JPMorgan - KASE

property or assets of the Person, so acquired, provided that the Consolidated Cashflow of such
Person is not taken into account in determining whether such acquisition was permitted by the
terms of the Indenture, (e) purchase money obligations for property acquired in the ordinary
course of business that impose restrictions of the nature described in clause (iii) above on the
property so acquired, (f) by reason of customary non-assignment provisions in leases and licenses
entered into in the ordinary course of business, (g) agreements relating to the financing of the
acquisition of real or tangible personal property acquired after the date of the Indenture,
provided that such encumbrance or restriction relates only to the property which is acquired and,
in the case of any encumbrance or restriction that constitutes a Lien, such Lien constitutes a
Purchase Money Lien, (h) applicable law, (i) any contracts for the sale of assets, including,
without limitation, any restriction with respect to a Restricted Subsidiary imposed pursuant to an
agreement entered into for the sale or disposition of all or substantially all of the Capital Stock
or assets of such Restricted Subsidiary, pending the closing of such sale or dispositions, provided
that any such restriction relates solely to the assets that are the subject of such agreement, (j)
restrictions on cash or other deposits or net worth imposed by leases or customer contracts
entered into in the ordinary course of business, (k) Liens permitted to be incurred pursuant to the
provisions of the covenant described under the caption “Description of the Notes — Certain
Covenants — Liens”, provided that any such restriction relates solely to the assets that are the
subject of such Liens, (l) any agreement relating to a Sale and Leaseback Transaction, but only on
the property subject to such Sale and Leaseback Transaction and only to the extent that such
restrictions or encumbrances are customary with respect to such arrangements, or (m) any
amendment, modifications, restatements, renewals, supplements, refunds, replacements or
refinancings of contracts, instruments or obligations referred to in clauses (a) through (l) (except
for clause (i)); provided that the provisions relating to such encumbrance or restriction contained
in any such contract, instrument, agreement or obligation as amended, modified, restated,
renewed, supplemented, refunded, replaced or refinanced are, taken as a whole, no less
favorable to the Company in any material respect as determined by the Board of Directors of the
Company in their reasonable and good faith judgement than the provisions relating to such
encumbrance or restriction contained in such contract, instrument, agreement or obligation
immediately prior to such amendment, modification, restatement, renewal, supplement,
refunding, replacement or refinancing.
Limitation on the Sale or Issuance of Equity Interests of Restricted Subsidiaries
The Company shall not sell or otherwise dispose of any Equity Interests of a Restricted Subsidiary,
and shall not permit any such Restricted Subsidiary, directly or indirectly, to issue or sell or
otherwise dispose of any of its Equity Interests except (i) to the Company or a Restricted
Subsidiary, (ii) if, immediately after giving effect to such issuance, sale or other disposition,
neither the Company nor any of its Subsidiaries own any Capital Stock of such Restricted
Subsidiary, (iii) directors’ qualifying shares, (iv) other than with respect to Equity Interests of the
Issuer, HKM, HOP or Valsera, if, immediately after giving effect to such issuance, sale or other
disposition, such Restricted Subsidiary would no longer constitute a Restricted Subsidiary and any
Investment in such person remaining after giving effect thereto would have been permitted to
be made under the covenant described under “Description of the Notes — Certain Covenants —
Restricted Payments” if made on the date of such issuance, sale or other disposition, (v) for such
issuance, sale or disposition which was entered into for the purpose of acquiring assets or making
investments in the Oil and Gas Business, and if, immediately after giving effect to such issuance,
sale or disposition, the Company and its Restricted Subsidiaries continue to collectively own at
least 75% of the Equity Interests of the Restricted Subsidiaries owned immediately prior to such
issuance, sale or disposition and the Board of Directors of the Company shall have determined,
prior to such issuance, sale or disposition, that such issuance, sale or disposition will not have a
material adverse effect on the ability of the Issuer, the Company or the Guarantors to perform
their obligations under the Notes, the Guarantees, the Intercompany Loan or the Indenture, or
(vi) preferred stock of HKM or HOP issued and sold pursuant to statutory pre-emptive rights
provisions of applicable law; provided that any issuance of preferred stock by HKM or HOP
pursuant to this clause (vi) shall not reduce Hurricane’s proportionate economic or voting interest
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