Common use of The Senior Secured Notes Clause in Contracts

The Senior Secured Notes. In connection with the Refinancing Transactions, Petro Operating and Petro Financial will issue Senior Secured Notes due in 2012. The Senior Secured Notes will pay interest semi-annually in cash in arrears in the manner described in the Offering Memorandum. The Senior Secured Notes will be secured by a second priority lien on substantially all of Petro Operating’s and its restricted subsidiaries’ property and assets, subject to certain exceptions, and all of the Petro Holding’s limited partnership interests in Petro Operating. The Senior Secured Notes will be senior secured obligations and rank equally in right of payment with all of Petro Operating’s existing and future senior indebtedness and senior in right of payment to all of Petro Operating’s future subordinated indebtedness, if any. The Senior Secured Notes and their offering are more fully described in the Offering Memorandum.