of another Person shall be deemed to be the interest expense attributable to the Indebtedness guaranteed. 
  
 “Consolidated Net Income” of any Person means, for any period, the aggregate net income (or loss) of such Person and its Restricted Subsidiaries for such period on a
consolidated basis, determined in accordance with GAAP, provided that (a) the net income of any other Person in which such Person or any Restricted Subsidiary thereof has an interest (which interest does not cause the net income of such other Person
to be consolidated with the net income of such Person in accordance with GAAP) will be included only to the extent of the amount of dividends or distributions actually paid to such Person or its Restricted Subsidiaries by such other Person in such
period; (b) the net income of any Restricted Subsidiary of such Person that is subject to any Payment Restriction will be excluded; provided that (i) such Person’s equity in the net income of any such Restricted Subsidiary for such period shall
be included in 
 

 20 

 such Consolidated Net Income up to the aggregate amount of cash actually distributed by such Restricted Subsidiary during such period to such Person or another
Restricted Subsidiary as a dividend or other distribution (subject, in the case of a dividend or other distribution to another Restricted Subsidiary, to the limitation contained in this clause) and (ii) such Person’s equity in a net loss of any
such Restricted Subsidiary for such period shall be included in determining such Consolidated Net Income; and (c)(i) the net income (or loss) of any other Person acquired in a pooling of interests transaction for any period prior to the date of such
acquisition, (ii) any net gain (but not loss) on the sale or other disposition by such Person or any of its Restricted Subsidiaries of assets (other than a sale of hydrocarbons or other mineral products in the ordinary course of such Person’s
oil and gas production operations) and of the Capital Stock of any Subsidiary of such Person and (iii) items which are extraordinary, each will be excluded and (d)(x) the net income of any Unrestricted Subsidiary, whether or not distributed to the
Issuer or one of its Restricted Subsidiaries, and (y) the net losses of any Unrestricted Subsidiary, shall be excluded. 
  
 Consolidated Net Worth” as of any date means with respect to any Person the amount by which the assets of such Person and its Subsidiaries on a consolidated basis exceed (i) the total liabilities of such Person and its
Subsidiaries on a consolidated basis, plus (ii) Disqualified Capital Stock of such Person or Disqualified Capital Stock of any Subsidiary of such Person issued to any Person other than such Person or a Wholly Owned Subsidiary of such Person, in each
case determined in accordance with GAAP. 
  
 “Continuing Directors” means any member of the Board of
Directors or other governing body of a Person on the Issue Date, any director elected since the date thereof in any annual meeting of the stockholders upon the recommendation of the Board of Directors or other governing body of such Person and any
other member of the Board of Directors or other governing body of such Person who will be recommended or elected to succeed a Continuing Director by a majority of Continuing Directors who are then members of the Board of Directors or other governing
body of such Person. 
  
 “Corporate Trust Office” means the office of the Trustee at which the corporate
trust business of the Trustee shall, at any particular time, be principally administered, which office is, at the date as of which this Indenture is dated, located at 77 Water Street, New York, New York, 10005. 
  
 

 21 

 “Credit Agreement” means the Second Amended and Restated Credit Agreement dated as of October 26, 1993 among the
Issuer, certain Lenders, Banque Paribas (New York Branch), as administrative agent, Banque Paribas (New York Branch), Citibank, N.A. and Bank of Montreal, as co-agents, and Bank of Montreal, as letter of credit issuer, as such Agreement may be
amended, restated, supplemented or otherwise modified from time to time, whether or not with the same lenders, and including any agreement extending the maturity of the Indebtedness under such Agreement or any successor agreements, and each other
document delivered by the Issuer from time to time providing collateral security or credit support for the Credit Agreement, as any of the same may be amended, restated, supplemented or otherwise modified from time to time. 

 
 “Default” means any event or condition-specified as such in Section 4.1 that is or with the passage of time or the giving of
notice or both would be an Event of Default. 
  
 “Depositary” means, unless otherwise specified by the
Issuer pursuant to Section 2.6 hereof, The Depository Trust Company, New York, New York, or any successor thereto registered as a clearing agency under the Exchange Act or other applicable statute or regulation. 
  
 “Designated Senior Debt” means (i) Indebtedness outstanding under the Credit Agreement and (ii) any other indebtedness constituting
Senior Debt which at the time of designation has an aggregate principal amount of at least $50 million and is specifically designated in the instrument evidencing such Senior Debt as Designated Senior Debt” by the Issuer. 

 
 “Disqualified Capital Stock” means, with respect to any Person, any Capital Stock of such Person or its Subsidiaries that,
by its terms, by the terms of any agreement related thereto or by the terms of any security into which, mandatorily or at the option of the holder, it is convertible or exchangeable, is, or upon the happening of an event or the passage of time would
be, required to be redeemed or repurchased by such Person or its Subsidiaries, including at the option of the holder, in whole or in part, or has, upon the happening of an event or the passage of time would have, a redemption or similar payment due,
in each such case on or prior to the Maturity Date. 
  
 “EBITDA” means for any Person for any period, the
Consolidated Net Income of such Person for such period (excluding gains and losses on sales of assets, non-cash 
 

 22 

 write-downs and charges resulting from accounting convention changes) before deduction for federal and state taxes, interest expense, or depreciation, depletion
and amortization expense or any other non-cash charges to income, all determined in accordance with GAAP. 
  
 “EBITDA/Interest Ratio” means, for any Reference Period, the ratio on a pro forma basis of (a) EBITDA of the Issuer and its Restricted Subsidiaries on a consolidated basis for the Reference Period to (b) Consolidated
Interest Expense of the Issuer and its Restricted Subsidiaries for the Reference Period; provided that, in calculating EBITDA and Consolidated Interest Expense (i) acquisitions and dispositions of assets which occurred during the Reference
Period or subsequent to the Reference Period and on or prior to the date of the transaction giving rise to the need to calculate the EBITDA/Interest.Ratio (the “Transaction Date”) shall be assumed to have occurred on the first day of the
Reference Period, (ii) the incurrence of any Indebtedness or issuance of any Disqualified Capital Stock during the Reference Period or subsequent to the Reference Period and on or prior to the Transaction Date shall be assumed to have occurred on
the first day of such Reference Period, (iii) any Indebtedness that had been outstanding during the Reference Period that has been repaid on or prior to the Transaction Date shall be assumed to have been repaid as of the first day of such Reference
Period and (iv) the Consolidated Interest Expense of such Person attributable to interest on any Indebtedness or dividends on any Disqualified Capital Stock bearing a floating interest (or dividend) rate shall be computed on a pro forma basis as if
the rate in effect on the Transaction Date had been the applicable rate for the entire period. 
  
 “Event of
Default” means any event or condition specified as such in Section 4.1 which shall have continued for the period of time, if any, therein designated. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 “Existing Agreements” means the Services Agreement dated as of September 30, 1993 between the Issuer and S.A. Louis Dreyfus et Cie, the Tax Payment Agreement dated as of November 1, 1993 between the
Issuer and S.A. Louis Dreyfus et Cie, the Swap Agreement dated as of November 1, 1993 between the Issuer and Louis Dreyfus Energy Corp. and the Indemnity Agreements between the Issuer and its directors, each as in effect on the Issue Date.

  
 

 23 

 “GAAP” means generally accepted accounting principles as in effect in the United States of America as of any date of
determination. 
  
 “Global Security” means a Security which is executed by the Issuer and authenticated and
delivered by the Trustee to the Depositary or pursuant to the Depositary’s instruction, all in accordance with this Indenture and pursuant to a written order of the Issuer, which shall be registered in the name of the Depositary or its nominee
and which shall represent, and shall be denominated in an amount equal to the aggregate principal amount of, all of the Securities or any portion thereof, but not including any Securities that are no longer outstanding, and having the same terms,
including, without limitation, the same original issue date, date or dates on which principal is due, and rate of interest. 
  
 “Holder”, “Holder of Securities”, Securityholder” means a Person in whose name a Security is registered on the registrar’s books. 
  
 “Indebtedness” means, without duplication, with respect to any Person, the principal component of (a) all obligations of such Person (i) in respect of borrowed money
(whether or not the recourse of the lender is to the whole of the assets of such Person or only to a portion thereof), (ii) evidenced by bonds, notes, debentures or similar instruments, (iii) for the payment of money representing the balance
deferred and unpaid of the purchase price of any property or services (other than accounts payable or other obligations arising in the ordinary course of business), (iv) evidenced by bankers’ acceptances or similar instruments issued or
accepted by banks, (v) for the payment of money relating to a Capitalized Lease Obligation, or (vi) evidenced by a letter of credit or reimbursement obligation of such Person with respect to any letter of credit (other than a letter of credit
entered into for the purpose of providing security in connection with fixed price delivery contracts or energy swaps with respect to the Issuer’s oil and gas business (as defined in Section 3.11)); (b) all net obligations of such Person under
interest swap obligations and foreign currency hedges; (c) all liabilities of others of the kind described in the preceding clauses (a) or (b) that such Person has guaranteed or that are otherwise its legal liability; (d) Indebtedness (as otherwise
defined in this definition) of others secured by a Lien on any asset of such Person (other than Liens securing obligations of such Person in connection with fixed price delivery contracts with respect to the Issuer’s oil and gas business (as
defined in Section 3.11)) whether or not such Indebtedness 
 

 24 

 is assumed by such Person (provided that if the obligations so secured have not been assumed in full by such Person or are not otherwise such
Person’s legal liability in full, then such obligations shall be deemed to be in an amount equal to the greater of (A) the lesser of (1) the full amount of such obligations, and (2) the fair market value of such asset, as determined in good
faith by the Board of Directors of such Person, which determination shall be evidenced by a Board Resolution, and (B) the amount of obligations as have been assumed by such Person or which are otherwise such Person’s legal liability), (e) with
respect to such Person, the liquidation preference and any mandatory redemption payment obligations in respect of (x) Disqualified Capital Stock and (y) all Preferred Stock of such Person’s Restricted Subsidiaries; and (f) any and all
deferrals, renewals, extensions, refinancings and refundings (whether direct or indirect) of, or amendments, modifications or supplements to, any liability of the kind described in any of the preceding clauses (a), (b), (c), (d) or (e) or this
clause (f), whether or not between or among the same parties. 
  
 “Indenture” means this instrument as originally
executed and delivered or, if amended or supplemented as herein provided, as so amended or supplemented. 
  
 “Investment” means, with respect to any Person, any investment in another Person, whether by means of a share purchase, capital contribution, loan, advance (other than advances to employees for moving and travel expenses,
drawing accounts and similar expenditures in the ordinary course of business) or similar credit extension constituting Indebtedness of such other Person and any guarantee of Indebtedness of any other Person. 
  
 “Issue Date” means the date of this Indenture as set forth herein. 
  
 “Issuer” means (except as otherwise provided in Article Five) Louis Dreyfus Natural Gas Corp., an Oklahoma corporation, and, subject to Article Eight, its successors and
assigns. 
  
 “Lien” means with respect to any Person, any mortgage, pledge, lien, encumbrance, easement,
restriction, covenant, right-of-way, charge or adverse claim affecting title or resulting in an encumbrance against real or personal property of such Person, or a security interest of any kind (including any conditional sale or other title retention
agreement, any lease in the nature thereof, any option, right of first refusal or other similar agreement to 
 

 25 

 sell, in each case securing obligations of such Person and any filing of or agreement to give any financing statement under the Uniform Commercial Code (or
equivalent statute or statutes) of any jurisdiction. 
  
 “Material Change” means an increase or decrease of more
than 20% during a fiscal quarter in Reserve Values; provided that the following will be excluded from the Material Change calculation: (a) any acquisitions during such quarter of oil and gas reserves that have been estimated by the Issuer and
reviewed by independent petroleum engineers and on which a report or reports exist, and (b) any disposition of properties existing at the beginning of such quarter that have been disposed of as provided under Section 3.9 hereof. 

 
 “Maturity Date” means June 15, 2004. 
  
 “Net Available Proceeds” means, with respect to any Asset Disposition of any Person, cash proceeds received (including any cash proceeds received by way of deferred
payment of principal pursuant to a note or installment receivable or otherwise, but only as and when received, and excluding any other consideration until such time as such consideration is converted into cash) therefrom, in each case net of all
legal, title and recording tax expenses, commissions and other fees and expenses incurred, and all federal, state or local taxes required to be accrued as a liability as a consequence of such Asset Disposition. 
  
 “Net Proceeds” means, in the case of any sale by the Issuer of Qualified Capital Stock, the aggregate net cash proceeds received by the
Issuer, after payment of expenses, commissions, discounts and any other transaction costs incurred in connection therewith. 
  
 “Net Proceeds Offer” has the meaning set forth in Section 3.9(a)(iii)(C). 
  
 “Officer” means the Chairman of the Board of Directors, the Chief Executive Officer, the President, the Chief Operating Officer, the Chief Financial Officer, any Vice President (whether or not designated by a number or
numbers or a word or words added before or after the title “Vice President”), any other officer, the Treasurer, the Secretary or any Assistant Secretary of the Issuer. 
  
 “Officers’ Certificate” means a certificate signed by the Chairman of the Board of Directors, the Chief Executive Officer, the President, the Chief Operating
Officer, the Chief Financial Officer, or any Vice President 
  
  
 

 26 

 (whether or not designated by a number or numbers or a word or words added before or after the title “Vice President”) or any other officer and by the
Treasurer or the Secretary or any Assistant Secretary of the Issuer and delivered to the Trustee. Each such certificate shall comply with Section 314 of the Trust Indenture Act of 1939 and include the statements provided for in Section 10.5.

  
 “Opinion of Counsel” means an opinion in writing signed by legal counsel who may be an employee of or counsel
to the Issuer or who may be other counsel satisfactory to the Trustee. Each such opinion shall comply with Section 314 of the Trust Indenture Act and include the statements provided for in Section 10.5, if and to the extent required hereby.

  
 “Outstanding”, when used with reference to Securities, shall, subject to the provisions of Section 6.4,
mean, as of any particular time, all Securities authenticated and delivered by the Trustee under this Indenture, except 
  
 (a)  Securities theretofore canceled by the Trustee or delivered to the Trustee for cancellation; 
  
 (b)  Securities, or portions thereof, for the payment or redemption of which moneys in the necessary amount shall have been deposited in trust with the Trustee or with any paying agent (other than the
Issuer) or shall have been set aside, segregated and held in trust by the Issuer (if the Issuer shall act as its own paying agent), provided that if such Securities are to be redeemed prior to the maturity thereof, notice of such redemption shall
have been given as herein provided, or provision satisfactory to the Trustee shall have been made for giving such notice; and 
  
 (c)  Securities in substitution for which other Securities shall have been authenticated and delivered, or which shall have been paid, pursuant to the terms of Section 2.6 (unless proof satisfactory to the
Trustee is presented that any of such Securities is held by a person in whose hands such Security is a legal, valid and binding obligation of the Issuer). 
  
 “Payment Restriction” has the meaning set forth in Section 3.12. 
  
 “Permitted Business Investments” means (i) entry into operating agreements, joint ventures, working 
 

 27 

 interests, royalty interests, mineral leases, unitization agreements, pooling arrangements or other similar or customary agreements, transactions, properties,
interests or arrangements, and Investments and expenditures in connection therewith or pursuant thereto, in each case made or entered into in the ordinary course of the oil and gas business (as defined in Section 3.11), (ii) Investments in any
Restricted Subsidiary that is a Wholly Owned Subsidiary by the Issuer or any other Restricted Subsidiary that is a Wholly Owned Subsidiary, (iii) Investments in the Issuer by any Restricted Subsidiary that is a Wholly Owned Subsidiary, (iv)
Investments permitted under Section 3.9 hereof and (v) Investments in any Person to the extent the consideration for which consists of Qualified Capital Stock. 
  
 “Permitted Capital Stock” means Capital Stock of a Person engaged in the oil and gas business (as defined in Section 3.11), if as a result of the acquisition of such Capital Stock by the Issuer or a
Restricted Subsidiary, the issuer of such Capital Stock becomes a Restricted Subsidiary. 
  
 “Permitted Financial
Investments” means (i) marketable direct obligations issued by, or unconditionally guaranteed by, the United States government or issued by any agency thereof and backed by the full faith and credit of the United States, in each case
maturing within one year from the date of acquisition thereof, (ii) marketable direct obligations issued by any state of the United States of America or any political subdivision of any such state or any public instrumentality thereof maturing
within one year from the date of acquisition thereof and at the time of acquisition, having one of the two highest ratings obtainable from either Standard & Poor’s Corporation or Moody’s Investors Service, Inc., (iii) commercial paper
maturing no more than one year from the date of creation thereof and, at the time of acquisition, having a rating of A-2 or better from Standard & Poor’s Corporation or at least P-2 or better from Moody’s Investors Service, Inc., (iv)
certificates of deposit, time deposits or bankers’ acceptances maturing within one year from the date of acquisition thereof issued by any commercial bank organized under the laws of the United States of America or any state thereof or the
District of Columbia or any U.S. branch of a foreign bank having at the date of acquisition thereof combined capital and surplus of not less than $100 million and, with respect to its long-term debt, having a rating of A- or better from Standard
& Poor’s Corporation or A3 or better from Moody’s Investors Service, Inc., (v) repurchase obligations for underlying securities of the types described in clause (i) above 
  

 28 

 entered into with any bank meeting the qualifications specified in clause (iv) above and (vi) Investments in money market funds which invest substantially all
their assets in securities of the types described in clauses (i) through (v) above. 
  
 “Permitted Investments”
means Permitted Business Investments and Permitted Financial Investments. 
  
 “Person” means any
individual, sole proprietorship, joint stock company, unincorporated association, joint venture, corporation, partnership, business or owner trust, government, governmental department or agency or any other entity whatsoever. 

 
 “Preferred Stock”, as applied to the Capital Stock of any corporation, means Capital Stock of any class or classes (however
designated) which is preferred as to the payment of dividends, or as to the distribution of assets upon any voluntary or involuntary liquidation or dissolution of such corporation, over shares of Capital Stock of any other class of such
corporation. 
  
 “principal” wherever used with reference to the Securities or any Security or any portion
thereof, shall be. deemed to include “and premium, if any”. 
  
 “Qualified Capital Stock” means
any Capital Stock that is not Disqualified Capital Stock. 
  
 “Redemption Date” means the date fixed by the
Issuer for redemption of up to 30% of the Securities originally issued. 
  
 “Reference Period” means, with
respect to any Person, the four full fiscal quarters for which such Person has reported its financial results ended immediately preceding any date upon which any determination is to be made pursuant to the terms of the Securities or the Indenture.

  
 “Representative” means the indenture or other trustee, agent or other representative in respect of any
Designated Senior Debt; provided that if, and for so long as, any Designated Senior Debt lacks such a representative then the Representative for such Designated Senior Debt shall at all times constitute the holders of a majority in outstanding
principal amount of such Designated Senior Debt. 
  
 “Reserve Value” means, as of any date of determination, (a)
discounted future net cash flows from 
 

 29 

 proved oil and gas reserves of the Issuer and its Restricted Subsidiaries (which proved reserves estimation shall have been reviewed by independent petroleum
engineers), calculated in accordance with guidelines of the SEC (including adjustments for prices payable to the Issuer or a Restricted Subsidiary under fixed price delivery contracts or energy swaps) (before any state or federal income tax), as of
a date no earlier than the date of the Issuer’s latest annual consolidated financial statements (or, in the case that the date of determination is after the end of the first fiscal quarter of the fiscal year of the Issuer, as estimated by the
Issuer’s engineers and as adjusted for any fixed price delivery contracts or energy swaps, as of a date no earlier than the end of the most recent fiscal quarter, and, in the event of a Material Change, estimated quantities of proved reserves
shall be confirmed in writing by a report by independent petroleum engineers in-accordance with SEC guidelines), after deducting (b) minority interests. 
  
 “Responsible Officer” when used with respect to the Trustee means the chairman of the board of directors, any vice chairman of the board of directors, the chairman of the trust committee, the chairman
of the executive committee, any vice chairman of the executive committee, the president, any vice president (whether or not designated by numbers or words added before or after the title “vice president”), the cashier, the secretary, the
treasurer, any trust officer, any assistant trust officer, any assistant vice president, any assistant cashier, any assistant secretary, any assistant treasurer, or any other officer or assistant officer of the Trustee customarily performing
functions similar to those performed by the persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is referred because of his knowledge of and familiarity with the particular subject. 

 
 “Restricted Payment” means, with respect to any Person, (a) the declaration or payment of any dividend or other distribution
in respect of Capital Stock of such Person or any Subsidiary of such Person, (b) any payment on account of the purchase, redemption or other acquisition or retirement for value of Capital Stock of such Person or any Subsidiary of such Person, (c)
any purchase, redemption, or other acquisition or retirement for value of, or any payment in respect of any amendment of the terms of, or any defeasance of, any Subordinated Indebtedness, directly or indirectly, by such Person or a Subsidiary of
such Person prior to the scheduled maturity, any scheduled repayment of principal, or rescheduled sinking fund payment, as the case may be, of such Subordinated Indebtedness and (d) any Investment other than a Permitted Investment by such Person;

 

 30 

 provided that the term “Restricted Payment” does not include (i) any dividend, distribution or other payment on or with respect to Capital Stock of an
issuer to the extent payable solely in shares of Qualified Capital Stock of such issuer, (ii) any dividend, distribution or other payment to the Issuer, or any of its Restricted Subsidiaries that are directly or indirectly owned Wholly Owned
Subsidiaries, by any of its or their Subsidiaries and (iii) any defeasance, redemption, repurchase, acquisition, or other retirement for value, in whole or in part, of any Subordinated Indebtedness of an issuer in exchange for or from the net
proceeds from the substantially concurrent sale of Capital Stock or Subordinated Indebtedness of such issuer which Capital Stock or Subordinated Indebtedness is at least as subordinated in ranking to the Securities as, and has an Average Life equal
to or greater than, the Subordinated Indebtedness being so defeased, redeemed, repurchased, acquired or retired and in any case in a principal amount (or, if such Indebtedness is issued at less than its principal amount, with an original issue
price, as determined in accordance with GAAP) not to exceed the lesser of (x) the principal amount of such Subordinated Indebtedness being so defeased, redeemed, repurchased, acquired or retired in exchange therefor and (y) if such Subordinated
Indebtedness being acquired was issued with an original issue discount, the accreted value thereof (as determined in accordance with GAAP) at the time of exchange. 
  
 “Restricted Subsidiary” means any Subsidiary of the Issuer which at the time of determination is not an Unrestricted Subsidiary. The Board of Directors of the Issuer may
designate any Unrestricted effect to such designation, the Issuer could incur at least $1.00 of additional Indebtedness pursuant to the first sentence of Section 3.7, on a pro forma basis taking into account such designation. 

 
 “SEC” means the Securities and Exchange Commission. 
  
 “Security” or “Securities” means any 9 1/4% Senior Subordinated Notes due 2004, as the case may be, authenticated and delivered under this Indenture. 
  
 “Senior Debt” means (i) all Indebtedness of the Issuer (other than the Securities), including principal, premium, if any, interest and all other amounts owing in respect of such Indebtedness (including interest that, but
for the filing of a petition initiating any proceeding pursuant to any bankruptcy law with respect to the Issuer, 
 

 31 

 would accrue on such Indebtedness at the contractual rate provided in the instruments evidencing the respective obligations, whether or not such claim is
allowed in such bankruptcy proceeding), whether existing on the Issue Date or thereafter created, incurred or assumed, unless such Indebtedness, by its terms or by the terms of the instrument creating or evidencing it is subordinate in
right of payment to or is pari passu with the Securities; (ii) all reimbursement obligations of the Company with respect to letters of credit not otherwise constituting Indebtedness; (iii) all charges, fees, expenses (including reasonable
attorneys’ fees and expenses) and other amounts incurred by or owing to holders of Indebtedness or obligations described in the preceding clauses (i) and (ii) in connection with such Indebtedness or obligations; and (iv) all interest payable
during the pendency of a proceeding under Title 11 of the United States Code on Indebtedness or obligations referred to in clauses (i) and (ii) incurred prior to the commencement of such proceeding. Notwithstanding the foregoing, “Senior
Debt” shall not include (i) any Indebtedness of the Issuer to a Subsidiary of the Issuer, (ii) Indebtedness of the Issuer to, or guaranteed on behalf of any Affiliate, including, without limitation, amounts owed for compensation, (iii)
Indebtedness owed to trade creditors and other amounts incurred in connection with obtaining goods, materials and services, (iv) Indebtedness represented by Disqualified Capital Stock and (v) Indebtedness incurred in violation of the provisions of
Sections 3.7 or 3.13 or Article Twelve hereof. 
  
 “Subordinated Indebtedness” means any Indebtedness of the
Issuer (whether outstanding on the Issue Date or thereafter incurred) which is contractually subordinate and junior in right of payment to the Securities. 
  
 A “Subsidiary” of any Person means (i) a corporation a majority of whose Voting Stock is at the time, directly or indirectly, owned by such Person, by one or more
Subsidiaries of such Person or by such person and one or more Subsidiaries of such Person, (ii) a partnership in which such Person or a Subsidiary of such Person is, at the date of determination, a general or limited partner, but only if such Person
or its Subsidiary is either (x) the sole general partner of a limited partnership or (y) entitled to receive more than fifty percent of the assets of such partnership upon its dissolution, or (iii) any other Person (other than a corporation or
partnership) in which such Person, directly or indirectly, at the date of determination thereof, has (x) at least a majority ownership interest or (y) the power to elect or direct the election of a majority of the directors or other governing body
of such Person. 
  
 

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 Notwithstanding the foregoing, the term “Subsidiary” does not include any Unrestricted Subsidiary. 
  
 “Tangible Business Properties” means tangible properties to be used in the oil and gas business of the Issuer and its Restricted
Subsidiaries. 
  
 “Trust Indenture Act of 1939” (except as otherwise provided in Sections 7.1 and 7.2)
means the Trust Indenture Act of 1939 as in force at the date as of which this Indenture was originally executed. 
  
 “Trustee” means the entity identified as “Trustee” in the first paragraph hereof and, subject to the provisions of Article Five, shall also include any successor trustee. 
  
 “U.S. Government Obligations” means securities that are (i) direct obligations of the United States of America for the payment of which
its full faith and credit is pledged or (ii) obligations of Persons controlled or supervised by and acting as an agency or instrumentality of the United States of America the payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States of America, which, in either case under clauses (i) or (ii) are not callable or redeemable at the option of the issuer thereof. 
  
 “U.S. Legal Tender” means such coin or currency of the United States as at the time of payment shall be legal tender for the payment of public and private debts.

  
 “Unrestricted Subsidiary” means (i) any Subsidiary of the Issuer which at the time of determination is
an Unrestricted Subsidiary (as designated by the Board of Directors of the Issuer, as provided below) and (ii) any Subsidiary of an Unrestricted Subsidiary. The Board of Directors of the Issuer may designate any Subsidiary of the Issuer (including
any newly acquired or newly formed Subsidiary) to be an Unrestricted Subsidiary unless such Subsidiary owns any Capital Stock of, or owns, or holds any Lien on, any property of, any other Restricted Subsidiary of the Issuer which is not a Subsidiary
of the Subsidiary to be so designated; provided that (a) the Issuer certifies that such designation would not violate Section 3.8 hereof and (b) each Subsidiary to be so designated and each of its Subsidiaries has not at the time of designation, and
does not thereafter, create, incur, issue, assume, guarantee or otherwise become directly or indirectly liable with respect to any Indebtedness pursuant to which the lender has recourse to any of the assets of the Issuer or any of its Restricted
Subsidiaries. The Board of Directors of the 
  
 

 33 

 Issuer may designate any Unrestricted Subsidiary to be a Restricted Subsidiary; provided that, immediately after giving effect to such designation, the Issuer
could incur at least $1.00 of additional Indebtedness pursuant to the first sentence of Section 3.7 hereof, on a pro forma basis, giving effect to such designation. 
  
 “Voting Stock” means with respect to any Person, securities of any class or classes of Capital Stock in such Person entitling the holders thereof (whether at all times
or only so long as no senior class of stock has voting power by reason of any contingency) to vote in the election of members of the Board of Directors or other governing body of such Person but not including Capital Stock having the right to vote
thereon solely upon the happening of a contingency unless and until such contingency has occurred, and then only so long as such Capital Stock has voting rights with respect thereto. 
  
 “Wholly Owned Subsidiary” means a Subsidiary of the Issuer all the Capital Stock (other than directors’ qualifying shares, if applicable) of which is owned by the
Issuer or another Wholly Owned Subsidiary. 
  
 ARTICLE TWO 
  
 ISSUE, EXECUTION, FORM AND REGISTRATION OF SECURITIES. 
  
 SECTION 2.1  Authentication and Delivery of Securities.    Upon the execution and delivery of this Indenture, or from time to time thereafter, Securities in an aggregate principal amount
not in excess of the amount specified in the form of Security hereinabove recited (except as otherwise provided in Section 2.6) may be executed by the Issuer and delivered to the Trustee for authentication, and the Trustee shall thereupon
authenticate and deliver said Securities to or upon the written order of the Issuer, signed by both (a) an Officer and (b) by its Treasurer or any Assistant Treasurer without any further action by the Issuer. 
  
 SECTION 2.2  Execution of Securities.    The Securities shall be signed on behalf of the Issuer by
(a) an Officer and (b) by its Treasurer or any Assistant Treasurer or its Secretary or any Assistant Secretary, under its corporate seal which may, but need not, be attested. Such signatures may be the manual or facsimile signatures of the present
or any future such officers. The seal of the Issuer may be in the form of a facsimile thereof and may be 
 

 34 

 impressed, affixed, imprinted or otherwise reproduced on the Securities. Typographical and other minor errors or defects in any such reproduction of the seal or
any such signature shall not affect the validity or enforceability of any Security which has been duly authenticated and delivered by the Trustee. 
  
 In case any officer of the Issuer who shall have signed any of the Securities shall cease to be such officer before the Security so signed shall be authenticated and delivered by the Trustee or disposed of by the
Issuer, such Security nevertheless may be authenticated and delivered or disposed of as though the person who signed such Security had not ceased to be such officer of the Issuer; and any Security may be signed on behalf of the Issuer by such
persons as, at the actual date of the execution of such Security, shall be the proper officers of the Issuer, although at the date of the execution and delivery of this Indenture any such person was not such officer. 
  
 SECTION 2.3  Certificate of Authentication.    Only such Securities as shall bear thereon a
certificate of authentication substantially in the form hereinbefore recited, executed by the Trustee by manual signature of one of its authorized signatories, shall be entitled to the benefits of this Indenture or be valid or obligatory for any
purpose. Such certificate by the Trustee upon any Security executed by the Issuer shall be conclusive evidence, and the only evidence that the Security so authenticated has been duly authenticated and delivered hereunder and that the Holder is
entitled to the benefits of this Indenture. 
  
 SECTION 2.4  Form, Denomination and Date of Securities;
Payments of Interest.    The Securities and the Trustee’s certificates of authentication shall be substantially in the form recited above. The Securities, shall be issuable as registered securities without coupons and in
denominations provided for in the form of Security above recited. The Securities shall be numbered, lettered, or otherwise distinguished in such manner or in accordance with such plans as the officers of the Issuer executing the same may determine
with the approval of the Trustee. 
  
 Any of the Securities may be issued with appropriate insertions, omissions, substitutions and
variations, and may have imprinted or otherwise reproduced thereon such legend or legends, not inconsistent with the provisions of this Indenture, as may be required to comply with any law or with any rules or regulations pursuant thereto, or with
the rules of any securities market in which 
 

 35 

 the Securities are admitted to trading, or to conform to general usage. 
  
 Each Security shall be dated the date of its authentication, shall bear interest from the applicable date and shall be payable on the dates specified on the face of the form of Security
recited above. 
  
 The person in whose name any Security, is registered at the close of business on any record date with respect to
any interest payment date shall be entitled to receive the interest, if any, payable on such interest payment date notwithstanding any transfer or exchange of such Security subsequent to the record date and prior to such interest payment date,
except if and to the extent the Issuer shall default in the payment of the interest due on such interest payment date, in which case such defaulted interest shall be paid to the persons in whose names outstanding Securities are registered at the
close of business on a subsequent record date (which shall be not less than five Business Days prior to the date of payment of such defaulted interest) established by notice given by mail by or on behalf of the Issuer to the Holders of Securities
not less than 15 days preceding such subsequent record date. The term “record date” as used with respect to any interest payment date (except a date for payment of defaulted interest) shall mean if such interest payment date is the first
day of a calendar month, the fifteenth day of the next preceding calendar month and shall mean, if such interest payment date is the fifteenth day of a calendar month, the first day of such calendar month, whether or not such record date is a
business day. 
  
 SECTION 2.5  Registration, Transfer and Exchange;
Generally.    The Issuer will keep at each office or agency to be maintained for the purpose as provided in Section 3.2 a register or registers in which, subject to such reasonable regulations as it may prescribe, it or any
person designated by Issuer as registrar will register, and will register the transfer of, Securities as in this Article provided. Such register shall be in written form in the English language or in any other form capable of being converted into
such form within a reasonable time. At all reasonable times such register or registers shall be open for inspection by the Trustee. The Issuer hereby initially designates Trustee as registrar for each such purpose. 
  
 The Issuer may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any exchange or
registration of 
 

 36 

 transfer of Securities. No service charge shall be made for any such transaction. 
  
 The Issuer shall not be required to exchange or register a transfer of (a) any Securities for a period of 15 days next preceding the first mailing of notice of redemption of Securities
to be redeemed, or (b) any Securities selected, called or being called for redemption except, in the case of any Security where public notice has been given that such Security is to be redeemed in part, the portion thereof not so to be redeemed.

  
 All Securities issued upon any transfer or exchange of Securities shall be valid obligations of the Issuer, evidencing the same
debt, and entitled to the same benefits under this Indenture, as the Securities surrendered upon such transfer or exchange. 
  
 SECTION 2.6  Registration, Transfer and Exchange of a Global Security. 
  
 (a)  If the Issuer shall establish that the Securities are to be issued in whole or in part in the form of one or more Global Securities, then the Issuer shall execute and the Trustee or an agent thereof shall, in accordance with
Section 2.2 hereof, and the written order of the Issuer delivered to the Trustee or its agent thereunder, authenticate and deliver such Global Security or Securities, which (i) shall represent, and shall be denominated in an amount equal to the
aggregate principal amount of, the outstanding Securities to be represented by such Global Security or Securities, or such portion thereof as the Issuer shall specify in a written order of the Issuer in the form of an Officers’ Certificate,
(ii) shall be registered in the name of the Depositary for such Global Security or Securities or its nominee, (iii) shall be delivered by the Trustee or its agent to the Depositary or pursuant to the Depositary’s instructions and (iv) shall
bear a legend substantially to the following effect: “Unless this certificate is presented by an authorized representative of the Depositary to the Issuer or its agent for registration of transfer, exchange, or payment, and any certificate
issued is registered in the name of the nominee of the Depositary or in such other name as is requested by an authorized representative of the Depositary (any payment is made to the nominee of the Depositary or to such other entity as is requested
by an authorized representative of the Depositary), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, the nominee of the Depositary, has an interest herein.”

  
  
 

 37 

 (b)  Notwithstanding any other provision of this Section 2.6 or of Section 2.7, and subject to the provisions of paragraph
(c) below, a Global Security may be transferred, in whole but not in part and in the manner provided herein, only to a nominee of the Depositary for such Global Security, or to the Depositary, or a successor Depositary for such Global Security
selected or approved by the Issuer, or to a nominee of such successor Depositary. 
  
 (c)(i)  If at any time the
Depositary for a Global Security notifies the Issuer that it is unwilling or unable to continue as Depositary for such Global Security or if at any time the Depositary for the Securities shall no longer be eligible or in good standing under the
Exchange Act or other applicable statute or regulation, the Issuer shall appoint a successor Depositary with respect to such Global Security. If a successor Depositary for such Global Security is not appointed by the Issuer within 90 days after the
Issuer receives such notice or becomes aware of such ineligibility, the Issuer will execute, and the Trustee or an agent thereof, upon receipt of a written order of the Issuer in the form of an Officers’ Certificate for the authentication and
delivery of individual Securities in exchange for such Global Security, will authenticate and deliver, individual securities of like tenor and terms in an aggregate principal amount equal to the principal amount of the Global Security in exchange
for such Global Security. 
  
 (ii)  The Issuer may at any time and in its sole discretion determine that the Securities
issued in the form of one or more Global Securities shall no longer be represented by such Global Security or Securities. In such event the Issuer will execute, and the Trustee, upon receipt of a written order of the Issuer in the form of an
Officers’ Certificate for the authentication and delivery of individual Securities in exchange in whole or in part for such Global Security, will authenticate and deliver individual Securities of like tenor and terms in definitive form in an
aggregate principal amount equal to the principal amount of such Global Security or Securities in exchange for such Global Security or Securities. 
  
 (iii)  If specified by the Issuer pursuant to a written order of the Issuer in the form of an Officers’ Certificate, the Depositary for a Global Security may surrender such Global Security in exchange
in whole or in part for individual Securities of like tenor and terms in definitive form on such terms as are acceptable to the Issuer and such Depositary. Thereupon the Issuer shall execute, and the Trustee or an agent thereof, upon a written order
of the Issuer in the form of an Officers’ Certificate, 
 

 38 

 shall authenticate and deliver, without service charge, (1) to each Person specified by such Depositary a new Security or Securities of like tenor and terms and
of any authorized denomination as requested by such Person in aggregate principal amount equal to and in exchange for such Person’s beneficial interest as specified by such Depositary in the Global Security; and (2) to such Depositary a new
Global Security of like tenor and terms and in an authorized denomination equal to the difference, if any, between the principal amount of the surrendered Global Security and the aggregate principal amount of Securities delivered to Holders thereof.

  
 (iv)  In any exchange provided for in any of the preceding three paragraphs, the Issuer will execute and the Trustee
or an agent thereof will authenticate and deliver individual Securities in definitive registered form in authorized denominations. Upon the exchange of the entire principal amount of a Global Security for individual Securities, such Global Security
shall be canceled by the Trustee or an agent thereof. Except as provided in the preceding paragraph, Securities issued in exchange for a Global Security pursuant to this Section shall be registered in such names and in such authorized denominations
as the Depositary for such Global Security, pursuant to instructions from its direct or indirect participants or otherwise, shall instruct either the Trustee or the Security registrar. Such Trustee or the Security registrar shall deliver such
Securities to the Persons in whose names such Securities are so registered. 
  
 (d)  So long as the Depositary, or its
nominee, is the registered Holder and owner of such Global Security, the Depositary or such nominee, as the case may be, will be considered the sole owner and Holder of the related Securities for all purposes of such Securities and for all purposes
under the Indenture. Except as set forth below, owners of beneficial interests in a Global Security will not be entitled to have the Securities represented by such Global Security registered in their names, will not receive or be entitled to receive
physical delivery of Securities in definitive form and will not be considered to be the owners or Holders of any Securities under the Indenture or such Global Security. 
  
 (e)  Payment of principal of and premium, if any, and interest on Securities represented by a Global Security will be made to the Depositary or its nominee, as the case may be,
as the registered owner and Holder of such Global Security. 
  
 

 39 

 SECTION 2.7  Transfer and Exchange of Securities in Definitive Form.    Upon due
presentation for registration of transfer of any Security in definitive form at each office or agency designated by the Issuer as provided in Section 3.2 hereof, the Issuer shall execute and the Trustee shall authenticate and deliver in the name of
the transferee or transferees a new Security or Securities in authorized denominations for a like aggregate principal amount. 
  
 Any Security or Securities in definitive form may be exchanged for a Security or Securities in other authorized denominations, in an equal aggregate principal amount. Securities to be exchanged shall be surrendered at each office or agency
to be maintained by the Issuer for the purpose as provided in Section 3.2, and the Issuer shall execute and the Trustee shall authenticate and deliver in exchange therefor the Security or Securities which the Securityholder making the exchange shall
be entitled to receive, bearing numbers not contemporaneously outstanding. 
  
 All Securities in definitive form presented for
registration of transfer, exchange, redemption or payment shall (if so required by the Issuer or the Trustee) be duly endorsed by, or be accompanied by a written instrument or instruments of transfer in form satisfactory to the Issuer and the
Trustee duly executed by, the Holder or his attorney duly authorized in writing. 
  
 SECTION
2.8  Mutilated, Defaced, Destroyed, Lost and Stolen Securities.    In case any temporary or definitive Security shall become mutilated, defaced or be apparently destroyed, lost or stolen, the Issuer in its
discretion may execute, and upon the written request of any officer of the Issuer, the Trustee shall authenticate and deliver, a new Security, bearing a number not contemporaneously outstanding, in exchange and substitution for the mutilated or
defaced Security, or in lieu of and substitution for the Security so apparently destroyed, lost or stolen. In every case the applicant for a substitute Security shall furnish to the Issuer and to the Trustee and any agent of the Issuer or the
Trustee such security or indemnity as may be required by them to indemnify and defend and to save each of them harmless and, in every case of destruction, loss or theft evidence to their satisfaction of the apparent destruction, loss or theft of
such Security and of the ownership thereof. 
  
 Upon the issuance of any substitute Security, the Issuer may require the payment of
a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith. In case 
  
 

 40 

 any Security which has matured or is about to mature or has been called for redemption in full, shall become mutilated or defaced or be apparently destroyed,
lost or stolen, the Issuer may, instead of issuing a substitute Security, pay or authorize the payment of the same (without surrender thereof except in the case of a mutilated or defaced Security), if the applicant for such payment shall furnish to
the Issuer and to the Trustee and any agent of the Issuer or the Trustee such security or indemnity as any of them may require to save each of them harmless from all risks, however remote, and, in every case of apparent destruction, loss or theft,
the applicant shall also furnish to the Issuer and the Trustee and any agent of the Issuer or the Trustee evidence to their satisfaction of the apparent destruction, loss or theft of such Security and of the ownership thereof. 

 
 Every substitute Security issued pursuant to the provisions of this Section by virtue of the fact that any Security is apparently destroyed,
lost or stolen shall constitute an additional contractual obligation of the Issuer, whether or not the apparently destroyed, lost or stolen Security shall be at any time enforceable by anyone and shall be entitled to all the benefits of (but shall
be subject to all the limitations of rights set forth in) this Indenture equally and proportionately with any and all other Securities duly authenticated and delivered hereunder. All Securities shall be held and owned upon the express condition
that, to the extent permitted by law, the foregoing provisions are exclusive with respect to the replacement or payment of mutilated, defaced, or apparently destroyed, lost or stolen Securities and shall preclude any and all other rights or remedies
notwithstanding any law or statute existing or hereafter enacted to the contrary with respect to the replacement or payment of negotiable instruments or other securities without their surrender. 
  

SECTION 2.9  Cancellation of Securities; Destruction Thereof.    All Securities surrendered for payment, redemption, registration
of transfer or exchange, if surrendered to the Issuer or any agent of the Issuer or the Trustee, shall be delivered to the Trustee for cancellation or, if surrendered to the Trustee, shall be canceled by it; and no Securities shall be issued in lieu
thereof except as expressly permitted by any of the provisions of this Indenture. The Trustee shall destroy canceled Securities held by it and deliver a certificate of destruction to the Issuer. If the Issuer shall acquire any of the Securities,
such acquisition shall not operate as a redemption or satisfaction of the indebtedness represented 
 

 41 

 by such Securities unless and until the same are delivered to the Trustee for cancellation. 
  
 SECTION 2.10  Temporary Securities.    Pending the preparation of definitive Securities, the Issuer may execute and the Trustee shall
authenticate and deliver temporary Securities (printed, lithographed, typewritten or otherwise reproduced, in each case in form satisfactory to the Trustee). Temporary Securities shall be issuable as registered Securities without coupons, of any
authorized denomination, and substantially in the form of the definitive Securities but with such omissions, insertions and variations as may be appropriate for temporary Securities, all as may be determined by the Issuer with the concurrence of the
Trustee. Temporary Securities may contain such reference to any provisions of this Indenture as may be appropriate. Every temporary Security shall be executed by the Issuer and be authenticated by the Trustee upon the same conditions and in
substantially the same manner, and with like effect, as the definitive Securities. Without unreasonable delay the Issuer shall execute and shall furnish definitive Securities and thereupon temporary Securities may be surrendered in exchange therefor
without charge at each office or agency to be maintained by the Issuer for the purpose pursuant to Section 3.2, and the Trustee shall authenticate and deliver in exchange for such temporary Securities a like aggregate principal amount of definitive
Securities of authorized denominations. Until so exchanged the temporary Securities shall be entitled to the same benefits under this Indenture as definitive Securities. 
  
 SECTION 2.11  Default Interest.    If the Issuer defaults in a payment of interest on the Securities, it shall pay the defaulted
interest in any lawful manner plus, to the extent lawful, interest payable on the defaulted interest, to the Persons who are Holders on a subsequent special record date, in each case at the rate provided in the Securities. The Issuer shall, with the
consent of the Trustee, fix each such special record date and payment date. At least 10 days before the record date, the Issuer (or the Trustee, in the name of and at the expense of the Issuer if the Issuer has not delivered a copy of such notice to
the Trustee at least 17 days before the special record date) shall mail to Holders a notice that states the special record date, the related payment date and the amount of such interest to be paid. 
 

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 ARTICLE THREE 
  
 COVENANTS

 OF 
 THE ISSUER AND THE TRUSTEE. 
  
 SECTION 3.1  Payment of Principal and Interest.    The Issuer covenants and agrees that it will duly
and punctually pay or cause to be paid the principal of, premium, if any, and interest on, each of the Securities at the place or places, at the respective times and in the manner provided in the Securities. At the option of the Issuer, each
installment of interest on the Securities may be paid by mailing checks for such interest payable to or upon the written order of the Holders of Securities entitled thereto as they shall appear on the registry books maintained by the Trustee or any
other person designated as registrar by the Issuer. 
  
 SECTION 3.2  Offices for Payments,
etc.    So long as any of the Securities remain outstanding, the Issuer will maintain within the Borough of Manhattan, The City of New York, the following: (a) an office or agency where the Securities may be presented for
payment, (b) an office or agency where the Securities may be presented for registration of transfer and for exchange as in this Indenture provided and (c) an office or agency where notices and demands to or upon the Issuer in respect of the
Securities or of this Indenture may be served. The Issuer will give to the Trustee written notice of the location of any such office or agency and of any change of location thereof. The Issuer hereby initially designates the Corporate Trust Office
of the Trustee as the office or agency for each such purpose. In case the Issuer shall fail to maintain any such office or agency or shall fail to give such notice of the location or of any change in the location thereof, presentations and demands
may be made and notices may be served at the Corporate Trust Office. 
  
 SECTION 3.3  Appointment to
Fill a Vacancy in Office of Trustee.    The Issuer, whenever necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided in Section 5.9, a Trustee, so that there shall at all times be a
Trustee hereunder. 
  
 SECTION 3.4  Paying Agents.    Whenever the Issuer shall
appoint a paying agent other than the Trustee, it will cause such paying agent to execute and deliver to the Trustee an instrument in which such agent shall agree with the Trustee, subject to the provisions of this Section, 
 

 43 

  
 (a)  that it will hold all sums received by it as such agent for
the payment of the principal of, premium, if any, or interest on the Securities (whether such sums have been paid to it by the Issuer or by any other obligor on the Securities) in trust for the benefit of the Holders of the Securities or of the
Trustee, 
  
 (b)  that it will give the Trustee notice of any failure by the Issuer (or by any other
obligor on the Securities) to make any payment of the principal of, premium, if any, or interest on the Securities when the same shall be due and payable, and 
  
 (c)  that it will pay any such sums so held in trust by it to the Trustee upon the Trustee’s written request at any time during the continuance of the
failure referred to in clause (b) above. 
  
 The Issuer will, prior to each due date of the principal of, premium, if any, or
interest on the Securities, deposit with the paying agent a sum sufficient to pay such principal, premium, or interest, and (unless such paying agent is the Trustee) the Issuer will promptly notify the Trustee of any failure to take such action.

  
 If the Issuer shall act as its own paying agent, it will, on or before each due date of the principal of, premium, if any, or
interest on the Securities, set aside, segregate and hold in trust for the benefit of the Holders of the Securities a sum sufficient to pay such principal, premium, or interest so becoming due. The Issuer will promptly notify the Trustee of any
failure to take such action. 
  
 Anything in this Section to the contrary notwithstanding, the Issuer may at any time, for the
purpose of obtaining a satisfaction and discharge of this Indenture or for any other reason, pay or cause to be paid to the Trustee all sums held in trust by the Issuer or any paying agent hereunder, as required by this Section, such sums to be held
by the Trustee upon the trusts herein contained. 
  
 Anything in this Section to the contrary notwithstanding, the agreement to
hold sums in trust as provided in this Section are subject to the provisions of Sections 9.3 and 9.4. 
  
 SECTION
3.5  Certificate to Trustee.    The Issuer will furnish to the Trustee on or before March 31, in each year (beginning with March 31, 1995) a brief certificate 
 

 44 

  
 (which need not comply with Section 10.5) from the principal executive, financial or accounting officer of the Company
as to his or her knowledge of the Company’s compliance with all conditions and covenants under the Indenture (such compliance to be determined without regard to any period of grace or requirement of notice provided under the Indenture) and as
to any default in such performance. 
  
 SECTION 3.6  Securityholders
Lists.    If and so long as the Trustee shall not be the Security registrar, the Issuer will furnish or cause to be furnished to the Trustee a list in such form as the Trustee may reasonably require of the names and addresses
of the Holders of the Securities pursuant to Section 312 of the Trust Indenture Act (a) semi-annually not more than 15 days after each record date for the payment of semi-annual interest on the Securities, as hereinabove specified, as of such record
date, and (b) at such other times as the Trustee may request in writing, within thirty days after receipt by the Issuer of any such request as of a date not more than 15 days prior to the time such information is furnished. 
  
 SECTION 3.7  Limitation on Incurrence of Additional Indebtedness.    The Issuer and its Restricted
Subsidiaries will not create, incur, assume, guarantee or otherwise become obligated with respect to any Indebtedness, unless, after giving effect thereto, the Issuer’s EBITDA/Interest Ratio would be at least 2.5 to 1.0, determined on a pro
forma basis as if the incurrence of such additional Indebtedness and the application of the net proceeds therefrom had occurred at the beginning of the Reference Period used to calculate the Issuer’s EBITDA/Interest Ratio. The foregoing
limitation is not applicable to (a) Indebtedness of the Issuer or any Restricted Subsidiary outstanding on the Issue Date after giving effect to the issuance of the Securities and the application of the net proceeds of the sale thereof; (b)
intercompany Indebtedness owed to the Issuer by any Restricted Subsidiary and intercompany Indebtedness owed to any Restricted Subsidiary that is a Wholly Owned Subsidiary of the Issuer by the Issuer or a Restricted Subsidiary; (c) extensions,
renewals or replacements of Indebtedness referred to in clause (a) or (b); or (d) Indebtedness in a principal amount, which, together with all other Indebtedness incurred and outstanding pursuant to this clause (d), does not exceed the sum of (i)
$255 million plus (ii) 10% of Reserve Value as of the date of the creation, assumption, guaranteeing or otherwise becoming liable with respect to such Indebtedness. 
 

 45 

  
 SECTION 3.8  Limitation on Restricted
Payments.    (a) The Issuer will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, make any Restricted Payment, if at the time of such Restricted Payment, or after giving effect thereto:
(1) a Default or an Event of Default under Section 4.1 herein has occurred and is continuing; (2) the aggregate amount expended for all Restricted Payments subsequent to the Issue Date (such amount, if other than in cash, to be valued at the fair
market value as determined in good faith by an Officer of the Issuer and (i) in the case of a non-cash Restricted Payment having a fair market value in excess of $1 million, evidenced by an Officers’ Certificate and (ii) in the case of a
non-cash Restricted Payment having a fair market value in excess of $10 million, evidenced by a Board Resolution as to the fairness of the valuation of such Restricted Payment) exceeds the sum of: (w) 50% of aggregate Consolidated Net Income of the
Issuer (or if such Consolidated Net Income is a loss, minus 100% of such loss) accrued for the period (taken as one accounting period), commencing with the first full fiscal quarter which commences after the Issue Date to and including the last day
of the first fiscal quarter ended immediately prior to the date of such Restricted Payment; plus (x) 100% of the aggregate Net Proceeds received by the Issuer from the issuance and sale (other than to a Restricted Subsidiary) of Qualified Capital
Stock subsequent to the Issue Date, including any shares of Qualified Capital Stock issued upon the exercise of options or warrants to purchase Qualified Capital Stock; (y) plus (I) in case any Unrestricted Subsidiary has been designated or
redesignated a Restricted Subsidiary, an amount equal to the fair market value of the aggregate Investments made by the Issuer and its Restricted Subsidiaries in such Unrestricted Subsidiary at the date of such redesignation, as determined in good
faith by the Issuer’s Board of Directors, whose determination evidenced by a Board Resolution shall be conclusive; or minus (II) in case any Restricted Subsidiary has been redesignated an Unrestricted Subsidiary, the fair market value of the
aggregate Investments in such Restricted Subsidiary by the Issuer and its Restricted Subsidiaries at the date of such redesignation, as determined in good faith by the Issuer’s Board of Directors, whose determination evidenced by a Board
Resolution shall be conclusive; plus (z) $10 million or (3) the Issuer would not be able to incur $1.00 of additional Indebtedness pursuant to the first sentence of Section 3.7. 
  
 (b)  The foregoing provisions of this covenant shall not prevent (1) the payment of any dividend within 60 days after the date of its declaration if such dividend would have
been permitted on the date of declaration under 
 

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 paragraph (a) of this Section 3.8, (2) the defeasance, redemption, repurchase or other acquisition of Capital Stock or
subordinated Indebtedness of the Issuer with the Net Proceeds received by the Issuer from the substantially concurrent sale of Qualified Capital Stock or Subordinated Indebtedness or in exchange for Capital Stock or Subordinated or (3) the making of
one or more Investments (other than Permitted Investments) in an aggregate amount not in excess of $10 million, provided, in each case, that no Default or Event of Default has occurred and is continuing; and provided, further, that the full amount
of any such payment, defeasance, redemption, repurchase, other acquisition or Investment pursuant to the foregoing clauses (l), (2) or (3) shall be deducted in the calculation of the aggregate amount of Restricted Payments expended pursuant to
clause (2) in paragraph (a) of this Section 3.8. 
  
 SECTION 3.9    Limitation on
Disposition,of Assets.    (a) Subject to the provisions of Article Eight hereof, the Issuer will not, and will not permit any Restricted Subsidiary to, make any Asset Disposition or series of related Asset Dispositions if
such Asset Disposition or series of related Asset Dispositions, together with all other Asset Dispositions in the preceding twelve months, has a fair market value of more than 5% of Reserve Value as of the date of the last such Asset Disposition
unless: 
  
 (i)  the Issuer or such Restricted Subsidiary receives consideration at the time of such
Asset Disposition at least equal to the fair market value (the determination of which, including the value of all non-cash consideration, shall be approved in good faith by the Board of Directors of the Issuer and such Restricted Subsidiary, if
applicable); and 
  
 (ii)  the proceeds from such Asset Disposition consist of cash and cash
equivalents, Tangible Business Properties or Permitted Capital Stock; provided that (x) any note or other obligation received by the Issuer (or such Restricted Subsidiary, as the case may be) that is immediately converted into cash shall be deemed
to be cash for purposes of this clause (ii) and (y) the Issuer or such Restricted Subsidiary may accept proceeds from such Asset Disposition in other than cash and cash equivalents, Tangible Business 
 

 47 

 Properties or Permitted Capital Stock does not exceed 5% of Reserve Value at the date of the last such Asset Disposition, and 
  
 (iii)  within two years following the date of such Asset Disposition, 100% of the Net Available Proceeds from such Asset Disposition are
applied by the Issuer or such Restricted Subsidiary: 
  
 (A)  to the extent the Issuer elects (or is
required by the terms of any Senior Debt) to the prepayment, repayment, or (in the case of letters of credit) collateralization of Senior Debt, 
  
 (B)  to the extent that such Net Available Proceeds are not so applied to prepay, repay or collateralize Senior Debt, to the extent the Issuer elects, to the
reinvestment in the oil and gas business (as defined in Section 3.11) of the Issuer and its Restricted Subsidiaries, and 
  
 (C)  to the extent that any Net Available Proceeds are not so applied to prepay, repay or collateralize Senior Debt, or so invested pursuant to subparagraph (B), to make an offer to purchase (the “Net
Proceeds Offer”) the Securities at a price equal to 100% of the principal amount of.the Securities plus accrued interest to the date of purchase. If the payment date under the Net Proceeds Offer is on or after an interest payment record date
and on or before the related interest payment date, any accrued interest will be paid to the person in whose name a Security is registered at the close of business on such record date, and no additional interest will be payable to Holders who tender
Securities pursuant to the Net Proceeds Offer. 
  
 Notwithstanding the foregoing, the Issuer and its Restricted Subsidiaries will
be required to apply Net Available Proceeds in accordance with the foregoing provisions only to the extent that Net Available Proceeds from all such Asset Dispositions which are not so applied exceed $10 million. 
  
 (b)  The Issuer shall commence a Net Proceeds Offer by mailing a notice to the Trustee and each Holder as of such record date as the Issuer
shall establish (and delivering such notice to the Trustee at least five Business Days prior thereto) stating: 
  
 

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 (i)  that the Net Proceeds Offer is being made pursuant to this
Section 3.9 and that all Securities validly tendered will be accepted for payment on a pro rata basis; 
  
 (ii) the purchase price and the date of purchase (which shall be a Business Day no earlier than 30 days nor later than 60 days from the date such notice is mailed) (the “Net Proceeds Payment Date”); 
  
 (iii)  that any Security not tendered will continue to accrue interest; 
  
 (iv)  that, unless the Issuer defaults in the payment of the Net Proceeds Payment, any Security accepted for payment
pursuant to the Net Proceeds Offer shall cease to accrue interest on and after the Net Proceeds Payment Date. 
  
 (v)  that Holders electing to have any Security purchased pursuant to the Net Proceeds Offer will be required to surrender such Security, together with the form entitled “Option of the Holder to Elect Purchase Upon Asset
Disposition” on the reverse side of the Security completed, to the Paying Agent at the address specified in the notice prior to the close of business on the Business Day immediately preceding the Net Proceeds Payment Date; 

 
 (vi)  that Holders will be entitled to withdraw their election if the Paying Agent receives, not later than the
close of business on the third Business Day immediately preceding the Net Proceeds Payment Date, a telegram, telex, facsimile transmission or letter setting forth the name of such Holder, the principal amount of Securities delivered for purchase and
a statement that such Holder is withdrawing his election to have such Securities purchased; and 
  
 (vii)  that Holders whose Securities are being purchased only in part will be issued new Securities equal in principal amount to the unpurchased portion of the Securities surrendered; provided that each Security purchased
and each new Security issued shall be in a principal amount of $1,000 or integral multiples thereof. 
  
 At least five days prior
to the date notice is mailed to each Holder, the Issuer shall furnish the Trustee with an Officers’ Certificate stating the amount of the Net Proceeds Payment. 
 

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 (c)   On the Net Proceeds Payment Date, the Issuer shall: 
  
 (i)   accept for payment on a pro rata basis Securities or portions thereof tendered pursuant to the Net Proceeds Offer;

  
 (ii)  deposit one day prior to the Net Proceeds Payment Date with the Paying Agent money sufficient
to pay the purchase price of all Securities or portions thereof so accepted; and 
  
 (iii)  deliver, or
cause to be delivered, to the Trustee, all Securities or portions thereof so accepted, together with an Officers’ Certificate specifying the Securities or portions thereof accepted for payment by the Issuer. 
  
 The Paying Agent shall promptly mail to the Holders of Securities so accepted payment in an amount equal to the purchase price, and the Trustee shall
promptly authenticate and mail to such Holders a new Security equal in principal amount to any unpurchased portion of the Security surrendered; provided that each Security purchased and each new Security issued shall be in a principal amount
of $1,000 or integral multiples thereof. 
  
 The Issuer will publicly announce the results of the Net Proceeds Offer as soon as
practicable after the Net Proceeds Payment Date. For purposes of this Section 3.9, the Trustee shall act as the Paying Agent. 
  
 (d)  The Issuer will comply with Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent such laws and regulations are applicable in the event that the Issuer is required to
repurchase Securities as described above. The Trustee shall not be responsible for determining whether compliance with such Rule 14e-1 is required or has been satisfied. 
  
 (e)  During the period between any Asset Disposition to which clauses (a)(iii)(A) through (a)(iii)(C) above apply and the application of such Net Available Proceeds, all Net
Available Proceeds shall be invested in Permitted Financial Investments. 
  
 SECTION 3.10  Limitation
on Transactions with Affiliates.    Neither the Issuer nor any of its Restricted Subsidiaries shall (other than, in any twelve-month period, for transactions in the ordinary course of business 
 

 50 

  
 involving or having a value in such twelve-month period of less than, in the aggregate, $5 million) (i) sell, lease,
transfer or otherwise dispose of any of its properties, assets or securities to, (ii) purchase or lease any property, assets or securities from, (iii) make any Investment in or (iv) enter into or amend any contract or agreement with or for the
benefit of, either (A) an Affiliate of any of them, (B) any Person or Person who is a member of a group (as such term is used for purposes of Sections 13(d) and 14(d) of the Exchange Act, whether or not applicable) that, directly or indirectly, is
the beneficial holder of 10% or more of any class of equity securities of the Issuer, (C) any Person who is an Affiliate of any such holder, or (D) any officers, directors, or employees of any of the above (each case under (A), (B), (C) and (D), an
“Affiliate Transaction”), except for an Affiliate Transaction made in good faith the terms of which are fair and reasonable to the Issuer or such Restricted Subsidiary, as the case may be, or with respect to Affiliate Transactions between
the Issuer and its Subsidiaries, to the Issuer, and are at least as favorable as the terms which could be obtained by the Issuer or such Restricted Subsidiary, as the case may be, or, with respect to Affiliate Transactions between the Issuer and its
Subsidiaries, by the Issuer, in a comparable transaction made on an arms-length basis with Persons who are not affiliated with the Issuer or such Restricted Subsidiary; provided that with respect to any Affiliate Transaction or series of
related Affiliate Transactions other than contracts for the supply or transportation of natural gas for a term of less than one year at prevailing market prices involving aggregate consideration (to either party) in excess of $10 million, the Issuer
shall, prior to the consummation thereof, deliver to the Trustee a written favorable opinion as to the fairness of such transaction to itself from a financial point of view from an independent investment banking firm of national reputation or a
favorable opinion as to the conformity of the pricing and terms of such transaction to current market prices and terms from an independent expert, broker or appraiser of national reputation. Notwithstanding the foregoing, (w) transactions pursuant
to the Existing Agreements, (x) transactions exclusively between or among the Issuer and any of its Restricted Subsidiaries that are Wholly Owned Subsidiaries, (y) Restricted Payments made in compliance with Section 3.8 of this Indenture and (z)
transactions permitted by, and complying with, the provisions of Article Eight shall not constitute “Affiliate Transactions.” 
  
 SECTION 3.11  Limitation on Conduct of Business.    The Issuer and its Restricted Subsidiaries will be operated 
 

 51 

  
 in a manner such that their business activities will be the “oil and gas business.” The “oil and gas
business” means the exploration for and the development, acquisition, production, processing, marketing, storage and transportation of hydrocarbons, and other related energy and natural resources business. 
  
 SECTION 3.12  Limitation on Dividend and Other Payment Restrictions Affecting Subsidiaries.    The
Issuer will not, and will not permit any Restricted Subsidiary to, directly or indirectly, create or suffer to exist or allow to become effective any consensual encumbrance or restriction of any kind on the ability of any Restricted Subsidiary (a)
to pay dividends or make other distributions on its Capital Stock or make payments on any Indebtedness owed to the Issuer or any other Restricted Subsidiary, (b) to make loans or advances to the Issuer or any other Restricted Subsidiary, or (c) to
transfer any of.its property to the Issuer or any other Restricted Subsidiary (any such restriction being referred to herein as a “Payment Restriction”), except for such encumbrances or restrictions existing under or by reason of (i)
Indebtedness or other obligations existing pursuant to a written agreement in effect on the Issue Date, (ii) customary provisions restricting subletting or assignment of any lease governing a leasehold interest of the Issuer or any Restricted
Subsidiary, (iii) customary restrictions in security agreements or mortgages securing Indebtedness or other obligations of a Restricted Subsidiary to the extent such restrictions restrict the transfer of the property subject to such security
agreements and mortgages, (iv) customary restrictions in purchase money obligations for property acquired in the ordinary course of business restricting the transfer of the property acquired thereby, (v) Indebtedness incurred by a Restricted
Subsidiary prior to the date on which such Restricted Subsidiary was acquired by the Issuer (other than Indebtedness incurred as consideration in, or to provide all or any portion of the funds or credit support utilized to consummate, the
transaction or series of related transactions pursuant to which such Restricted Subsidiary became a Subsidiary or was acquired by the Issuer) and outstanding on such date, or (vi) Indebtedness incurred to refinance, refund, extend or renew
Indebtedness referred to in clauses (i), (ii), (iii), (iv) or (v) above, provided that the Payment Restrictions contained therein are not more restrictive than those provided for in the Indebtedness being refinanced, refunded, extended or
renewed. 
  
 SECTION 3.13  Senior Subordinated Debt.    The Issuer may not
incur, create, assume, guarantee or otherwise become liable for any Indebtedness that is subordinate or 
 

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 junior in right of payment to any Senior Debt and senior in any respect in right of payment to the Securities.

  
 SECTION 3.14  Reports by the Issuer.    The Issuer shall file with the
Trustee and send to each Holder of the Securities, within 15 days of filing with the SEC, copies of the annual reports, quarterly reports and reports on Form 8-K which the Issuer files with the SEC pursuant to Section 13 or 15(d) of the Exchange
Act. Notwithstanding that the Issuer may not be subject to the periodic reporting requirements of the Exchange Act, it will nonetheless continue to file with the SEC and deliver to the Trustee and each Holder of Securities such annual reports,
quarterly reports and other information which are specified in Section 13 or 15(d) of the Exchange Act. 
  
 SECTION
3.15  Reports by the Trustee.    Any Trustee’s report required under Section 313(a) of the Trust Indenture Act of 1939 shall be transmitted on or before the first date for the regular payment of semi-annual
interest on the Securities next succeeding May 15 in each year, and shall be dated as of a date convenient to the Trustee no more than 60 nor less than 45 days prior thereto (unless such May 15 is less than 45 days prior to such interest payment
date, in which case such report shall be (a) so transmitted on or before the second such interest payment date next succeeding such May 15 and (b) as of a date determined as provided above). 
  
 ARTICLE FOUR 
  
 REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS 

ON EVENT OF DEFAULT. 
  
 SECTION
4.1  Event of Default Defined; Acceleration of Maturity; Waiver of Default.    In case one or more of the following Events of Default (whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body) shall have occurred and be continuing, that is to say:

  
 (a)  default in the payment of any installment of interest upon any of the Securities as and when
the same shall become due and payable, and continuance of such default for a period of 30 days; or 
 

 53 

  
 (b)  default in the payment of all or any part of the principal of
or premium, if any, on any of the Securities when due and payable either at maturity, upon repurchase pursuant to a Net Proceeds Offer or a Change of Control Offer, upon acceleration or otherwise; or 
  
 (c)  default by the Issuer in the deposit of any optional redemption payment; or 
  
 (d)  failure on the part of the Issuer duly to observe or perform any other of the covenants or agreements on the part of
the Issuer contained in the Securities or in this Indenture (including but not limited to the Issuer’s failure to repurchase Securities upon a Change of Control under Article XIII hereof) for a period of 30 days after the date on which written
notice specifying such failure, stating that such notice is a “Notice of Default” hereunder and demanding that the Issuer remedy the same, shall have been given by registered or certified mail, return receipt requested, to the Issuer by
the Trustee, or to the Issuer and the Trustee by the Holders of at least 25% in aggregate principal amount of the Securities at the time outstanding; or 
  
 (e)  a default in the payment at stated final maturity of the principal of any other Indebtedness. of the Issuer or any Restricted Subsidiary or the
acceleration of the maturity of any other Indebtedness of the Issuer or any Restricted Subsidiary in each case having an aggregate outstanding principal amount of $10 million or more for any single Indebtedness; and such acceleration shall not be
rescinded or annulled within ten days after notice thereof shall have been given to the Issuer by the Trustee (if such event be known to it), or to the Issuer and the Trustee by the Holders of at least 25% in aggregate principal amount of the
Securities at the time outstanding; provided that if such event of default under such indenture or instrument shall be remedied or cured by the Issuer or waived by the Holders of such indebtedness, then the Event of Default hereunder by reason
thereof shall be deemed likewise to have been thereupon remedied, cured or waived without further action upon the part of either the Trustee or any of the Securityholders, and provided further that, subject to the provisions of Sections 5.1 and 5.2
hereof, the Trustee shall not be charged with knowledge of any such default unless written notice thereof shall have been given to the Trustee by the Issuer, by the Holder or an agent of the 
 

 54 

  
 Holder of any such indebtedness, by the trustee then acting under any indenture or other
instrument under which such default shall have occurred, or by the Holders of not less than 25% in the aggregate principal amount of the Securities at the time outstanding, or 
  
 (f)  one or more judgements or orders in an aggregate amount in excess of $10 million shall have been rendered against the Issuer or any Restricted Subsidiary
and such judgement or order shall continue unsatisfied and unstayed for a period of 60 days; or 
  
 (g)  a court having jurisdiction in the premises shall enter a decree or order for relief in respect of the Issuer or any Restricted Subsidiary in an involuntary case under any applicable bankruptcy, insolvency or other similar
law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of the Issuer or any Restricted Subsidiary or for any substantial part of its property or ordering the winding up
or liquidation of its affairs, and such decree or order shall remain unstayed and in effect for a period of 60 consecutive days; or 
  
 (h)  the Issuer or any Restricted Subsidiary shall commence a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or consent to the entry of an order
for relief in an involuntary case under any such law, or consent to the appointment or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of the Issuer or any Restricted Subsidiary or for
any substantial part of its property, or make any general assignment for the benefit of creditors 
  
 then, and in each and every such case (other than in
the case of an Event of Default specified in Sections 4.1(g) or (h) hereof), unless the principal of all of the Securities shall have already become due and payable, either the Trustee or the Holders of not less than 25% in aggregate principal
amount of the Securities then outstanding hereunder, by notice in writing to the Issuer (and to the Trustee if given by Securityholders), may declare the entire principal of and premium, if any, and accrued but unpaid interest on all the Securities
to be due and payable immediately provided that, if any Indebtedness is outstanding pursuant to any Designated Senior Debt, upon a declaration of acceleration, the principal of and premium, if any, and interest on the Securities shall be
payable upon 
 

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 the earlier of (i) the day that is five business days after notice of acceleration is given to the Representative under
such Designated Senior Debt and (ii) the date of any acceleration of the Indebtedness under any Designated Senior Debt. Upon any such declaration the principal of, premium, if any, and interest on the Securities shall become immediately due and
payable. If an Event of Default specified in Sections 4.1(g) or (h) hereof occurs and is continuing, the principal of and premium, if any, and interest on all the Securities will become and be immediately due and payable without any declaration or
other act on the part of the Trustee or any Holders of the Securities. This provision, however, is subject to the condition that if, at any time after the principal of the Securities shall have been so declared due and payable, and before any
judgment or decree for the payment of the moneys due shall have been obtained or entered as hereinafter provided, the Issuer shall pay or shall deposit with the Trustee a sum sufficient to pay all matured installments of interest upon all the
Securities and the principal of any and all Securities which shall have become due otherwise than by acceleration (with interest upon such principal and, to the extent that payment of such interest is enforceable under applicable law, on overdue
installments of interest, at the same rate as the rate of interest specified in the Securities, to the date of such payment or deposit) and such amount as shall be sufficient to cover reasonable compensation to the Trustee and each predecessor
Trustee; their respective agents, attorneys and counsel, and all other expenses and liabilities incurred, and all advances made, by the Trustee and each predecessor Trustee except as a result of negligence or bad faith, and if any and all Events of
Default under the Indenture, other than the non-payment of the principal of Securities which shall have become due by acceleration, shall have been cured, waived or otherwise remedied as provided herein—then and in every such case the Holders
of a majority in aggregate principal amount of the Securities then outstanding, by written notice to the Issuer and to the Trustee, may waive all defaults and rescind and annul such declaration and its consequences, but no such waiver or rescission
and annulment shall extend to or shall affect any subsequent default or shall impair any right consequent thereon. 
  
 SECTION 4.2  Collection of Indebtedness by Trustee; Trustee May Prove Debt.    The Issuer covenants that (a) in case default shall occur in the payment of any installment of interest on
any of the Securities when such interest shall have become due and payable, and such default shall have continued for a period of 30 days or (b) in case default shall be made in the payment of all or any part of 
 

 56 

  
 the principal or premium, if any, of any of the Securities when the same shall have become due and payable, whether upon
maturity or upon any redemption or by declaration or otherwise—then upon demand of the Trustee, the Issuer will pay to the Trustee for the benefit of the Holders of the Securities the whole amount that then shall have become due and payable on
all such Securities for principal, premium or interest, as the case may be (with interest to the date of such payment upon the overdue principal and premium, if any, and, to the extent that payment of such interest is enforceable under applicable
law, on overdue installments of interest at the same rate as the rate of interest specified in the Securities); and in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including reasonable
compensation to the Trustee and each predecessor Trustee, their respective agents, attorneys and counsel, and any expenses and liabilities incurred, and all advances made, by the Trustee and each predecessor Trustee except as a result of its
negligence or bad faith. 
  
 Until such demand is made by the Trustee, the Issuer may pay the principal of, or premium, if any, and
interest on the Securities to the registered Holders, whether or not the Securities are overdue. 
  
 In case the Issuer shall fail
forthwith to pay such amounts upon such demand, the Trustee, in its own name and as trustee of an express trust, shall be entitled and empowered to institute any action or proceedings at law or in equity for the collection of the sums so due and
unpaid, and may prosecute any such action or proceedings to judgment or final decree, and may enforce any such judgment or final decree against the Issuer or other obligor upon the Securities and collect in the manner provided by law out of the
property of the Issuer or other obligor upon the Securities, wherever situated the moneys adjudged or decreed to be payable. 
  
 In
case there shall be pending proceedings relative to the Issuer or any other obligor upon the Securities under Title 11 of the United States Code or any other applicable Federal or state bankruptcy, insolvency or other similar law, or in case a
receiver, assignee or trustee in bankruptcy or reorganization, liquidator, sequestrator or similar official shall have been appointed for or taken possession of the Issuer or its property or such other obligor, or in case of any other comparable
judicial proceedings relative to the Issuer or other obligor upon the Securities, or to the creditors or property of the Issuer or such other obligor, the Trustee, irrespective of 
 

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 whether the principal of the Securities shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the
Trustee shall have made any demand pursuant to the provisions of this Section, shall be entitled and empowered, by intervention in such proceedings or otherwise: 
  
 (a)  to file and prove a claim or claims for the whole amount of principal and interest owing and unpaid in respect of the Securities, and to file such other
papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for reasonable compensation to the Trustee and each predecessor Trustee, and their respective agents, attorneys and counsel, and for
reimbursement of all expenses and liabilities incurred, and all advances made, by the Trustee and each predecessor Trustee, except as a result of negligence or bad faith) and of the Securityholders allowed in any judicial proceedings relative to the
Issuer or other obligor upon the Securities, or to the creditors or property of the Issuer or such other obligor, 
  
 (b)  unless prohibited by applicable law and regulations, to vote on behalf of the Holders of the Securities in any election of a trustee or a standby trustee in arrangement, reorganization, liquidation or other bankruptcy or
insolvency proceedings or person performing similar functions in comparable proceedings, and 
  
 (c)  to collect and receive any moneys or other property payable or deliverable on any such claims, and to distribute all amounts received with respect to the claims of the Securityholders and of the Trustee on their behalf; and
any trustee, receiver, or liquidator, custodian or other similar official is hereby authorized by each of the Securityholders to make payments to the Trustee, and, in the event that the Trustee shall consent to the making of payments directly to the
Securityholders, to pay to the Trustee such amounts as shall be sufficient to cover reasonable compensation to the Trustee, each predecessor Trustee and their respective agents, attorneys and counsel, and all other expenses and liabilities incurred,
and all advances made, by the Trustee and each predecessor Trustee except as a result of negligence or bad faith, 
  
 Nothing
herein contained shall be deemed to authorize the Trustee to authorize or consent to or vote for or accept or adopt on behalf of any securityholder any plan 
 

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 or reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof, or to authorize the Trustee to vote in
respect of the claim of any Securityholder in any such proceeding except, as aforesaid, to vote for the election of a trustee in bankruptcy or similar person. 
  
 All rights of action and of asserting claims under this Indenture, or under any of the Securities, may be enforced by the Trustee without the possession of any of the Securities or the production thereof on any trial
or other proceedings relative thereto, and any such action or proceedings instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment, subject to the payment of the expenses, disbursements
and compensation of the Trustee, each predecessor Trustee and their respective agents and attorneys, shall be for the ratable benefit of the Holders of the Securities. 
  
 In any proceedings brought by the Trustee (and also any proceedings involving the interpretation of any provision of this Indenture to which the Trustee shall be a party) the Trustee
shall be held to represent all the Holders of the Securities, and it shall not be necessary to make any Holders of the Securities parties to any such proceedings. 
  
 SECTION 4.3  Application of Proceeds.    Any moneys collected by the Trustee pursuant to this Article shall, subject to the
subordination provisions hereof, be applied in the following order at the date or dates fixed by the Trustee and, in case of the distribution of such moneys on account of principal or interest, upon presentation of the several Securities and
stamping (or otherwise noting) thereon the payment, or issuing Securities in reduced principal amounts in exchange for the presented Securities if only partially paid, or upon surrender thereof if fully paid: 
  
 FIRST:  To the payment of costs and expenses, including reasonable compensation to the Trustee and each predecessor Trustee
and their respective .agents and attorneys and of all expenses and liabilities incurred, and all advances made, by the Trustee and each predecessor Trustee except as a result of negligence or bad faith; 
  
 SECOND:  In case the principal of the Securities shall not have become and be then due and payable, to the payment of
interest in default in the order of the 
 

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 maturity of the installments of such interest, with interest (to the extent that such interest has been collected by the Trustee) upon
the overdue installments of interest at the same rate as the rate of interest specified in the Securities, such payments to be made ratably to the persons entitled thereto, without discrimination or preference; 
  
 THIRD:  In case the principal of, and premium, if any, of the Securities shall have become and shall be then due and
payable, to the payment of the whole amount then owing and unpaid upon all the Securities for principal, premium and interest, with interest upon the overdue principal and premium and (to the extent that such interest has been collected by the
Trustee) upon overdue installments of interest at the same rate as the rate of interest specified in the Securities; and in case such moneys shall be insufficient to pay in full the whole amount so due and unpaid upon the Securities, then to the
payment of such principal and premium, and interest, without preference or priority of principal and premium, over interest, or of interest over principal, premium or of any installment of interest over any other installment of interest, or of any
Security over any other Security, ratably to the aggregate of such principal and premium, and accrued and unpaid interest; and 
  
 FOURTH:  To the payment of the remainder, if any, to the Issuer or any other person lawfully entitled thereto. 
  
 SECTION 4.4  Suits for Enforcement.    In case an Event of Default has occurred, has not been waived and is continuing, the Trustee may in its discretion proceed to
protect and enforce the rights vested in it by this Indenture by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any of such rights, either at law or in equity or in bankruptcy or otherwise,
whether for the specific enforcement of any covenant or agreement contained in this Indenture or in aid of the exercise of any power granted in this Indenture or to enforce any other legal or equitable right vested in the Trustee by this Indenture
or by law. 
  
 SECTION 4.5  Restoration of Rights on Abandonment of
Proceedings.    In case the Trustee shall have proceeded to enforce any right under this Indenture and such proceedings shall have been discontinued or abandoned for any reason, or shall have been determined adversely to the
Trustee, then and in every such case the Issuer and the Trustee shall be 
 

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 restored respectively to their former positions and rights hereunder, and all rights, remedies and powers of the Issuer, the Trustee and the Securityholders
shall continue as though no such proceedings had been taken. 
  
 SECTION 4.6  Limitations on Suits by
Securityholders.    No Holder of any Security shall have any right by virtue or by availing of any provision of this Indenture to institute any action or proceeding at law or in equity or in bankruptcy or otherwise upon or
under or with respect to this Indenture, or for the appointment of a trustee, receiver, liquidator, custodian or other similar official or for any other remedy hereunder, unless such Holder previously shall have given to the Trustee written notice
of default and of the continuance thereof, as hereinbefore provided, and unless also the Holders of not less than 25% in aggregate principal amount of the Securities then outstanding shall have made written request upon the Trustee to institute such
action or proceedings in its own name as trustee hereunder and shall have offered to the Trustee such reasonable indemnity as it may require against the costs, expenses and liabilities to be incurred therein or thereby and the Trustee for 30 days
after its receipt of such notice, request and offer of indemnity shall have failed to institute any such action or proceedings and no direction inconsistent with such written request shall have been given to the Trustee pursuant to Section 4.8
however, such provision does not affect the right of a Holder of a Security to sue for enforcement of any overdue payment therein; it being understood and intended, and being expressly covenanted by the taker and Holder of every Security with every
other taker and Holder and the Trustee, that no one or more Holders of Securities shall have any right in any manner whatever by virtue or by availing of any provision of this Indenture to affect, disturb or prejudice the rights of any other Holder
of Securities, or to obtain or seek to obtain priority over or preference to any other such Holder or to enforce any right under this Indenture, except in the manner herein provided and for the equal, ratable and common benefit of all Holders of
Securities. For the protection and enforcement of the provisions of this Section, each and every Securityholder and the Trustee shall be entitled to such relief as can be given either at law or in equity. 
  
 SECTION 4.7  Powers and Remedies Cumulative; Delay or Omission Not Waiver of Default.    Except as
provided in Section 2.8, no right or remedy herein conferred upon or reserved to the Trustee or to the Securityholders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by

 

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 law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion
or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy. 
  
 No delay or omission of the Trustee or of any Holder of any of the Securities to exercise any right or power accruing upon any Event of Default occurring and continuing as aforesaid
shall impair any such right or power or shall be construed to be a waiver of any such Event of Default or an acquiescence therein; and, subject to Section 4.6, every power and remedy given by this Indenture or by law to the Trustee or to the
Securityholders may be exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by the Securityholders. 
  
 SECTION 4.8  Control by Securityholders.    The Holders of a majority in aggregate principal amount of the Securities at the time outstanding shall have the right to direct the time,
method, and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee by this Indenture; provided that such direction shall not be otherwise than in accordance with law and
the provisions of this Indenture and provided further that (subject to the provisions of Section 5.1) the Trustee shall have the right to decline to follow any such direction if the Trustee, being advised by counsel, shall determine that the action
or proceeding so directed may not lawfully be taken or if the Trustee in good faith shall determine that the action or proceedings so directed would involve the Trustee in personal liability or that the actions or forebearances specified in or
pursuant to such direction shall be unduly prejudicial to the interests of Holders of the Securities not joining in the giving of said direction, it being understood that (subject to Section 5.1) the Trustee shall have no duty to ascertain whether
or not such actions or forebearances are unduly prejudicial to such Holders. 
  
 Nothing in this Indenture shall impair the right
of the Trustee in its discretion to take any action deemed proper by the Trustee and which is not inconsistent with such direction by Securityholders. 
  
 SECTION 4.9  Waiver of Past Defaults.    Prior to the declaration of the maturity of the Securities as provided in Section 4.1, the Holders of a majority in
aggregate principal amount of the Securities at the time outstanding may on behalf of the Holders of all the 
 

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 Securities waive any past default or Event of Default hereunder and its consequences, except a default (a) in the payment of principal, or premium, if any, of
or interest on any of the Securities or (b) in respect of a covenant or provision hereof which cannot be modified or amended without the consent of the Holder of each Security affected. In the case of any such waiver, the Issuer, the Trustee and the
Holders of the Securities shall be restored to their former positions and rights hereunder, respectively; but no such waiver shall extend to any subsequent or other default or impair any right consequent thereon. 
  
 Upon any such waiver, such default shall cease to exist and be deemed to have been cured and not to have occurred, and any Event of Default arising
therefrom shall be deemed to have been cured, and not to have occurred for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other default or Event of Default or impair any right consequent thereon. 

 
 ARTICLE FIVE 
  
 CONCERNING THE
TRUSTEE. 
  
 SECTION 5.1  Duties and Responsibilities of the Trustee; During Default; Prior to
Default.    The Trustee, prior to the occurrence of an Event of Default and after the curing or waiving of all Events of Default which may have occurred, undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture. In case an Event of Default has occurred (which has not been cured or waived) the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and
skill in their exercise, as a prudent man would exercise or use under the circumstances in the conduct of his own affairs. 
  
 No
provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent failure to act or its own willful misconduct, except that 
  
 (a)  prior to the occurrence of an Event of Default and after the curing or waiving of all such Events of Default which may have occurred: 

 
 (i)  the duties and obligations of the Trustee shall be determined solely by the express provisions of this
Indenture, and the Trustee shall not be liable except for the performance of 
 

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 such duties and obligations as are specifically set forth in this Indenture, and no implied
covenants or obligations shall be read into this Indenture against the Trustee; and 
  
 (ii)  in the
absence of bad faith on the part of the Trustee, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any statements, certificates or opinions furnished to the Trustee and
conforming to the requirements of this Indenture; but in the case of any such statements, certificates or opinions which by any provision hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine
the same to determine whether or not they conform to the requirements of this Indenture; 
  
 (b)  the
Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer or Responsible Officers of the Trustee, unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts; and 

 
 (c)  the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith
in accordance with the direction of the Holders of not less than a majority in principal amount of the Securities at the time outstanding relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred upon the Trustee, under this Indenture. 
  
 None of the provisions contained in this
Indenture shall require the Trustee to expend or risk its own funds or otherwise incur personal financial liability in the performance of any of its duties or in the exercise of any of its rights or powers, if there shall be reasonable ground for
believing that the repayment of such funds or adequate indemnity against such liability is not reasonably assured to it. 
  
 This
Section 5.1 is in furtherance of and subject to Sections 315 and 316 of the Trust Indenture Act of 1939. 
  
 SECTION
5.2  Certain Rights of the Trustee.    In furtherance of and subject to the Trust Indenture Act of 1939, and subject to Section 5.1: 
 

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 (a)  the Trustee may rely and shall be protected in acting or
refraining from acting upon any resolution, Officers’ Certificate or any other certificate, statement, instrument, opinion, report, notice, request, consent, order, bond, debenture, note, coupon, security or other paper or document believed by
it to be genuine and to have been signed or presented by the proper party or parties; 
  
 (b)  any
request, direction, order or demand of the Issuer mentioned herein shall be sufficiently evidenced by an Officers’ Certificate (unless other evidence in respect thereof be herein specifically prescribed); and any resolution of the Board of
Directors may be evidenced to the Trustee by a copy thereof certified by the secretary or an assistant secretary of the Issuer; 
  
 (c)  the Trustee may consult with counsel and any advice or Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted to be taken by it
hereunder in good faith and in accordance with such advice or Opinion of Counsel; 
  
 (d)  the Trustee
shall be under no obligation to exercise any of the trusts or powers vested in it by this Indenture at the request, order or direction of any of the Securityholders pursuant to the provisions of this Indenture, unless such Securityholders shall have
offered to the Trustee reasonable security or indemnity against the costs, expenses and liabilities which might be incurred therein or thereby; 
  
 (e)  the Trustee shall not be liable for any action taken or omitted by it in good faith and believed by it to be authorized or within the discretion, rights
or powers conferred upon it by this Indenture; 
  
 (f)  prior to the occurrence of an Event of Default
hereunder and after the curing or waiving of all Events of Default, the Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request,
consent, order, approval, appraisal, bond, debenture, note, coupon, security, or other paper or document unless requested in writing so to do by the Holders of not less than a majority in aggregate principal amount of the Securities then
outstanding; provided that, if the 
 

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 payment within a reasonable time to the Trustee of the costs, expenses or liabilities likely to be incurred by it in the making of such
investigation is, in the opinion of the Trustee, not reasonably assured to the Trustee by the security afforded to it by the terms of this Indenture, the Trustee may require reasonable indemnity against such expenses or liabilities as a condition to
proceeding; the reasonable expenses of every such examination shall be paid by the Issuer or, if paid by the Trustee or any predecessor trustee, shall be repaid by the Issuer upon demand; and 
  

(g)  the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys
not regularly in its employ and the Trustee shall not be responsible for any misconduct or negligence on the part of any such agent or attorney appointed with due care by it hereunder; and 
  
 (h)  the Trustee shall not be deemed to have notice or knowledge of any matter unless a Responsible Officer assigned to and working in the Trustee’s
Corporate Trust Office has actual knowledge thereof or unless written notice thereof is received by the Trustee at its Corporate Trust Office and such notice references the Securities generally, the Company or this Indenture. 

 
 SECTION 5.3  Trustee Not Responsible for Recitals, Disposition of Securities or Application of Proceeds
Thereof.    The recitals contained herein and in the Securities, except the Trustee’s certificates of authentication, shall be taken as the statements of the Issuer, and the Trustee assumes no responsibility for the
correctness of the same. The Trustee makes no representation as to the validity or sufficiency of this Indenture or of the Securities. The Trustee shall not be accountable for the use or application by the Issuer of any of the Securities or of the
proceeds thereof. 
  
 SECTION 5.4  Trustee and Agents May Hold Securities: Collections, etc.
The Trustee or any agent of the Issuer or the Trustee, in its individual or any other capacity, may become the owner or pledgee of Securities with the same rights it would have if it were not the Trustee or such agent and may otherwise deal with the
Issuer and receive, collect, hold and retain collections from the Issuer with the same rights it would have if it were not the Trustee or such agent. 
 

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 SECTION 5.5  Moneys Held by
Trustee.    Subject to the provisions of Section 9.4 hereof, all moneys received by the Trustee shall, until used or applied as herein provided, be held in trust for the purposes for which they were received, but need not be
segregated from other funds except to the extent required by mandatory provisions of law. Neither the Trustee nor any agent of the Issuer or the Trustee shall be under any liability for Interest on any moneys received by it hereunder. 

 
 SECTION 5.6  Compensation and Indemnification of Trustee and Its Prior Claim.    The
Issuer covenants and agrees to pay to the Trustee from time to time, and the Trustee shall be entitled to, reasonable compensation (which shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust)
and the Issuer covenants and agrees to pay or reimburse the Trustee and each predecessor Trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by or on behalf of it in accordance with any of the provisions
of this Indenture (including the reasonable compensation and the expenses and disbursements of its counsel and of all agents and other persons not regularly in its employ) except any such expense, disbursement or advance as may arise from its
negligence or bad faith. The Issuer also covenants to indemnify the Trustee and each predecessor Trustee for, and to hold it harmless against, any loss, liability or expense incurred without negligence or bad faith on its part, arising out of or in
connection with the acceptance or administration of this Indenture or the trusts hereunder and its duties hereunder, including the costs and expenses of defending itself against or investigating any claim of liability in the premises. The
obligations of the Issuer under this Section to compensate and indemnify the Trustee and each predecessor Trustee and to pay or reimburse the Trustee and each predecessor Trustee for expenses, disbursements and advances shall constitute additional
indebtedness hereunder and shall survive the satisfaction and discharge of this Indenture. Such additional indebtedness shall be a senior claim to that of the Securities upon all property and funds held or collected by the Trustee as such, except
funds held in trust for the benefit of the Holders of particular Securities, and the Securities are hereby subordinated to such senior claim. 
  
 SECTION 5.7  Right of Trustee to Rely on Officers’ Certificate, etc.    Subject to Sections 5.1 and 5.2 hereby, whenever in the administration of the trusts of
this Indenture the Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering or omitting any action hereunder, such matter 
 

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 (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of negligence or bad faith on the part of the Trustee, be
deemed to be conclusively proved and established by an Officers’ Certificate delivered to the Trustee, and such certificate, in the absence of negligence or bad faith on the part of the Trustee, shall be full warrant to the Trustee for any
action taken, suffered or omitted by it under the provisions of this Indenture upon the faith thereof. 
  
 SECTION
5.8  Persons Eligible for Appointment as Trustee.    The Trustee hereunder shall at all times be a corporation having a combined capital and surplus of at least $5,000,000, and which is eligible in accordance
with the provisions of Section 310 (a) of the Trust Indenture Act of 1939. If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of a Federal, State or District of Columbia supervising or
examining authority, then for the purposes of this Section, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. If at any time
the Trustee shall cease to be eligible in accordance with the provisions of this Section 5.8, it shall resign immediately and in the manner and with the effect hereinafter specified in this Article. 
  
 SECTION 5.9  Resignation and Removal; Appointment of Successor Trustee.    (a) The Trustee may at
any time resign by giving written notice of resignation to the Issuer and by mailing notice thereof by first-class mail to Holders of Securities at their last addresses as they shall appear on the Security register. Upon receiving such notice of
resignation, the Issuer shall promptly appoint a successor trustee by written instrument in duplicate, executed by authority of the Board of Directors, one copy of which instrument shall be delivered to the resigning Trustee and one copy to the
successor trustee. If no successor trustee shall have been so appointed and have accepted appointment within 30 days after the mailing of such notice of resignation, the resigning trustee may petition any court of competent jurisdiction for the
appointment of a successor trustee, or any Securityholder who has been a bona fide Holder of a Security or Securities for at least six months may, on behalf of himself and all others similarly situated, petition any such court for the appointment of
a successor trustee. Such court may thereupon, after such notice, if any, as it may deem proper and prescribe, appoint a successor trustee. 
 

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 (b)  In case at any time any of the following shall occur: 
  
 (i)  the Trustee shall fail to comply with the provisions of Section 310 (b) of the Trust Indenture Act of 1939, after
written request therefor by the Issuer or by any Securityholder who has been a bona fide Holder of a Security or Securities for at least six months; or 
  
 (ii)  the Trustee shall cease to be eligible in accordance with the provisions of Section 5.8 and shall fail to resign after written request therefor by the
Issuer or by any such Securityholder; or 
  
 (iii)  the Trustee shall become incapable of acting, or
shall be adjudged a bankrupt or insolvent, or a receiver or liquidator of the Trustee or of its property shall be appointed, or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of
rehabilitation, conservation or liquidation; 
  
 then, in any such case, the Issuer may remove the Trustee and appoint a successor trustee by written
instrument, in duplicate, executed by order of the Board of Directors of the Issuer, one copy of which instrument shall be delivered to the Trustee so removed and one copy to the successor trustee, or, subject to Section 315 (e) of the Trust
Indenture Act of 1939, any Securityholder who has been a bona fide Holder of a Security or Securities for at least six months may on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the removal of
the Trustee and the appointment of a successor trustee. Such court may thereupon, after such notice, if any, as it may deem proper and prescribe, remove the Trustee and appoint a successor trustee. 
  
 (c)  The Holders of a majority in aggregate principal amount of the Securities at the time outstanding may at any time remove the Trustee and
appoint a successor trustee by delivering to the Trustee so removed, to the successor trustee so appointed and to the Issuer the evidence provided for in Section 6.1 of the action in that regard taken by the Securityholders. 
  
 (d)  Any resignation or removal of the Trustee and any appointment of a successor trustee pursuant to any of the provisions of this Section
5.9 shall become effective upon acceptance of appointment by the successor trustee as provided in Section 5.10. 
 

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 SECTION 5.10  Acceptance of Appointment by Successor
Trustee.    Any successor trustee appointed as provided in Section 5.9 shall execute and deliver to the Issuer and to its predecessor trustee an instrument accepting such appointment hereunder, and thereupon the resignation
or removal of the predecessor trustee shall become effective and such successor trustee, without any further act, deed or conveyance, shall become vested with all rights, powers, duties and obligations of its predecessor hereunder, with like effect
as if originally named as trustee herein; but, nevertheless, on the written request of the Issuer or of the successor trustee, upon payment of its charges then unpaid, the trustee ceasing to act shall, subject to Section 9.4, pay over to the
successor trustee all moneys at the time held by it hereunder and shall execute and deliver an instrument transferring to such successor trustee all such rights, powers, duties and obligations. Upon request of any such successor trustee, the Issuer
shall execute any and all instruments in writing for more fully and certainly vesting in and confirming to such successor trustee all such rights and powers. Any trustee ceasing to act shall, nevertheless, retain a prior claim upon all property or
funds held or collected by such trustee to secure any amounts then due it pursuant to the provisions of Section 5.6. 
  
 Upon
acceptance of appointment by a successor trustee as provided in this Section 5.10, the Issuer shall mail notice thereof by first-class mail to the Holders of Securities at their last addresses as they shall appear in the Security register. If the
acceptance of appointment is substantially contemporaneous with the resignation, then the notice called for by the preceding sentence may be combined with the notice called for by Section 5.9. If the Issuer fails to mail such notice within 10 days
after acceptance of appointment by the successor trustee, the successor trustee shall cause such notice to be mailed at the expense of the Issuer. 
  
 SECTION 5.11  Merger, Conversion, Consolidation or Succession to Business of Trustee.    Any corporation into which the Trustee may be merged or converted or with
which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any corporation succeeding to all or substantially of the corporate trust business of the Trustee,
shall be the successor of the Trustee hereunder, provided that such corporation shall be eligible under the provisions of Section 5.8, without the execution or filing of any paper or any further act on the part of any of the 
 

 70 

 parties hereto, anything herein to the contrary notwithstanding. 
  
 In case at the time such successor 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 Trustee; and in all such cases such certificate shall have the full force which it is anywhere in the Securities or in this Indenture provided that the
certificate of the Trustee shall have; provided that the right to adopt the certificate of authentication of any predecessor Trustee or to authenticate Securities in the name of any predecessor Trustee shall apply only to its successor or successors
by merger, conversion or consolidation. 
  
 ARTICLE SIX 
  
 CONCERNING THE SECURITYHOLDERS 
  
 SECTION
6.1  Evidence of Action Taken by Securityholders.    Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by Securityholders may
be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Securityholders in person or by agent duly appointed in writing; and, except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments are delivered to the Trustee. Proof of execution of any instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and (subject to Sections 5.1 and 5.2)
conclusive in favor of the Trustee and the Issuer, if made in the manner provided in this Article. 
  
 SECTION
6.2  Proof of Execution of Instruments and of Holding of Securities; Record Date.    Subject to Sections 5.1 and 5.2, the execution of any instrument by a Securityholder or his agent or proxy may be proved in
accordance with such reasonable rules and regulations as may be prescribed by the Trustee or in such manner as shall be satisfactory to the Trustee. The holding of Securities shall be proved by the Security register or by a certificate 

 71 

 of the registrar thereof. The Company may set a record date for purposes of determining the identity of Holders of Securities entitled to vote or consent to any
action referred to in Section 6.1, which record date may be set at any time or from time to time by notice to the Trustee, for any date or dates (in the case of any adjournment or resolicitation) not more than 60 days nor less than five days prior
to the proposed date of such vote or consent, and thereafter, notwithstanding any other provisions hereof, only Holders of Securities of record on such record date shall be entitled to so vote or give such consent or to withdraw such vote or
consent. 
  
 SECTION 6.3  Holders to be Treated as Owners.    Prior to due
presentment for registration of transfer, the Issuer, the Trustee and any agent of the Issuer or the Trustee may deem and treat the person in whose name any Security shall be registered upon the Security register as the absolute owner of such
Security (whether or not such Security shall be overdue and notwithstanding any notation of ownership or other writing thereon) for the purpose of receiving payment of or on account of the principal of and, subject to the provisions of this
Indenture, interest on such Security and for all other purposes; and neither the Issuer nor the Trustee nor any agent of the Issuer or the Trustee shall be affected by any notice to the contrary. All such payments so made to any such person, or upon
his order, shall be valid, and, to the extent of the sum or sums so paid, effectual to satisfy and discharge the liability for moneys payable upon any such Security. 
  
 SECTION 6.4  Securities Owned by Issuer Deemed Not Outstanding.    In determining whether the Holders of the requisite aggregate
principal amount of Securities have concurred in any direction, consent or waiver under this Indenture, Securities which are owned by the Issuer or any other obligor on the Securities or by any person directly or indirectly controlling or controlled
by or under direct or indirect common control with the Issuer or any other obligor on the Securities shall be disregarded and deemed not to be outstanding for the purpose of any such determination, except that for the purpose of determining whether
the Trustee shall be protected in relying on any such direction, consent or waiver only Securities which the Trustee knows are so owned shall be so disregarded. Securities so owned which have been pledged in good faith may be regarded as outstanding
if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to such Securities and that the pledgee is not the Issuer or any other obligor upon the Securities or any person directly or indirectly
controlling or controlled by or under direct 
 

 72 

 or indirect common control with the Issuer or any other obligor on the Securities. In case of a dispute as to such right, the advice of counsel shall be full
protection in respect of any decision made by the Trustee in accordance with such advice. Upon request of the Trustee, the Issuer shall furnish to the Trustee promptly an Officers’ Certificate listing and identifying all Securities, if any,
known by the Issuer to be owned or held by or for the account of any of the above-described persons; and, subject to Sections 5.1 and 5.2, the Trustee shall be entitled to accept such Officers’ Certificate as conclusive evidence of the facts
therein set forth and of the fact that all Securities not listed therein are outstanding for the purpose of any such determination. 
  
 SECTION 6.5  Right of Revocation of Action Taken.    At any time prior to (but not after) the evidencing to the Trustee, as provided in Section 6.1, of the taking of any action by the
Holders of the percentage in aggregate principal amount of the Securities specified in this Indenture in connection with such action, any Holder of a Security the serial number of which is shown by the evidence to be included among the serial
numbers of the Securities the Holders of which have consented to such action may, by filing written notice at the Corporate Trust Office and upon proof of holding as provided in this Article, revoke such action so far as concerns such Security.
Except as aforesaid any such action taken by the Holder of any Security shall be conclusive and binding upon such Holder and upon all future Holders and owners of such Security and of any Securities issued in exchange or substitution therefor,
irrespective of whether or not any notation in regard thereto is made upon any such Security. Any action taken by the Holders of the percentage in aggregate principal amount of the Securities specified in this Indenture in connection with such
action shall be conclusively binding upon the Issuer, the Trustee and the Holders of all the Securities. 
  
 ARTICLE SEVEN

  
 SUPPLEMENTAL INDENTURES. 
  
 SECTION 7.1  Supplemental Indentures Without Consent of Securityholders.    The Issuer, when authorized by a resolution of its Board of Directors, and the Trustee
may from time to time and at any time enter into an indenture or indentures supplemental hereto for one or more of the following purposes: 
 

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 (a)  to convey, transfer, assign, mortgage or pledge to the Trustee as security for
the Securities any property or assets; 
  
 (b)  to evidence the succession of another corporation to the Issuer, or
successive successions, and the assumption by the successor corporation of the covenants, agreements and obligations of the Issuer pursuant to Article Eight; 
  
 (c)  to add to the covenants of the Issuer such further covenants, restrictions, conditions or provisions as its Board of Directors and the Trustee shall consider to be for the protection of the Holders of
Securities, and to make the occurrence, or the occurrence and continuance, of a default in any such additional covenants, restrictions, conditions or provisions an Event of Default permitting the enforcement of all or any of the several remedies
provided in this Indenture as herein set forth; provided that in respect of any such additional covenant, restriction, condition or provision such supplemental indenture may provide for a particular period of grace after default (which period may be
shorter or longer than that allowed in the case of other defaults) or may provide for an immediate enforcement upon such an Event of Default or may limit the remedies available to the Trustee upon such an Event of Default or may limit the right of
the Holders of a majority in aggregate principal amount of the Securities to waive such an Event of Default; 
  
 (d)  to
cure any ambiguity or to correct or supplement any provision contained herein or in any supplemental indenture which may be defective or inconsistent with any other provision contained herein or in any supplemental indenture; or to make such other
provisions in regard to matters or questions arising under this Indenture or under any supplemental indenture as the Board of Directors may deem necessary or desirable and which shall not adversely affect the interests of the Holders of the
Securities; 
  
 (e)  to provide for the issuance under this Indenture of Securities in coupon form (including Securities
registrable as to principal only) and to provide for exchangeability of such Securities with Securities issued hereunder in fully registered form, and to make all appropriate changes for such purpose; 
 

 74 

  
 (f)  to provide for uncertificated Securities in addition to or in
place of certificated Securities; 
  
 (g)  to comply with any requirement of the SEC in order to effect
or maintain the qualification of this Indenture under the Trust Indenture Act of 1939; and 
  
 (h)  to
make any change that does not adversely affect the rights of any Holder of Securities in any material respect. 
  
 The Trustee is
hereby authorized to join in the execution of any such supplemental indenture, to make any further appropriate agreements and stipulations which may be therein contained and to accept the conveyance, transfer, assignment, mortgage or pledge of any
property thereunder, but the Trustee shall not be obligated to enter into any such supplemental indenture which affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise. 
  
 Any supplemental indenture authorized by the provisions of this Section may be executed without the consent of the Holders of any of the Securities at
the time outstanding, notwithstanding any of the provisions of Section 7.2. 
  
 SECTION
7.2  Supplemental Indentures With Consent of Securityholders.    With the consent (evidenced as provided in Article Six) of the Holders of not less than a majority in aggregate principal amount of the Securities
at the time outstanding, the Issuer, when authorized by a resolution of its Board of Directors, and the Trustee may, from time to time and at any time, enter into an indenture or indentures supplemental hereto for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or of modifying in any manner the rights of the Holders of the Securities; provided that no such amendment may, without
the consent of the Holder of each Security then outstanding affected thereby, (i) reduce the percentage of principal amount of Securities whose Holders must consent to an amendment, supplement or waiver, (ii) reduce the rate or change the time for
payment of interest, including default interest, on any Security; (iii) reduce the principal amount of any Security or change the Maturity Date of the Securities; or (iv) reduce the redemption price, including premium, if any, payable upon
redemption of any Security or change the time at which any Security may or shall be redeemed; (v) reduce the repurchase price, including premium, if any, payable upon the repurchase of any Security 
 

 75 

 
or change the time at which any Security may or shall be repurchased; (vi) make any Security payable in money other than that stated in the Security; (vii) impair the right to institute suit for
the enforcement of any payment of principal of, or premium of any, or interest on, any Security; (viii) make any change in the percentage of principal amount of Securities necessary to waive compliance with certain provisions of this Indenture; or
(ix) waive a continuing Default or Event of Default in the payment of principal of, premium, if any, or interest on the Securities. 
  
 Upon the request of the Issuer, accompanied by a copy of a resolution of the Board of Directors certified by the Secretary or an Assistant Secretary of the Issuer authorizing the execution of any such supplemental indenture, and upon the
filing with the Trustee of evidence of the consent of Securityholders and other documents, if any, required by Section 6.1 the Trustee shall join with the Issuer in the execution of such supplemental indenture unless such supplemental indenture
affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion, but shall not be obligated to, enter into such supplemental indenture. 
  
 It shall not be necessary for the consent of the Securityholders under this Section to approve the particular form of any proposed supplemental
indenture, but it shall be sufficient if such consent shall approve the substance thereof. 
  
 Promptly after the execution by the
Issuer and the Trustee of any supplemental indenture pursuant to the provisions of this Section, the Issuer shall mail a notice thereof by first-class mail to the Holders of Securities at their addresses as they shall appear on the registry books of
the Issuer, setting forth in general terms the substance of such supplemental indenture. Any failure of the Issuer to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental
indenture. 
  
 SECTION 7.3  Effect of Supplemental Indenture.    Upon the
execution of any supplemental indenture pursuant to the provisions hereof, this Indenture shall be and be deemed to be modified and amended in accordance therewith and the respective rights, limitations of rights, obligations, duties and immunities
under this Indenture of the Trustee, the Issuer and the Holders of Securities shall thereafter be determined, exercised and enforced hereunder subject in all 
 

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respects to such modifications and amendments, and all the terms and conditions of any such supplemental indenture shall be and be deemed to be part of the terms and conditions of this Indenture
for any and all purposes. 
  
 SECTION 7.4  Documents to Be Given to
Trustee.    The Trustee, subject to the provisions of Sections 5.1 and 5.2, may receive an Officers’ Certificate and an Opinion of Counsel as conclusive evidence that any such supplemental indenture complies with the
applicable provisions of this Indenture. 
  
 SECTION 7.5  Notation on Securities in Respect of
Supplemental Indentures.    Securities authenticated and delivered after the execution of any supplemental indenture pursuant to the provisions of this Article may bear a notation in form approved by the Trustee as to any
matter provided for by such supplemental indenture or as to any action taken at any such meeting. If the Issuer or the Trustee shall so determine, new Securities so modified as to conform, in the opinion of the Trustee and the Board of Directors, to
any modification of this Indenture contained in any such supplemental indenture may be prepared by the Issuer, authenticated by the Trustee and delivered in exchange for the Securities then outstanding. 
  
 ARTICLE EIGHT 
  
 CONSOLIDATION, MERGER,
SALE OR CONVEYANCE. 
  
 SECTION 8.1  Covenant Not to Merge, Consolidate, Sell or Convey
Property Except Under Certain Conditions.    The Issuer covenants that it shall not consolidate with or merge with any Person or convey, transfer or lease all or substantially all of its property to any Person, unless: (i)
the Issuer survives such merger or the Person formed by such consolidation or into which the Issuer is merged or that acquires by conveyance or transfer, or which leases, all or substantially all of the property of the Issuer is a corporation or
other business entity organized and existing under the laws of the United States of America or any State thereof or the District of Columbia and expressly assumes, by supplemental indenture, the due and punctual payment of the principal of and
premium, if any, and interest on all the Securities and the performance of every other covenant and obligation of the Issuer hereunder (ii) immediately before and after giving effect to such transaction, no Default or Event of Default exists; (iii)
immediately after giving effect to such transaction on a pro forma basis, the Consolidated Net Worth of the Issuer (or the surviving or transferee entity) is equal to or greater than the

 

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Consolidated Net Worth of the Issuer immediately before such transaction and (iv) immediately after giving effect to such transaction on a pro forma basis, the Issuer (or the surviving or
transferee entity) would be able to incur $1.00 of additional Indebtedness pursuant to the first sentence of Section 3.7. 
  
 SECTION 8.2  Successor Corporation Substituted.    In case of any such consolidation, merger, conveyance, transfer, or lease in accordance with the foregoing, the successor Person formed
by such consolidation or into which the Issuer is merged or to which such conveyance, lease or transfer is made shall succeed to, and be substituted for, and may exercise every right and power of the Issuer, with the same effect as if it had been
named herein and thereafter (except in the case of a lease) the predecessor corporation will be relieved of all further obligations and covenants under this Indenture and the Securities and may be liquidated and dissolved. 
  
 Such successor corporation may cause to be signed, and may issue either in its own name or in the name of the Issuer prior to such succession any or all
of the Securities issuable hereunder which theretofore shall not have been signed by the Issuer and delivered to the Trustee; and, upon the order of such successor corporation, instead of the Issuer, and subject to all the terms, conditions and
limitations in this Indenture prescribed, the Trustee shall authenticate and shall deliver any Securities which previously shall have been signed and delivered by the officers of the Issuer to the Trustee for authentication, and any Securities which
such successor corporation thereafter shall cause to be signed and delivered to the Trustee for that purpose. All of the Securities so issued shall in all respects have the same legal rank and benefit under this Indenture as the Securities
theretofore or thereafter issued in accordance with the terms of this Indenture as though all of such Securities had been issued at the date of the execution hereof. 
  
 In case of any such consolidation, merger, sale, lease or conveyance such changes in phraseology and form (but not in substance) may be made in the Securities thereafter to be issued as
may be appropriate. 
  
 SECTION 8.3  Opinion of Counsel to
Trustee.    The Trustee, subject to the provisions of Sections 5.1 and 5.2 hereof, may receive an Opinion of Counsel as conclusive evidence that any such consolidation, merger, sale, lease or conveyance, and any such
assumption, and any such 
 

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liquidation or dissolution, complies with the applicable provisions of this Indenture. 
  
 ARTICLE NINE 
  
 SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS. 
  
 SECTION 9.1    Satisfaction and Discharge of Indenture.    (a) If at any time (i) the
Issuer shall have paid or caused to be paid the principal of, premium, if any, and interest on all the Securities hereunder, as and when the same shall have become due and payable, or (ii) the Issuer shall have delivered to the Trustee for
cancellation all Securities theretofore authenticated (other than any Securities which shall have been destroyed, lost or stolen and which shall have been replaced or paid as provided in Section 2.8) or (iii) (A) all such Securities not theretofore
delivered to the Trustee for cancellation shall have become due and payable, or are by their terms to become due and payable within one year or are to be called for redemption within one year under arrangements satisfactory to the Trustee for the
giving of notice of redemption, and (B) the Issuer shall have irrevocably deposited or caused to be deposited with the Trustee, as trust funds, the entire amount in cash (other than moneys repaid by the Trustee or any paying agent to the Issuer in
accordance with Section 9.4) sufficient to pay at maturity or upon redemption all such Securities not theretofore delivered to the Trustee for cancellation, including principal, premium if any, and interest due or to become due to such date of
maturity as the case may be, and if, in any such case, the Issuer shall also pay or cause to be paid all other sums payable hereunder by the Issuer, then this Indenture shall cease to be of further effect (except as to (i) rights of registration of
transfer and exchange, and the Issuer’s right of optional redemption, (ii) substitution of apparently mutilated, defaced, destroyed, lost or stolen Securities, (iii) rights of Holders to receive payments of principal of, premium if any, and
interest on the Securities, (iv) the rights, obligations and immunities of the Trustee hereunder and (v) the rights of the Securityholders as beneficiaries hereof with respect to the property so deposited with the Trustee payable to all or any of
them), and the Trustee, on demand of the Issuer accompanied by an Officers’ Certificate and an Opinion of Counsel and at the cost and expense of the Issuer, shall execute proper instruments acknowledging such satisfaction of and discharging
this Indenture; provided, that the rights of Holders of the Securities to receive amounts in respect 
 

 79 

 
of principal of, premium, if any, and interest on the Securities held by them shall not be delayed longer than required by then-applicable mandatory rules or policies of any securities exchange
upon which the Securities are listed. The Issuer agrees to reimburse the Trustee for any costs or expenses thereafter reasonably and properly incurred and to compensate the Trustee for any services thereafter reasonably and properly rendered by the
Trustee in connection with this Indenture or the Securities. 
  
 SECTION
9.2      Defeasance and Discharge of Indenture.    The Issuer shall be deemed to have paid and discharged the entire indebtedness on all the outstanding Securities on the 91st day after the
irrevocable deposit referred to in subparagraph (A) hereof, and the provisions of this Indenture, as it relates to such Securities, shall no longer be in effect (and the Trustee, at the expense of the Issuer, shall execute proper instruments
acknowledging the same), except as to: 
  
 (a)  rights of registration of transfer and exchange, and
the Issuer’s right of optional redemption, (b) substitution of apparently mutilated, defaced, destroyed, lost or stolen Securities, (c) the rights of Holders to receive payments of principal thereof, premium, if any, and interest thereon, (d)
the rights, obligations and immunities of the Trustee hereunder and (e) the rights of the Securityholders as beneficiaries hereof with respect to the property so deposited with the Trustee payable to all or any of them; 
  
 provided that the following conditions shall have been satisfied: 
  
 (A)  with reference to this provision the Issuer has deposited or caused to be irrevocably deposited with the Trustee (or another trustee satisfying the requirements of Section 5.8) not later than one day
before the due date of any payment, and conveyed all right, title and interest for the benefit of the Holders, under the terms of an irrevocable trust agreement in form and substance satisfactory to the Trustee, as trust funds in trust solely for
the benefit of the Securityholders, (i) U.S. Legal Tender in an amount, or (ii) U.S. Government Obligations maturing as to principal and interest at such times and in such amounts as will insure the availability of U.S. Legal Tender in an amount, or
(iii) a combination thereof, sufficient, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, 
 

 80 

 
to pay and discharge, without consideration of reinvestment of such interest or principal and after payment of all federal, state and local taxes or other charges payable by the Trustee with
respect to such trust fund, the principal of and each installment of interest on the Securities at the maturity date of such principal or installment of interest, on the day on which such payments are due and payable in accordance with the terms of
this Indenture and the Securities; provided, that the Trustee or paying agent shall have been irrevocably instructed to apply such money or the proceeds of such U.S. Government Obligations to the payment of said principal and interest with respect
to the Securities; and provided, further, that from and after the time of deposit, the money or U.S. Government Obligations deposited shall not be subject to the rights of the holders of Senior Debt or Guarantor Senior Debt pursuant to the
provisions of Article Twelve hereof; 
  
 (B)  such deposit shall not cause the Trustee to have a
conflicting interest for purposes of the Trust Indenture Act; 
  
 (C)  such deposit will not result in
a breach or violation of, or constitute a default under, this Indenture or any other agreement or instrument to which the Issuer or any Subsidiary of the Issuer is a party or by which it is bound; 
  
 (D)  immediately after giving effect to such deposit on a pro forma basis, no Event of Default, or event that after the
giving of notice or lapse of time or both would become an Event of Default, shall have occurred and be continuing on the date of such deposit or during the period ending on the 91st day after such date; 
  
 (E)  the Issuer has delivered to the Trustee (1) an Opinion of Counsel stating that the Holders of the Securities will not
recognize income, gain or loss for federal income tax purposes as a result of the Issuer’s exercise of its option under this Section 9.2 and will be subject to federal income tax on the same amount and in the same manner and at the same times
as would have been the case if such option had not been exercised, and, in the case of the Securities being discharged, either (x) accompanied by a ruling to that effect received from or published by the Internal Revenue Service and (i) such opinion
will state that such ruling is consistent with the conclusions reached in 
 

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 such opinion and (ii) the Trustee shall be under no obligation to investigate such opinion or, (y) stating that such Opinion of Counsel
is based upon a change in applicable federal income tax law to that effect since the Issue Date, and (2) an Opinion of Counsel to the effect that the creation of the defeasance trust will not violate the Investment Company Act of 1940;

  
 (F)  the Issuer has paid or caused to be paid all sums then payable to the Trustee by the Issuer
hereunder and under the Securities; and 
  
 (G)  the Issuer has delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent provided for relating to the defeasance contemplated by this provision have been complied with. 
  

SECTION 9.3 Defeasance of Certain Obligations.    The Issuer may omit to comply with any term, provision or condition set forth in Sections
3.7 to 3.13 inclusive and Section 8.l(iii) and (iv), if 
  
 (a)  with reference to this Section 9.3,
the Issuer has deposited or caused to be irrevocably deposited with the Trustee (or another trustee satisfying the requirements of Section 5.8) not later than one day before the due date of any payment and conveyed all right, title and interest for
the benefit of the Securityholders, under the terms of an irrevocable trust agreement in form and substance satisfactory to the Trustee, as trust funds in trust solely for the benefit of the Securityholders, (i) U.S. Legal Tender in an amount, or
(ii) U.S. Government Obligations maturing as to principal and interest at such times and in such amounts as will insure the availability of U.S. Legal Tender in an amount, or (iii) a combination thereof, sufficient, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay and discharge, without consideration of reinvestment of such interest or principal and after payment of all federal,
state and local taxes or other charges payable by the Trustee with respect to such trust fund, the principal of and each installment of interest on the Securities on the maturity date of such principal or installment of interest on the day on which
such payments are due and payable in 
 

 8  2 

 accordance with the terms of the Indenture and of such Securities; provided, that the Trustee or paying agent shall have been
irrevocably instructed to apply such money or the proceeds of such U.S. Government Obligations to the payment of said principal and interest with respect to the Securities; and provided, further, that from and after the time of deposit, the
money or U.S. Government Obligations deposited shall not be subject to the rights of the holders of Senior Debt pursuant to the provisions of Article Twelve hereof; 
  
 (b)  such deposit shall not cause the Trustee to have a conflicting interest for purposes of the Trust Indenture Act; 
  
 (c)  such deposit will not result in a breach or violation of, or constitute a default under, this Indenture or any other
agreement or instrument to which the Issuer or any Subsidiary of the Issuer is a party or by which it is bound; 
  
 (d)  immediately after giving effect to such deposit on a pro forma basis, no Event of Default or event which with notice or lapse of time or both would become an Event of Default shall have occurred and be continuing on the date
of such deposit; 
  
 (e)  the Issuer has delivered to the Trustee (1) an Opinion of Counsel stating
that the Holders of the Securities will not recognize income, gain or loss for federal income tax purposes as a result of the Issuer’s exercise of its option under this Section 9.2 and will be subject to federal income tax on the same amount
and in the same manner and at the same times as would have been the case if such option had not been exercised, and, in the case of the Securities being discharged, either (x) accompanied by a ruling to that effect received from or published by the
Internal Revenue Service and (i) such opinion will state that such ruling is consistent with the conclusions reached in such opinion and (ii) the Trustee shall be under no obligation to investigate such opinion or, (y) stating that such Opinion of
Counsel is based upon a change in applicable federal income tax law to that effect since the Issue Date, and (2) an Opinion of Counsel to the effect that the creation of the defeasance trust will not violate the Investment Company Act of 1940;

 

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 (f)  the Issuer has paid or caused to be paid all sums then payable
to the Trustee by the Issuer hereunder and under the Securities; and 
  
 (g)  the Issuer has delivered
to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the defeasance contemplated by this Section 9.3 have been complied with. 
  
 SECTION 9.4  Application by Trustee of Funds Deposited for Payment of Securities.    Subject to
Section 9.6, and to the subordination provisions of this Indenture to the extent applicable, all moneys deposited with the Trustee pursuant to Section 9.1, 9.2 or 9.3 shall be held in trust and applied by it to the payment, either directly or
through any paying agent (including the Issuer acting as its own paying agent), to the Holders of the particular Securities for the payment or redemption of which such moneys have been deposited with the Trustee, of all sums due and to become due
thereon for principal, premium, if any, and interest; but such money need not be segregated from other funds except to the extent required by law. 
  
 SECTION 9.5  Repayment of Moneys Held by Paying Agent.    In connection with the satisfaction and discharge of this Indenture all moneys then held by any paying
agent under the provisions of this Indenture shall, upon demand of the Issuer, be repaid to it or paid to the Trustee and thereupon such paying agent shall be released from all further liability with respect to such moneys. 
  
 SECTION 9.6  Return of Moneys Held by Trustee and Paying Agent Unclaimed for Three Years.    Any
moneys deposited with or paid to the Trustee or any paying agent for the payment of the principal of, premium, if any, or interest on any Security and not applied but remaining unclaimed for three years after the date upon which such principal,
premium, if any, or interest shall have become due and payable, shall, upon the written request of the Issuer and unless otherwise required by mandatory provisions of applicable escheat or abandoned or unclaimed property law, be repaid to the Issuer
by the Trustee or such paying agent, and the Holder of such Security shall, unless otherwise required by mandatory provisions of applicable escheat or abandoned or unclaimed property laws, thereafter look only to the Issuer for any payment which
such Holder may be entitled to collect, and all liability of the Trustee 
 

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 or any paying agent with respect to such moneys shall thereupon cease. 
  
 ARTICLE TEN 
  
 MISCELLANEOUS PROVISIONS.

  
 SECTION 10.1  Incorporators, Stockholders, Officers and Directors of Issuer Exempt from
Individual Liability.    No recourse under or upon any obligation, covenant or agreement contained in this Indenture, or in any Security, or because of any indebtedness evidenced thereby, shall be had against any
incorporator, as such or against any past, present or future stockholder, officer or director, as such, of the Issuer or of any successor, either directly or through the Issuer or any successor, under any rule of law, statute or constitutional
provision or by the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such liability being expressly waived and released by the acceptance of the Securities by the Holders thereof and as part of the
consideration for the issue of the Securities. 
  
 SECTION 10.2  Provisions of Indenture for the Sole
Benefit of Parties and Securityholders.    Nothing in this Indenture or in the Securities, expressed or implied, shall give or be construed to give to any person, firm or corporation, other than the parties hereto and their
successors and the holders of Senior Debt and the Holders of the Securities, any legal or equitable right, remedy or claim under this Indenture or under any covenant or provision herein contained, all such covenants and provisions being for the sole
benefit of the parties hereto and their successors and the holders of Senior Debt and of the Holders of the Securities. 
  
 SECTION 10.3  Successors and Assigns of Issuer Bound by Indenture.    All the covenants, stipulations, promises and agreements in this Indenture contained by or in behalf of the Issuer
shall bind its successors and assigns, whether so expressed or not. 
  
 SECTION 10.4  Notices and
Demands on Issuer, Trustee and Securityholders.    Any notice or demand which by any provision of this Indenture is required or permitted to be given or served by the Trustee or by the Holders of Securities to or on the
Issuer may be given or served by being deposited postage prepaid, first-class mail (except as otherwise specifically provided herein) addressed (until another address of the Issuer is filed by the Issuer with 
 

 85 

  
 the Trustee) to Louis Dreyfus Natural Gas, Corp., 14000 Quail Springs Parkway, Suite 600, Oklahoma City, Oklahoma 73134.
Any notice, direction, request or demand by the Issuer or any Securityholder to or upon the Trustee shall be deemed to have been sufficiently given or made, for all purposes, if given or made at the Corporate Trust Office. 
  
 Where this Indenture provides for notice to Holders, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed, first-class postage prepaid, to each Holder entitled thereto, at his last address as it appears in the Security register. In any case where notice to Holders is given by mail, neither the failure to mail such notice, nor any defect in
any notice so mailed, to any particular Holder shall affect the sufficiency of such notice with respect to other Holders. Where this Indenture provides for notice in any manner, such notice may be waived in writing by the person entitled to receive
such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Trustee, but such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such waiver. 
  
 In case, by reason of the suspension of or irregularities in regular mail service, it shall
be impracticable to mail notice to the Issuer and Securityholders when such notice is required to be given pursuant to any provision of this Indenture, then any manner of giving such notice as shall be satisfactory to the Trustee shall be deemed to
be a sufficient giving of such notice. 
  
 SECTION 10.5  Officers’ Certificates and Opinions of
Counsel; Statements to Be Contained Therein.    Upon any application or demand by the Issuer to the Trustee to take any action under any of the provisions of this Indenture, the Issuer shall furnish to the Trustee an
Officers’ Certificate stating that all conditions precedent provided for in this Indenture relating to the proposed action have been complied with and an Opinion of Counsel stating that in the opinion of such counsel all such conditions
precedent have been complied with, except that in the case of any such application or demand as to which the furnishing of such documents is specifically required by any provision of this Indenture relating to such particular application or demand,
no additional certificate or opinion need be furnished. 
  
 Each certificate or opinion provided for in this Indenture and
delivered to the Trustee with respect to 
 

 86 

  
 compliance with a condition or covenant provided for in this Indenture shall include (a) a statement that the person
making such certificate or opinion has read such covenant or condition, (b) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based,
(c) a statement that, in the opinion of such person, he 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 person, such condition or covenant has been complied with. 
  
 Any
certificate, statement or opinion of an officer of the Issuer may be based, insofar as it relates to legal matters, upon a certificate or opinion of or representations by counsel, unless such officer knows that the certificate or opinion or
representations with respect to the matters upon which his certificate, statement or opinion may be based as aforesaid are erroneous, or in the exercise of reasonable care should know that the same are erroneous. Any certificate, statement or
opinion of counsel may be based, insofar as it relates to factual matters information with respect to which is in the possession of the Issuer, upon the certificate, statement or opinion of or representations by an officer or officers of the Issuer,
unless such counsel knows that the certificate, statement or opinion or representations with respect to the matters upon which his certificate, statement or opinion may be based as aforesaid are erroneous, or in the exercise of reasonable care
should know that the same are erroneous. 
  
 Any certificate, statement or opinion of an officer of the Issuer or of counsel may be
based, insofar as it relates to accounting matters, upon a certificate or opinion of or representations by an accountant or firm of accountants in the employ of the Issuer, unless such officer or counsel, as the case may be, knows that the
certificate or opinion or representations with respect to the accounting matters upon which his certificate, statement or opinion may be based as aforesaid are erroneous, or in the exercise of reasonable care should know that the same are erroneous.

  
 Any certificate or opinion of any independent firm of public accountants filed with the Trustee shall contain a statement that
such firm is independent. 
  
 SECTION 10.6  Payments Due on Saturdays, Sundays and
Holidays.    If the date of maturity of interest on or principal of the Securities or the date fixed for redemption 
 

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 of any Security shall not be a Business Day, then payment of interest or principal, and premium, if any, need not be
made on such date, but may be made on the next succeeding Business Day with the same force and effect as if made on the date of maturity or the date fixed for redemption, and no interest shall accrue for the period after such date. 

 
 SECTION 10.7  Conflict of Any Provision of Indenture with Trust Indenture Act of
1939.    If and to the extent that any provision of this Indenture limits, qualifies or conflicts with another provision included in this Indenture by operation of Sections 310 to 317, inclusive, of the Trust Indenture Act of
1939 (an “incorporated provision”), such incorporated provision shall control. 
  
 SECTION
10.8  New York Law to Govern.    This Indenture and each Security shall be deemed to be a contract under the laws of the State of New York, and for all purposes shall be construed in accordance with the laws of
said State, except as may otherwise be required by mandatory provisions of law. 
  
 SECTION
10.9  Counterparts.    This Indenture may be executed in any number of counterparts, each of which shall be an original; but such counterparts shall together constitute but one and the same instrument,

  
 SECTION 10.10  Effect of Headings.    The Article and Section headings
herein and the Table of Contents are for convenience only and shall not affect the construction hereof. 
  
 ARTICLE ELEVEN

  
 REDEMPTION OF SECURITIES. 
  
 SECTION 11.1  Net Proceeds of Certain Public Offerings.    Subject to the Credit Agreement, at any time prior to June 15, 1997, the Issuer may use all or a portion
of the net proceeds from one public offering of its Qualified Capital Stock to redeem up to 30% of the securities originally issued, at a redemption price equal to 109.25% of the principal thereof, plus accrued and unpaid interest to the Redemption
Date. Any such redemption will be required to occur on or prior to the 180th day following the receipt of the proceeds of such public offering. 
  
 SECTION 11.2  Notice of Redemption; Partial Redemptions.    Notice of redemption to the Holders of 
 

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 securities to be redeemed as a whole or in part shall be given by mailing notice of such redemption by first class mail,
postage prepaid, at least 30 days and not more than 60 days prior to the date fixed for redemption to such Holders of securities at their last addresses as they shall appear upon the registry books.Any notice which is mailed in the manner herein
provided shall be conclusively presumed to have been duly given, whether or not the Holder receives the notice. Failure to give notice by mail, or any defect in the notice to the Holder of any Security designated for redemption as a whole or in part
shall not affect the validity of the proceedings for the redemption of any other Security. 
  
 The notice of redemption to each
such Holder shall specify the principal amount of each Security held by such Holder to be redeemed, the date fixed for redemption, the redemption price, the place or places of payment; that payment will be made upon presentation and surrender of
such Securities, that interest accrued to the date fixed for redemption will be paid as specified in said notice and that on and after said date interest thereon or on the portions thereof to be redeemed will cease to accrue. In case any Security is
to be redeemed in part only, the notice of redemption shall state the portion of the principal amount thereof to be redeemed and shall state that on and after the date fixed for redemption, upon surrender of such Security, a new Security or
Securities in principal amount equal to the unredeemed portion thereof will be issued. 
  
 The notice of redemption of Securities
to be redeemed at the option of the Issuer shall be given by the Issuer or, at the Issuer’s request, by the Trustee in the name and at the expense of the Issuer. 
  
 At least one business day prior to the Redemption Date specified in the notice of redemption given as provided in this Section, the Issuer will deposit with the Trustee or with one or
more paying agents (or, if the Issuer is acting as its own paying agent, set aside, segregate and hold in trust as provided in Section 3.4) an amount of money sufficient to redeem on the Redemption Date all the Securities so called for redemption at
the appropriate redemption price, together with accrued interest to the date fixed for redemption. If less than all the outstanding Securities are to be redeemed the Issuer will deliver to the Trustee at least 70 days prior to the date fixed for
redemption an Officers’ Certificate stating the aggregate principal amount of Securities to be redeemed. 
 

 89 

  
 If less than all the Securities are to be redeemed, the Trustee shall select, either pro rata
or by lot, Securities to be redeemed in whole or in part. securities may be redeemed in part in multiples of $1,000 only. The Trustee shall promptly notify the Issuer in writing of the Securities selected for redemption and, in the case of any
Securities selected for partial redemption, the principal amount thereof to be redeemed. For all purposes of this Indenture, unless the context otherwise requires, all provisions relating to the redemption of Securities shall relate, in the case of
any Security redeemed or to be redeemed only in part, to the portion of the principal amount of such Security which has been or is to be redeemed. 
  
 SECTION 11.3  Payment of Securities Called for Redemption.    If notice of redemption has been given as above provided, the Securities or portions of Securities
specified in such notice shall become due and payable on the date and at the place stated in such notice at the applicable redemption price, together with interest accrued to the date fixed for redemption, and on and after said date (unless the
Issuer shall default in the payment of such Securities at the redemption price, together with interest accrued to said date) interest on the Securities or portions of Securities so called for redemption shall cease to accrue and, except as provided
in Sections 5.5 and 9.4 hereof, such Securities shall cease from and after the date fixed for redemption to be entitled to any benefit or security under this Indenture, and the Holders thereof shall have no right in respect of such Securities except
the right to receive the redemption price thereof and unpaid interest to the date fixed for redemption. On presentation and surrender of such Securities at a place of payment specified in said notice, said Securities or the specified portions
thereof shall be paid and redeemed by the Issuer at the applicable redemption price, together with interest accrued thereon to the date fixed for redemption; provided that any semi-annual payment of interest becoming due on the date fixed for
redemption shall be payable to the Holders of such Securities registered as such on the relevant record date subject to the terms and provisions of Section 2.4 hereof. 
  
 If any Security called for redemption shall not be so paid upon surrender thereof for redemption, the principal shall, until paid or duly provided for, bear interest from the date fixed
for redemption at the rate borne by the Security. 
  
 Upon presentation of any Security redeemed in part only, the Issuer shall
execute and the Trustee shall 
 

 90 

  
 authenticate and deliver to or on the order of the Holder thereof, at the expense of the Issuer, a new Security or
Securities, of authorized denominations, in principal amount equal to the unredeemed portion of the Security so presented. 
  
 SECTION 11.4  Exclusion of Certain Securities from Eligibility for Selection for Redemption.    Securities shall be excluded from eligibility for selection for redemption if they are
identified by registration and certificate number in a written statement signed by an authorized officer of the Issuer and delivered to the Trustee at least 40 days prior to the last date on which notice of redemption may be given as being owned of
record and beneficially by, and not pledged or hypothecated by either (a) the Issuer or (b) an entity specifically identified in such written statement directly or indirectly controlling or controlled by or under direct or indirect common control
with the Issuer. 
  
 ARTICLE TWELVE 
  
 SUBORDINATION OF SECURITIES. 
  
 SECTION 12.1  Securities
Subordinated to Senior Debt.    The Issuer covenants and agrees and the Trustee and each Holder of the Securities, by its acceptance thereof, likewise covenants and agrees, that all Securities shall be issued subject to the
provisions of this Article Twelve; and the Trustee and each Person holding any Security, whether upon original issue or upon transfer, assignment or exchange thereof, accepts and agrees that the payment of all obligations on the Securities by the
Issuer shall, to the extent and in the manner herein set forth, be subordinated and junior in right of payment to the prior payment in full in cash of all obligations on the Senior Debt, that the subordination is for the benefit of, and shall be
enforceable directly by, the holders of Senior Debt, and that each holder of Senior Debt whether now outstanding or hereafter created, incurred, assumed or guaranteed shall be deemed to have acquired Senior Debt in reliance upon the covenants and
provisions contained in this Indenture and the Securities. 
  
 SECTION 12.2  No Payment on Securities
in Certain Circumstances.    (a) Upon any payment or distribution of assets to creditors upon any dissolution or winding up or total or partial liquidation or reorganization of the Issuer, whether voluntary or involuntary,
any assignment for the benefit of creditors or any marshalling of assets, or in bankruptcy, insolvency, receivership or other proceedings, 
 

 91 

  
 all holders of Senior Debt shall first be paid in full in cash, or such payment duly provided for, before any payment or
distribution is made by, or on behalf of, the Issuer or any other Person on its behalf with respect to any obligations on account of the Securities, or for the acquisition, redemption or defeasance of any of the Securities for cash or property or
otherwise. If any default occurs and is continuing in the payment when due, whether at maturity, upon any redemption, by declaration or otherwise, of any principal of or interest on any Senior Debt, neither the Issuer nor any other Person on its
behalf shall (x) make any payment with respect to the principal of, premium, if any or interest on the Securities or (y) acquire, redeem or defease any of the Securities for cash or property or otherwise. In addition, if any other event of default
occurs and is continuing with respect to any Designated Senior Debt, as such event of default is defined in the instrument creating or evidencing such Designated Senior Debt, permitting the holders of such Designated Senior Debt then outstanding to
accelerate the maturity thereof and if the Representative for the respective issue of Designated Senior Debt gives written notice of the event of default to the Trustee (a “Default Notice”), then, unless and until all events of default
have been cured or waived or have ceased to exist or the Trustee receives notice from the Representative for the respective issue of Designated Senior Debt terminating the Blockage Period (as defined below), during the 180 days after the delivery of
such Default Notice (the “Blockage Period”), neither the Issuer nor any other Person on its behalf shall (x) make any payment with respect to the principal of, premium, if any, or interest on the Securities or other amounts or (y) acquire,
redeem or defease any of the Securities for cash or property or otherwise. Notwithstanding anything herein to the contrary, in no event will a Blockage Period extend beyond 180 days from the date of delivery of a Default Notice. Only one such
Blockage Period may be commenced within any 360 consecutive day-period. 
  
 (b)  In the event that, notwithstanding the
foregoing, any payment shall be received by the Trustee or any Holder when such payment is prohibited by Section 12.2 (a), such payment shall be held in trust for the benefit of, and shall be paid over or delivered to, the holders of Senior Debt
(pro rata to such holders on the basis of the respective amount of Senior Debt held by such holders) or their respective Representatives, if any, as their respective interests may appear. The Trustee shall be entitled to rely on information
regarding amounts then due and owing on the Senior Debt, if any, received from the holders of Senior Debt (or their Representatives, if any) 
 

 92 

  
 or, if such information is not received from such holders or their Representatives, if any, from the Issuer and only
amounts included in the information provided to the Trustee shall be paid to the holders of Senior Debt. 
  
 Nothing contained in
this Article Twelve shall limit the right of the Trustee or the Holders of Securities to take any action to accelerate the maturity of the Securities pursuant to Section 6.2 or to pursue any rights or remedies hereunder; provided that all
Senior Debt thereafter due or declared to be due shall first be paid in full in cash before the Holders are entitled to receive any payment with respect to principal, premium, if any, or interest on the Securities. 
  
 SECTION 12.3  Payment Over of Proceeds upon Dissolution, Etc.    (a) Upon any payment or
distribution of assets of the Issuer of any kind or character, whether in cash, property or securities, to creditors upon any dissolution or winding up or total or partial liquidation or reorganization of the Issuer, whether voluntary or
involuntary, any assignment for the benefit of creditors or any marshalling of assets, or in bankruptcy, insolvency, receivership or other proceedings, all holders of Senior Debt shall first be paid in full in cash, or such payment duly provided
for, before any payment or distribution is made on account of any principal, premium, if any, or interest on the Securities, or for the acquisition, redemption or defeasance of any of the Securities for cash or property or otherwise. Upon any such
dissolution, winding up, liquidation or reorganization, any payment or distribution of assets of the Issuer of any kind or character, whether in cash, property or securities, to which the Holders of the Securities or the Trustee under this Indenture
would be entitled, except for the provisions hereof, shall be paid by the Issuer or by any receiver, trustee in bankruptcy, liquidating trustee, agent or other Person making such payment or distribution, or by the Holders of the Securities or by the
Trustee under this Indenture if received by them, directly to the holders of Senior Debt (pro rata to such holders on the basis of the respective Representatives, if any, or to the trustee or trustees under any indenture pursuant to which any of
such Senior Debt may have been issued, as their respective interests may appear, for application to the payment of Senior Debt remaining unpaid until all such Senior Debt has been paid in full in cash after giving effect to any concurrent payment,
distribution or provision therefor to or for the holders of Senior Debt. 
 

 93 

  
 (b)  To the extent any payment of senior Debt (whether by or on behalf of the Issuer,
as proceeds of security or enforcement of any right of setoff or otherwise) is declared to be fraudulent or preferential, set aside or required to be paid to any receiver, trustee in bankruptcy, liquidating trustee, agent or other similar Person
under any bankruptcy, insolvency, receivership, fraudulent conveyance or similar law, then, if such payment is recovered by, or paid over to, such receiver, trustee in bankruptcy, liquidating trustee, agent or other similar Person, the Senior Debt
or part thereof originally intended to be satisfied shall be deemed to be reinstated and outstanding as if such payment had not occurred. 
  
 (c)  In the event that, notwithstanding the foregoing, any payment or distribution of assets of the Issuer of any kind or character, whether in cash, property or securities, shall be received by any Holder
of Securities when such payment or distribution is prohibited by Section 12.3(a), such payment or distribution shall be held in trust for the benefit of, and shall be paid over or delivered to, the holders of Senior Debt (pro rata to such holders on
the basis of the respective amount of Senior Debt held by such holders) or their respective Representatives, if any, or to the trustee or trustees under any indenture pursuant to which any of such Senior Debt may have been issued, as their
respective interests may appear, for application to the payment of Senior Debt remaining unpaid until all such Senior Debt has been paid in full in cash, after giving effect to any concurrent payment, distribution or provision therefor to or for the
holders of such Senior Debt. 
  
 (d)  For purposes of this Article, the words “cash, property or securities”
shall not be deemed to include shares of stock of the Issuer as reorganized or readjusted, or securities of the Issuer or any other corporation provided for by a plan of arrangement, reorganization or readjustment, the payment of which is
subordinated (at least to the same extent provided in this Article with respect to the Securities) to the payment of all Senior Debt which may at the time be outstanding; provided, that (i) the Senior Debt is assumed by the new corporation,
if any, resulting from any such arrangement, reorganization or readjustment, and (ii) the rights of the holders of the Senior Debt are not, without the consent of such holders, altered by such arrangement, reorganization or readjustment. The
consolidation of the Issuer with, or the merger of the Issuer into, another corporation or the liquidation or dissolution of the Issuer following the conveyance or transfer of its property as an entirety, or substantially as an entirety, to another
corporation upon 
 

 94 

  
 the terms and conditions provided in Article Eight hereof shall not be deemed a dissolution, winding-up liquidation or
reorganization for the purposes of this Section if such other corporation shall, as a part of such consolidation, merger, conveyance or transfer, comply with the conditions stated in Article Eight. Nothing in this Section shall apply to claims of,
or payments to, the Trustee under or pursuant to Article Seven, except as provided therein. This Section shall be subject to the further provisions of Section 12.7. 
  
 SECTION 12.4  Payments May Be Paid Prior to Dissolution.    Nothing contained in this Article Twelve or elsewhere in this Indenture
shall prevent (i) the Issuer, except under the conditions described in Sections 12.2 and 12.3, from making payments at any time for the purpose of making payments of principal of and interest on the Securities, or from depositing with the Trustee
any moneys for such payments, or (ii) in the absence of actual knowledge by the Trustee that a given payment would be prohibited by Section 12.2 or 12.3, the application by the Trustee of any moneys deposited with it for the purpose of making such
payments of principal of and interest on the Securities, to the Holders entitled thereto unless at least one Business Day prior to the date upon which such payment would otherwise become due and payable, the Trustee shall have received the written
notice provided for in Section 12.2(a) or in Section 12.7. The Issuer shall give prompt written notice to the Trustee of any dissolution, winding up, liquidation or reorganization of the Issuer. 
  

SECTION 12.5  Subrogation of Securities.    Subject to the payment in full of all Senior Debt, the Holders of the Securities
shall be subrogated to the rights of the holders of Senior Debt to receive payments or distributions of cash, property or securities of the Issuer applicable to the Senior Debt until the Securities shall be paid in full and, for the purposes of such
subrogation, no such payments or distributions to the holders of the Senior Debt by or on behalf of the Issuer or by or on behalf of the Holders by virtue of this Article Twelve, which otherwise would have been made to the Holders, shall, as between
the Issuer and the Holders of the Securities, be deemed to be a payment by the Issuer to or on account of the Senior Debt, it being understood that the provisions of this Article Twelve are and are intended solely for the purpose of defining the
relative rights of the Holders of the Securities, on the one hand, and the holders of the Senior Debt, on the other hand. 
  
 SECTION 12.6  Obligations of the Issuer Unconditional.    Nothing contained in this Article Twelve or 
 

 95 

 elsewhere in this Indenture or in the Securities is intended to or shall impair, as among the Issuer, its creditors other than the holders of Senior Debt, and
the Holders of the Securities, the rights of the Holders to receive payments of principal of and any interest on the Securities as and when the same shall become due and payable in accordance with their terms, or is intended to or shall affect the
relative rights of the Holders of the Securities and creditors of the Issuer other than the holders of the Senior Debt, nor shall anything herein or therein prevent the Holder of any Security or the Trustee on its behalf from exercising all remedies
otherwise permitted by applicable law upon default under this Indenture, subject to the rights, if any, of holders of Senior Debt in respect of cash, property or securities of the Issuer received upon the exercise of any such remedy. 

 
 SECTION 12.7  Notice to Trustee.    The Issuer shall give prompt written notice to the
Trustee of any fact known to the Issuer which would prohibit the making of any payment to or by the Trustee or any Paying Agent in respect of the Securities pursuant to the provisions of this Article Twelve. Regardless of anything to the contrary
contained in this Article Twelve or elsewhere in this Indenture, the Trustee shall not be charged with knowledge of the existence of any default or event of default with respect to any Senior Debt or of any other facts which would prohibit the
making of any payment to or by the Trustee unless and until the Trustee shall have received notice in writing from the Issuer, or from a holder of Senior Debt or a Representative therefor, and, prior to the receipt of any such written notice, the
Trustee shall be entitled to assume (in the absence of actual knowledge to the contrary) that no such facts exist; provided that if a Responsible Officer of the Trustee shall not have received, at least three Business Days prior to the date upon
which by the terms hereof any such money may become payable for any purpose, the notice with respect to such money provided for in this Section 12.7, then, anything herein contained to the contrary notwithstanding, the Trustee shall have full power
and authority to receive such money and to apply the same to the purpose for which such money was received and shall not be affected by any notice to the contrary which may be received by it within three Business Days prior to such date.

  
 The Trustee shall be entitled to rely on the delivery to it of a written notice by a person representing himself to be a holder
of Senior Debt (or a Trustee or agent on behalf of such holder) to establish that such notice has been given by a holder of Senior Debt (or a trustee or agent on behalf of any such holder). In the event that the 
 

 96 

 Trustee determines in good faith that any evidence is required with respect to the right of any Person as a holder of Senior Debt to participate in any payment
or distribution pursuant to this Article Twelve, the Trustee may request such Person to furnish evidence to the reasonable satisfaction of the Trustee as to the amounts of Senior Debt held by such Person, the extent to which such Person is entitled
to participate in such payment or distribution and any other facts pertinent to the rights of such Person under this Article Twelve, and if such evidence is not furnished the Trustee may defer any payment to such Person pending judicial
determination as to the right of such Person to receive such payment. 
  
 SECTION
12.8    Reliance on Judicial Order or Certificate of Liquidating Agent.    Upon any payment or distribution of assets of the Issuer referred to in this Article Twelve, the Trustee, subject to the
provisions of Article Seven hereof, and the Holders of the Securities shall be entitled to rely upon any order or decree made by any court of competent jurisdiction in which bankruptcy, dissolution, winding up, liquidation or reorganization
proceedings are pending, or upon a certificate of the receiver, trustee in bankruptcy, liquidating trustee, agent or other Person making such payment or distribution, delivered to the Trustee or the Holders of the Securities, for the purpose of
ascertaining the Persons entitled to participate in such distribution, the holders of the Senior Debt and other Indebtedness of the Issuer, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts
pertinent thereto or to this Article Twelve. 
  
 SECTION 12.9    Trustee’s Relation to
Senior Debt.    The Trustee and any agent of the Issuer or the Trustee shall be entitled to all the rights set forth in this Article Twelve with respect to any Senior Debt which may at any time be held by it in its individual
or any other capacity to the same extent as any other holder of Senior Debt and nothing in this Indenture shall deprive the Trustee or any such agent of any of its rights as such holder. 
  
 With respect to the holders of Senior Debt, the Trustee undertakes to perform or to observe only such of its covenants and obligations as are specifically set forth in this Article
Twelve, and no implied covenants or obligations with respect to the holders of Senior Debt shall be read into this Indenture against the Trustee. The Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior Debt. 

 97 

  
 Whenever a distribution is to be made or a notice given to holders or owners of Senior Debt,
the distribution may be made and the notice given to their Representative, if any. 
  
 SECTION
12.10  Subordination Rights Not Impaired by Acts or Omissions of the Issuer or Holders of Senior Debt.    No right of any present or future holders of any Senior Debt to enforce subordination as provided herein
shall at any time in any way be prejudiced or impaired by any act or failure to act on the part of the Issuer or by any act or failure to act, in good faith, by any such holder, or by any noncompliance by the Issuer with the terms of this Indenture,
regardless of any knowledge thereof which any such holder may have or otherwise be charged with. 
  
 Without in any way limiting
the generality of the foregoing paragraph, the holders of Senior Debt may, at any time and from time to time, without the consent of or notice to the Trustee, without incurring responsibility to the Trustee or the Holders of the Securities and
without impairing or releasing the subordination provided in this Article Twelve or the obligations hereunder of the Holders of the Securities to the holders of the Senior Debt, do any one or more of the following: (i) change the manner, place or
terms of payment or extend the time of payment of, or renew or alter, Senior Debt, or otherwise amend or supplement in any manner Senior Debt, or any instrument evidencing the same or any agreement under which Senior Debt is outstanding; (ii) sell,
exchange, release or otherwise deal with any property pledged, mortgaged or otherwise securing Senior Debt; (iii) release any Person liable in any manner for the payment or collection of Senior Debt; and (iv) exercise or refrain from exercising any
rights against the Issuer and any other Person. 
  
 SECTION 12.11  Securityholders Authorize Trustee To
Effectuate Subordination of Securities.    Each Holder of Securities by his acceptance of them authorizes and expressly directs the Trustee on his behalf to take such action as may be necessary or appropriate to effectuate,
as between the holders of Senior Debt and the Holders of Securities, the subordination provided in this Article Twelve, and appoints the Trustee his attorney-in-fact for such purposes, including, in the event of any dissolution, winding up,
liquidation or reorganization of the Issuer (whether in bankruptcy, insolvency, receivership, reorganization or similar proceedings or upon an assignment for the benefit of creditors or otherwise) tending towards liquidation of the business and
assets of the Issuer, the filing of a claim for the unpaid balance of its or his 
 

 98 

  
 Securities and accrued interest in the form required in those proceedings. 
  
 SECTION 12.12  This Article Twelve Not To Prevent Events of Default.    The failure to make a
payment on account of principal of or interest on the Securities by reason of any provision of this Article Twelve will not be construed as preventing the occurrence of an Event of Default. 
  
 SECTION 12.13  Trustee’s Compensation Not Prejudiced.    Nothing in this Article Twelve will apply to amounts due to the Trustee
pursuant to other sections in this Indenture. 
  
 ARTICLE THIRTEEN 
  
 CHANGE OF CONTROL 
  
 SECTION
13.1  Repurchase of Securities Upon Change of Control.    (a)  Upon the occurrence of a Change of Control, each Holder shall have the right to require the Issuer to repurchase such Holder’s
Securities in cash pursuant to the offer described below (the “Change of Control Offer”) at a purchase price equal to 101% of the principal amount thereof, plus accrued interest, if any, to the date of purchase (the “Change of Control
Payment”); provided however, the Issuer in no respect covenants that sufficient funds will be available at the time of any Change of Control to make any required repurchases, and; provided further, that Issuer’s ability to repurchase such
Securities following a Change of Control shall be limited by the terms of its Senior Debt, including, but not limited to the terms of the subordination provisions of Article Twelve herein. Failure on the part of the Issuer to repurchase Securities
under this Article shall constitute an Event of Default pursuant to the terms of Article Four herein. 
  
 (b)  Within 30
days after the occurrence of a Change of Control, the Issuer shall mail a notice to the Trustee and each Holder as of such record date as the Issuer shall establish (and deliver such notice to the Trustee at least five Business Days prior thereto)
stating: 
  
 (i)  that a Change of Control has occurred, that the Change of Control Offer is being made
pursuant to this Section 13.1 and that all Securities validly tendered will be accepted for payment; 
  
 (ii)  the purchase price and the date of purchase (which shall be a Business Day no earlier than 30 days 
 

 99 

  
 nor later than 60 days from the date such notice is mailed) (the “Change of Control
Payment Date”); 
  
 (iii)  that any Security not tendered will continue to accrue interest;

  
 (iv)  that, unless the Issuer defaults in the payment of the Change of Control Payment, any
Security accepted for payment pursuant to the Change of Control Offer shall cease to accrue interest on and after the Change of Control Payment Date; 
  
 (v)  that Holders electing to have any Security purchased pursuant to the Change of Control Offer will be required to surrender such Security, together with
the form entitled “Option of the Holder to Elect Purchase Upon Change of Control” on the reverse side of such Security completed, to the Paying Agent at the address specified in the notice prior to the close of business on the Business Day
immediately preceding the Change of Control Payment Date; 
  
 (vi)  that Holders will be entitled to
withdraw their election if the Paying Agent receives, not later than the close of business on the third Business Day immediately preceding the Change of Control Payment Date, a telegram, telex, facsimile transmission or letter setting forth the name
of such Holder, the principal amount of Securities delivered for purchase and a statement that such Holder is withdrawing his election to have such Securities purchased; and 
  
 (vii)  that Holders whose Securities are being purchased only in part will be issued new Securities equal in principal amount to the unpurchased portion of
the Securities surrendered; provided that each Security purchased and each new Security issued shall be in a principal amount of $1,000 or integral multiples thereof. 
  
 (c)  On the Change of Control Payment Date, the Issuer shall: 
  
 (i)  accept for payment Securities or portions thereof tendered pursuant to the Change of Control Offer; 
  
 (ii)  deposit one Business Day prior to the Change of Control Payment Date with the Paying Agent money sufficient to pay the purchase price of all Securities
or portions thereof so accepted; and 
 

 100 

  
 (iii)  deliver, or cause to be delivered, to the Trustee, all
Securities or portions thereof so accepted together with an Officers’ Certificate specifying the Securities or portions thereof accepted for payment by the Issuer. 
  
 The Paying Agent shall promptly mail, to the Holders of Securities so accepted, payment in an amount equal to the purchase price, and the Trustee shall promptly authenticate and mail to
such Holders a new Security equal in principal amount to any unpurchased portion of the Securities surrendered; provided that each Security purchased and each new Security issued shall be in a principal amount of $1,000 or integral multiples
thereof. The Issuer will publicly announce the results of the Change of Control Offer on or as soon as practicable after the Change of Control Payment Date. For purposes of this Section 13.1, the Trustee shall act as Paying Agent. 

 
 (d)  The Issuer will comply with Rule 14e-1 under the Exchange Act and any other securities laws and regulations there under to the
extent such laws and regulations are applicable in the event that a Change of Control occurs under this Section 13.1 and the Issuer is required to repurchase Securities as described above. The Trustee shall not be responsible for determining whether
compliance with such Rule 14e-1 is required or has been satisfied. 
 

 101 

  
 IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, and
their respective corporate seals to be hereunto affixed and attested, all as of June 15, 1994. 
  
 
	 LOUIS DREYFUS NATURAL GAS CORP.
 
	 
	 By:
 	 	 /s/  signature illegible      
 

	  	 	 Name
 Title
 

 
  
 
	 Attest:
 
	 
	 By:
 	 	 /s/    KEVIN R. WHITE        
 

	  	 	 Kevin R. White
 Secretary
 

 
  
 
	 BANK OF MONTREAL TRUST COMPANY, as
Trustee
 
	 
	 By:
 	 	 

	  	 	 Name
 Title
 

 
  
  
 Attest: 

	 
	 By:
 	 	 

	  	 	  

 
 

 102 

  
 IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, and
their respective corporate seals to be hereunto affixed and attested, all as of June 15, 1994. 
  
 
	 LOUIS DREYFUS NATURAL GAS CORP.
 
	 
	 By:
 	 	 

	  	 	 Name
 Title
 

 

	 	

  
 
	 Attest:
 
	 
	 By:
 	 	 

	  	 	 Name
 Title
 

 
  
 
	 BANK OF MONTREAL TRUST COMPANY, as Trustee
 
	 
	 By:
 	 	 /s/    AMY ROBERTS        
 

	  	 	 Amy Roberts
 Assistant Vice President
 

 
  
 
	 Attest:
 
	 
	 By:
 	 	 /s/    THERESE GABALLAH        
 

	  	 	 Therese Gaballah
 Assistant Secretary
 

 
 

 103Prepared by R.R. Donnelley Financial -- Indenture

 
 
  
 INDENTURE

  
 Between 
  
 LOUIS DREYFUS NATURAL GAS CORP. 
  
 and 
  
 LASALLE NATIONAL BANK 
  
 dated as of 
  
 December 11, 1997 
  
  
 

 TABLE OF CONTENTS 
  
 
	  	  	  	  	 Page
 

	  	  	 ARTICLE I
 	  	  
	 
	  	  	 DEFINITIONS AND INCORPORATION BY REFERENCE
 	  	  
	 
	 SECTION 1.01.
 	  	 Definitions
 	  	 1
 
	 SECTION 1.02.
 	  	 Other Definitions
 	  	 9
 
	 SECTION 1.03.
 	  	 Incorporation by Reference of Trust Indenture Act
 	  	 9
 
	 SECTION 1.04.
 	  	 Rules of Construction
 	  	 9
 
	 
	  	  	 ARTICLE 2
 	  	  
	 
	  	  	 THE SECURITIES
 	  	  
	 
	 SECTION 2.01.
 	  	 Form and Dating
 	  	 10
 
	 SECTION 2.02.
 	  	 Execution and Authentication
 	  	 11
 
	 SECTION 2.03.
 	  	 Registrar and Paying Agent
 	  	 11
 
	 SECTION 2.04.
 	  	 Paying Agent to Hold Money in Trust
 	  	 12
 
	 SECTION 2.05.
 	  	 Securityholder Lists
 	  	 12
 
	 SECTION 2.06.
 	  	 Transfer and Exchange
 	  	 12
 
	 SECTION 2.07.
 	  	 Replacement Securities
 	  	 13
 
	 SECTION 2.08.
 	  	 Outstanding Securities
 	  	 13
 
	 SECTION 2.09.
 	  	 Temporary Securities
 	  	 13
 
	 SECTION 2.10.
 	  	 Cancelation
 	  	 13
 
	 SECTION 2.11.
 	  	 Defaulted Interest
 	  	 14
 
	 SECTION 2.12.
 	  	 CUSIP Numbers
 	  	 14
 
	 
	  	  	 ARTICLE 3
 	  	  
	 
	  	  	 REDEMPTION
 	  	  
	 
	 SECTION 3.01.
 	  	 Notices to Trustee
 	  	 14
 
	 SECTION 3.02.
 	  	 Selection of Securities To Be Redeemed
 	  	 14
 
	 SECTION 3.03.
 	  	 Notice of Redemption
 	  	 15
 
	 SECTION 3.04.
 	  	 Effect of Notice of Redemption
 	  	 15
 
	 SECTION 3.05.
 	  	 Deposit of Redemption Price
 	  	 16
 
	 SECTION 3.06.
 	  	 Securities Redeemed in Part
 	  	 16
 

 
 

 i 

  
 ARTICLE 4 
  
 COVENANTS 
  
 
	 SECTION 4.01.
 	  	 Payment of Securities
 	  	 16
 
	 SECTION 4.02.
 	  	 SEC Reports
 	  	 16
 
	 SECTION 4.03.
 	  	 Compliance Certificate
 	  	 16
 
	 SECTION 4.04.
 	  	 Further Instruments and Acts
 	  	 17
 
	 SECTION 4.05.
 	  	 Corporate Existence
 	  	 17
 
	 SECTION 4.06.
 	  	 Limitation on Liens
 	  	 17
 
	 SECTION 4.07.
 	  	 Limitation on Sale and Leaseback
 	  	 17
 
	 SECTION 4.08.
 	  	 Exempted Indebtedness
 	  	 18
 
	 SECTION 4.09.
 	  	 Waiver of Stay; Extension of Usury Laws
 	  	 18
 

 
  
 ARTICLE 5 
  
 CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE 
  
 
	 SECTION 5.01.
 	  	 Company May Consolidate, etc., Only on Certain Terms
 	  	 18
 
	 SECTION 5.02.
 	  	 Successor Substituted
 	  	 19
 

 
  
 ARTICLE 6 
  
 DEFAULTS AND REMEDIES 
  
 
	 SECTION 6.01.
 	  	 Events of Default
 	  	 19
 
	 SECTION 6.02.
 	  	 Acceleration of Maturity; Rescission and Annulment
 	  	 20
 
	 SECTION 6.03.
 	  	 Collection of Indebtedness and Suits for Enforcement by Trustee
 	  	 21
 
	 SECTION 6.04.
 	  	 Trustee May File Proofs of Claim
 	  	 22
 
	 SECTION 6.05.
 	  	 Trustee May Enforce Claims Without Possession of Securities
 	  	 22
 
	 SECTION 6.06.
 	  	 Application of Money Collected
 	  	 23
 
	 SECTION 6.07.
 	  	 Limitation on Suits
 	  	 23
 
	 SECTION 6.08.
 	  	 Unconditional Right of Holders to Receive Principal, Premium and Interest
 	  	 24
 
	 SECTION 6.09.
 	  	 Restoration of Rights and Remedies
 	  	 24
 
	 SECTION 6.10.
 	  	 Rights and Remedies Cumulative
 	  	 24
 
	 SECTION 6.11.
 	  	 Delay or Omission Not Waiver
 	  	 24
 
	 SECTION 6.12.
 	  	 Control by Holders
 	  	 24
 
	 SECTION 6.13.
 	  	 Waiver of Past Defaults
 	  	 25
 
	 SECTION 6.14.
 	  	 Undertaking for Costs
 	  	 25
 

 
 

 ii 

  
 
	 SECTION 6.15.
 	  	 Waiver of Usuary, Stay or Extension Laws
 	  	 25
 

 
  
 ARTICLE 7 
  
 TRUSTEE 
  
 
	 SECTION 7.01.
 	  	 Duties of Trustee
 	  	 26
 
	 SECTION 7.02.
 	  	 Rights of Trustee
 	  	 27
 
	 SECTION 7.03.
 	  	 Individual Rights of Trustee
 	  	 28
 
	 SECTION 7.04.
 	  	 Trustee’s Disclaimer
 	  	 28
 
	 SECTION 7.05.
 	  	 Notice of Defaults
 	  	 28
 
	 SECTION 7.06.
 	  	 Reports by Trustee to Holders
 	  	 28
 
	 SECTION 7.07.
 	  	 Compensation and Indemnity
 	  	 28
 
	 SECTION 7.08.
 	  	 Replacement of Trustee
 	  	 29
 
	 SECTION 7.09.
 	  	 Successor Trustee by Merger
 	  	 30
 
	 SECTION 7.10.
 	  	 Eligibility; Disqualification
 	  	 30
 
	 SECTION 7.11.
 	  	 Preferential Collection of Claims Against Company
 	  	 30
 

 
  
 ARTICLE 8 
  
 DISCHARGE OF INDENTURE; DEFEASANCE 
  
 
	 SECTION 8.01.
 	  	 Discharge of Liability on Securities; Defeasance
 	  	 30
 
	 SECTION 8.02.
 	  	 Conditions to Defeasance
 	  	 31
 
	 SECTION 8.03.
 	  	 Application of Trust Money
 	  	 32
 
	 SECTION 8.04.
 	  	 Repayment to Company
 	  	 32
 
	 SECTION 8.05.
 	  	 Indemnity for Government Obligations
 	  	 33
 
	 SECTION 8.06.
 	  	 Reinstatement
 	  	 33
 

 
  
 ARTICLE 9 
  
 AMENDMENTS 
  
 
	 SECTION 9.01.
 	  	 Without Consent of Holders
 	  	 33
 
	 SECTION 9.02.
 	  	 With Consent of Holders
 	  	 34
 
	 SECTION 9.03.
 	  	 Compliance with Trust Indenture Act
 	  	 34
 
	 SECTION 9.04.
 	  	 Revocation and Effect of Consents and Waivers
 	  	 35
 
	 SECTION 9.05.
 	  	 Notation on or Exchange of Securities
 	  	 35
 
	 SECTION 9.06.
 	  	 Trustee To Sign Amendments
 	  	 35
 
	 SECTION 9.07.
 	  	 Payment for Consent
 	  	 35
 

 
 

 iii 

  
 ARTICLE 10 
  
 MISCELLANEOUS 
  
 
	 SECTION 10.01.
 	  	 Trust Indenture Act Controls
 	  	 36
 
	 SECTION 10.02.
 	  	 Notices
 	  	 36
 
	 SECTION 10.03.
 	  	 Communication by Holders with Other Holders
 	  	 37
 
	 SECTION 10.04.
 	  	 Certificate and Opinion as to Conditions Precedent
 	  	 37
 
	 SECTION 10.05.
 	  	 Statements Required in Certificate or Opinion
 	  	 37
 
	 SECTION 10.06.
 	  	 When Securities Disregarded
 	  	 38
 
	 SECTION 10.07.
 	  	 Rules by Trustee, Paying Agent and Registrar
 	  	 38
 
	 SECTION 10.08.
 	  	 Legal Holidays
 	  	 38
 
	 SECTION 10.09.
 	  	 Governing Law
 	  	 38
 
	 SECTION 10.10.
 	  	 No Recourse Against Others
 	  	 38
 
	 SECTION 10.11.
 	  	 Successors
 	  	 38
 
	 SECTION 10.12.
 	  	 Multiple Originals
 	  	 38
 
	 SECTION 10.13.
 	  	 Table of Contents; Headings
 	  	 38
 

 
 

 iv 

  
 INDENTURE dated as of December 11, 1997, between LOUIS DREYFUS NATURAL GAS CORP., an Oklahoma
corporation (the “Company”), and LASALLE NATIONAL BANK, a national banking association (the “Trustee”). 
  
 Each party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders of the Company’s 6.875% Senior Notes Due 2007 (the “Initial Securities”) and, if and when issued pursuant to
a registered exchange for Initial Securities, the Company’s 6.875% Senior Notes Due 2007 (the “Exchange Securities”) and if and when issued pursuant to a private exchange for Initial Securities, the Company’s 6.875% Senior Notes
Due 2007 (the “Private Exchange Securities”, together with the Exchange Securities and the Initial Securities, the “Securities”): 
  
 ARTICLE 1 
  
 DEFINITIONS AND INCORPORATION BY REFERENCE 
  
 SECTION 1.01.    Definitions. 
  
 “Affiliate” means another Person directly or indirectly controlling or controlled by or under direct or indirect common control with such first Person. For the purposes of this
definition, “control” (including, with correlative meanings, the terms “controlling,” “controlled by” and “under common control with”), as applied to any Person, means the possession, directly or indirectly,
of the power to direct or cause the direction of the management and policies of that Person, whether through the ownership of Voting Stock or by contract or otherwise. 
  
 “Adjusted Consolidated Net Tangible Assets” means (without duplication), as of the date of determination, the remainder of: (a) the sum of (i) discounted future net revenues
from proved oil and gas reserves of the Company and its Subsidiaries calculated in accordance with SEC guidelines (including adjustment for prices payable to the Company and its Subsidiaries under Oil and Gas Hedging Contracts) before any state,
Federal or foreign income taxes, as estimated by the Company and confirmed by a nationally recognized firm of independent petroleum engineers in a reserve report prepared as of the end of the Company’s most recently completed fiscal year for
which audited financial statements are available, as increased by, as of the date of determination, the estimated discounted future net revenues from (A) estimated proved oil and gas reserves acquired since such year-end, which reserves were not
reflected in such year-end reserve report, and (B) estimated oil and gas reserves attributable to upward revisions of estimates of proved oil and gas reserves since such year-end due to exploration, development or exploitation activities, in each
case calculated in accordance with SEC guidelines (utilizing the prices utilized in such year-end reserve report), and decreased by, as of the date of determination, the estimated discounted future net revenues from (C) estimated proved oil and gas
reserves produced or disposed of since such year-end and (D) estimated oil and gas reserves attributable to downward revisions of estimates of proved oil and gas reserves since such year-end due to changes in geological conditions or other factors
which would, in   
 

 1 

 accordance with standard industry practice, cause such revisions, in each case calculated in accordance with SEC guidelines (utilizing the prices utilized in
such year-end reserve report); PROVIDED 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 Material
Change as a result of such acquisitions, dispositions or revisions, in which event the discounted future net revenues utilized for purposes of this clause (a)(i) shall be confirmed in writing by a nationally recognized firm of independent petroleum
engineers, (ii) the capitalized costs that are attributable to oil and gas properties of the Company and its Subsidiaries to which no proved oil and gas reserves are attributable, based on the Company’s books and records as of a date no earlier
that the date of the Company’s latest available annual or quarterly financial statements, (iii) the Net Working Capital on a date no earlier than the date of the Company’s latest annual or quarterly financial statements and (iv) the
greater of (A) the net book value on a date no earlier than the date of the Company’s latest annual or quarterly financial statements and (B) the appraised value, as estimated by independent appraisers, of other tangible assets of the Company
and its Subsidiaries, as of the date no earlier than the date of the Company’s latest audited financial statements, minus (b) the sum of (i) Minority Interests, (ii) any net gas balancing liabilities of the Company and its Subsidiaries
reflected in the Company’s latest audited financial statements, (iii) to the extent included in (a)(i) above, the discounted future net revenues, calculated in accordance with SEC guidelines (utilizing the prices utilized in the Company’s
year-end reserve report), attributable to reserves which are required to be delivered to third parties to fully satisfy the obligations of the Company and its Subsidiaries with respect to Volumetric Production Payments (determined, if applicable,
using the schedules specified with respect thereto) and (iv) the discounted future net reserves, calculated in accordance with SEC guidelines, attributable to reserves subject to Dollar-Denominated Production Payments which, based on the estimates
of production and price assumptions included in determining the discounted future net revenues specified in (a)(i) above, would be necessary to fully satisfy the payment obligations of the Company and its Subsidiaries with respect to
Dollar-Denominated Production Payments (determined, if applicable, using the schedules specified with respect thereto). If the Company changes its method of accounting from the successful efforts method to the full cost or a similar method of
accounting, “Adjusted Consolidated Net Tangible Assets” will continue to be calculated as if the Company were still using the successful efforts method of accounting. 
  
 “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 which is not a Legal Holiday. “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.  

 

 2 

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

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

“Company” means the party named as such in 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. 
  
 “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. 
  
 “Default” means any event which is, or after notice or passage of time or both would be, an Event of Default. 
  
 “Dollar-Denominated Production Payments” means production payment obligations recorded as liabilities in accordance with GAAP, together with all undertakings and obligations in
connection therewith. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 “GAAP” means generally accepted accounting principles in the United States of America as in effect as of the Issue Date, including those set
forth in (i) the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants, (ii) statements and pronouncements of the Financial Accounting Standards Board, (iii) such other statements by
such other entity as approved by a significant segment of the accounting profession and (iv) 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 pursuant to 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.      
  
 “Holder” or “Securityholder” 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) shall be deemed to be Incurred by such Subsidiary at the time it becomes a Subsidiary. The term
“Incurrence” when   
 

 3 

 used as a noun shall have a correlative meaning. The accretion of principal of a non-interest bearing or other discount security shall be deemed the Incurrence
of Indebtedness. 
  
 “Indebtedness” means, with respect to any Person, at any date, any of the following, without
duplication, (i) any liability, contingent or otherwise, of such Person (A) for borrowed money (whether or not the recourse of the lender is to the whole of the assets of such Person or only to a portion thereof, (B) evidenced by a note, bond,
debenture or similar instrument or (C) for the payment of money relating to a Capitalized Lease Obligation or other obligation (whether issued or assumed) relating to the deferred purchase price of property; (ii) all conditional sale obligations and
all obligations under any title retention agreement (even if the rights and remedies of the seller under such agreement in the event of default are limited to repossession or sale of such property), but excluding trade accounts payable arising in
the ordinary course of business; (iii) all obligations for the reimbursement of any obligor on any letter of credit, banker’s acceptance or similar credit transaction other than entered into in the ordinary course of business; (iv) all
indebtedness of others secured by (or for which the holder of such indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on any asset or property (including, without limitation, leasehold interests and any other
tangible or intangible property) of such Person, whether or not such indebtedness is assumed by such Person or is not otherwise such Person’s legal liability; PROVIDED that if the obligations so secured have not been assumed in full by such
Person or are otherwise not such Person’s legal liability in full, the amount of such indebtedness for the purposes of this definition shall be limited to the lesser of the amount of such indebtedness secured by such Lien or the fair market
value of the assets of the property securing such Lien; (v) all indebtedness of others (including all interest and dividends on any Indebtedness or Preferred Stock of any other Person for the payment of which is) guaranteed, directly or indirectly,
by such Person or that is otherwise its legal liability or which such Person has agreed to purchase or repurchase or in respect of which such Person has agreed contingently to supply or advance funds; and (vi) obligations in respect of Currency
agreements, Oil and Gas Hedging Contracts and Interest Rate Agreements. 
  
 “Indenture” means this Indenture as amended
or supplemented from time to time. 
  
 “Interest Rate Agreement” means in respect of a Person any interest rate swap
agreement, interest rate cap agreement or other financial agreement or arrangement designed to protect such Person against fluctuations in interest rates. 
  
 “Issue Date” means the date on which the Securities are originally issued. 
  
 “Lien” means any mortgage, pledge, security interest, encumbrance, lien, charge or adverse claim affecting title or resulting in an encumbrance against real or personal property or a security interest of any kind (including,
without limitation, any conditional sale or other title retention agreement or lease in the nature thereof or any filing or agreement to file a financing statement as debtor under the Uniform Commercial Code or any similar statute other than to
reflect ownership by a third party or property leased to the Company or any of its Subsidiaries under a lease that is not in the nature of a conditional sale or title retention agreement).   
 

 4 

  
 “Material Change” means an increase or decrease (except to the extent resulting from
changes in prices) of more than 30% during a fiscal quarter in the estimated discounted future net revenues from proved oil and gas reserves of the Company and its Subsidiaries, calculated in accordance with clause (a)(i) 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 quarter of oil and gas reserves with respect to which the Company’s
estimate of the discounted future net revenues from proved oil and gas reserves has been confirmed by independent petroleum engineers; and (b) any dispositions of Properties during such quarter.         

  
 “Minority Interest” means any shares of stock of any class of a Subsidiary that are not owned by the Company or a
Subsidiary. 
  
 “Net Working Capital” means (a) all current assets of the company and its Subsidiaries, less (b) all
current liabilities of the Company and its Subsidiaries, except current liabilities included in Indebtedness, in each case as set forth in consolidated financial statements of the Company prepared in accordance with GAAP.
         
  
 “Officer” means the Chairman of the Board, the President, any Vice
President, the Treasurer or the Secretary of the Company.              
  
 “Officers’ Certificate” means a certificate signed by two Officers. 
  
 “Oil and Gas Business”
means the business of exploiting, exploring for, developing, acquiring, operating, producing, processing, gathering, marketing, storing, selling, hedging, treating, swapping, refining and transporting hydrocarbons and other related energy
businesses. 
  
 “Oil and Gas Hedging Contract” means, with respect to any person, any agreement or arrangement, or any
combination thereof, relating to oil and gas or other hydrocarbon prices, transportation or basis costs or differentials or other similar financial factors, that is customary in the Oil and Gas Business and is entered into by such Person in the
ordinary course of its business for the purpose of limiting or managing risks associated with fluctuations in such prices, costs, differentials or similar factors. 
  
 “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” shall 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 which 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   
 

 5 

 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 for geologists, geophysicists and other providers of technical services to the Company or a Subsidiary of the Company, master limited
partnership agreements, farming agreements, farmout 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 which are customary in the Oil and Gas Business; PROVIDED, HOWEVER, in all instances that such Liens are limited to the assets that are the
subject of the relevant agreement, program, order or contract; (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. 
  
 “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 Liens” means, with respect to any Person: (i) Liens existing on the Issue
Date; (ii) Liens on property or assets of, or any shares of stock of, or secured debt of, any corporation existing at the time such corporation becomes a Subsidiary of the Company or at the time such corporation is merged into the Company or any of
its Subsidiaries; (iii) Liens in favor of the Company or any of its Subsidiaries; (iv) Liens in favor of governmental bodies to secure progress or advance payments; (v) Liens securing industrial revenue or pollution control bonds; (vi) Liens on
Property to secure Indebtedness incurred for the purpose of (A) financing all or any part of the purchase price of such Property incurred prior to, at the time of, or within 180 days after, the acquisition of such Property or (B) financing all or
any part of the cost of construction, improvement, development or expansion of any such Property; (vii) statutory liens or landlords’, carriers’, warehouseman’s, mechanics’, suppliers’, materialmen’s, repairmen’s
or other like Liens arising in the ordinary course of business and with respect to amounts not yet delinquent or being contested in good faith by appropriate proceedings, if a reserve or other appropriate provisions, if any, as shall be required in
conformity with GAAP shall have been made therefor; (viii) Liens on current assets of Subsidiaries securing Indebtedness of such Subsidiaries; (ix) Oil and Gas Liens; (x) Liens securing Oil and Gas Hedging Contracts; (xi) any Lien incurred in the
ordinary course of business incidental to the conduct of the business of the Company or the ownership of its Property including rights of collecting banks having rights of setoff, revocation, refund or chargeback with respect to money or instruments
of the Company on deposit with or in the possession of such banks; (xii) 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; (xiii) 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; and   
 

 6 

 (xiv) any extensions, substitutions, replacements or renewals in whole or in part of a Lien (an “existing Lien”) enumerated in clauses (i) through
(xiii) above; PROVIDED that the Lien may not extent beyond (A) the Property or Indebtedness subject to the existing Lien and (B) improvements and construction on such Property and the Indebtedness secured by the Lien may not exceed the Indebtedness
secured at the time by the existing Lien. 
  
 “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) which is preferred as to the payment of
dividends or distributions, or as to the distribution of assets upon any voluntary or involuntary liquidation or dissolution of such Person, over shares of Capital Stock of any other class of such Person. 
 “Principal” of a Security means the principal of the Security plus the premium, if any, payable on the Security which is due or overdue or is to become due at the relevant time. 
  
 “Principal Property” means any Property owned or leased by the Company or any Subsidiary, the gross book value of which exceeds two percent of
Adjusted Consolidated Net Tangible Assets. 
  
 “Production Payments and Reserve Sales” means the grant or transfer by the
Company or a Subsidiary of the Company to any Person of a royalty, overriding royalty, net profits interest, production payment (whether volumetric or dollar denominated), partnership or other interest in oil and gas properties, reserves or the
right to receive all or a portion of the production or the proceeds from the sale of production attributable to such properties where the holder of such interest has recourse solely to such production or proceeds of production, subject to the
obligation of the grantor or transferor to operate and maintain, or cause the subject interests to be operated and maintained, in a reasonably prudent manner or other customary standard or subject to the obligation of the grantor or transferor to
indemnify for environmental, title or other matters customary in the Oil and Gas Business, including any such grants or transfers pursuant to incentive compensation programs on terms that are reasonably customary in the Oil and Gas Business for
geologists, geophysicists and other providers of technical services to the Company or a Subsidiary of the Company. 
  
 “Property” of any Person means all types of real, personal, tangible, intangible or mixed property owned by such Person whether or not included in the most recent consolidated balance sheet of such Person and its Subsidiaries
under GAAP. 
  
 “Sale and Leaseback Transaction” means any arrangement with any Person pursuant to which the Company or
any Subsidiary leases any Principal Property that has been or is to be sold or transferred by the Company or the Subsidiary to such Person, other than (1) temporary leases for a term, including renewals at the option of the lessee, of not more than
five years, (2) leases between the Company and a Subsidiary or between Subsidiaries, (3) leases of Principal Property executed  
 

 7 

 by the time of, or within 24 months after the latest of, the acquisition, the completion of construction or improvement, or the commencement of commercial
operation of the Principal Property, and (4) arrangements pursuant to any provision of law with an effect similar to the former Section 168(f)(8) of the Internal Revenue Code of 1954.      
  
 “SEC” means the Securities and Exchange Commission. 
  
 “Significant Subsidiary” means any 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,” when used with respect to any security or any installment of interest thereon, means the date specified in such
security as the fixed date on which the principal of such security or such installment of interest is due and payable. 
  
 “Subsidiary” of any Person means (i) any Person of which more than 50% of the total voting power of shares of Capital Stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors,
managers or trustees thereof is at the time owned or controlled, directly or indirectly, by any Person or one or more of the Subsidiaries of that Person or a combination thereof, and (ii) any partnership, joint venture or other Person in which such
Person or one or more of the Subsidiaries of that Person or a combination thereof has the power to control by contract or otherwise the board of directors or equivalent governing body or otherwise controls such entity. 
  
 “TIA” means the Trust Indenture Act of 1939 (15 U.S.C. Section 77aaa-77bbbb) as in effect on the date of this Indenture.
         
  
 “Trustee” means the party named as such in 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 its corporate trust matters. 
  
 “Uniform Commercial Code” means the New York Uniform Commercial Code as in effect from time to time. “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 which 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. 
 

 8 

  
 “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 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
 
	 
	 “covenant defeasance option”
 	  	 8.01
 	 (b)
 
	 “Event of Default”
 	  	 6.01
 	  
 
	 “legal defeasance option”
 	  	 8.01
 	 (b)
 
	 “Legal Holiday”
 	  	 10.08
 	  
 
	 “Paying Agent”
 	  	 2.03
 	  
 
	 “Registrar”
 	  	 2.03
 	  
 

 
  
 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;
     
  
 “indenture security holder” means a Securityholder;
         
  
 “indenture to be qualified” means this Indenture;

  
 “indenture trustee” or “institutional trustee” means the Trustee; and
     
  
 “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:      
  
 (1)  a term has the meaning assigned to it; 
 

 9 

  
 (2)  an accounting term not otherwise defined has the meaning
assigned to it in accordance with GAAP; 
  
 (3)  “or” is not exclusive; 

 
 (4)  “including” means including without limitation; 
  
 (5)  words in the singular include the plural and words in the plural include the singular; 
  
 (6)  unsecured Indebtedness shall not be deemed to be subordinate or junior to Secured Indebtedness merely by virtue of its
nature as unsecured Indebtedness; 
  
 (7)  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 issuer dated such date prepared in accordance with GAAP and accretion of principal on such security shall be deemed to be the
Incurrence of Indebtedness; 
  
 (8)  the principal amount of any Preferred Stock shall be (i) the
maximum liquidation value of such Preferred Stock or (ii) the maximum mandatory redemption or mandatory repurchase price with respect to such Preferred Stock, whichever is greater; and 
  
 (9)  all references to the date the Securities were originally issued shall refer to the date the Initial Securities were originally issued. 

 
 ARTICLE 2 
  
 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 the Rule 144A/Regulation S Appendix attached hereto (the “Appendix”) 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 to Appendix A which is hereby incorporated in and expressly made a part of this Indenture. The Exchange
Securities, the Private Exchange Securities and the Trustee’s certificate of authentication shall be substantially in the form of Exhibit A, which is 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 the Appendix and Exhibit A are part of the terms of this Indenture. 
 

 10 

  
 SECTION 2.02.    Execution and
Authentication.    Two Officers shall sign the Securities for the Company by manual or facsimile signature. The Company’s seal shall be impressed, affixed, imprinted or reproduced on the Securities and may be in
facsimile form. 
  
 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. 
  
 The Trustee shall authenticate and deliver Securities for original issue 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 and the date on which the original issue of Securities is to be authenticated. The aggregate principal
amount of Securities outstanding at any time may not exceed that amount except as provided in Section 2.07. 
  
 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 (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. 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 to the knowledge of the Trustee, the Trustee shall act as such and shall be entitled to appropriate compensation therefor pursuant to Section 7.07. 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. 
 

 11 

  
 SECTION 2.04.    Paying Agent to Hold Money in
Trust.    Prior to 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(1) of the Uniform Commercial Code 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. To permit registration of transfers and exchanges, the Company shall execute
and the Trustee shall authenticate Securities at the Registrar’s or co-registrar’s request. The Company may require payment of a sum sufficient to pay all taxes, assessments or other governmental charges in connection with any transfer or
exchange pursuant to this Section. The Company shall not be required to make and the Registrar need not register transfers or exchanges of Securities selected for redemption (except, in the case of Securities to be redeemed in part, the portion
thereof 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. 
  
 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. 
 

 12 

  
 All Securities issued upon any transfer or exchange pursuant to the terms of this Indenture
will evidence the same debt and will be entitled to the same benefits under this Indenture as the Securities surrendered upon such transfer or exchange. 
  
 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 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 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 cancelation 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, 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, 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 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.    Cancelation.    The Company at any time may deliver Securities to the Trustee for cancelation. 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
cancelation and 
 

 13 

 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 cancelation. 
  
 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 promptly mail to each Securityholder a notice that states the special record date, the payment date and the amount of defaulted interest to be paid. 

 
 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. 
  
 ARTICLE 3 
  
 REDEMPTION 
  
 SECTION
3.01.    Notices to Trustee.    If the Company elects to redeem Securities pursuant to paragraph 5 of the Securities, it shall notify the Trustee in writing of the redemption date, the principal amount
of Securities to be redeemed and the paragraph of the Securities pursuant to which the redemption will occur. 
  
 The Company shall
give each notice to the Trustee provided for in this Section at least 60 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 Securities 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 shall deem to be fair and appropriate and in accordance with methods generally used at the time of selection by fiduciaries in
similar circumstances. 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 $1,000 or a whole multiple of $1,000. Provisions of this Indenture that apply to Securities called for 
 

 14 

 redemption also apply to portions of Securities called for redemption. The Trustee shall notify the Company 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 at such Holder’s registered address, with copies
of such notices to the Trustee. 
  
 The notice shall identify the Securities to be redeemed and shall state: 

 
 (1)  the redemption date; 
  
 (2)  the redemption price; 
  
 (3)  the name and address of the Paying Agent; 
  
 (4)  that Securities called for
redemption must be surrendered to the Paying Agent to collect the redemption price; 
  
 (5)  if fewer
than all the outstanding Securities are to be redeemed, the identification and principal amounts of the particular Securities to be redeemed; 
  
 (6)  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 portion
thereof) called for redemption ceases to accrue on and after the redemption date; 
  
 (7)  the
paragraph of the Securities pursuant to which the Securities called for redemption are being redeemed; and 
  
 (8)  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. 
  
 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. 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.

 

 15 

  
 SECTION 3.05.    Deposit of Redemption
Price.    On or before 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 cancelation. 
  
 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 for the Holder (at the Company’s expense) a new Security equal in principal amount to the unredeemed portion of the Security surrendered. 
  
 ARTICLE 4 
  
 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. 
  
 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. 
  
 SECTION 4.02.    SEC Reports.    The Company shall file with the Trustee and provide Securityholders, within 15 days after
it files them with the SEC, copies of its annual report and the information, documents and other reports which the Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. Notwithstanding that the Company may not
be required to remain subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, the Company shall continue to file with the SEC 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, such information, documents and reports to be so filed and provided at the times specified for
the filing of such information, documents and reports under such Sections. The Company also shall comply with the other provisions of TIA Section 314(a). Notwithstanding anything to the contrary herein, the Trustee shall have no duty to review such
documents for purposes of determining compliance with any provisions of this Indenture. 
  
 SECTION
4.03.    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 
 

 16 

 occurred during such period. 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). The Company agrees to notify the Trustee of any change in its fiscal year. 
  
 SECTION 4.04.    Further Instruments and Acts.    Upon request of the Trustee, the Company will 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 4.05.    Corporate Existence.    Subject to the provisions of Article 5, the Company will do or cause to be done all things necessary to and will cause each of its
Subsidiaries to preserve and keep in full force and effect its corporate existence, material rights (charter and statutory) and franchises of the Company and each of its Subsidiaries; provided, however, that the Company shall not be
required to preserve any such material right or franchise or the corporate existence of any of its Subsidiaries if (a) the preservation thereof is no longer desirable in the conduct of the business of the Company or such Subsidiary and (b) the loss
thereof is not disadvantageous in any material respect to the Holders of the Securities. 
  
 SECTION
4.06.    Limitation on Liens.    Subject to Article 8 (to the extent it is applicable to the Securities) the Company will not, and will not permit any of its Subsidiaries to, create, incur or otherwise
cause or suffer to exist or become effective any Liens of any kind upon any Principal Property or any shares of stock or Indebtedness of any Subsidiary that owns or leases any Principal Property (whether such Principal Property, shares of stock or
Indebtedness are now owned or hereafter acquired) unless all payments due under this Indenture and the Securities are secured on an equal and ratable basis with the obligations so secured until such time as such obligation is no longer secured by a
Lien, except for Permitted Liens. 
  
 The covenant contained in this Section 4.06 will be subject to the provision for exempted
Indebtedness in Section 4.08. 
  
 SECTION 4.07.    Limitation on Sale and Leaseback
Transactions.    Subject to Article 8 (to the extent it is applicable to the Securities), neither the Company nor any Subsidiary will enter into any Sale and Leaseback Transaction with respect to any Principal Property unless
either (a) the Company or such Subsidiary would be entitled, pursuant to the provisions of this Indenture, to incur Indebtedness secured by a Lien on the property to be leased without equally and ratably securing the Securities or (b) the Company,
within 180 days after the effective date of such transaction, applies to the voluntary retirement of its funded debt an amount equal to the value of such transaction, defined as the greater of the net proceeds of the sale of the property leased in
such transaction or the fair value, in the opinion of the Board of Directors, of the leased property at the time such transaction was entered into. 
  
 The covenant contained in this Section 4.07 will be subject to the provision for exempted Indebtedness in Section 4.08. 
 

 17 

  
 SECTION 4.08.    Exempted
Indebtedness.    Notwithstanding the provisions contained in Sections 4.06 and 4.07, the Company and its Subsidiaries may issue, assume or guarantee Indebtedness secured by a Lien without securing the Securities, or may enter
into Sale and Leaseback Transactions without retiring funded debt, or enter into a combination of such transactions, if the sum of the principal amount of all such Indebtedness and the aggregate value of all such Sale and Leaseback Transactions does
not at any time exceed 15% of the Adjusted Consolidated Net Tangible Assets of the Company. For the purposes of any calculation pursuant to this Section 4.08, the Trustee may rely on an Officers’ Certificate setting forth such calculation.

  
 SECTION 4.09.  Waiver of Stay; Extension of Usury Laws.    The Company
covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law or any usury law or other law that would prohibit
or forgive the Company from paying all or any portion of the principal of, or interest on the Securities as contemplated herein or in the Securities, wherever enacted, now or at any time hereafter in force, or that may affect the covenants or the
performance of this Indenture; and (to the extent that it may lawfully do so) the Company hereby expressly waives all benefit or advantage of any such law, and covenants that it will not hinder, delay or impede the execution of any power herein
granted to the Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted.  
  
 ARTICLE 5 
  
 CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE 
  
 SECTION 5.01.    Company may Consolidate, etc., Only on Certain Terms.    The Company
shall not consolidate with or merge into any other Person or convey, transfer or lease its properties and assets substantially as an entirety to any Person, and the Company shall not permit any Person to consolidate with or merge into the Company or
convey, transfer or lease its properties and assets substantially as an entirety to the Company, unless: 
  
 (1)  in case the Company shall consolidate with or merge into another Person or convey, transfer or lease its properties and assets substantially as an entirety to any Person, the Person formed by such consolidation or into which
the Company is merged or the Person which acquires by conveyance or transfer, or which leases, the properties and assets of the Company substantially as an entirety shall be a corporation, partnership or trust, shall be organized and validly
existing under the laws of the United States of America, any State thereof or the District of Columbia and shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form satisfactory to the Trustee, the
due and punctual payment of the principal of (and premium, if any) and interest on all the Securities and the performance or observance of every obligation and covenant of this Indenture on the part of the Company to be performed or observed;

 

 18 

  
 (2) immediately after giving effect to such transaction, no Default shall
have happened and be continuing; and 
  
 (3)  the Company has delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that such consolidation, merger, conveyance, transfer or lease and, if a supplemental indenture is required in connection with such transaction, such supplemental indenture comply
with this Article and that all conditions precedent herein provided for relating to such transaction have been complied with. 
  
 SECTION 5.02.    Successor Substituted.    Upon any consolidation of the Company with, or merger of the Company into, any other Person or any conveyance, transfer or lease of the
properties and assets of the Company substantially as an entirety in accordance with Section 5.01, the successor Person formed by such consolidation or into which the Company is merged or to which such conveyance, transfer or lease is made shall
succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor Person had been named as the Company herein, and thereafter, except in the case of a lease, the
predecessor Person shall be released from its obligations and covenants under this Indenture and the Securities.  
  
 ARTICLE 6

  
 DEFAULTS AND REMEDIES 
  
 SECTION 6.01.  Events of Default.    “Event of Default”, wherever used herein, means any one of the following events (whatever the reason for such Event of
Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body): 

 
 (1)  default in the payment of any interest upon any Security when it becomes due and payable, and continuance of
such default for a period of 30 days; or 
  
 (2)  default in the payment of the principal of (or
premium, if any, on) any Security at its Stated Maturity; or 
  
 (3)  default in the performance, or
breach, of any covenant or warranty of the Company in this Indenture (other than a covenant or warranty a default in whose performance or whose breach is elsewhere in this Section specifically dealt with), and continuance of such default or breach
for a period of 60 days after there has been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in principal amount of the outstanding Securities a written notice
specifying such default or breach and

 

 19 

 
requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder; or 
  
 (4)  the entry by a court having jurisdiction in the premises of (A) a decree or order for relief in respect of the Company or a Significant Subsidiary in an
involuntary case or proceeding under any applicable Federal or State bankruptcy, insolvency, reorganization or other similar law or (B) a decree or order adjudging the Company or a Significant Subsidiary a bankrupt or insolvent, or approving as
properly filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the Company or a Significant Subsidiary under any applicable Federal or State law, or appointing a custodian, receiver, liquidator,
assignee, trustee, sequestrator or other similar official of the Company or a Significant Subsidiary or of any substantial part of their respective properties, or ordering the winding up or liquidation of the affairs of the Company or a Significant
Subsidiary, and the continuance of any such decree or order for relief or any such other decree or order unstayed and in effect for a period of 60 consecutive days; or 
  
 (5)  the commencement by the Company or a Significant Subsidiary of a voluntary case or proceeding under any applicable Federal or State bankruptcy,
insolvency, reorganization or other similar law or of any other case or proceeding to be adjudicated a bankrupt or insolvent, or the consent by either the Company or a Significant Subsidiary to the entry of a decree or order for relief in respect of
the Company or a Significant Subsidiary in an involuntary case or proceeding under any applicable Federal or State bankruptcy, insolvency, reorganization or other similar law or to the commencement of any bankruptcy or insolvency case or proceeding
against either the Company or a Significant Subsidiary, or the filing by either the Company or a Significant Subsidiary of a petition or answer or consent seeking reorganization or relief under any applicable Federal or State law, or the consent by
either the Company or a Significant Subsidiary to the filing of such petition or to the appointment of or taking possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or a
Significant Subsidiary or of any substantial part of their respective properties, or the making by either the Company or a Significant Subsidiary of an assignment for the benefit of creditors, or the admission by either the Company or a Significant
Subsidiary in writing of an inability to pay the debts of either the Company or a Significant Subsidiary generally as they become due, or the taking of corporate action by the Company or a Significant Subsidiary in furtherance of any such action.

  
 SECTION 6.02.    Acceleration of Maturity; Rescission and
Annulment.    If an Event of Default (other than an Event of Default specified in Section 6.01(4) or 6.01(5)) occurs and is continuing, then in every such case the Trustee or the Holders of not less than 25% in principal
amount of the outstanding Securities may declare the principal of all the Securities to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by Holders),  
 

 20 

  
 and upon any such declaration such principal shall become immediately due and payable. If an Event of Default specified
in Section 6.01(4) or 6.01(5) occurs, the principal of all the Securities shall automatically, and without any declaration or other action on the part of the Trustee or any Holder, become immediately due and payable. 
  
 At any time after such a declaration of acceleration has been made and before a judgment or decree for payment of the money due has been obtained by the
Trustee as hereinafter in this Article 6 provided, the Holders of a majority in principal amount of the outstanding Securities, by written notice to the Company and the Trustee, may (but are not required to) rescind and annul such declaration and
its consequences if 
  
 (1) the Company has paid or deposited with the Trustee a sum sufficient to pay:

  
 (A) all overdue interest on all Securities, 
  
 (B) the principal of (and premium, if any, on) any Securities which have become due otherwise than by such declaration of acceleration and interest thereon at the rate
borne by the Securities, 
  
 (C) to the extent that payment of such interest is lawful, interest upon overdue
interest at the rate borne by the Securities, and 
  
 (D) all sums paid or advanced by the Trustee hereunder and
the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel; and 
  
 (2)  all Events of Default, other than the non-payment of the principal of Securities which have become due solely by such declaration of acceleration, have been cured or waived as provided in Section 6.13. 

 
 No such rescission shall affect any subsequent default or impair any right consequent thereon. 
             
  
 SECTION
6.03.    Collection of Indebtedness and Suits for Enforcement by Trustee.  If 
  
 (1)  default is made in the payment of any interest on any Security when such interest becomes due and payable and such default continues for a period of 30 days, or 
  
 (2)  default is made in the payment of the principal of (or premium, if any, on) any Security at the Stated Maturity thereof, 
 

 21 

 the Trustee is authorized to recover judgment in its own name and as trustee of an express trust against the Company for the whole amount then due and payable
on such Securities for principal (and premium, if any) and interest, and, to the extent that payment of such interest shall be legally enforceable, interest on any overdue principal (and premium, if any) and on any overdue interest, at the rate
borne by the Securities, and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel. 
  
 If an Event of Default occurs and is continuing, the Trustee may in its discretion proceed to protect and enforce its
rights and the rights of the Holders by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in
aid of the exercise of any power granted herein, or to enforce any other proper remedy. 
  
 SECTION
6.04.    Trustee may file Proofs of Claim.    In case of any judicial proceeding relative to the Company (or any other obligor upon the Securities), its property or its creditors, the Trustee shall be
entitled and empowered, by intervention in such proceeding or otherwise, 
  
 (1)  to file and prove a
claim for the whole amount of principal andinterest owing and unpaid in respect of the Securities and to file suchother papers or documents as may be necessary or advisable in order tohave the claims of the Trustee (including any claim for the
reasonablecompensation, expenses, disbursements and advances of the Trustee, itsagents and counsel) and of the Holders allowed in such judicial proceeding, and 
  
 (2)  to collect and receive any moneys or other property payable or deliverable on any such claim and to distribute the same; 
  
 and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized and directed by each
Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.07. 
  
 No provision of this
Indenture shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof
or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding; PROVIDED, HOWEVER, that the Trustee may, on behalf of the Holders, vote for the election of a trustee in bankruptcy or similar official and be a member
of a creditors’ or other similar committee. 
  
 SECTION 6.05.    Trustee
may enforce Claims without Possession of Securities.    All rights of action and claims under this Indenture or the Securities may be prosecuted and enforced by the 
 

 22 

 Trustee without the possession of any of the Securities or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the
Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel,
be for the ratable benefit of the Holders of the Securities in respect of which such judgment has been recovered. 
  
 SECTION 6.06.    Application of Money Collected.    Any money collected by the Trustee pursuant to this Article 6 shall be applied in the following order, at the date or dates
fixed by the Trustee and, in case of the distribution of such money on account of principal (or premium, if any) or interest, upon presentation of the Securities and the notation thereon of the payment if only partially paid and upon surrender
thereof if fully paid: 
  
 FIRST:    To the payment of all amounts due the Trustee under
Section 7.07;              
  
 SECOND:    To the payment of the amounts then due and unpaid for first, interest on, and, second, for principal of (and premium, if any, on) the Securities in respect of which or for the benefit of which such money has
been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on such Securities for interest and principal (and premium, if any) respectively; and
             
  
 THIRD:    The
balance, if any, to the Person or Persons entitled thereto, as their interest may appear or as a court of competent jurisdiction shall direct. 
  
 SECTION 6.07.    Limitation on Suits.    No Holder of any Security shall have any right to institute any proceeding, judicial or otherwise, with respect to
this Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless 
  
 (1)  such Holder has previously given written notice to the Trustee of a continuing Event of Default; 
  
 (2)  the Holders of not less than 25% in principal amount of the outstanding Securities shall have made written request to the Trustee to institute proceedings in respect of such Event of Default in its own
name as Trustee hereunder; 
  
 (3)  such Holder or Holders have offered to the Trustee reasonable
indemnity against the costs, expenses and liabilities to be incurred in compliance with such request; 
  
 (4)  the Trustee for 60 days after its receipt of such notice, request and offer of indemnity has failed to instit ute any such proceeding; and 
 

 23 

  
 (5)  no direction inconsistent with such written request has been
given to the Trustee during such 60-day period by the Holders of a majority in principal amount of the outstanding Securities. 
  
 The foregoing limitations
on the pursuit of remedies by a Securityholder shall not apply to a suit instituted by a Holder of Securities for the enforcement of payment of the principal of or interest on such Security on or after the applicable due date specified in such
Security. 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 6.08.    Unconditional Right of Holders to Receive Principal, Premium and Interest.     Notwithstanding any other
provision in this Indenture, the Holder of any Security shall have the right, which is absolute and unconditional, to receive payment of the principal of (and premium, if any) and interest on such Security on the respective Stated Maturities
expressed in such Security and to institute suit for the enforcement of any such payment, and such rights shall not be impaired without the consent of such Holder. 
  
 SECTION 6.09.    Restoration of Rights and Remedies.    If the Trustee or any Holder has instituted any proceeding to
enforce any right or remedy under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then and in every such case, subject to any determination in
such proceeding, the Company, the Trustee and the Holders shall be restored severally and respectively to their former positions hereunder and thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such
proceeding had been instituted. 
  
 SECTION 6.10.    Rights and Remedies
Cumulative.    Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities in the last paragraph of Section 2.07, no right or remedy herein conferred upon or
reserved to the Trustee or to the Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy. 

 
 SECTION 6.11.    Delay or Omission not Waiver.    No delay or omission of the
Trustee or of any Holder of any Securities to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right and
remedy given by this Article 6 or by law to the Trustee or to the Holders may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the Holders, as the case may be. 
  
 SECTION 6.12.    Control by Holders.    The Holders of a majority in principal amount of
the Securities may direct the time, method and place of conducting any proceeding for any remedy  
 

 24 

 available to the Trustee or of exercising any trust or power conferred on the Trustee. However, the Trustee may refuse to follow any direction that conflicts
with law or this Indenture or, subject to Section 7.01, that the Trustee or its counsel 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 any action hereunder, the Trustee shall be entitled to indemnification satisfactory to it by such requesting Holders in its sole
discretion against all losses and expenses caused by taking or not taking such action. 
  
 SECTION
6.13.    Waiver of Past Defaults.    The Holders of not less than a majority in principal amount of the outstanding Securities may on behalf of the Holders of all the Securities waive any past default
hereunder and its consequences, except a default          
  
 (1)  in the payment of the principal of (or premium, if any) or interest on any Security, or 
  
 (2)  in respect of a covenant or provision hereof which under Article 9 cannot be modified or amended without the consent of the Holder of each Outstanding Security affected. 
  

Upon any such waiver, such default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such waiver shall extend
to any subsequent or other default or impair any right consequent thereon. 
  
 SECTION
6.14.    Undertaking for Costs.    In any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken, suffered or omitted by it as
Trustee, a court may require any party litigant in such suit to file an undertaking to pay the costs of such suit, and may assess costs against any such party litigant, having due regard to the merits and good faith of the claims or defenses made by
such party litigant. 
  
 SECTION 6.15.    Waiver of Usury, Stay or Extension
Laws.    The Company covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any usury, stay or extension
law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Indenture; and the Company (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such
law and covenants that it will not hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted. 
 

 25 

  
 ARTICLE 7 
  
 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; 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 or its counsel shall examine the certificates and opinions to determine whether or not they conform to the requirements of this Indenture. 
  
 (c)  The Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act or its own wilful misconduct, except that: 

 
 (1)  this paragraph does not limit the effect of paragraph (b) of this Section; 
  
 (2)  the Trustee shall not be liable for any error of judgment made in good faith by a Trust Officer or by a Trust Officer
upon advice of counsel 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 6.12. 
  

(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. 
  
 (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.

 

 26 

  
 (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 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, if it shall have reasonable grounds to believe that repayment of such funds or adequate indemnity against such
risk or liability is not reasonably assured to it. 
  
 (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 and to the provisions of the TIA. 
  
 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 any such 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 wilful 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)  Except with
respect to Section 4.01, the Trustee shall have no duty to inquire as to the performance of the Issuer’s covenants in Article 4. In addition, the Trustee shall not be deemed to have knowledge of any Default or Event of Default except (i) any
Event of Default occurring pursuant to Sections 6.01(1), 6.01(2) and 4.01 (excluding the nonpayment of special interest relating to a Registration Default), or (ii) any Default or Event of Default of which the Trustee shall have received written
notification or obtained actual knowledge. 
 

 27 

 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 and 7.11. 
  
 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. 
  
 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 notice of
the Default within 90 days after it occurs. 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 in good faith determines that withholding the notice is in the interests of Securityholders. 
  
 SECTION 7.06.    Reports by Trustee to Holders.    As promptly as practicable after each May 15 beginning with the
May 15 following the date of this Indenture, and in any event prior to June 15 in each year, the Trustee shall mail to each Securityholder a brief report dated as of May 15 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 as Trustee, Registrar, Paying Agent and any other function. 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) incurred by
it in connection with the administration of this Indenture and any related document and the performance of its duties thereunder. The Trustee shall notify the Company promptly of any claim for which it may seek indemnity. Failure by the Trustee to
so notify the Company shall not relieve the Company of its obligations hereunder. The Trustee may have separate counsel and the Company shall pay the fees and expenses of such counsel. The Company need not 
 

 28 

 reimburse any expense or indemnify against any loss, liability or expense incurred by the Trustee through the Trustee’s own wilful misconduct, gross
negligence or bad faith. 
  
 To secure the Company’s payment obligations in this Section, the Trustee shall have a lien prior
to the Securities on all money or property held or collected by the Trustee 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 discharge of this Indenture. When the Trustee incurs expenses after the occurrence of a Default
specified in Section 6.01(4) or (5) with respect to the Company, the expenses are intended to constitute expenses of administration under any applicable 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 of the Securities may remove the Trustee by so notifying the Trustee with 60 days advance notice and may appoint a successor Trustee. The Company shall remove the Trustee if: 
  
 (1) the Trustee fails to comply with Section 7.10; 
  
 (2) the Trustee is adjudged bankrupt or insolvent; 
  
 (3) a receiver or other public officer takes charge of the Trustee or its property; or 
  
 (4) 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 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. 
  
 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, any Securityholder may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor
Trustee.  
 

 29 

 Notwithstanding the replacement of the Trustee pursuant to this Section, the Company’s obligations under Section 7.07 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. 
  
 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 provided that the certificate of the
Trustee shall have. 
  
 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 $50,000,000 as set forth in its most recent published
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.    Upon this Indenture (or any amendment or supplement hereto) being qualified under
the TIA, 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 8 
  
 DISCHARGE OF
INDENTURE; DEFEASANCE 
  
 SECTION 8.01.    Discharge of Liability on Securities;
Defeasance.    (a) When (i) the Company delivers to the Trustee all outstanding Securities (other than Securities replaced pursuant to Section 2.07) for cancelation or (ii) 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 3 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), 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 
 

 30 

 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”) or (ii) its obligations under Sections 4.02, 4.06, 4.07 and 4.08, and the operation of Sections 6.01(3), 6.01(4) and 6.01(5) (but, in the case of Sections
6.01(4) and 6.01(5), with respect only to Significant Subsidiaries) (“covenant defeasance option”). The Company may exercise its legal defeasance option notwithstanding its prior exercise of its covenant defeasance option. If the Company
exercises its legal defeasance option, payment of the Securities may not be accelerated because of an Event of Default with respect thereto. 
  
 If the Company exercises its covenant defeasance option, payment of the Securities may not be accelerated because of an Event of Default specified in Sections 6.01(3), 6.01(4) and 6.01(5) (but, in the case of Sections
6.01(4) and 6.01(5), with respect only to Significant Subsidiaries). 
  
 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, 2.06, 2.07, 2.08, 7.07 and 7.08 and in this Article 8 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: 
  
 (1)  the Company irrevocably deposits in trust with the Trustee money or U.S. Government Obligations for the payment of principal of and interest on the
Securities to maturity or redemption, as the case may be; 
  
 (2)  the Company delivers to the Trustee
a certificate from a nationally recognized firm of independent accountants expressing their opinion that the payments of principal and interest when due and without reinvestment on the deposited U.S. Government Obligations plus any deposited money
without investment 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 to maturity or redemption, as the case may be; 
  
 (3)  123 days pass after the deposit is made and during the 123-day period no Default specified in Sections 6.01(4) or
6.01(5) with respect to the Company occurs which is continuing at the end of the period; 
 

 31 

 (4)  the deposit does not constitute a default under any other agreement binding on the Company and is not
prohibited by Article 10; 
  
 (5)  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; 
  
 (6)  in the case of the legal defeasance option, the Company shall have delivered to the Trustee an Opinion of Counsel stating that (i) the Company has
received from, or there has been published by, the Internal Revenue Service a ruling, or (ii) since the date of this 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 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 defeasance had not occurred; 
  
 (7)  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 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 
  

(8)  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 8 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 3. 
  
 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 8. 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. 
  
 SECTION 8.04.    Repayment to Company.    The Trustee and the Paying Agent shall promptly
turn over to the Company upon request any excess money or securities held by them at any time. 
  
 Subject to any applicable
abandoned property law, the Trustee and the Paying Agent shall pay to the Company upon request any money held by them for the payment of principal 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.  
 

 32 

  
 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 8 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 reinstated as though no
deposit had occurred pursuant to this Article 8 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 8; 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 9 
  
 AMENDMENTS 
  
 SECTION 9.01.  Without
Consent of Holders.    The Company and the Trustee may amend this Indenture or the Securities without notice to or consent of any Securityholder: 
  
 (1)  to cure any ambiguity, omission, defect or inconsistency; 
  
 (2)  to comply with Article 5; 
  
 (3)  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; 
  
 (4)  to add guarantees with respect to the Securities, or to secure the Securities; 
  
 (5)  to add to the covenants of the Company for the benefit of the Holders or to surrender any right or power herein conferred upon the Company; 
  
 (6)  to comply with any requirements of the SEC in connection with qualifying, or maintaining the qualification of, this Indenture under the TIA; or

  
 (7)  to make any change that does not adversely affect the rights of any Securityholder.

 

 33 

  
 After an amendment under this Section becomes effective, the Company shall mail to
Securityholders, with a copy to the Trustee, 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.

  
 SECTION 9.02.    With Consent of Holders.    The Company 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 (including consents obtained in
connection with a tender offer or exchange for the Securities). However, without the consent of each Securityholder affected thereby, an amendment may not: 
  
 (1)  reduce the amount of Securities whose Holders must consent to an amendment; 
  
 (2)  reduce the rate of or extend the time for payment of interest on any Security; 
  
 (3)  reduce the principal of or extend the Stated Maturity of any Security; 
  
 (4)  reduce the premium payable upon the redemption of any Security or change the time at which any Security may be redeemed in accordance with Article 3;

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

 
 (6)  make any change in Section 6.08 or 6.13 or the second sentence of this Section; 
  
 (7)  impair the right of any Holder to institute suit for enforcement of any payment on or with respect to such
Holder’s Securities; or 
  
 (8)  impair the right of any Holder to receive payment of interest on
and principal of such Holder’s Securities on or after the due dates therefor. 
  
 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 becomes effective, the Company shall mail to Securityholders, with a copy to the Trustee, 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. 
  
 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. 
 

 34 

  
 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. An amendment or waiver becomes effective upon the execution of such
amendment or waiver by the Trustee. 
  
 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 9 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) 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. 
  
 SECTION 9.07.    Payment for
Consent.    Neither the Company nor any Affiliate of the Company shall, directly or indirectly, pay or cause to be paid any consideration, whether by way of interest, fee or otherwise, to any Holder for or as an inducement to
any consent, waiver or amendment of any of the terms or provisions of this Indenture or the Securities unless such consideration is offered to be paid to all Holders that so consent, waive or agree to amend in the time frame set forth in
solicitation documents relating to such consent, waiver or agreement. 
 

 35 

  
 ARTICLE 10 
  
 MISCELLANEOUS 
  
 SECTION 10.01.    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 10.02.    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: 

 
 Louis Dreyfus Natural Gas Corp. 
 14000 Quail Springs Parkway 
 Suite 600 
 Oklahoma City, OK 73134 
 Fax: (405) 749-6661 
  
 Attention of Chief Financial Officer 
  
 with a copy to: 
  
 Crowe & Dunlevy 
 1800 Mid-America Tower 
 20 North Broadway 
 Oklahoma City, OK 73102 
 Fax: (405) 272-5238 
  
 Attention of Michael M. Stewart, Esq. 
  
 if to the Trustee: 
  
 LaSalle
National Bank 
 135 South LaSalle Street 
 Chicago,
IL 60603 
 Fax: (312) 904-2236 
  
 Attention of Diane Swanson 
 

 36 

  
 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
10.03.    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). 
  
 SECTION 10.04.    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: 
  
 (1)  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 

 
 (2)  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
10.05.    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:

  
 (1)  a statement that the individual making such certificate or opinion has read such covenant or
condition; 
  
 (2)  a brief statement as to the nature and scope of the examination orinvestigation
upon which the statements or opinions contained in such certificate or opinion are based; 
  
 (3)  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 

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

 37 

  
 SECTION 10.06.    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 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. 

 
 SECTION 10.07.    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 10.08.    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 Illinois. 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 for the intervening period. If a regular record date is a Legal Holiday, the
record date shall not be affected. 
  
 SECTION 10.09.    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
10.10.    No Recourse Against Others.    A director, officer, employee or stockholder, as such, of the Company shall not have any liability for any obligations of the Company under the Securities or
this Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. 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
10.11.    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 10.12.    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 10.13.    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 
 

 38 

  
 reference only, are not intended to be considered a part hereof and shall not modify or restrict any of the terms or
provisions hereof. 
  
 IN WITNESS WHEREOF, the parties have caused this Indenture to be duly executed as of the date first written
above. 
  
 
	 LOUIS DREYFUS NATURAL GAS CORP.,
 
	 
	 By:
 	 	 /s/    JEFFREY A. BONNEY        
 

	  	 	 Jeffrey A. Bonney
 Executive Vice President and Chief Financial
Officer
 

 
  
 
	 LASALLE NATIONAL BANK,
 
	 
	 By:
 	 	 /s/    DIANE SWANSON        
 

	  	 	 Diane Swanson
 Assistant Vice President
 

 
 

 39 

  
 APPENDIX A      
 PROVISIONS RELATING TO INITIAL SECURITIES, 
 PRIVATE EXCHANGE SECURITIES 
 AND
EXCHANGE SECURITIES 
  
 1.    DEFINITIONS      
  
 1.1    Definitions 
  
 For the purposes
of this Appendix the following terms shall have the meanings indicated below: 
  
 “Definitive Security” means a
certificated Initial Security bearing the restricted securities legend set forth in Section 2.3(d) and which is held by an IAI in accordance with Section 2.1(c). 
  
 “Depository” means The Depository Trust Company, its nominees and their respective successors. 
  
 “Exchange Securities” means the 6.875% Senior Notes Due 2007 to be issued pursuant to this Indenture in connection with a Registered Exchange Offer pursuant to the Registration
Agreement. 
  
 “IAI” means an institutional “accredited investor” as described in Rule 501(a)(1), (2), (3) or
(7) under the Securities Act. 
  
 “Initial Purchasers” means Salomon Brothers Inc, Chase Securities Inc., Morgan Stanley
& Co. Incorporated, NationsBanc Montgomery Securities, Inc. and Nesbitt Burns Securities Inc. 
  
 “Initial
Securities” means the 6.875% Senior Notes Due 2007, issued under this Indenture on or about the date hereof. 
  
 “Private
Exchange” means the offer by the Company, pursuant to the 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 the 6.875% Senior Notes Due 2007 to be issued pursuant to this Indenture in connection with a Private Exchange pursuant to the Registration Agreement. 
 

  
 “Purchase Agreement” means the Purchase Agreement dated December 4, 1997, between the
Company and the Initial Purchasers.      
  
 “QIB” means a “qualified institutional buyer”
as defined in Rule 144A. 
  
 “Registered Exchange Offer” means the offer by the Company, pursuant to the 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 the Registration Agreement dated as of December 11, 1997, among the Company and the Initial Purchasers.
     
  
 “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. 
  
 “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 the Registration Agreement. 
  
 “Transfer Restricted Securities” means Definitive Securities and Securities that bear or are required to bear the legend set forth in Section 2.3(d) hereto. 
  
 1.2    Other Definitions 
  
 
	 Term
 
	    	 Defined in Section:
 
	 
	 “Agent Members”
 	    	 2.1
 	 (b)
 
	 “Global Security”
 	    	 2.1
 	 (a)
 
	 “Regulation S”
 	    	 2.1
 	 (a)
 
	 “Rule 144A”
 	    	 2.1
 	 (a)
 

 
 

 A-2 

  
 2.    THE SECURITIES. 
  
 2.1    Form and Dating. 
  
 The Initial
Securities are being offered and sold by the Company pursuant to the Purchase Agreement. 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 IAIs. 
  
 (a)  Global Securities.    Initial Securities shall be issued initially in the form of one or more permanent global Securities in
definitive, fully registered form without interest coupons with the global securities legend and restricted securities legend set forth in Exhibit 1 hereto (each, a “Global Security”), which shall be deposited on behalf of the purchasers
of the Initial Securities represented thereby with the Trustee, at its Chicago, Illinois office, as custodian for the Depository (or with such other custodian as the Depository may direct), 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 hereinafter provided. 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) and pursuant to an order from the Company, 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 Securities Custodian or under such Global Security, and the Depository may be treated by the Company, the Trustee and
any agent of the Company or the Trustee as the absolute owner of such Global Security for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Company, the Trustee or any agent of the Company or the Trustee from
giving effect to any written certification, proxy or other authorization furnished by 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.   
 

 A-3 

  
 (c)  Certificated Securities.    Except
as provided in Section 2.3 or 2.4, owners of beneficial interests in Global Securities will not be entitled to receive physical delivery of certificated Securities. 
  
 2.2    Authentication.    The Trustee shall authenticate and deliver: (1) Initial Securities for original issue in an aggregate principal
amount of $200,000,000 and (2) Exchange Securities or Private Exchange Securities for issue only in a Registered Exchange Offer or a Private Exchange, respectively, as directed pursuant to the Registration Agreement, for a like principal amount of
Initial Securities, in each case 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 and 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. The aggregate principal amount of Securities
outstanding at any time may not exceed $200,000,000 except as provided in Section 2.07 of this 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      
  
 (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)  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 (in the form set forth on the reverse of the Security); or   
 

 A-4 

  
 (B)  if such Definitive Securities are being transferred to the
Company, a certification to that effect (in the form set forth on the reverse of the Security); or      
  
 (C)  if such Definitive Securities are being transferred (w) pursuant to an exemption from registration in accordance with Rule 144; or (x) in reliance on another exemption from the registration requirements
of the Securities Act: (i) a certification to that effect (in the form set forth on the reverse of the Security) and (ii) if the Company or Registrar so requests, an opinion of counsel or other evidence reasonably satisfactory to them as to the
compliance with the restrictions set forth in the legend set forth in Section 2.3(d)(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 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, in the form set forth on the reverse of the Security, that such
Definitive Security is being transferred (A) to a QIB in accordance with Rule 144A, (B) to an IAI that has furnished to the Trustee a signed letter containing certain representations and agreements (the form of which letter can be obtained from the
Trustee) or (C) outside the United States in an offshore transaction within the meaning of Regulation S and in compliance with Rule 904 under the Securities Act; and      
  
         (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 Global Security to reflect an increase in the aggregate principal amount of the Securities represented by the Global Security, such instructions to contain information regarding the Depositary 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 Global Security 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 Global Security equal to the principal amount of the Definitive Security so canceled. If no Global Securities 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 Global Security 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   
 

 A-5 

  
 Depository therefor. A transferor of a beneficial interest in a Global Security shall deliver a written order given in
accordance with the Depositary’s procedures containing information regarding the participant account of the Depositary to be credited with a beneficial interest in the Global Security and such account shall be credited in accordance with such
instructions with a beneficial interest in the Global Security and the account of the Person making the transfer shall be debited by an amount equal to the beneficial interest in the Global Security being transferred. In the case of a transfer of a
beneficial interest in a Global Security to an IAI, the transferee must furnish a signed letter to the Trustee containing certain representations and agreements (the form of which letter can be obtained from the Trustee). 
  
 (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 Global Security from which such interest is being transferred. 
  
 (iii)  Notwithstanding any other provisions of this Appendix (other than the provisions set forth in Section 2.4), a Global
Security may not be transferred except as a whole 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.          
  
 (iv)  In the event that a Global Security or any portion thereof is exchanged for Securities in definitive registered form pursuant to Section 2.4 or Section 2.09 of the Indenture, 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)  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 SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THE HOLDER HEREOF, BY PURCHASING THIS SECURITY, AGREES FOR
THE BENEFIT OF THE 
 

 A-6 

 COMPANY THAT THIS SECURITY MAY NOT BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED (X) PRIOR TO THE SECOND ANNIVERSARY OF THE ISSUANCE
HEREOF (OR A PREDECESSOR SECURITY HERETO) OR (Y) BY ANY HOLDER THAT WAS AN AFFILIATE OF THE COMPANY AT ANY TIME DURING THE THREE MONTHS PRECEDING THE DATE OF SUCH TRANSFER, IN EITHER CASE OTHER THAN (1) TO THE COMPANY, (2) SO LONG AS THIS SECURITY
IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A PURCHASING FOR ITS OWN ACCOUNT OR FOR
THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A (AS INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON THE REVERSE
OF THIS SECURITY), (3) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH REGULATION S UNDER THE SECURITIES ACT (AS INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON THE REVERSE OF THIS SECURITY), (4) TO AN INSTITUTION THAT
IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT (AS INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON THE REVERSE OF THIS SECURITY) THAT IS ACQUIRING THIS
SECURITY FOR INVESTMENT PURPOSES AND NOT FOR DISTRIBUTION, AND A LETTER WHICH MAY BE OBTAINED FROM THE COMPANY OR THE TRUSTEE IS DELIVERED BY THE TRANSFEREE TO THE COMPANY AND THE TRUSTEE, (5) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT PROVIDED BY RULE 144 (IF APPLICABLE) UNDER THE SECURITIES ACT, OR (6) 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. AN INSTITUTIONAL ACCREDITED INVESTOR HOLDING THIS SECURITY AGREES IT WILL FURNISH TO THE COMPANY AND THE TRUSTEE SUCH CERTIFICATES AND OTHER INFORMATION AS THEY MAY REASONABLY REQUIRE TO CONFIRM THAT ANY TRANSFER BY IT OF THIS SECURITY
COMPLIES WITH THE FOREGOING RESTRICTIONS. THE HOLDER HEREOF, BY PURCHASING THIS SECURITY, REPRESENTS AND AGREES FOR THE BENEFIT OF THE COMPANY THAT IT IS (1) A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A OR (2) AN INSTITUTION THAT
IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT AND THAT IT IS HOLDING THIS SECURITY FOR INVESTMENT PURPOSES AND NOT FOR DISTRIBUTION OR (3) A 
 

 A-7 

 NON-U.S. PERSON OUTSIDE THE UNITED STATES WITHIN THE MEANING OF (OR AN ACCOUNT SATISFYING THE REQUIREMENTS OF PARAGRAPH (o)(2) OF
RULE 902 UNDER) REGULATION S UNDER THE SECURITIES ACT.”      
  
 Each Definitive Security will also
bear the following additional legend: 
  
 “IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND
TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER 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: 
  
 (A) in the case of any Transfer Restricted Security that is a Definitive
Security, the Registrar shall permit the Holder thereof to exchange such Transfer Restricted Security for a Definitive Security that does not bear the legend set forth above and rescind any restriction on the transfer of such Transfer Restricted
Security; and          
  
 (B) in the case of any Transfer Restricted
Security that is represented by a Global Security, the Registrar shall permit the Holder thereof to exchange such Transfer Restricted Security for a Definitive Security that does not bear the legend set forth above and rescind any restriction on the
transfer of such Transfer Restricted Security, in either case,      
  
 if the Holder certifies in writing to the Registrar that its
request for such exchange was made in reliance on Rule 144 (such certification to be in the form set forth on the reverse of the Initial Security).          
  
     (iii)  After a transfer of any Initial Securities or Private Exchange Securities 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 Security or such Private Exchange Security will
cease to apply, the requirements requiring any such Initial Security or such Private Exchange Security issued to certain Holders be issued in global form will cease to apply, and a certificated or global Initial Security or Private Exchange Security
without 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 Security or Private Exchange Security or directions to
transfer such Holder’s interest in the Global Security, as applicable. 
 

 A-8 

  
 (iv)  Upon the consummation of a Registered Exchange Offer with
respect to the Initial Securities pursuant to which Holders of such Initial Securities are offered 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 cease to apply and certificated Initial Securities with the restricted securities legend set forth in Exhibit 1 hereto will be available to Holders of such Initial Securities 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,
and Private Exchange Securities in global form with the Restricted Securities Legend set forth in Exhibit 1 hereto will be available to Holders that exchange such Initial Securities in such Private Exchange.      

 
 (vi)  After the expiration of the “40-day restricted period” (within the meaning of Rule 903(c)(3) of
Regulation S), upon a sale or transfer of any Initial Security acquired pursuant to Regulation S, all requirements pertaining to legends on such Initial Security will cease to apply, the requirements requiring any such Initial Security be issued in
global form will cease to apply, and an Initial Security in certificated or global form without the Restricted Security Legend will be available to the transferee of the Holder of such Initial Securities. 
  
 (e)  Cancelation or Adjustment of Global Security.    At such time as all beneficial interests in a Global Security
have either been exchanged for certificated or Definitive Securities, redeemed, repurchased or canceled, such Global Security shall be returned to the Depository for cancelation or retained and canceled by the Trustee. At any time prior to such
cancelation, if any beneficial interest in a Global Security is exchanged for certificated or Definitive 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.
         
  
 (f)  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, Definitive 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,               
 

 A-9 

  
 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 and 9.05).          
  
 (iii)  The Registrar or co-registrar shall not be required to register the transfer of or exchange of (a) any certificated or Definitive Security selected for
redemption in whole or in part pursuant to Article 3 of this Indenture, except the unredeemed portion of any certificated or 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. 
  
 (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.      
  
 (g)  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. All 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   
 

 A-10 

 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 Certificated Securities. 
  
 (a)  A Global Security deposited with the Depository or with the Trustee as custodian for the Depository pursuant to Section 2.1 shall be transferred to the beneficial owners thereof in the form of certificated 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 notifies the Company that it is unwilling or unable to
continue as Depository for such Global Security or if at any time such Depository ceases to be a “clearing agency” registered under the Exchange Act and a successor depositary is not appointed by the Company within 90 days of such notice,
or (ii) an Event of Default has occurred and is continuing or (iii) the Company, in its sole discretion, notifies the Trustee in writing that it elects to cause the issuance of certificated Securities under this Indenture. 
  
 (b)  Any Global Security that is transferable to the beneficial owners thereof pursuant to this Section 2.4 shall be surrendered by the
Depository to the Trustee 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
certificated Initial 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 $1,000 and any integral multiple thereof and
registered in such names as the Depository shall direct. Any certificated Initial Security delivered in exchange for an interest in the Global Security shall, except as otherwise provided by Section 2.3(d), 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 may grant proxies and otherwise authorize any Person, including Agent Members and Persons that may hold interests through Agent Members, to take any action which a Holder is entitled to take under this Indenture or the Securities.

  
 (d)  In the event of the occurrence of either of the events specified in Section 2.4(a)(i), (ii) or (iii), the
Company will promptly make available to the Trustee a reasonable supply of certificated Securities in definitive, fully registered form without interest coupons.  
 

 A-11 

 
  
 EXHIBIT 1 to APPENDIX A 
  
 [FORM OF FACE OF INITIAL SECURITY] 
  
 [Global Securities Legend] 

 
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY 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 SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”). THE HOLDER HEREOF, BY PURCHASING THIS SECURITY, AGREES FOR THE BENEFIT OF THE COMPANY THAT THIS SECURITY MAY NOT BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED (X) PRIOR TO THE SECOND ANNIVERSARY OF THE
ISSUANCE HEREOF (OR A PREDECESSOR SECURITY HERETO) OR (Y) BY ANY HOLDER THAT WAS AN AFFILIATE OF THE COMPANY AT ANY TIME DURING THE THREE MONTHS PRECEDING THE DATE OF SUCH TRANSFER, IN EITHER CASE OTHER THAN (1) TO THE COMPANY, (2) SO LONG AS THIS
SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A PURCHASING FOR ITS OWN ACCOUNT
OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A (AS INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON THE
REVERSE OF THIS SECURITY), (3) IN AN OFFSHORE 
 

 Ex-1-1 

 TRANSACTION IN ACCORDANCE WITH REGULATION S UNDER THE SECURITIES ACT (AS INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON THE
REVERSE OF THIS SECURITY), (4) TO AN INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT (AS INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON
THE REVERSE OF THIS SECURITY) THAT IS ACQUIRING THIS SECURITY FOR INVESTMENT PURPOSES AND NOT FOR DISTRIBUTION, AND A LETTER WHICH MAY BE OBTAINED FROM THE COMPANY OR THE TRUSTEE IS DELIVERED BY THE TRANSFEREE TO THE COMPANY AND THE TRUSTEE, (5)
PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 (IF APPLICABLE) UNDER THE SECURITIES ACT, OR (6) 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. AN INSTITUTIONAL ACCREDITED INVESTOR HOLDING THIS SECURITY AGREES IT WILL FURNISH TO THE COMPANY AND THE TRUSTEE SUCH CERTIFICATES AND OTHER INFORMATION AS THEY MAY REASONABLY REQUIRE TO
CONFIRM THAT ANY TRANSFER BY IT OF THIS SECURITY COMPLIES WITH THE FOREGOING RESTRICTIONS. THE HOLDER HEREOF, BY PURCHASING THIS SECURITY, REPRESENTS AND AGREES FOR THE BENEFIT OF THE COMPANY THAT IT IS (1) A QUALIFIED INSTITUTIONAL BUYER WITHIN THE
MEANING OF RULE 144A OR (2) AN INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT AND THAT IT IS HOLDING THIS SECURITY FOR INVESTMENT PURPOSES AND NOT FOR DISTRIBUTION OR (3)
A NON-U.S. PERSON OUTSIDE THE UNITED STATES WITHIN THE MEANING OF (OR AN ACCOUNT SATISFYING THE REQUIREMENTS OF PARAGRAPH (o)(2) OF RULE 902 UNDER) REGULATION S UNDER THE SECURITIES ACT.” 
  
 [IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH
TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.] 
 

 Ex-1-2 

  

	No. 
 	$[200,000,000] 
 

CUSIP No.:

 ISIN: 
  
 6.875% Senior Notes Due
2007 
  
 LOUIS DREYFUS NATURAL GAS CORP., an Oklahoma corporation, promises to pay to Cede & Co., or registered assigns, the
principal sum set forth in the Schedule of Increases and Decreases in Global Security on December 1, 2007. 
  
 Interest Payment Dates: June 1 and December 1. 
  
 Record Dates: May 15 and November 15. 

 Ex-1-3 

  
 Additional provisions of this Security are set forth on the other side of this Security.

  
 Dated:  December     , 1997 
  
 
	 LOUIS DREYFUS NATURAL GAS CORP.,
 
	 
	 By:
 	 	 

	  	 	 President
 
	 
	  	 	 

	  	 	 Secretary
 

 
  
 Dated:   December     , 1997 

  
 TRUSTEE’S CERTIFICATE OF AUTHENTICATION  
  
 LASALLE NATIONAL BANK, 
 as Trustee, certifies that this 
 is one of the Securities referred

 to in the Indenture. 
  
 
	 
	 by:
 	 	 

	  	 	 Authorized Signatory
 

 
 

 Ex-1-4 

  
 [FORM OF REVERSE SIDE OF INITIAL SECURITY] 
  

6.875% Senior Note Due 2007 
  
 1.    Interest 
  
 (a)  LOUIS DREYFUS NATURAL GAS CORP., an Oklahoma 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 Security at the rate per annum shown above; provided, however, that if a Registration Default (as defined hereunder in
accordance with the Registration Agreement) occurs, additional interest will accrue on this Security at a rate of 0.25% per annum 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 June 1 and December 1 of each year. Interest on the Securities will accrue from the most recent date to which interest has been paid or, if no interest has been
paid, from December 11, 1997. 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 Securities plus 1% per annum, and it shall pay interest on
overdue installments of interest at the same rate to the extent lawful. 
  
 (b)  Special
Interest.    The holder of this Security is entitled to the benefits of a Registration Agreement, dated as of December 11, 1997, among the Company and the Purchasers named therein (the “Registration Agreement”).
Capitalized terms used in this paragraph (b) but not defined herein have the meanings assigned to them in the Registration Agreement. In the event that (i) by the 150th day following the Issue Date, the Exchange Offer Registration Statement is not
filed with the Commission, (ii) by the 180th day following the Issue Date, neither the Exchange Offer Registration Statement is declared effective nor (if the Exchange Offer is not permitted as described above) the Shelf Registration Statement is
filed with the Commission, or (iii) by the 210th day following the Issue Date, the Exchange Offer is not consummated or the Shelf Registration Statement is not declared effective with respect thereto (each such event referred to in clauses (i)
through (iii), a “Registration Default”), interest will accrue on the applicable Securities (in addition to stated interest on such Securities) which, except as provided below, shall be the sole and exclusive remedy for such Registration
Default from and including the next day following each such Registration Default. In each case such additional interest (the “Special Interest”) will be payable in cash semiannually in arrears each June 1 and December 1, at a rate per
annum equal to 0.25% of the principal amount of such Securities for each such Registration Default. The aggregate amount of Special Interest payable pursuant to the above provisions will in no event exceed 0.25% per annum of the principal amount of
such Securities which, except as provided below, shall be the sole and exclusive remedy for such Registration Default. Upon (a) the filing of the Exchange Offer Registration Statement after the 150-day period described in clause (i) above, (b) the
effectiveness of the Exchange Offer Registration Statement or the filing of the Shelf Registration 
 

 Ex-1-5 

 Statement after the 180-day period described in clause (ii) above or (c) the consummation of the Exchange Offer for such Securities or the effectiveness of a
Shelf Registration Statement, as the case may be, after the 210-day period described in clause (iii) above, the Special Interest payable on such Securities as a result of the applicable Registration Default will cease to accrue. For purposes of the
preceding sentence, the curing of a Registration Default by the means described in clause (b) above shall constitute a cure of the Registration Defaults described in clauses (i) and (ii) above, and the curing of a Registration Default by the means
described in clause (c) above shall constitute a cure of the Registration Defaults described in clauses (i), (ii) and (iii) above. The Company will have no other liabilities for monetary damages with respect to the above; provided, however, that in
the event the Company breaches, fails to comply with or violates certain provisions of the Registration Agreement, the holders shall be entitled to, and the Company shall not oppose the granting of, equitable relief, including injunction and
specific performance. 
  
 In the event that a Shelf Registration Statement is declared effective pursuant to the paragraph
preceding the immediately preceding paragraph, if the Company fails to keep such Registration Statement continuously effective for the period required by the Registration Agreement (except as specifically permitted therein), then from such time as
the Shelf Registration Statement is no longer effective until the earlier of (i) the date that the Shelf Registration Statement is again deemed effective and (ii) the date that is the earliest of (x) the second anniversary of the Issue Date (or
until the first anniversary of the effective date if the Shelf Registration Statement is filed at the request of the Initial Purchasers), (y) the time when the Securities registered thereunder can be sold by non-affiliates pursuant to Rule 144 under
the Securities Act without any limitation under classes (c), (e), (f) and (h) of Rule 144, or (z) the date as of which all such Securities are sold pursuant to the Shelf Registration Statement, Special Interest shall accrue at a rate per annum equal
to 0.25% of the principal amount of the Securities which, except as provided below, shall be the sole and exclusive remedy for such Registration Default and shall be payable in cash semiannually in arrears each June 1 and December 1. The Company
will have no other liabilities for monetary damages with respect to the above; provided, however, that in the event the Company breaches, fails to comply with or violates certain provisions of the Registration Agreement, the holders shall be
entitled to, and the Company shall not oppose the granting of, equitable relief, including injunction and specific performance. 
  
 2.    Method of Payment 
  
 The Company will pay interest on the Securities (except defaulted
interest) to the Persons who are registered holders of Securities at the close of business on the May 15 or November 15 next preceding the interest payment date even if Securities are canceled after the record date and on or before the interest
payment date. Holders must surrender Securities 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 the Securities represented by a Global Security (including principal, premium and interest) will be made by wire transfer of immediately available funds to the accounts specified by The Depository Trust Company. The
Company will make all payments in respect of a certificated Security (including principal, premium 
 

 Ex-1-6 

  
 and interest) by mailing a check to the registered address of each Holder thereof; provided, however, that payments on a
certificated Security will be made by wire transfer to a U.S. dollar account maintained by the payee with a bank in the United States if such Holder elects payment by wire transfer by giving written notice to the Trustee or the Paying Agent to such
effect designating such account no later than 30 days immediately preceding the relevant due date for payment (or such other date as the Trustee may accept in its discretion). 
  
 3.    Paying Agent and Registrar 
  
 Initially, LaSalle National Bank
(“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 Securities under an Indenture dated as of December 11, 1997 (“Indenture”), between the Company and the Trustee. The terms of the Securities include those
stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C. 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 Securities are general unsecured obligations of the Company limited to $200,000,000 aggregate principal amount (subject to Section 2.07 of the
Indenture). 
  
 The Company will not, and will not permit any of its Subsidiaries to, create, incur or otherwise cause or suffer to
exist or become effective any Liens of any kind upon any Principal Property or any shares of stock or indebtedness of any Subsidiary that owns or leases any Principal Property (whether such Principal Property, shares of stock or indebtedness are now
owned or hereafter acquired) unless all payments due under the Indenture and the Securities are secured on an equal and ratable basis with the obligations so secured until such time as such obligation is no longer secured by a Lien, except for
Permitted Liens. 
  
 Neither the Company nor any Subsidiary will enter into any Sale and Leaseback Transaction with respect to any
Principal Property unless either (a) the Company or such Subsidiary would be entitled, pursuant to the provisions of the Indenture, to incur Indebtedness secured by a Lien on the property to be leased without equally and ratably securing the
Securities or (b) the Company, within 180 days after the effective date of such transaction, applies to the voluntary retirement of its funded debt an amount equal to the value of such transaction, defined as the greater of the net proceeds of the
sale of the 
 

 Ex-1-7 

  
 property leased in such transaction or the fair value, in the opinion of the Board of Directors, of the leased property
at the time such transaction was entered into. 
  
 Notwithstanding the foregoing limitations on Liens and Sale and Leaseback
Transaction, the Company and its Subsidiaries may issue, assume, or guarantee Indebtedness secured by a Lien without securing the Securities, or may enter into Sale and Leaseback Transactions without retiring funded debt, or enter into a combination
of such transactions, if the sum of the principal amount of all such Indebtedness and the aggregate value of all such Sale and Leaseback Transactions does not at any time exceed 15% of the Consolidated Net Tangible Assets of the Company.

  
 5.    Optional Redemption 
  
 The Securities will be redeemable at any time, at the option of the Company, in whole or from time to time in part, upon not less than 30 and not more than 60 days’ notice mailed to each Holder to be redeemed at
the Holder’s address appearing in the books of the Registrar, on any date prior to maturity (the “Redemption Date”) at a price equal to 100% of the principal amount thereof plus accrued interest to the Redemption Date (subject to the
right of Holders of record on the relevant record date to receive interest due on an interest payment date that is on or prior to the Redemption Date) plus a Make-Whole Premium, if any (the “Redemption Price”). In no event will the
Redemption Price ever be less than 100% of the principal amount of the Securities plus accrued interest to the Redemption Date. 
  
 The amount of the Make-Whole Premium with respect to any Security (or portion thereof) to be redeemed will be equal to the excess, if any, of:              
  
 (1)    the sum of the present values, calculated as of the Redemption Date, of:
             
  
 (a)  each interest payment
that, but for such redemption, would have been payable on the Security (or portion thereof) being redeemed on each interest payment date occurring after the Redemption Date (excluding any accrued interest for the period prior to the Redemption
Date); and              
  
 (b)  The
principal amount that, but for such redemption, would have been payable at the final maturity of the Security (or portion thereof) being redeemed; over              
  
 (2)  the principal amount of the Security (or portion thereof) being redeemed. 
  
 The present values of interest and principal payments referred to in clause (i) above will be determined in accordance with generally accepted
principles of financial analysis. Such present values will be calculated by discounting the amount of each payment of interest or principal from the date that each such payment would have been payable, but for the redemption, to the Redemption Date
at a 
 

 Ex-1-8 

 discount rate equal to the Treasury Yield (as defined below) plus 20 basis points. Copies of all such calculations and their resulting values will be delivered
to the Trustee (upon request to the Company) by the Company and shall be attached to an Officers’ Certificate. 
  
 The
Make-Whole Premium will be calculated by an independent investment banking institution of national standing appointed by the Company; provided, that if the Company fails to make such appointment at least 45 business days prior to the Redemption
Date, or if the institution so appointed is unwilling or unable to make such calculation, such calculation will be made by Salomon Brothers Inc or, if such firm is unwilling or unable to make such calculation, by an independent investment banking
institution of national standing appointed by the Trustee (in any such case, an “Independent Investment Banker”). Any fees incurred in connection with an Independent Investment Banker shall be paid by the Company. 
  
 For purposes of determining the Make-Whole Premium, “Treasury Yield” means a rate of interest per annum equal to the weekly average yield to
maturity of United States Treasury Notes that have a constant maturity that corresponds to the remaining term to maturity of the Securities, calculated to the nearest 1/12th of a year (the “Remaining Term”). The Treasury Yield will be
determined as of the third business day immediately preceding the applicable Redemption Date. 
  
 The weekly average yields of
United States Treasury Notes will be determined by reference to the most recent statistical release published by the Federal Reserve Bank of New York and designated “H.15(519) Selected Interest Rates” or any successor release (the
“H.15 Statistical Release”). If the H.15 Statistical Release sets forth a weekly average yield for United States Treasury Notes having a constant maturity that is the same as the Remaining Term, then the Treasury Yield will be equal to
such weekly average yield. In all other cases, the Treasury Yield will be calculated by interpolation, on a straight-line basis, between the weekly average yields on the United States Treasury Notes that have a constant maturity closest to and
greater than the Remaining Term and the United States Treasury Notes that have a constant maturity closest to and less than the Remaining Term (in each case as set forth in the H.15 Statistical Release). Any weekly average yields so calculated by
interpolation will be rounded to the nearest 1/100th of 1%, with any figure of 1/200th of 1% or above being rounded upward. If weekly average yields for United States Treasury Notes are not available in the H.15 Statistical Release or otherwise,
then the Treasury Yield will be calculated by interpolation of comparable rates selected by the Independent Investment Banker. 
  
 In the case of any partial redemption, selection of the Securities for redemption will be made by the Trustee on a pro rata basis, by lot or by such other method as the Trustee in its sole discretion shall deem to be fair and appropriate,
although no Security of $1,000 in original principal amount or less shall be redeemed in part. If any Security is to be redeemed in part only, the notice of redemption relating to such Security shall state the portion of the principal amount thereof
to be redeemed. A new Security in principal amount equal to the unredeemed portion thereof will be issued in the name of the Holder thereof upon cancelation of the original Security. 
 

 Ex-1-9 

  
 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 $1,000 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.    Denominations; Transfer; Exchange 
  
 The Securities are in registered form without coupons in denominations of $1,000 and whole multiples of $1,000. A Holder may transfer 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. 
  
 8.    Persons Deemed Owners 
  

The registered Holder of this Security may be treated as the owner of it for all purposes. 
  
 9.    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. 
  
 10.    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 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. 
 

 Ex-1-10 

  
 11.    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 outstanding of the Securities and (ii) any default or noncompliance with any provision may be waived with the written consent of the Holders of a majority in principal amount outstanding of the Securities. Subject to certain exceptions set
forth in the Indenture, without the consent of any Securityholder, the Company 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, or to add guarantees with respect to the Securities or to secure the Securities, or to add additional covenants or surrender rights and powers conferred on
the Company, or to comply with any request of the SEC in connection with qualifying the Indenture under the Act, or to make any change that does not adversely affect the rights of any Securityholder. 
  
 12.    Defaults and Remedies 
  
 Under the Indenture, Events of Default include a (i) default in the payment of any interest upon any of the Securities for 30 days or more after such payment is due; (ii) default in the payment of the principal of and premium, if any, on
any of the Securities when due; (iii) default by the Company in the performance, or breach, of any of its other covenants in the Indenture which will not have been remedied by the end of a period of 60 days after written notice to the Company by the
Trustee or to the Company and the Trustee by the Holders of at least 25% in principal amount of the outstanding Securities; and (iv) certain events of bankruptcy, insolvency or reorganization of the Company or a Significant Subsidiary. 

 
 If an Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the Securities may declare
all the Securities to be due and payable immediately. Certain events of bankruptcy or insolvency are Events of Default which will result in the Securities being due and payable immediately upon the occurrence of such Events of Default. 

 
 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 Securities 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 or its counsel advises it that withholding notice is in the interest of the Holders. 
 

 Ex-1-11 

  
 13.    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. 

 
 14.    No Recourse Against Others 
  
 A director, officer, employee or stockholder, as such, of the Company or the Trustee shall not have any liability for any obligations of the Company under the Securities 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. 

 
 15.    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. 
  
 16.    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). 
  
 17.    Holders’ Compliance with Registration
Agreement. 
  
 Each Holder of a Security, by acceptance hereof, acknowledges and agrees to the provisions of the Registration
Agreement, including, without limitation, the obligations of the Holders with respect to a registration and the indemnification of the Company to the extent provided therein. 
  
 18.    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. 
 

 Ex-1-12 

  
 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. 
  
 The Company will furnish to any Securityholder
upon written request and without charge to the Securityholder a copy of the Indenture which has in it the text of this Security in larger type. Requests may be made to: 
  
 Louis Dreyfus Natural Gas Corp. 
 14000 Quail Springs Parkway

 Suite 600 
 Oklahoma City, OK 73134 

 
 Attention of Corporate Secretary 
 

 Ex-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. 
 

 Ex-1-14 

  
 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 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 of 1933) 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 of 1933; or
 
	 
	 (4)  —
 	 	 inside 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 of 1933)
that, prior to such transfer, furnishes to the Trustee a signed letter containing certain representations and agreements (the form of which letter can be obtained from the Trustee); or
 
	 
	 (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 of
1933; or
 
	 
	 (6)  —
 	 	 pursuant to another available exemption from registration provided by Rule 144 under the Securities Act of 1933.
 

 
  
 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
 

 
 

 Ex-1-15 

  
 Signature Guarantee: 
  

	 
	 
	 	  	 	 

	 (Signature must be guaranteed)
 	 	  	 	 Signature
 

 
  
 
 
 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
 

 
 

 Ex-1-16 

  
 [TO BE ATTACHED TO GLOBAL SECURITIES] 
  
 SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY 
  
 The initial
principal amount of this Global Security is $[            ]. 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 officer of Trustee or Securities Custodian
 

 
 

 Ex-1-17 

  
 EXHIBIT A 
  
 FORM OF FACE OF EXCHANGE SECURITY OR PRIVATE EXCHANGE SECURITY 
  
 No.: $

 CUSIP No.: 
 ISIN No.: 
  
 6.875% Senior Notes Due 2007 
  
 LOUIS DREYFUS NATURAL GAS CORP., an Oklahoma corporation, promises to pay to, or registered assigns, the principal sum of Dollars on December 1, 2007. 
  
 Interest Payment Dates: June 1 and December 1. 
  
 Record Dates: May 15 and November 15. 
  
 Additional provisions of this Security are set forth on
the other side of this Security. 
  
 Dated:                    , 1997 
  
 
	 LOUIS DREYFUS NATURAL GAS CORP.,
 
	 
	 By:
 	 	 

	  	 	 President
 
	 
	  	 	 

	  	 	 Secretary
 

 
  
 [CORPORATE SEAL] 
  
 Dated:                    , 1997
 
  
 TRUSTEE’S CERTIFICATE OF 
 AUTHENTICATION 
 

  
 LASALLE NATIONAL BANK,

 as Trustee, certifies 
 that this is one of the
Securities referred 
 to in the Indenture. 
  
 
	 
	 By:
 	 	 

	  	 	 Authorized Signatory
 

 
 

 A-2 

  
 FORM OF REVERSE SIDE OF EXCHANGE SECURITY 
 OR PRIVATE EXCHANGE SECURITY 
  
 6.875% Note Due 2007 
  
 1.    Interest 
  
 LOUIS DREYFUS
NATURAL GAS CORP., an Oklahoma 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 Security
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 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]. (1) The Company will pay interest semiannually on June 1 and December 1 of each year. Interest on the Securities
will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from December 11, 1997. 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 Securities 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
Securities (except defaulted interest) to the Persons who are registered holders of Securities at the close of business on the April 1 or October 1 next preceding the interest payment date even if Securities are canceled after the record date and on
or before the interest payment date. Holders must surrender Securities 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. 
 

	(1)
	 
	Insert if at the time of issuance of the Exchange Security or Privat Exchange Security (as the case may be) neither the Registered Exchange offer has been consummated nor a
Shelf Registration Statement has been declared effective in accordance with the Registration Rights Agreement. 
 

 

 A-3 

  
 3.    Paying Agent and Registrar 
  
 Initially, LaSalle National Bank, a national banking association corporation (“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 Securities under an Indenture
dated as of December 11, 1997 (“Indenture”), between the Company and the Trustee. The terms of the Securities include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939 (15
U.S.C. 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 Securities are general
unsecured obligations of the Company limited to $200,000,000 aggregate principal amount (subject to Section 2.07 of the Indenture). 
  
 The Company will not, and will not permit any of its Subsidiaries to, create, incur or otherwise cause or suffer to exist or become effective any Liens of any kind upon any Principal Property or any shares of stock or indebtedness of any
Subsidiary that owns or leases any Principal Property (whether such Principal Property, shares of stock or indebtedness are now owned or hereafter acquired) unless all payments due under the Indenture and the Securities are secured on an equal and
ratable basis with the obligations so secured until such time as such obligation is no longer secured by a Lien, except for Permitted Liens. 
  
 Neither the Company nor any Subsidiary will enter into any Sale and Leaseback Transaction with respect to any Principal Property unless either (a) the Company or such Subsidiary would be entitled, pursuant to the
provisions of the Indenture, to incur Indebtedness secured by a Lien on the property to be leased without equally and ratably securing the Securities or (b) the Company, within 180 days after the effective date of such transaction, applies to the
voluntary retirement of its funded debt an amount equal to the value of such transaction, defined as the greater of the net proceeds of the sale of the property leased in such transaction or the fair value, in the opinion of the Board of Directors,
of the leased property at the time such transaction was entered into. 
  
 Notwithstanding the foregoing limitations on Liens and
Sale and Leaseback Transaction, the Company and its Subsidiaries may issue, assume, or guarantee Indebtedness secured by a Lien without securing the Securities, or may enter into Sale and Leaseback Transactions without retiring funded debt, or enter
into a combination of such transactions, if the sum of the principal amount of all such 
 

 A-4 

 Indebtedness and the aggregate value of all such Sale and Leaseback Transactions does not at any time exceed 15% of the Consolidated Net Tangible Assets of the
Company. 
  
 5.    Optional Redemption 
  
 The Securities will be redeemable at any time, at the option of the Company, in whole or from time to time in part, upon not less than 30 and not more than 60 days’ notice mailed to each Holder to be redeemed at
the Holder’s address appearing in the books of the Registrar, on any date prior to maturity (the “Redemption Date”) at a price equal to 100% of the principal amount thereof plus accrued interest to the Redemption Date (subject to the
right of Holders of record on the relevant record date to receive interest due on an interest payment date that is on or prior to the Redemption Date) plus a Make-Whole Premium, if any (the “Redemption Price”). In no event will the
Redemption Price ever be less than 100% of the principal amount of the Securities plus accrued interest to the Redemption Date. 
  
 The amount of the Make-Whole Premium with respect to any Security (or portion thereof) to be redeemed will be equal to the excess, if any, of: 
  
 (1)  the sum of the present values, calculated as of the Redemption Date, of: 
  
 (a)  each interest payment that, but for such redemption, would have been payable on the Security (or portion thereof) being redeemed on each interest payment date occurring after the Redemption Date
(excluding any accrued interest for the period prior to the Redemption Date); and 
  
 (b)  the
principal amount that, but for such redemption, would have been payable at the final maturity of the Security (or portion thereof) being redeemed; 
  
 over 
  
 (2)  the
principal amount of the Security (or portion thereof) being redeemed. The present values of interest and principal payments referred to in clause (i) above will be determined in accordance with generally accepted principles of financial analysis.
Such present values will be calculated by discounting the amount of each payment of interest or principal from the date that each such payment would have been payable, but for the redemption, to the Redemption Date at a discount rate equal to the
Treasury Yield (as defined below) plus 20 basis points. 
  
 The Make-Whole Premium will be calculated by an independent investment
banking institution of national standing appointed by the Company; provided, that if the Company fails to make such appointment at least 45 business days prior to the Redemption Date, or if the institution so appointed is unwilling or unable to make
such calculation, such calculation will be made by Salomon Brothers Inc or, if such firm is unwilling or unable to make such calculation, by an independent investment banking 
 

 A-5 

 institution of national standing appointed by the Trustee (in any such case, an “Independent Investment Banker”). Such fees are to be paid for by the
Company. 
  
 For purposes of determining the Make-Whole Premium, “Treasury Yield” means a rate of interest per annum
equal to the weekly average yield to maturity of United States Treasury Notes that have a constant maturity that corresponds to the remaining term to maturity of the Securities, calculated to the nearest 1/12th of a year (the “Remaining
Term”). The Treasury Yield will be determined as of the third business day immediately preceding the applicable Redemption Date. 
  
 The weekly average yields of United States Treasury Notes will be determined by reference to the most recent statistical release published by the Federal Reserve Bank of New York and designated “H.15(519) Selected Interest Rates”
or any successor release (the “H.15 Statistical Release”). If the H.15 Statistical Release sets forth a weekly average yield for United States Treasury Notes having a constant maturity that is the same as the Remaining Term, then the
Treasury Yield will be equal to such weekly average yield. In all other cases, the Treasury Yield will be calculated by interpolation, on a straight-line basis, between the weekly average yields on the United States Treasury Notes that have a
constant maturity closest to and greater than the Remaining Term and the United States Treasury Notes that have a constant maturity closest to and less than the Remaining Term (in each case as set forth in the H.15 Statistical Release). Any weekly
average yields so calculated by interpolation will be rounded to the nearest 1/100th of 1%, with any figure of 1/200th of 1% or above being rounded upward. If weekly average yields for United States Treasury Notes are not available in the H.15
Statistical Release or otherwise, then the Treasury Yield will be calculated by interpolation of comparable rates selected by the Independent Investment Banker. 
  
 In the case of any partial redemption, selection of the Securities for redemption will be made by the Trustee on a pro rata basis, by lot or by such other method as the Trustee in its
sole discretion shall deem to be fair and appropriate, although no Security of $1,000 in original principal amount or less shall be redeemed in part. If any Security is to be redeemed in part only, the notice of redemption relating to such Security
shall state the portion of the principal amount thereof to be redeemed. A new Security in principal amount equal to the unredeemed portion thereof will be issued in the name of the Holder thereof upon cancelation of the original Security.

  
 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
$1,000 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.  
 

 A-6 

  
 7.    Denominations; Transfer; Exchange 
  

The Securities are in registered form without coupons in denominations of $1,000 and whole multiples of $1,000. A Holder may transfer 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. 
  
 8.    Persons Deemed Owners 
  

The registered Holder of this Security may be treated as the owner of it for all purposes. 
  
 9.    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. 
  
 10.    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 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. 
  
 11.    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 outstanding of the Securities and (ii) any default or noncompliance with any provision may be waived with the written
consent of the Holders of a majority in principal amount outstanding of the Securities. Subject to certain exceptions set forth in the Indenture, without the consent of any Securityholder, the Company 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, or to add guarantees with respect
to the Securities or to secure the Securities, or to add additional covenants or surrender rights and powers conferred on the Company, or to comply with any request of the SEC in connection with qualifying the 
 

 A-7 

 Indenture under the Act, or to make any change that does not adversely affect the rights of any Securityholder. 
  
 12.    Defaults and Remedies 
  
 Under the Indenture, Events of Default include a (i) default in the payment of any interest upon any of the Securities for 30 days or more after such payment is due; (ii) default in the payment of the principal of and premium, if any, on
any of the Securities when due; (iii) default by the Company in the performance, or breach, of any of its other covenants in the Indenture which will not have been remedied by the end of a period of 60 days after written notice to the Company by the
Trustee or to the Company and the Trustee by the Holders of at least 25% in principal amount of the outstanding Securities; and (iv) certain events of bankruptcy, insolvency or reorganization of the Company or a Significant Subsidiary. 

 
 If an Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the Securities may declare
all the Securities to be due and payable immediately. Certain events of bankruptcy or insolvency are Events of Default which will result in the Securities being due and payable immediately upon the occurrence of such Events of Default. 

 
 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 Securities 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. 
  
 13.    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. 
  
 14.    No Recourse Against Others 
  
 A director, officer, employee or
stockholder, as such, of the Company or the Trustee shall not have any liability for any obligations of the Company under the Securities 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. 
 

 A-8 

  
 15.    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. 
  
 16.    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). 
  
 [17.    Holders’ Compliance with
Registration Rights Agreement. 
  
 Each Holder of a Security, by acceptance hereof, acknowledges and agrees to the provisions
of the Registration Rights Agreement, including, without limitation, the obligations of the Holders with respect to a registration and the indemnification of the Company to the extent provided therein.](2) 
  
 18.    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. 
  
 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. 
 

	(2)
	 
	For Exchange or Private Exchange Securities only 
 

 

 A-9 

  
 The Company will furnish to any Securityholder upon written request and without charge to the
Securityholder a copy of the Indenture which has in it the text of this Security in larger type. Requests may be made to: 
  
 Louis Dreyfus
Natural Gas Corp. 
 14000 Quail Springs Parkway 
 Suite 600 
 Oklahoma City, OK 73134 
  
 Attention of Corporate Secretary 
  
 
 
 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. 
 

 A-10

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