Document:

EX-10.1

Exhibit 10.1

EXECUTION VERSION

 

$650,000,000

REVOLVING LOAN CREDIT AGREEMENT

Dated as of October 31, 2007

among

MCJUNKIN CORPORATION,

as the Borrower

The Several Lenders

from Time to Time Parties Hereto

GOLDMAN SACHS CREDIT PARTNERS L.P. and

LEHMAN BROTHERS INC.,

as Co-Lead Arrangers and Joint Bookrunners

THE CIT GROUP/BUSINESS CREDIT, INC.,

as Administrative Agent and Co-Collateral Agent

BANK OF AMERICA, N.A.,

as Co-Collateral Agent and Syndication Agent,

and

JPMORGAN CHASE BANK, N.A., WACHOVIA BANK, N. A. and PNC BANK, NATIONAL ASSOCIATION,

as Co-Documentation Agents

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	SECTION 1. DEFINITIONS
	 	 	2	 
	 
	 	 	 	 
	1.1 Defined Terms
	 	 	2	 
	1.2 Other Interpretive Provisions
	 	 	48	 
	1.3 Accounting Terms; Exchange Rates
	 	 	48	 
	1.4 Rounding
	 	 	49	 
	1.5 References to Agreements, Laws, Etc
	 	 	49	 
	 
	 	 	 	 
	SECTION 2. AMOUNT AND TERMS OF CREDIT
	 	 	49	 
	 
	 	 	 	 
	2.1 Commitments
	 	 	49	 
	2.2 Minimum Amount of Each Borrowing; Maximum Number of Borrowings
	 	 	51	 
	2.3 Notice of Borrowing
	 	 	51	 
	2.4 Disbursement of Funds
	 	 	52	 
	2.5 Repayment of Loans; Evidence of Debt
	 	 	53	 
	2.6 Conversions and Continuations
	 	 	53	 
	2.7 Pro Rata Borrowings
	 	 	54	 
	2.8 Interest
	 	 	54	 
	2.9 Interest Periods
	 	 	55	 
	2.10 Increased Costs, Illegality, etc
	 	 	56	 
	2.11 Compensation
	 	 	58	 
	2.12 Change of Lending Office
	 	 	58	 
	2.13 Notice of Certain Costs
	 	 	58	 
	2.14 Incremental Facilities
	 	 	59	 
	2.15 Protective Advances
	 	 	60	 
	 
	 	 	 	 
	SECTION 3. LETTERS OF CREDIT
	 	 	61	 
	 
	 	 	 	 
	3.1 Letters of Credit
	 	 	61	 
	3.2 Letter of Credit Requests
	 	 	62	 
	3.3 Letter of Credit Participations
	 	 	62	 
	3.4 Agreement to Repay Letter of Credit Drawings
	 	 	65	 
	3.5 Increased Costs
	 	 	66	 
	3.6 New or Successor Letter of Credit Issuer
	 	 	66	 
	3.7 Role of the Letter of Credit Issuer
	 	 	67	 
	 
	 	 	 	 
	SECTION 4. FEES; COMMITMENTS
	 	 	68	 
	 
	 	 	 	 
	4.1 Fees
	 	 	68	 
	4.2 Voluntary Reduction of Revolving Credit Commitments
	 	 	69	 
	4.3 Mandatory Termination of Commitments
	 	 	69	 

-i-

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	SECTION 5. PAYMENTS
	 	 	69	 
	 
	 	 	 	 
	5.1 Voluntary Prepayments
	 	 	69	 
	5.2 Mandatory Prepayments
	 	 	70	 
	5.3 Method and Place of Payment
	 	 	71	 
	5.4 Net Payments
	 	 	71	 
	5.5 Computations of Interest and Fees
	 	 	74	 
	5.6 Limit on Rate of Interest
	 	 	74	 
	 
	 	 	 	 
	SECTION 6. CONDITIONS PRECEDENT TO INITIAL BORROWING
	 	 	75	 
	 
	 	 	 	 
	6.1 Credit Documents
	 	 	75	 
	6.2 [Reserved]
	 	 	75	 
	6.3 Legal Opinions
	 	 	75	 
	6.4 First Amendment to Term Loan Credit Agreement and Intercreditor Agreement
	 	 	75	 
	6.5 Equity Investments; Existing Indebtedness
	 	 	76	 
	6.6 Closing Certificates
	 	 	76	 
	6.7 Organizational Documents; Incumbency
	 	 	76	 
	6.8 Fees
	 	 	76	 
	6.9 Representations and Warranties
	 	 	76	 
	6.10 Related Agreements
	 	 	76	 
	6.11 Solvency Certificate
	 	 	76	 
	6.12 Historical Financial Statements
	 	 	76	 
	6.13 Red Man Transaction
	 	 	76	 
	6.14 Insurance
	 	 	77	 
	6.15 Pro Forma Financial Statements
	 	 	77	 
	6.16 Borrowing Base Certificate
	 	 	77	 
	6.17 Initial Borrowings
	 	 	77	 
	 
	 	 	 	 
	SECTION 7. CONDITIONS PRECEDENT TO ALL CREDIT EVENTS
	 	 	77	 
	 
	 	 	 	 
	7.1 No Default; Representations and Warranties; Excess Availability
	 	 	77	 
	7.2 Notice of Borrowing; Letter of Credit Request
	 	 	78	 
	 
	 	 	 	 
	SECTION 8. REPRESENTATIONS, WARRANTIES AND AGREEMENTS
	 	 	78	 
	 
	 	 	 	 
	8.1 Corporate Status
	 	 	78	 
	8.2 Corporate Power and Authority
	 	 	78	 
	8.3 No Violation
	 	 	78	 
	8.4 Litigation
	 	 	79	 
	8.5 Margin Regulations
	 	 	79	 
	8.6 Governmental Approvals
	 	 	79	 
	8.7 Investment Company Act
	 	 	79	 

-ii-

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	8.8 True and Complete Disclosure
	 	 	79	 
	8.9 Financial Condition; Financial Statements
	 	 	80	 
	8.10 Tax Returns and Payments
	 	 	80	 
	8.11 Compliance with ERISA
	 	 	80	 
	8.12 Subsidiaries
	 	 	81	 
	8.13 Intellectual Property
	 	 	81	 
	8.14 Environmental Laws
	 	 	81	 
	8.15 Properties
	 	 	82	 
	8.16 Solvency
	 	 	82	 
	 
	 	 	 	 
	SECTION 9. AFFIRMATIVE COVENANTS
	 	 	82	 
	 
	 	 	 	 
	9.1 Information Covenants
	 	 	82	 
	9.2 Books, Records and Inspections
	 	 	86	 
	9.3 Maintenance of Insurance
	 	 	87	 
	9.4 Payment of Taxes
	 	 	87	 
	9.5 Consolidated Corporate Franchises
	 	 	87	 
	9.6 Compliance with Statutes, Regulations, etc
	 	 	88	 
	9.7 ERISA
	 	 	88	 
	9.8 Maintenance of Properties
	 	 	88	 
	9.9 Transactions with Affiliates
	 	 	88	 
	9.10 End of Fiscal Years; Fiscal Quarters
	 	 	89	 
	9.11 Additional Guarantors and Grantors
	 	 	89	 
	9.12 [Intentionally Omitted.]
	 	 	90	 
	9.13 Use of Proceeds
	 	 	90	 
	9.14 Appraisals; Field Examinations
	 	 	90	 
	9.15 Interest Rate Protection
	 	 	90	 
	9.16 Collateral Access Agreements
	 	 	90	 
	9.17 Further Assurances
	 	 	90	 
	 
	 	 	 	 
	SECTION 10. NEGATIVE COVENANTS
	 	 	91	 
	 
	 	 	 	 
	10.1 Limitation on Indebtedness
	 	 	91	 
	10.2 Limitation on Liens
	 	 	96	 
	10.3 Limitation on Fundamental Changes
	 	 	98	 
	10.4 Limitation on Sale of Assets
	 	 	99	 
	10.5 Limitation on Investments
	 	 	102	 
	10.6 Limitation on Dividends
	 	 	104	 
	10.7 Limitations on Debt Payments and Amendments
	 	 	106	 
	10.8 Limitations on Sale Leasebacks
	 	 	107	 
	10.9 [Reserved]
	 	 	107	 
	10.10 Changes in Business
	 	 	107	 
	10.11 Burdensome Agreements
	 	 	107	 

-iii-

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	SECTION 11. EVENTS OF DEFAULT
	 	 	108	 
	 
	 	 	 	 
	11.1 Payments
	 	 	108	 
	11.2 Representations, etc
	 	 	108	 
	11.3 Covenants
	 	 	108	 
	11.4 Default Under Other Agreements
	 	 	109	 
	11.5 Bankruptcy, etc
	 	 	109	 
	11.6 ERISA
	 	 	109	 
	11.7 Guarantee
	 	 	110	 
	11.8 [Reserved]
	 	 	110	 
	11.9 Security Agreement
	 	 	110	 
	11.10 [Intentionally Omitted]
	 	 	110	 
	11.11 Judgments
	 	 	110	 
	11.12 Change of Control
	 	 	110	 
	11.13 Subordination
	 	 	110	 
	 
	 	 	 	 
	SECTION 12. [RESERVED]
	 	 	111	 
	 
	 	 	 	 
	SECTION 13. THE ADMINISTRATIVE AGENT
	 	 	111	 
	 
	 	 	 	 
	13.1 Appointment
	 	 	111	 
	13.2 Delegation of Duties
	 	 	112	 
	13.3 General Immunity
	 	 	113	 
	13.4 Reliance by Agents
	 	 	114	 
	13.5 Notice of Default
	 	 	114	 
	13.6 Non-Reliance on Administrative Agent, Collateral Agent and Other Lenders
	 	 	114	 
	13.7 Indemnification
	 	 	115	 
	13.8 Agents in their Individual Capacity
	 	 	115	 
	13.9 Successor Agents
	 	 	116	 
	13.10 Withholding Tax
	 	 	116	 
	13.11 REPORTS AND FINANCIAL STATEMENTS; DISCLAIMER BY LENDERS
	 	 	116	 
	 
	 	 	 	 
	SECTION 14. MISCELLANEOUS
	 	 	117	 
	 
	 	 	 	 
	14.1 Amendments and Waivers
	 	 	117	 
	14.2 Notices
	 	 	119	 
	14.3 No Waiver; Cumulative Remedies
	 	 	119	 
	14.4 Survival of Representations and Warranties
	 	 	120	 
	14.5 Payment of Expenses and Taxes
	 	 	120	 
	14.6 Successors and Assigns; Participations and Assignments
	 	 	121	 
	14.7 Replacements of Lenders under Certain Circumstances
	 	 	124	 

-iv-

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	14.8 Adjustments; Set-off
	 	 	125	 
	14.9 Counterparts
	 	 	126	 
	14.10 Severability
	 	 	126	 
	14.11 Integration
	 	 	126	 
	14.12 GOVERNING LAW
	 	 	126	 
	14.13 Submission to Jurisdiction; Waivers
	 	 	126	 
	14.14 Acknowledgments
	 	 	127	 
	14.15 WAIVERS OF JURY TRIAL
	 	 	127	 
	14.16 Confidentiality
	 	 	127	 
	14.17 Direct Website Communications
	 	 	128	 
	14.18 USA PATRIOT Act
	 	 	130	 
	 
	 	 	 	 
	SECTION 15. LIMITATION ON PERMITTED DISCRETION; SPECIAL
PROVISIONS REGARDING ACCOUNTS, INVENTORY, AND APPLICATION OF COLLATERAL PROCEEDS
	 	 	130	 
	 
	 	 	 	 
	15.1 Accounts and Account Collections
	 	 	130	 
	15.2 Limitation on Permitted Discretion
	 	 	132	 

-v-

 

	 	 	 
	SCHEDULES
	 	 
	 
	Schedule 1.1(A)

	 	Existing Letters of Credit
	Schedule 1.1 (B)

	 	Initial Borrowing Base Guarantors
	Schedule 1.1 (C)

	 	Commitments and Addresses of Lenders
	Schedule 1.1 (D)

	 	Excluded Subsidiaries
	Schedule 1.1(E)

	 	Initial Cost Savings
	Schedule 1.1(F)

	 	Non-Core Assets
	Schedule 8.12

	 	Subsidiaries
	Schedule 9.9

	 	Closing Date Affiliate Transactions
	Schedule 9.17(C)

	 	Post-Closing Actions
	Schedule 10.1

	 	Closing Date Indebtedness
	Schedule 10.2

	 	Closing Date Liens
	Schedule 10.5

	 	Closing Date Investments
	Schedule 10.11

	 	Closing Date Restrictions
	Schedule 14.2

	 	Notice Addresses
	 
	 	 
	EXHIBITS
	 	 
	 
	 	 
	Exhibit C

	 	Form of Guarantee
	Exhibit D

	 	[Intentionally Omitted]
	Exhibit E

	 	Form of Perfection Certificate
	Exhibit F

	 	[Intentionally Omitted]
	Exhibit G

	 	Form of Security Agreement
	Exhibit H

	 	Form of Letter of Credit Request
	Exhibit I-1

	 	Form of Legal Opinion of Simpson Thacher & Bartlett LLP
	Exhibit I-2

	 	Form of Legal Opinions of Local Counsel
	Exhibit J

	 	Form of Closing Certificate
	Exhibit K

	 	Form of Assignment and Acceptance
	Exhibit L

	 	Form of Promissory Note (Revolving Credit Loans and
Swingline Loans)
	Exhibit M

	 	Form of Joinder Agreement
	Exhibit N

	 	Form of Borrowing Base Certificate
	Exhibit O

	 	Form of Intercreditor Agreement

-vi-

 

     REVOLVING LOAN CREDIT AGREEMENT dated as of October 31, 2007, among MCJUNKIN CORPORATION, a
West Virginia corporation (the “Borrower”), the lending institutions from time to time
parties hereto (each a “Lender” and, collectively, the “Lenders”), Goldman Sachs
Credit Partners L.P. (“GSCP”) and Lehman Brothers Inc., as Co-Lead Arrangers and Joint
Bookrunners, The CIT Group/Business Credit, Inc. (“CIT”), as Administrative Agent and
Co-Collateral Agent, Bank of America, N.A (“Bank of America”), as Co-Collateral Agent, Bank
of America, as Syndication Agent and JPMorgan Chase Bank, N.A., Wachovia Bank, N.A. and PNC Bank,
National Association, as Co-Documentation Agents (such term and each other capitalized term used
but not defined in this introductory statement having the meaning provided in Section 1).

     WHEREAS, pursuant to the Stock Purchase Agreement (as amended from time to time in accordance
therewith, the “Red Man Transaction Agreement”), dated as of July 6, 2007, among McJ
Holding LLC, a Delaware limited liability company (“McJ Holding”) (for purposes of Sections
2.3(c) and 10.4 only), Red-Man Pipe and Supply Company, an Oklahoma corporation (“Red
Man”), West Oklahoma PVF Company, a Delaware corporation (“Buyer”) and the shareholders
of Red Man, Buyer will acquire all of the outstanding capital stock of Red Man (the “Red Man
Transaction”);

     WHEREAS, to fund, in part, the Red Man Transaction, (a) the Sponsors and certain other
investors (including the Management Investors) will contribute an amount in cash to McJ Holding
(the “Equity Contribution”) in exchange for Stock and Stock Equivalents (which cash will be
contributed to McJ Holding Corporation and in turn to the Borrower in exchange for common and/or
preferred Stock), and (b) certain equity investments in Red Man held by existing shareholders of
Red Man will be rolled over as equity of McJ Holding (the “Rollover Equity” and together
with the Equity Contribution, the “Equity Investments”), which together with the amount of
the Equity Contribution, shall be no less than an amount (the “Minimum Equity Investment
Amount”) equal to 30% of the pro forma capitalization of the Borrower and McJ Holding on the
Closing Date (after giving effect to the Transactions);

     WHEREAS, in connection herewith, the requisite lenders under the Term Loan Credit Agreement
(as defined below) will enter into an amendment to the Term Loan Credit Agreement and the
Intercreditor Agreement (as defined below) and the senior secured term loans (the “Term
Loans”) under the Term Loan Credit Agreement shall remain outstanding;

     WHEREAS, in connection with the foregoing, the Borrower has requested that the Lenders extend
credit in the form of Revolving Credit Loans made available to the Borrower at any time and from
time to time prior to the Revolving Credit Maturity Date, in an aggregate principal amount at any
time outstanding not in excess of the aggregate of $650,000,000 plus the amount of New Revolving
Credit Commitments (as defined below) less the sum of (i) the aggregate Letters of Credit
Outstanding at such time and (ii) the aggregate principal amount of all Swingline Loans outstanding
at such time. The Borrower has requested (a) the Letter of Credit Issuer to issue Letters of
Credit at any time and from time to time prior to the L/C Maturity Date, in an aggregate face
amount at any time outstanding not in excess of $60,000,000 and (b) to deem the letters of credit
identified on Schedule 1.1(a) hereto (the “Existing Letters of Credit”) to be
Letters of Credit for all purposes under this Agreement. The Borrower has requested the Swingline
Lender to extend credit in the form of Swingline Loans at any time and

 

 

from time to time prior to the Swingline Maturity Date, in an aggregate principal amount at
any time outstanding not in excess of $60,000,000;

     WHEREAS, the repayment of the Revolving Credit Loans will be secured by perfected security
interests in and liens upon substantially all of the Accounts and Inventory and certain personal
property relating to such Accounts and Inventory of the Borrower and each Guarantor, and the
repayment of the Term Loans will be secured by perfected security interests in and liens upon
substantially all of the personal property and certain real property of the Borrower and each
Guarantor. The respective rights and priorities of the Lenders and the lenders under the Term Loan
Agreement to such collateral will be as set forth in the Intercreditor Agreement;

     WHEREAS, the proceeds of up to $450,000,000 of Revolving Credit Loans will be used by the
Borrower, together with the net proceeds of the Equity Investments, on the Closing Date (x) to
finance the repayment of (i) substantially all of the existing indebtedness of Red Man and its
subsidiaries (the “Red Man Group”) (other than existing indebtedness of Midfield Supply
Co., a Nova Scotia unlimited liability company and its subsidiaries) and (ii) the Borrower under
its existing Revolving Loan Agreement dated as of January 31, 2007 (the “Existing Revolving
Credit Agreement”) (collectively, the “Debt Repayment”), (y) to effect the Red Man
Transaction and (z) to pay Transaction Expenses. Proceeds of Revolving Credit Loans and Swingline
Loans will be used by the Borrower on or after the Closing Date for working capital and other
general corporate purposes (including Permitted Acquisitions). Letters of Credit will be used by
the Borrower for general corporate purposes; and

     WHEREAS, the Lenders and Letter of Credit Issuer are willing to make available to the Borrower
such revolving credit and letter of credit facilities upon the terms and subject to the conditions
set forth herein.

     NOW, THEREFORE, in consideration of the premises and the covenants and agreements contained
herein, the parties hereto hereby agree as follows:

     SECTION 1. Definitions

     1.1 Defined Terms. (a) As used herein, the following terms shall have the meanings
specified in this Section 1.1 unless the context otherwise requires (it being understood
that defined terms in this Agreement shall include in the singular number the plural and in the
plural the singular):

     “ABR” shall mean, for any day, a rate per annum (rounded upwards, if necessary, to the
next 1/16 of 1%) equal to the greater of (a) the Prime Rate in effect on such day or (b) the
Federal Funds Effective Rate in effect on such day plus 1/2 of 1%. Any change in the ABR due to a
change in the Prime Rate or the Federal Funds Effective Rate shall be effective as of the opening
of business on the effective day of such change in the Prime Rate or the Federal Funds Effective
Rate, respectively.

     “ABR Loan” shall mean each Loan bearing interest at the rate provided in Section
2.8(a) and, in any event, shall include all Swingline Loans.

     “Account” has the meaning assigned to such term in the Security Agreement.

-2-

 

     “Account Debtor” means any Person obligated on an Account.

     “Acquired EBITDA” shall mean, with respect to any Acquired Entity or Business, any
Converted Restricted Subsidiary (any of the foregoing, a “Pro Forma Entity”) for any
period, the amount for such period of Consolidated EBITDA of such Pro Forma Entity (determined
using such definitions as if references to the Borrower and its Subsidiaries therein were to such
Pro Forma Entity and its Subsidiaries), all as determined on a consolidated basis for such Pro
Forma Entity in accordance with GAAP.

     “Acquired Entity or Business” shall have the meaning provided in the definition of the
term “Consolidated EBITDA”.

     “Activation Notice” shall have the meaning provided in Section 15.1(d)(i).

     “Adjusted Total Revolving Credit Commitment” shall mean at any time the Total
Revolving Credit Commitment less the aggregate Revolving Credit Commitments of all Defaulting
Lenders.

     “Administrative Agent” shall mean CIT, as the administrative agent for the Lenders
under this Agreement and the other Credit Documents, or any successor administrative agent pursuant
to Section 13.

     “Administrative Agent’s Office” shall mean in respect of all Credit Events for the
account of the Borrower, the office of the Administrative Agent located at 505 Fifth Avenue, New
York City, New York, or such other office as the Administrative Agent may hereafter designate in
writing as such to the other parties hereto.

     “Administrative Questionnaire” shall have the meaning provided in Section
14.6(b).

     “Affiliate” shall mean, with respect to any Person, any other Person directly or
indirectly controlling, controlled by, or under direct or indirect common control with such Person.
A Person shall be deemed to control a corporation if such Person possesses, directly or
indirectly, the power (a) to vote 20% or more of the securities having ordinary voting power for
the election of directors of such corporation or (b) to direct or cause the direction of the
management and policies of such corporation, whether through the ownership of voting securities, by
contract or otherwise.

     “Agent Parties” shall have the meaning provided in Section 14.17(c).

     “Agents” shall mean each Co-Lead Arranger, each Co-Collateral Agent, each
Co-Documentation Agent, the Administrative Agent and the Syndication Agent.

     “Aggregate Revolving Credit Outstandings” shall have the meaning provided in
Section 5.2(b).

     “Agreement” shall mean this Revolving Loan Credit Agreement, as the same may be
amended, supplemented or otherwise modified from time to time.

-3-

 

     “Applicable ABR Margin” shall mean at any date, with respect to each ABR Loan that is
a Revolving Credit Loan or a Swingline Loan, the applicable percentage per annum set forth below
based upon the Status in effect on such date:

	 	 	 
	 	 	Applicable ABR Margin for
	Status	 	Revolving Credit Loans and Swingline Loans
	Level I Status
	 	0.50%
	Level II Status
	 	0.25%
	Level III Status
	 	0.00%

     Notwithstanding the foregoing, the term “Applicable ABR Margin” shall mean, with respect to
all ABR Loans, 0.50% per annum, during the period from and including the Closing Date to but
excluding the Trigger Date.

     “Applicable Amount” shall mean, at any time (the “Reference Time”), an amount equal to
(a) the sum, without duplication, of:

          (i) an amount (which shall not be less than zero) equal to 50% of Consolidated Net Income
commencing on the Original Closing Date and ending on the last day of the most recent fiscal
quarter for which Section 9.1 Financials have been delivered (taken as one accounting period); and

          (ii) the amount of any capital contributions (other than the Equity Investments) made in cash
to, or any proceeds of an equity issuance received by, the Borrower from and including the Business
Day immediately following the Original Closing Date through and including the Reference Time,
including proceeds from the issuance of Stock or Stock Equivalents of any direct or indirect parent
of the Borrower but excluding the cash portion of the Minimum Equity Investment Amount,

minus (b) the sum, without duplication, of:

          (iii) the aggregate amount of Investments made pursuant to Section 10.5(g)(ii)(y) or
10.5(i)(ii)(y) since the Original Closing Date and prior to the Reference Time;

          (iv) the aggregate amount of dividends pursuant to Section 10.6(c)(ii) since the
Original Closing Date and prior to the Reference Time; and

          (v) the aggregate amount of prepayments, repurchases and redemptions of Subordinated
Indebtedness pursuant to Section 10.7(a)(i)(y) since the Original Closing Date and prior to
the Reference Time.

-4-

 

     “Applicable LIBOR Margin” shall mean at any date, with respect to each LIBOR Loan that
is a Revolving Credit Loan, the applicable percentage per annum set forth below based upon the
Status in effect on such date:

	 	 	 
	 	 	Applicable LIBOR Margin for
	Status	 	Revolving Credit Loans
	Level I Status
	 	1.50%
	Level II Status
	 	1.25%
	Level III Status
	 	1.00%

     Notwithstanding the foregoing, the term “Applicable LIBOR Margin” shall mean, with respect to
all LIBOR Loans, 1.50% per annum, during the period from and including the Closing Date to but
excluding the Trigger Date.

     “Approved Fund” shall have the meaning provided in Section 14.6.

     “Asset Sale Prepayment Event” shall mean any Disposition of Collateral pursuant to
Section 10.4(b).

     “Assignment and Acceptance” shall mean an assignment and acceptance substantially in
the form of Exhibit K.

     “Authorized Officer” shall mean the President, the Chief Financial Officer, the
Treasurer or any other senior officer of the Borrower designated as such in writing to the
Administrative Agent by the Borrower.

     “Available Commitment” shall mean an amount equal to the excess, if any, of (a) the
amount of the Total Revolving Credit Commitment over (b) the sum of (i) the aggregate principal
amount of all Revolving Credit Loans (but not Swingline Loans) then outstanding and (ii) the
aggregate Letters of Credit Outstanding at such time.

     “Bankruptcy Code” shall have the meaning provided in Section 11.5.

     “Blocked Accounts” shall have the meaning provided in Section 15.1(c).

     “Board” shall mean the Board of Governors of the Federal Reserve System of the United
States (or any successor).

     “Borrower” shall have the meaning provided in the preamble to this Agreement.

     “Borrowing” shall mean and include (a) the incurrence of Swingline Loans from the
Swingline Lender on a given date and (b) the incurrence of one Type of Revolving Credit Loan on a
given date (or resulting from conversions on a given date) having, in the case of LIBOR Revolving
Credit Loans, the same Interest Period (provided that ABR Loans incurred pursuant
to Section 2.10(b) shall be considered part of any related Borrowing of LIBOR Revolving
Credit Loans).

-5-

 

     “Borrowing Base” shall mean at any time, an amount equal to the sum of, without
duplication:

          (a) the aggregate of all Incorporated Borrowing Bases, minus

          (b) subject to Section 15.2, effective (i) immediately upon or (ii) five (5) Business
Days after, in the case of Reserves which would cause the aggregate amount of the Lender’s
Revolving Credit Exposures at such time to exceed the lesser of the Total Revolving Credit
Commitment and the Borrowing Base then in effect, in each case, notification thereof to Borrower by
the Collateral Agent, any and all Reserves established or modified from time to time by the
Collateral Agent in the exercise of its Permitted Discretion.

The Borrowing Base at any time shall be determined by reference to the most recent Borrowing Base
Certificate theretofore delivered to the Collateral Agent and the Administrative Agent with such
adjustments as Administrative Agent and Collateral Agent deem appropriate in their Permitted
Discretion to assure that the Borrowing Base is calculated in accordance with the terms of this
Agreement.

     “Borrowing Base Certificate” shall mean a certificate, executed by a Financial Officer
of Borrower, substantially in the form of (or in such other form as may be mutually agreed upon by
Borrower, Administrative Agent and Collateral Agent), and containing the information prescribed by,
Exhibit N, delivered to the Administrative Agent and the Collateral Agent setting forth Borrower’s
calculation of the Borrowing Base.

     “Borrowing Base Guarantor” shall mean each Subsidiary of Borrower (a) listed on
Schedule 1.1(b) and (b) each other Subsidiary of Borrower (i) which (A) is organized in a State
within the United States, (B) is currently able to prepare all collateral reports in a comparable
manner to the Borrower’s reporting procedures and (C) has executed and delivered to Collateral
Agent such joinder agreements to Security Documents as Collateral Agent has reasonably requested
and (ii) if the aggregate value (or Cost in the case of Inventory) of Accounts and Inventory of
such Subsidiary is in excess of $20,000,000 and only to the extent reasonably requested by the
Collateral Agent, for which the Collateral Agent has received and approved, in its reasonable
discretion, a collateral audit and Inventory Appraisal conducted by an independent appraisal firm
reasonably acceptable to Collateral Agent; provided, that if no collateral audit and
Inventory Appraisal is delivered to and approved by the Collateral Agent with respect to the
Accounts and Inventory of such Subsidiary, then the lowest recovery rates from the current
Inventory Appraisal shall apply to the Accounts and Inventory of such Subsidiary.

     “Business Day” shall mean (a) for all purposes other than as covered by clause (b)
below, any day excluding Saturday, Sunday and any day that shall be in The City of New York a legal
holiday or a day on which banking institutions are authorized by law or other governmental actions
to close and (b) with respect to all notices and determinations in connection with, and payments of
principal and interest on, LIBOR Loans, any day which is a Business Day described in clause (a) and
which is also a day for trading by and between banks in Dollar deposits in the interbank eurodollar
market.

     “Buyer” shall have the meaning provided in the recitals to this Agreement.

-6-

 

     “Capital Lease” shall mean, as applied to any Person, any lease of any property
(whether real, personal or mixed) by that Person as lessee that, in conformity with GAAP, is, or is
required to be, accounted for as a capital lease on the balance sheet of that Person.

     “Capitalized Lease Obligations” shall mean, as applied to any Person, all obligations
under Capital Leases of such Person or any of its Subsidiaries, in each case taken at the amount
thereof accounted for as liabilities in accordance with GAAP.

     “Cash Collateral Account” shall mean a collateral account in the form of a deposit
account established and maintained by the Collateral Agent for the benefit of the Secured Parties
from the funds collected in the Collection Account that have not either been released to the
Borrower or applicable Guarantor or applied immediately to outstanding Obligations.

     “Cash Dominion Event” shall mean the occurrence of any one of the following events:
(i) Excess Availability shall be less than 7% of the then existing Total Revolving Credit
Commitment for any period of five (5) consecutive Business Days or (ii) an Event of Default
pursuant to Sections 11.1, 11.3(a) (but only to the extent such Event of Default was caused by a
breach of Sections 10.5, 10.6, 10.7 and 10.10 and the Administrative Agent or the Required Lenders
have reasonably determined (by written notice to the Borrower) to effect a Cash Dominion Event as a
result of such breach) or 11.5 shall occur and be continuing; provided, that, to the extent that
the Cash Dominion Event has occurred due to clause (i) of this definition, if Excess Availability
shall be equal to or greater than 7% of the then existing Total Revolving Credit Commitment for at
least thirty (30) consecutive days, the Cash Dominion Event shall be deemed to be over. At any
time that a Cash Dominion Event shall be deemed to be over or otherwise cease to exist, the
Collateral Agent shall take such actions, including delivering such notices and directions to
depositary institutions at which Blocked Accounts are established, to terminate the cash sweeps and
other transfers existing pursuant to Section 15.1(d) as a result of any Activation Notice or other
notices or directions given by Collateral Agent during the existence of such Cash Dominion Event.

     “Cash Management System” shall have the meaning provided in Section 15.1(d).

     “Casualty Event” shall mean, with respect to any Collateral, any loss of or damage to,
or any condemnation or other taking by a Governmental Authority of, such property for which such
Collateral for which the Borrower or any of its Restricted Subsidiaries receives insurance
proceeds, or proceeds of a condemnation award or other compensation.

     “Change in Law” shall mean (a) the adoption of any law, treaty, order, policy, rule or
regulation after the date of this Agreement, (b) any change in any law, treaty, order, policy, rule
or regulation or in the interpretation or application thereof by any Governmental Authority after
the date of this Agreement or (c) compliance by the Lender with any guideline, request or directive
issued or made after the date hereof by any central bank or other governmental or quasi
governmental authority (whether or not having the force of law).

     “Change of Control” shall mean and be deemed to have occurred if (a) the Sponsors
shall at any time not own, in the aggregate, directly or indirectly, beneficially and of record, at
least 35% of the voting power of the outstanding Voting Stock of Borrower (other than as the result
of

-7-

 

one or more widely distributed offerings of the common Stock of the Borrower or any direct or
indirect parent thereof, in each case whether by the Borrower, such parent, or the Sponsors); or
(b) any person, entity or “group” (within the meaning of Section 13(d) or 14(d) of
the Securities Exchange Act of 1934, as amended) shall at any time have acquired direct or indirect
beneficial ownership of a percentage of the voting power of the outstanding Voting Stock of
Borrower that exceeds the percentage of the voting power of such Voting Stock then beneficially
owned, in the aggregate, by the Sponsors, unless, in the case of either clause (a) or (b) above,
the Sponsors have, at such time, the right or the ability by voting power, contract or otherwise to
elect or designate for election at least a majority of the board of directors of Borrower; or (c)
Continuing Directors shall not constitute at least a majority of the board of directors of the
Borrower.

     “Class”, when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are Revolving Credit Loans, New Revolving Loans or
Swingline Loans and, when used in reference to any Commitment, refers to whether such Commitment is
a Revolving Credit Commitment or a New Revolving Credit Commitment.

     “Closing Date” shall mean the date of the initial Borrowing hereunder.

     “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and
the regulations promulgated and rulings issued thereunder. Section references to the Code are to
the Code, as in effect at the date of this Agreement, and any subsequent provisions of the Code,
amendatory thereof, supplemental thereto or substituted therefor.

     “Co-Collateral Agent” shall mean (a) CIT, a New York corporation, as collateral agent
for the Lenders and the other Secured Parties and (b) Bank of America, as collateral agent for the
Lenders and the other Secured Parties.

     “Co-Collateral Agent Fee Letters” shall mean (a) that certain confidential fee letter
by and between CIT and the Borrower and (b) that certain confidential fee letter by and between
Bank of America and the Borrower.

     “Co-Documentation Agent” shall mean JPMorgan Chase Bank, N.A., Wachovia Bank, N.A. and
PNC Bank, National Association, in each case as co-documentation agent for the Lenders under this
Agreement and the other Credit Documents.

     “Co-Lead Arrangers” shall mean Goldman Sachs Credit Partners L.P. and Lehman Brothers
Inc.

     “Collateral” shall have the meaning provided in the Security Agreement or any other
Security Document, as applicable.

     “Collateral Access Agreement” means a landlord waiver, bailee letter or other access
agreement reasonably acceptable to the Administrative Agent.

     “Collateral Agent” shall mean, collectively or individually as the context requires,
CIT, as a Co-Collateral Agent, and Bank of America, as a Co-Collateral Agent.

     “Collection Account” shall have the meaning provided in Section 15.1(d)(i).

-8-

 

     “Commitment Fee Rate” shall mean, with respect to the Available Commitment on any day,
the rate per annum set forth below opposite the Status in effect on such day:

	 	 	 
	Status	 	Commitment Fee Rate
	Level I Status
	 	0.375%
	Level II Status
	 	0.25%
	Level III Status
	 	0.25%

     Notwithstanding the foregoing, the term “Commitment Fee Rate” shall mean 0.375% during the
period from and including the Closing Date to but excluding the Trigger Date.

     “Commitments” shall mean, with respect to each Lender (to the extent applicable), such
Lender’s Revolving Credit Commitment and New Revolving Credit Commitment.

     “Communications” shall have the meaning provided in Section 14.17(a).

     “Concentration Account” shall have the meaning provided in Section 15.1(d)(i).

     “Concentration Account Bank” shall have the meaning provided in Section
15.1(d)(i).

     “Confidential Information” shall have the meaning provided in Section 14.16.

     “Confidential Information Memorandum” shall mean the Confidential Information
Memorandum of the Borrower dated as of October 2, 2007, delivered to the Lenders in connection with
this Agreement.

     “Consolidated EBITDA” shall mean, for any period, Consolidated Net Income for such
period, plus:

          (a) without duplication and to the extent already deducted (and not added back) in arriving at
such Consolidated Net Income, the sum of the following amounts for such period:

          (i) total interest expense and to the extent not reflected in such total interest
expense, any losses on hedging obligations or other derivative instruments entered into for
the purpose of hedging interest rate risk, net of interest income and gains on such hedging
obligations, and costs of surety bonds in connection with financing activities,

          (ii) provision for taxes based on income, profits or capital of the Borrower and the
Restricted Subsidiaries, including state, franchise and similar taxes and foreign
withholding taxes paid or accrued during such period,

          (iii) depreciation and amortization,

          (iv) Non-Cash Charges,

-9-

 

          (v) extraordinary losses and unusual or non-recurring charges, severance, relocation
costs and curtailments or modifications to pension and post-retirement employee benefit
plans,

          (vi) restructuring charges or reserves (including restructuring costs related to
acquisitions after the date hereof and to closure and/or consolidation of facilities),

          (vii) any deductions attributable to minority interests (including the minority
interest portion of Midfield Supply ULC’s employee profit sharing plan),

          (viii) the amount, if any, of management, monitoring, consulting and advisory fees and
related expenses paid to the Sponsors,

          (ix) any costs or expenses incurred by the Borrower or a Restricted Subsidiary pursuant
to any management equity plan or stock option plan or any other management or employee
benefit plan or agreement or any stock subscription or shareholder agreement, to the extent
that such costs or expenses are funded with cash proceeds contributed to the capital of the
Borrower or net cash proceeds of an issuance of Stock or Stock Equivalents of the Borrower;
and

          (x) (A) for any period that includes a fiscal quarter occurring prior to fifth fiscal
quarter occurring after the Original Closing Date, the cost savings described on Schedule
1.1(e)(A), and (B) for any period that includes a fiscal quarter occurring after the Closing
Date, the amount of net cost savings projected by the Borrower in good faith to be realized
as a result of specified actions taken by the Borrower and its Restricted Subsidiaries in
connection with the Transactions (calculated on a Pro Forma Basis as though such cost
savings had been realized on the first day of such period), net of the amount of actual
benefits realized during such period from such actions, provided that (1)
such cost savings are reasonably identifiable, factually supportable and not duplicative of
the cost savings added pursuant to clause (x)(A), (2) such actions are taken on or prior to
the third anniversary of the Closing Date, (3) no cost savings shall be added pursuant to
this clause (x) to the extent duplicative of any expenses or charges relating to such cost
savings that are included in clause (vi) above with respect to such period and (4) the
aggregate amount of cost savings added pursuant to this clause (x)(B) shall not exceed 5% of
the amount of Consolidated EBITDA computed pursuant to the most recently delivered Section
9.1 Financials for any period consisting of four consecutive quarters, less

          (b) without duplication and to the extent included in arriving at such Consolidated Net
Income, the sum of the following amounts for such period:

          (i) extraordinary gains and unusual or non-recurring gains,

          (ii) non-cash gains (excluding any non-cash gain to the extent it represents the
reversal of an accrual or reserve for a potential cash item that reduced Consolidated Net
Income in any prior period),

-10-

 

          (iii) gains on asset sales (other than asset sales in the ordinary course of business),

          (iv) any net after-tax income from the early extinguishment of Indebtedness or hedging
obligations or other derivative instruments, and

          (v) all gains from investments recorded using the equity method,

in each case, as determined on a consolidated basis for the Borrower and the Restricted
Subsidiaries in accordance with GAAP; provided that, to the extent included in Consolidated
Net Income,

               (A) there shall be excluded in determining Consolidated EBITDA currency translation
gains and losses related to currency remeasurements of Indebtedness or intercompany balances
(including the net loss or gain resulting from Hedge Agreements for currency exchange risk),

               (B) there shall be excluded in determining Consolidated EBITDA for any period any
adjustments resulting from the application of Statement of Financial Accounting Standards
No. 133, and

               (C) there shall be included in determining Consolidated EBITDA for any period, without
duplication, (A) the Acquired EBITDA of any Person, property, business or asset acquired by
the Borrower or any Restricted Subsidiary during such period (including Red Man but not the
Acquired EBITDA of any related Person, property, business or assets to the extent not so
acquired) to the extent not subsequently sold, transferred, abandoned or otherwise disposed
by the Borrower or such Restricted Subsidiary (each such Person, property, business or asset
acquired and not subsequently so disposed of, an “Acquired Entity or Business”) and
the Acquired EBITDA of any Unrestricted Subsidiary that is converted into a Restricted
Subsidiary during such period (each, a “Converted Restricted Subsidiary”), based on
the actual Acquired EBITDA of such Acquired Entity or Business or Converted Restricted
Subsidiary for such period (including the portion thereof occurring prior to such
acquisition or conversion) and (B) an adjustment in respect of each Acquired Entity or
Business equal to the amount of the Pro Forma Adjustment with respect to such Acquired
Entity or Business for such period (including the portion thereof occurring prior to such
acquisition) as specified in a Pro Forma Adjustment Certificate and delivered to the Lenders
and the Administrative Agents and (C) there shall be excluded in determining Consolidated
EBITDA for any period the Disposed EBITDA of any Person, property, business or asset (other
than an Unrestricted Subsidiary) sold, transferred, abandoned or otherwise disposed of,
closed or classified as discontinued operations by the Borrower or any Restricted Subsidiary
during such period (each such Person, property, business or asset so sold or disposed of, a
“Sold Entity or Business”), and the Acquired EBITDA of any Restricted Subsidiary
that is converted into an Unrestricted Subsidiary during such period (each, a “Converted
Unrestricted Subsidiary”) based on the actual Disposed EBITDA of such Sold Entity or
Business or Converted Restricted Subsidiary for such period (including the portion thereof
occurring prior to such sale, transfer or disposition or conversion).

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     “Consolidated Fixed Charge Coverage Ratio” shall mean, for any Test Period, the ratio
of (a) Consolidated EBITDA for such Test Period to (b) Consolidated Fixed Charges for such Test
Period.

     “Consolidated Fixed Charges” means, for any period, the sum, without duplication, of
(a) Consolidated Interest Expense, (b) scheduled payments of principal on Consolidated Total Debt,
(c) the aggregate of all unfinanced capital expenditures of Borrower and its Restricted
Subsidiaries during such period determined on a consolidated basis and (d) the portion of taxes
attributable to Borrower and its Restricted Subsidiaries based on income actually paid in cash and
provisions for cash income taxes.

     “Consolidated Interest Expense” shall mean, for any period, the sum of (i) the cash
interest expense (including that attributable to Capital Leases in accordance with GAAP), net of
cash interest income, of the Borrower and the Restricted Subsidiaries on a consolidated basis in
accordance with GAAP with respect to all outstanding Indebtedness of the Borrower and the
Restricted Subsidiaries, including all commissions, discounts and other fees and charges owed with
respect to letters of credit and bankers’ acceptance financing and net costs under Hedge Agreements
(other than currency swap agreements, currency future or option contracts and other similar
agreements) and (ii) any cash payments made during such period in respect of obligations referred
to in clause (b) below relating to Funded Debt that were amortized or accrued in a previous period
(other than any such obligations resulting from the discounting of Indebtedness in connection with
the application of purchase accounting in connection with the Transaction or any Permitted
Acquisition), but excluding, however, (a) amortization of deferred financing costs and any other
amounts of non-cash interest, (b) the accretion or accrual of discounted liabilities during such
period, and (c) all non-recurring cash interest expense consisting of liquidated damages for
failure to timely comply with registration rights obligations and financing fees, all as calculated
on a consolidated basis in accordance with GAAP and excluding, for the avoidance of doubt, any
interest in respect of items excluded from Indebtedness in the proviso to the definition thereof,
provided that (a) except as provided in clause (b) below, there shall be excluded from
Consolidated Interest Expense for any period the cash interest expense (or cash interest income) of
all Unrestricted Subsidiaries for such period to the extent otherwise included in Consolidated
Interest Expense, (b) there shall be included in determining Consolidated Interest Expense for any
period the cash interest expense (or income) of any Acquired Entity or Business acquired during
such period and of any Converted Restricted Subsidiary converted during such period, in each case
based on the cash interest expense (or income) of such Acquired Entity or Business or Converted
Restricted Subsidiary for such period (including the portion thereof occurring prior to such
acquisition or conversion) assuming any Indebtedness incurred or repaid in connection with any such
acquisition or conversion had been incurred or prepaid on the first day of such period, and (c)
there shall be excluded from determining Consolidated Interest Expense for any period the cash
interest expense (or income) of any Sold Entity or Business disposed of during such period, based
on the cash interest expense (or income) relating to any Indebtedness relieved, retired or repaid
in connection with any such disposition of such Sold Entity or Business for such period (including
the portion thereof occurring prior to such disposal) assuming such debt relieved, retired or
repaid in connection with such disposition had been relieved, retired or repaid on the first day of
such period. Notwithstanding anything to the contrary contained herein, for purposes of determining
Consolidated Interest Expense for any period ending prior to the first anniversary of the Closing
Date, Consolidated Interest Expense

-12-

 

shall be an amount equal to actual Consolidated Interest Expense from the Closing Date through
the date of determination multiplied by a fraction the numerator of which is 365 and the
denominator of which is the number of days from the Closing Date through the date of determination.

     “Consolidated Net Income” shall mean, for any period, the net income (loss) of the
Borrower and the Restricted Subsidiaries for such period determined on a consolidated basis in
accordance with GAAP, excluding, without duplication, (a) extraordinary items for such period, (b)
the cumulative effect of a change in accounting principles during such period to the extent
included in Consolidated Net Income, (c) in the case of any period that includes a period ending
prior to June 30, 2008, Transaction Expenses and Original Transaction Expenses, (d) any fees and
expenses incurred during such period, or any amortization thereof for such period, in connection
with any acquisition, investment, recapitalization, asset disposition, issuance or repayment of
debt, issuance of equity securities, refinancing transaction or amendment or other modification of
any debt instrument (in each case, including any such transaction consummated prior to the Closing
Date and any such transaction undertaken but not completed) and any charges or non-recurring merger
costs incurred during such period as a result of any such transaction, (e) any income (loss) for
such period attributable to the early extinguishment of Indebtedness and (f) accruals and reserves
that are established that are so required to be established or adjusted as a result of the
Transactions, or Original Transactions in accordance with GAAP or changes as a result of adoption
of or modification of accounting policies, in each case, within twelve months after the Closing
Date (or with respect to the Original Transactions, twelve months after the Original Closing Date).
There shall be excluded from Consolidated Net Income for any period the purchase accounting
effects of adjustments to inventory, property and equipment, software and other intangible assets
and deferred revenue in component amounts required or permitted by GAAP and related authoritative
pronouncements (including the effects of such adjustments pushed down to the Borrower and the
Restricted Subsidiaries), as a result of the Transactions, the Original Transactions, any
acquisition whether consummated before or after the Closing Date, any Permitted Acquisition or
other Investment, or the amortization or write-off of any amounts thereof.

     “Consolidated Secured Debt” shall mean, as of any date of determination, (a) the
aggregate principal amount of Indebtedness of the Borrower and the Restricted Subsidiaries
outstanding on such date, determined on a consolidated basis in accordance with GAAP (but excluding
the effects of any discounting of Indebtedness resulting from the application of purchase
accounting in connection with the Transaction or any Permitted Acquisition), consisting of
Indebtedness for borrowed money, Capital Lease Obligations and debt obligations evidenced by
promissory notes or similar instruments, in each case secured by Liens, minus (b) the
aggregate amount of cash and cash equivalents held in accounts on the consolidated balance sheet of
the Borrower and the Restricted Subsidiaries as at such date to the extent the use thereof for
application to payment of Indebtedness is not prohibited by law or any contract to which the
Borrower or any of the Restricted Subsidiaries is a party.

     “Consolidated Total Assets” shall mean, as of any date of determination, the amount
that would, in conformity with GAAP, be set forth opposite the caption “total assets” (or any like
caption) on a consolidated balance sheet of the Borrower and the Restricted Subsidiaries at such
date.

-13-

 

     “Consolidated Total Debt” shall mean, as of any date of determination, (a) the
aggregate principal amount of Indebtedness of the Borrower and the Restricted Subsidiaries
outstanding on such date, determined on a consolidated basis in accordance with GAAP (but excluding
the effects of any discounting of Indebtedness resulting from the application of purchase
accounting in connection with the Transaction or any Permitted Acquisition), consisting of
Indebtedness for borrowed money, Capital Lease Obligations and debt obligations evidenced by
promissory notes or similar instruments, minus (b) the aggregate amount of cash and cash
equivalents held in accounts on the consolidated balance sheet of the Borrower and the Restricted
Subsidiaries as at such date to the extent the use thereof for application to payment of
Indebtedness is not prohibited by law or any contract to which the Borrower or any of the
Restricted Subsidiaries is a party.

     “Consolidated Total Debt to Consolidated EBITDA Ratio” shall mean, as of any date of
determination, the ratio of (a) Consolidated Total Debt as of the last day of the relevant Test
Period to (b) Consolidated EBITDA for such Test Period.

     “Continuing Director” shall mean, at any date, an individual (a) who is a member of
the board of directors of the Borrower on the date hereof, (b) who, as at such date, has been a
member of such board of directors for at least the twelve preceding months, (c) who has been
nominated to be a member of such board of directors, directly or indirectly, by a Sponsor or
Persons nominated by a Sponsor or (d) who has been nominated to be a member of such board of
directors by a majority of the other Continuing Directors then in office.

     “Contract Consideration” shall have the meaning provided in the definition of Excess
Cash Flow.

     “Control Agreements” shall have the meaning assigned to such term in the Security
Agreement.

     “Converted Restricted Subsidiary” shall have the meaning provided in the definition of
the term “Consolidated EBITDA”.

     “Converted Unrestricted Subsidiary” shall have the meaning provided in the definition
of the term “Consolidated EBITDA”.

     “Cost” shall mean, with respect to Inventory, the weighted average cost thereof, as
determined in the same manner and consistent with the most recent Inventory Appraisal which has
been received and approved by Collateral Agent in its reasonable discretion.

     “Credit Documents” shall mean this Agreement, the Security Documents, each Letter of
Credit and any promissory notes issued by the Borrower hereunder.

     “Credit Event” shall mean and include the making (but not the conversion or
continuation) of a Loan and the issuance of a Letter of Credit.

     “Credit Party” shall mean each of the Borrower, the Guarantors and each other
Subsidiary of the Borrower that is a party to a Credit Document.

-14-

 

     “Currency Agreement” means any foreign exchange contract, currency swap agreement,
futures contract, option contract, synthetic cap or other similar agreement or arrangement, each of
which is for the purpose of hedging the foreign currency risk associated with Borrower’s and its
Subsidiaries’ operations and not for speculative purposes.

     “Debt Repayment” shall have the meaning provided in the recitals to this Agreement.

     “Default” shall mean any event, act or condition that with notice or lapse of time, or
both, would constitute an Event of Default.

     “Defaulting Lender” shall mean any Lender with respect to which a Lender Default is in
effect.

     “Deferred Net Cash Proceeds” shall have the meaning provided such term in the
definition of “Net Cash Proceeds.”

     “Designated Non-Cash Consideration” shall mean the fair market value of non-cash
consideration received by the Borrower or a Restricted Subsidiary in connection with a Disposition
pursuant to Section 10.4(b) and Section 10.4(c) that is designated as Designated
Non-Cash Consideration pursuant to a certificate of an Authorized Officer of the Borrower, setting
forth the basis of such valuation (which amount will be reduced by the fair market value of the
portion of the non-cash consideration converted to cash within 180 days following the consummation
of the applicable Disposition).

     “Disposed EBITDA” shall mean, with respect to any Sold Entity or Business or any
Converted Unrestricted Subsidiary for any period, the amount for such period of Consolidated EBITDA
of such Sold Entity or Business or Converted Unrestricted Subsidiary (determined as if references
to the Borrower and the Restricted Subsidiaries in the definition of Consolidated EBITDA were
references to such Sold Entity or Business or Converted Unrestricted Subsidiary and its
Subsidiaries), all as determined on a consolidated basis for such Sold Entity or Business.

     “Disposition” shall have the meaning provided in Section 10.4(b).

     “Dividends” or “dividends” shall have the meaning provided in Section
10.6.

     “Dollar Equivalent” shall mean, on any date of determination, (a) with respect to any
amount denominated in Dollars, such amount, and (b) with respect to any amount denominated in any
Foreign Currency, the equivalent in Dollars of such amount, determined by the Administrative Agent
pursuant using the applicable Exchange Rate.

     “Dollars” and “$” shall mean dollars in lawful currency of the United States
of America.

     “Domestic Subsidiary” shall mean each Subsidiary of the Borrower that is organized
under the laws of the United States, any state or territory thereof, or the District of Columbia.

     “Drawing” shall have the meaning provided in Section 3.4(b).

-15-

 

     “Eligible Accounts” means, at any time, the Accounts of the Borrower and each
Borrowing Base Guarantor, as applicable at such date, except any Account (determined without
duplication):

	 	(a)	 	which is not subject to a perfected security interest in favor of the
Collateral Agent;
	 
	 	(b)	 	which is subject to any Lien (including Liens permitted by Section
10.2) other than (i) a Lien in favor of the Collateral Agent and (ii) a Permitted
Lien which does not have priority over the Lien in favor of the Collateral Agent;
provided that, with respect to any tax Lien having such priority, eligibility
of Accounts shall, without duplication, be reduced by the amount of such tax Lien;
	 
	 	(c)	 	(i) owing by General Electric with respect to which more than 150 days have
lapsed since the date of the original invoice therefor or (ii) owing by any other
Account Debtor which more than 120 days have lapsed since the date of the original
invoice therefor or which is more than 60 days past the due date for payment
(provided, that the aggregate amount of all Accounts eligible under the
foregoing clause (i) does not exceed $3,000,000 at any time);
	 
	 	(d)	 	which is owing by an Account Debtor for which more than 50% of the Accounts
owing from such Account Debtor and its Affiliates are ineligible pursuant to clause (c)
above;
	 
	 	(e)	 	which is owing by an Account Debtor to the extent the aggregate amount of
Accounts owing from such Account Debtor and its Affiliates to such Borrower or
Borrowing Base Guarantor exceeds 20% of the aggregate Eligible Accounts (but only to
the extent of such excess);
	 
	 	(f)	 	with respect to which any covenant, representation, or warranty relating to
such Account contained in this Agreement or in the Security Agreement has been breached
or is not true in any material respect;
	 
	 	(g)	 	which (i) does not arise from the sale of goods or performance of services in
the ordinary course of business, (ii) is not evidenced by an invoice, or other
documentation satisfactory to the Administrative Agent, which has been sent to the
Account Debtor, (iii) represents a progress billing, (iv) is contingent upon such
Borrower’s or Borrowing Base Guarantor’s completion of any further performance, or (v)
represents a sale on a bill-and-hold, guaranteed sale, sale-and-return, sale on
approval, consignment which is billed prior to actual sale to the end user,
cash-on-delivery or any other repurchase or return basis, except with respect to up to
$10,000,000 of such Accounts described in this clause (v);
	 
	 	(h)	 	for which the goods giving rise to such Account (other than Accounts described
in the foregoing paragraph (g)(v)) have not been shipped to the Account Debtor or for
which the services giving rise to such Account have not been performed by such Borrower
or Borrowing Base Guarantor;

-16-

 

	 	(i)	 	with respect to which any check or other instrument of payment has been
returned uncollected for any reason;
	 
	 	(j)	 	which is owed by an Account Debtor which is a debtor or a debtor in possession
under any bankruptcy law or any other federal, state or foreign (including any
provincial) receivership, insolvency relief or other law or laws for the relief of
debtors unless the payment of Accounts from such Account Debtor is secured by assets
of, or guaranteed by, in either case in a manner reasonably satisfactory to the
Administrative Agent, a Person that is reasonably acceptable to the Administrative
Agent or, if the Account from such Account Debtor arises subsequent to a decree or
order for relief with respect to such Account Debtor under the federal bankruptcy laws,
as now or hereafter in effect, the Administrative Agent shall have reasonably
determined that the timely payment and collection of such Account will not be impaired;
	 
	 	(k)	 	which is owed by an Account Debtor which is not organized under applicable law
of the U.S. or any state of the U.S. unless such Account is backed by a letter of
credit or other credit support reasonably acceptable to the Administrative Agent and
which is in the possession of the Administrative Agent;
	 
	 	(m)	 	which is owed in any currency other than Dollars;
	 
	 	(n)	 	which is owed by (i) the government (or any department, agency, public
corporation, or instrumentality thereof) of any country other than the U.S. unless such
Account is backed by a Letter of Credit reasonably acceptable to the Administrative
Agent and which is in the possession of the Administrative Agent, or (ii) the
government of the U.S., or any department, agency, public corporation, or
instrumentality thereof, unless the Federal Assignment of Claims Act of 1940, as
amended (31 U.S.C. § 3727 et seq. and 41 U.S.C. § 15 et
seq.), and any other steps necessary to perfect the Lien of the applicable
Collateral Agent in such Account have been complied with to the Administrative Agent’s
reasonable satisfaction;
	 
	 	(o)	 	which is owed by any Affiliate, employee, director, or officer of any Credit
Party other than Accounts of Borrower or any Borrowing Base Guarantor which are owed by
Red Man Distributors; provided that (i) the amount of any such Eligible
Accounts shall not include the amount owed by Red Man Distributors to Borrower for
administrative services with respect thereto, (ii) such Account shall be subject to
ineligibility or such reductions in amount as determined by Collateral Agent’s
application of the same eligibility criteria as set forth in the remaining clauses of
this definition (other than the criteria in clause (a) hereof) to the corresponding
Accounts owed to Red Man Distributors by its Account Debtors, (iii) the aggregate
amount of all Accounts eligible under this clause (o) (together with the aggregate
amount of all Accounts eligible under clause (a) of the definition of Eligible Red Man
Business Account) shall not exceed $30,000,000 at any time and (iv) the Organizational
Documents of Red Man Distributors provide for a negative pledge of its Accounts (other
than with respect

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	 	 	 	to tax Liens) and for a right of subrogation in favor of the Collateral Agent with
respect to such Accounts on terms reasonably satisfactory to the Collateral Agent;
	 
	 	(p)	 	which is owed by an Account Debtor or any Affiliate of such Account Debtor
which is the holder of Indebtedness issued or incurred by any Credit Party;
provided, that any such Account shall only be ineligible as to that portion of
such Account which is less than or equal to the amount owed by the Credit Party to such
Person;
	 
	 	(q)	 	which is subject to any counterclaim, deduction, defense, setoff or dispute,
but only to the extent of the amount of such counterclaim, deduction, defense, setoff
or dispute, unless (i) the Administrative Agent, in its Permitted Discretion, has
established an appropriate Reserve and determines to include such Account as an
Eligible Account or (ii) such Account Debtor has entered into an agreement reasonably
acceptable to the Administrative Agent to waive such rights;
	 
	 	(r)	 	which is evidenced by any promissory note, chattel paper, or instrument (in
each case, other than any such items that are held by a Credit Party or delivered to
the Administrative Agent or the Collateral Agent);
	 
	 	(s)	 	which is owed by an Account Debtor located in any jurisdiction that requires,
as a condition to access to the courts of such jurisdiction, that a creditor qualify to
transact business, file a business activities report or other report or form, or take
one or more other actions, unless such Borrower or Borrowing Base Guarantor has so
qualified, filed such reports or forms, or taken such actions (and, in each case, paid
any required fees or other charges), except to the extent such Borrower or Borrowing
Base Guarantor may qualify subsequently as a foreign entity authorized to transact
business in such state or jurisdiction and gain access to such courts, without
incurring any cost or penalty reasonably viewed by the Administrative Agent to be
material in amount, and such later qualification cures any access to such courts to
enforce payment of such Account;
	 
	 	(t)	 	with respect to which such Borrower or Borrowing Base Guarantor has made any
agreement with the Account Debtor for any reduction thereof, but only to the extent of
such reduction, other than discounts and adjustments given in the ordinary course of
business; or
	 
	 	(u)	 	which the Administrative Agent determines in its Permitted Discretion may not
be paid by reason of the Account Debtor’s inability to pay.

     Subject to Sections 14.1 and 15.2 and the definition of Borrowing Base, the Administrative
Agent may modify the foregoing criteria in its Permitted Discretion.

     “Eligible Inventory” shall mean, at any date of determination thereof, the aggregate
amount of all Inventory owned by the Borrower and each Borrowing Base Guarantor at such date except
any Inventory (determined without duplication):

	 	(a)	 	which is not subject to a perfected Lien in favor of the Collateral Agent;

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	 	(b)	 	which is subject to any Lien other than (i) a Lien in favor of the Collateral
Agent and (ii) a Permitted Lien which does not have priority over the Lien in favor of
the Collateral Agent (other than any bailee, warehouseman, landlord or similar
non-consensual Liens having priority of operation of law to the extent either subclause
(i) or (ii) of such clauses (h) or (i) is satisfied with respect to the relevant
Inventory); provided that, with respect to any tax Lien having such priority,
eligibility of Inventory shall, without duplication, be reduced by the amount of such
tax Lien;
	 
	 	(c)	 	which is, in the Administrative Agent’s Permitted Discretion, slow moving,
obsolete, unmerchantable, defective, unfit for sale, not salable at prices
approximating at least the cost of such Inventory in the ordinary course of business or
unacceptable due to age, type, category and/or quantity;
	 
	 	(d)	 	with respect to which any covenant, representation, or warranty contained in
this Agreement or any Security Agreement has been breached or is not true;
	 
	 	(e)	 	which does not conform in all material respects to all standards imposed by any
Governmental Authority (except that any standard that is qualified as to “materiality”
shall have been conformed to in all respects);
	 
	 	(f)	 	which constitutes packaging and shipping material, manufacturing supplies,
display items, bill-and-hold goods in excess of $10,000,000, returned or repossessed
goods (other than goods that are undamaged and able to be resold in the ordinary course
of business), defective goods, goods held on consignment, goods to be returned to the
Borrower’s or applicable Borrowing Base Guarantor’s suppliers or goods which are not of
a type held for sale in the ordinary course of business;
	 
	 	(g)	 	which is not located in the U.S. or which is in transit with a common carrier
from vendors and suppliers;
	 
	 	(h)	 	which is located in any location leased by the Borrower or applicable Borrowing
Base Guarantor unless (i) the lessor has delivered to the Agents a Collateral Access
Agreement or (ii) a Reserve for rent, charges, and other amounts due or to become due
with respect to such facility has been established by the Administrative Agent in its
Permitted Discretion; provided, that any such Reserve shall not exceed an
amount equal to the rent due with respect to such facility for the time period used to
determine the orderly liquidation value as set forth in the most recent Inventory
Appraisal;
	 
	 	(i)	 	which is located (a) in any third party warehouse or is in the possession of a
bailee and is not evidenced by a Document, unless (i) such warehouseman or bailee has
delivered to the Agents a Collateral Access Agreement and such other documentation as
the Administrative Agent may reasonably require or (ii) an appropriate Reserve has been
established by the Administrative Agent in its Permitted Discretion; provided,
that any such Reserve shall not exceed an amount

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	 	 	 	equal to the reasonable fees and expenses due with respect to such warehouse or
bailee for the time period used to determine the orderly liquidation value as set
forth in the most recent Inventory Appraisal or (b) at a vendor location unless an
appropriate Reserve has been established by the Administrative Agent in its
Permitted Discretion; provided, that any such Reserve shall not exceed an
amount equal to the accounts payable with respect to such vendor;
	 
	 	(j)	 	which is the subject of a consignment by the Borrower or any Borrowing Base
Guarantor as consignor unless (i) a protective UCC-1 financing statement has been
properly filed against the consignee, and (ii) there is a written agreement
acknowledging that such Inventory is held on consignment, that the Borrower or such
Borrowing Base Guarantor retains title to such Inventory, that no Lien arising by,
through or under such consignee has attached or will attach to such Inventory and
requiring consignee to segregate the consigned Inventory from the consignee’s other
personal or movable property and having other terms consistent with the Borrower’s or
such Borrowing Base Guarantor’s past practices for consigned Inventory;
provided that the aggregate amount of all Inventory eligible under this clause
(j) shall not exceed $25,000,000 at any time;
	 
	 	(k)	 	which is perishable as determined in accordance with GAAP; or
	 
	 	(l)	 	which contains or bears any intellectual property rights licensed to the
Borrower or any Borrowing Base Guarantor unless the Administrative Agent is satisfied
that it may sell or otherwise dispose of such Inventory without (i) infringing the
rights of such licensor in any material respect, (ii) violating any material contract
with such licensor or (iii) incurring any material liability with respect to payment of
royalties other than royalties incurred pursuant to sale of such Inventory under the
current licensing agreement.

     Subject to Sections 14.1 and 15.2 and the definition of Borrowing Base, the Administrative
Agent may modify the foregoing criteria in its Permitted Discretion.

     “Eligible Red Man Business Account” shall mean an Account arising in the ordinary
course of the Red Man Business from the sale of goods or rendition of services which Collateral
Agent, in the exercise of its Permitted Discretion, deems to be an Eligible Red Man Business
Account. No Account shall be an Eligible Red Man Business Account if:

	 	(a)	 	it is owed by any Affiliate, employee, director, or officer of any Credit Party
other than Accounts of Borrower or any Borrowing Base Guarantor which are owed by Red
Man Distributors; provided that (i) the amount of any such Eligible Red Man
Business Account shall not include the amount owed by Red Man Distributors to Borrower
for administrative services with respect thereto, (ii) such Account shall be subject to
ineligibility or such reductions in amount as determined by Collateral Agent’s
application of the same eligibility criteria as set forth in the remaining clauses of
this definition (other than the criteria in clause (m) hereof) to the corresponding
Accounts owed to Red Man Distributors by its Account Debtors, (iii) the aggregate
amount of all Accounts eligible under this clause (a)

-20-

 

	 	 	 	(together with the aggregate amount of all Accounts eligible under clause (o) of the
definition of Eligible Accounts) shall not exceed $30,000,000 at any time and (iv)
the Organizational Documents of Red Man Distributors provide for a negative pledge
of its Accounts (other than with respect to tax Liens) and for a right of
subrogation in favor of the Collateral Agent with respect to such Accounts on terms
reasonably satisfactory to the Collateral Agent;
	 
	 	(b)	 	it remains unpaid more than ninety (90) days after the original invoice date
thereof;
	 
	 	(c)	 	more than thirty percent (30%) of the total Accounts owing by an Account Debtor
remain unpaid more than ninety (90) days after the invoice date thereof, to the extent
of all Accounts owing by such Account Debtor;
	 
	 	(d)	 	any covenant, representation or warranty contained in this Agreement with
respect to such Account has been breached;
	 
	 	(e)	 	the Account Debtor is also Borrower’s or the Borrowing Base Guarantor’s
creditor or supplier, or the Account otherwise is or may become subject to any right of
setoff by the Account Debtor; provided, that in such case the Account shall be
deemed to be an Eligible Red Man Business Account if, and to the extent, the balance of
the Account exceeds all amounts owed by Borrower or such Borrowing Base Guarantor to
the Account Debtor or the amount of such setoff;
	 
	 	(f)	 	the Account Debtor has disputed liability with respect to such Account
(provided, that if the amount disputed is less than twenty-five percent (25%) of the
entire balance of the Account, the Account shall be deemed to be an Eligible Red Man
Business Account to the extent the balance of the Account exceeds the amount disputed);
	 
	 	(g)	 	the Account Debtor has commenced a voluntary case under the federal bankruptcy
laws, as now constituted or hereafter amended, or made an assignment for the benefit of
creditors, or a decree or order for relief has been entered by a court having
jurisdiction in the premises in respect of the Account Debtor in an involuntary case
under the federal bankruptcy laws, as now constituted or hereafter amended, or if the
Account Debtor has ceased to be “solvent” (as such term is interpreted under applicable
laws relating to fraudulent transfers and conveyances) or consented to or suffered a
receiver, trustee, liquidator or custodian to be appointed for it or for all or a
significant portion of its assets or affairs;
	 
	 	(h)	 	it arises from a sale to an Account Debtor outside the United States;
	 
	 	(i)	 	it arises from a sale to the Account Debtor on a bill-and-hold, guaranteed
sale, sale-or-return, sale-on-approval, consignment or any other repurchase or return
basis;
	 
	 	(j)	 	Collateral Agent believes, in its sole judgment, that, collection of such
Account is insecure or that payment thereof is doubtful or will be delayed by reason of
the Account Debtor’s financial condition;

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	 	(k)	 	the Account Debtor is the United States of America or any State or any
department, agency or instrumentality thereof;
	 
	 	(l)	 	the Account Debtor is located in the State of New Jersey, unless Borrower or
the applicable Borrowing Base Guarantor has filed a Notice of Business Activities
Report with the New Jersey Division of Taxation for the then current year;
	 
	 	(m)	 	the Account is not subject to Collateral Agent’s duly perfected first priority
security interest or is subject to a Lien, other than a Permitted Lien or a Lien
permitted by Section 10.2 which is junior to Collateral Agent’s security
interest;
	 
	 	(n)	 	the goods giving rise to such Account have not been delivered to and accepted
by the Account Debtor or the services giving rise to such Account have not been
performed by Borrower or the applicable Borrowing Base Guarantor and accepted by the
Account Debtor or the Account otherwise does not represent a final sale;
	 
	 	(o)	 	the total unpaid Accounts of the Account Debtor exceed a credit limit
determined by Collateral Agent, in its reasonable discretion, to the extent such
Account exceeds such limit;
	 
	 	(p)	 	it is evidenced by chattel paper or an instrument of any kind, or has been
reduced to judgment;
	 
	 	(q)	 	Borrower or the applicable Borrowing Base Guarantor has made any agreement with
the Account Debtor for any deduction therefrom, except for discounts or allowances
which are made in the ordinary course of business for prompt payment and which
discounts or allowances are reflected in the calculation of the face value of each
invoice related to such Account;
	 
	 	(r)	 	Borrower or the applicable Borrowing Base Guarantor has made an agreement with
the Account Debtor to extend the time of payment thereof, or
	 
	 	(s)	 	it arises from a sale to the Account Debtor on a C.O.D. or cash basis.

     “Eligible Red Man Business International Accounts” shall mean an Account arising in
the ordinary course of the Red Man Business from the sale of goods or rendition of services to an
Account Debtor outside the United States which Collateral Agent, in the exercise of its Permitted
Discretion, deems to be an Eligible Red Man International Account. Without limiting the generality
of the foregoing, (a) no Account which arises from a sale to an Account Debtor outside of the
United States shall be an Eligible Red Man Business International Account unless each of the
following is true and correct of such Account: (i) other than for clause (h) of such definition,
such Account otherwise constitutes an Eligible Red Man Business Account, and (ii) such Account
arises from a sale to an Account Debtor acceptable to Collateral Agent, in its sole discretion, and
(b) to the extent the aggregate amount of Accounts which arise from a sale or sales to Account
Debtor(s) in Nigeria are in excess of $5,000,000, such Accounts shall in no event constitute
“Eligible Red Man Business International Accounts” to the extent of such excess; provided
that the aggregate amount of all Eligible Red Man Business International Accounts shall not exceed
$10,000,000 at any time.

     “Eligible Red Man Business Inventory” shall mean Inventory of the Borrower and each
Borrowing Base Guarantor which Collateral Agent, in the exercise of its Permitted Discretion,

-22-

 

deems to be Eligible Red Man Business Inventory. No Inventory shall be Eligible Red Man
Business Inventory unless, in Collateral Agent’s opinion, it:

     (a) is in good, new and saleable condition;

     (b) is not obsolete or unmerchantable;

     (c) meets all standards imposed by any Governmental Authority;

     (d) conforms in all respects to the warranties and representations set forth in this Agreement
or any Security Agreement;

     (e) is at all times subject to Collateral Agent’s duly perfected, first priority security
interest and no other Lien, except Liens permitted by Section 10.2 of this Agreement;

     (f) other than Inventory in transit, is situated at one of the locations disclosed to
Collateral Agent; and

     (g) consists of finished tubular goods or consumable supplies of the Borrower or such
Borrowing Base Guarantor held for sale in the ordinary course of the Red Man Business.

In no event shall any work-in process Inventory constitute “Eligible Red Man Business Inventory”.
With respect to Inventory located in any leased location or third party warehouse, such Inventory
shall not be deemed Eligible Red Man Business Inventory unless such lessor or warehouseman delivers
to Collateral Agent a Collateral Access Agreement or Collateral Agent has established a Reserve in
an amount equal to the total payments due for the remaining term of the contract for such premises.

     “Environmental Claims” shall mean any and all actions, suits, orders, decrees,
demands, demand letters, claims, liens, notices of noncompliance, violation or potential
responsibility or investigation (other than internal reports prepared by the Borrower or any of the
Subsidiaries (a) in the ordinary course of such Person’s business or (b) as required in connection
with a financing transaction or an acquisition or disposition of real estate) or proceedings
relating in any way to any Environmental Law or any permit issued, or any approval given, under any
such Environmental Law (hereinafter, “Claims”), including, without limitation, (i) any and
all Claims by governmental or regulatory authorities for enforcement, cleanup, removal, response,
remedial or other actions or damages pursuant to any applicable Environmental Law and (ii) any and
all Claims by any third party seeking damages, contribution, indemnification, cost recovery,
compensation or injunctive relief relating to the presence, release or threatened release of
Hazardous Materials or arising from alleged injury or threat of injury to health or safety (to the
extent relating to human exposure to Hazardous Materials), or the environment including, without
limitation, ambient air, surface water, groundwater, land surface and subsurface strata and natural
resources such as wetlands.

     “Environmental Law” shall mean any applicable Federal, state, foreign or local
statute, law, rule, regulation, ordinance, code and rule of common law now or hereafter in effect
and in each case as amended, and any binding judicial or administrative interpretation thereof,
including any binding judicial or administrative order, consent decree or judgment, relating to the
protection of environment, including, without limitation, ambient air, surface water, groundwater,
land surface and subsurface strata and natural resources such as wetlands, or human health or
safety (to the extent relating to human exposure to Hazardous Materials), or Hazardous Materials.

-23-

 

     “Equity Contribution” shall have the meaning provided in the preamble to this
Agreement.

     “Equity Investments” shall mean the Equity Contribution and the Rollover Equity.

     “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended
from time to time. Section references to ERISA are to ERISA as in effect at the date of this
Agreement and any subsequent provisions of ERISA amendatory thereof, supplemental thereto or
substituted therefor.

     “ERISA Affiliate” shall mean each person (as defined in Section 3(9) of ERISA) that
together with the Borrower or a Subsidiary would be deemed to be a “single employer” within the
meaning of Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and
Section 412 of the Code, is treated as a single employer under Section 414 of the Code.

     “Event of Default” shall have the meaning provided in Section 11.

     “Excess Availability” means, at any time, an amount equal to the lesser of (a) the
Total Revolving Credit Commitment and (b) the Borrowing Base, in each case, minus the
aggregate of all Lenders’ Revolving Credit Exposure.

     “Excess Cash Flow” shall have the meaning provided in the Term Loan Credit Agreement,
as in effect on the Closing Date.

     “Exchange Rate” shall mean on any day with respect to any Foreign Currency, the rate
at which such Foreign Currency may be exchanged into Dollars, as set forth at approximately 11:00
a.m. (London time) on such day on the Reuters World Currency Page for such Foreign Currency; in the
event that such rate does not appear on any Reuters World Currency Page, the Exchange Rate shall be
determined by reference to such other publicly available service for displaying exchange rates as
may be agreed upon by the Administrative Agent and the Borrower, or, in the absence of such
agreement, such Exchange Rate shall instead be the arithmetic average of the spot rates of exchange
of the Administrative Agent in the market where its foreign currency exchange operations in respect
of such Foreign Currency are then being conducted, at or about 10:00 a.m. (New York City time) on
such date for the purchase of Dollars for delivery two Business Days later.

     “Excluded Subsidiary” means (a) each Subsidiary listed on Schedule 1.1(d)
hereto, (b) any Subsidiary that is not a wholly-owned Subsidiary, (c) any Subsidiary that is
prohibited by any applicable Requirement of Law from guaranteeing the Obligations, (d) any Domestic
Subsidiary that is a Subsidiary of a Foreign Subsidiary, (e) any Subsidiary acquired pursuant to a
Permitted Acquisition financed with secured Indebtedness incurred pursuant to Section
10.1(B)(j) or Section 10.1(B)(k) and each Restricted Subsidiary thereof that guarantees
such Indebtedness to the extent and so long as the financing documentation relating to such
Permitted Acquisition to which such Restricted Subsidiary is a party prohibits such Restricted
Subsidiary from guaranteeing, or granting a Lien on any of its assets to secure, the Obligations;
provided that after such time that such prohibitions on guarantees or granting of Liens
lapses or terminates, such Restricted Subsidiary shall no longer be an Excluded Subsidiary, (f) any
other

-24-

 

Subsidiary with respect to which, in the reasonable judgment of the Administrative Agent
(confirmed in writing by notice to the Borrower), the cost or other consequences (including any
adverse tax consequences) of providing a Guarantee shall be excessive in view of the benefits to be
obtained by the Lenders therefrom, and (g) each Unrestricted Subsidiary.

     “Excluded Taxes” shall mean, with respect to the Administrative Agent, the Collateral
Agent, any Letter of Credit Issuer or any Lender, (a) (i) net income taxes and franchise taxes
(imposed in lieu of net income taxes) and capital taxes imposed on the Administrative Agent, any
Letter of Credit Issuer or any Lender and (ii) any taxes imposed on the Administrative Agent, any
Letter of Credit Issuer or any Lender as a result of any current or former connection between the
Administrative Agent, any Letter of Credit Issuer or such Lender and the jurisdiction of the
Governmental Authority imposing such tax or any political subdivision or taxing authority thereof
or therein (other than any such connection arising solely from the Administrative Agent or such
Lender having executed, delivered or performed its obligations or received a payment under, or
having been a party to or having enforced this Agreement or any other Credit Document) and (b) (i)
any withholding tax that is imposed by a jurisdiction in which the Borrower is located or organized
on amounts payable to such Lender under the law in effect at the time such Lender becomes a party
to this Agreement (or, in the case of a Participant, on the date such Participant became a
Participant hereunder); provided that this clause (b)(i) shall not apply to the
extent that (x) the indemnity payments or additional amounts any Lender (or Participant) would be
entitled to receive (without regard to this clause (b)(i)) do not exceed the indemnity payment or
additional amounts that the person making the assignment, participation or transfer to such Lender
(or Participant) would have been entitled to receive in the absence of such assignment,
participation or transfer or (y) any Tax is imposed on a Lender in connection with an interest or
participation in any Loan or other obligation that such Lender was required to acquire pursuant to
Section 14.8(a) or that such Lender acquired pursuant to Section 14.7 (it being
understood and agreed, for the avoidance of doubt, that any withholding tax imposed on a Lender as
a result of a Change in Law occurring after the time such Lender became a party to this Agreement
(or designates a new lending office) shall not be an Excluded Tax) or (ii) any Tax to the extent
attributable to such Lender’s failure to comply with Section 5.4(d) or
Section 5.4(e).

     “Existing Letters of Credit” shall have the meaning provided in the preamble to this
Agreement.

     “Federal Funds Effective Rate” shall mean, for any day, the weighted average of the
per annum rates on overnight federal funds transactions with members of the Federal Reserve System
arranged by federal funds brokers, as published on the next succeeding Business Day by the Federal
Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day,
the Federal Funds Effective Rate for such day shall be the average rate charged to the
Administrative Agent on such day on such transactions as determined by the Administrative Agent.

     “Fee Letter” shall mean that certain confidential fee letter dated as of September 20,
2007 by and among Goldman Sachs Credit Partners L.P., Lehman Brothers Inc., Lehman Commercial Paper
Inc., Lehman Brothers Commercial Bank and the Borrower.

-25-

 

     “Fees” shall mean all amounts payable pursuant to, or referred to in, Section
4.1.

     “Financial Officer” shall mean the Chief Financial Officer, principal accounting
officer, Treasurer, or Controller or any other senior financial officer of the Borrower designated
in writing to the Administrative Agent by any of the foregoing and reasonably acceptable to the
Administrative Agent.

     “First Amendment to Term Loan Credit Agreement” shall mean that certain First
Amendment to Term Loan Credit Agreement dated as of the Closing Date among Borrower, the credit
support parties named therein, Lehman Commercial Paper Inc., as administrative agent and collateral
agent, and each of the lenders party thereto.

     “Foreign Currencies” shall mean any currency other than Dollars.

     “Foreign Plan” shall mean any employee benefit plan, program, policy, arrangement or
agreement maintained or contributed to by the Borrower or any of its Subsidiaries with respect to
employees employed outside the United States.

     “Foreign Subsidiary” shall mean each Subsidiary of the Borrower that is not a Domestic
Subsidiary.

     “Fronting Fee” shall have the meaning provided in Section 4.1(c).

     “Funded Debt” shall mean all indebtedness of the Borrower and the Restricted
Subsidiaries for borrowed money that matures more than one year from the date of its creation or
matures within one year from such date that is renewable or extendable, at the option of the
Borrower or any Restricted Subsidiary, to a date more than one year from such date or arises under
a revolving credit or similar agreement that obligates the lender or lenders to extend credit
during a period of more than one year from such date, including all amounts of Funded Debt required
to be paid or prepaid within one year from the date of its creation and, in the case of the
Borrower, Indebtedness in respect of the Loans.

     “GAAP” shall mean generally accepted accounting principles in the United States of
America, as in effect from time to time; provided, however, that if the Borrower
notifies the Administrative Agent that the Borrower requests an amendment to any provision hereof
to eliminate the effect of any change occurring after the Closing Date in GAAP or in the
application thereof on the operation of such provision (or if the Administrative Agent notifies the
Borrower that the Required Lenders request an amendment to any provision hereof for such purpose),
regardless of whether any such notice is given before or after such change in GAAP or in the
application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and
applied immediately before such change shall have become effective until such notice shall have
been withdrawn or such provision amended in accordance herewith.

     “Governmental Authority” shall mean any nation, sovereign or government, any state,
province, territory or other political subdivision thereof, and any entity or authority exercising
executive, legislative, judicial, regulatory or administrative functions of or pertaining to
government, including a central bank or stock exchange.

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     “Guarantee” shall mean (a) the Guarantee, made by each Guarantor in favor of the
Administrative Agent for the benefit of the Secured Parties, substantially in the form of
Exhibit C, and (b) any other guarantee of the Obligations made by a Restricted Subsidiary
in form and substance reasonably acceptable to the Administrative Agent, in each case as the same
may be amended, supplemented or otherwise modified from time to time.

     “Guarantee Obligations” shall mean, as to any Person, any obligation of such Person
guaranteeing or intended to guarantee any Indebtedness of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly, including any obligation of such
Person, whether or not contingent, (a) to purchase any such Indebtedness or any property
constituting direct or indirect security therefor, (b) to advance or supply funds (i) for the
purchase or payment of any such Indebtedness or (ii) to maintain working capital or equity capital
of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor,
(c) to purchase property, securities or services primarily for the purpose of assuring the owner of
any such Indebtedness of the ability of the primary obligor to make payment of such Indebtedness or
(d) otherwise to assure or hold harmless the owner of such Indebtedness against loss in respect
thereof; provided, however, that the term “Guarantee Obligations” shall not
include endorsements of instruments for deposit or collection in the ordinary course of business or
customary and reasonable indemnity obligations in effect on the Closing Date or entered into in
connection with any acquisition or disposition of assets permitted under this Agreement (other than
such obligations with respect to Indebtedness). The amount of any Guarantee Obligation shall be
deemed to be an amount equal to the stated or determinable amount of the Indebtedness in respect of
which such Guarantee Obligation is made or, if not stated or determinable, the maximum reasonably
anticipated liability in respect thereof (assuming such Person is required to perform thereunder)
as determined by such Person in good faith.

     “Guarantors” shall mean the Subsidiary Guarantors.

     “Hazardous Materials” shall mean (a) any petroleum or petroleum products, radioactive
materials, friable asbestos, urea formaldehyde foam insulation, transformers or other equipment
that contain dielectric fluid containing regulated levels of polychlorinated biphenyls, and radon
gas; (b) any chemicals, materials or substances defined as or included in the definition of
“hazardous substances”, “hazardous waste”, “hazardous materials”, “extremely hazardous waste”,
“restricted hazardous waste”, “toxic substances”, “toxic pollutants”, “contaminants”, or
“pollutants”, or words of similar import, under any applicable Environmental Law; and (c) any other
chemical, material or substance, which is prohibited, limited or regulated by any Environmental
Law.

     “Hedge Agreement” means an Interest Rate Agreement or a Currency Agreement entered
into in order to satisfy the requirements of this Agreement or otherwise in the ordinary course of
Borrower’s or any of its Subsidiaries’ businesses.

     “Historical Financial Statements” shall mean as of the Closing Date, (a) the audited
financial statements of each of (i) the Borrower and its Subsidiaries (other than Red Man Group)
and (ii) the Red Man Group, in each case, for the 2005 and 2006 fiscal years and consisting of
balance sheets and the related consolidated statements of income, stockholders’ equity and cash
flows for such fiscal years and (b) the unaudited financial statements of each of (i) the Borrower

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and its Subsidiaries (other than Red Man Group) and (ii) the Red Man Group, in each case, for
the fiscal quarters ending March 31, 2007 and June 30, 2007 and consisting of balance sheets and
the related consolidated statements of income, stockholders’ equity and cash flows for such fiscal
quarters.

     “Incorporated Borrowing Base” shall mean at any time:

     (a) (i) with respect to the McJunkin Business and (ii) with respect to the Red Man Business
after the completion of an updated Inventory Appraisal and collateral audit and field examination
of Red Man and its Subsidiaries (collectively, the “Red Man Group”), in each case an amount
equal to the sum of, without duplication:

          (x) the book value of Eligible Accounts multiplied by the advance rate of 85%, plus

          (y) the Net Orderly Liquidation Value of Eligible Inventory (which shall be (i) net of the
current monthly shrinkage reserve calculated in accordance with GAAP and (ii) valued at Cost)
multiplied by the advance rate of 85% and

     (b) with respect to the Red Man Business prior to the completion of an updated Inventory
Appraisal and collateral audit and field examination of the Red Man Group, an amount equal to the
sum of, without duplication:

          (x) 85% of the net amount (after deduction of such reserves as established or modified by the
Collateral Agent in the exercise of its Permitted Discretion, including a reserve for sales tax
payables) of Eligible Red Man Business Accounts outstanding at such date; plus

          (y) 85% of the net amount (after deduction of such reserves as established or modified by the
Collateral Agent in the exercise of its Permitted Discretion, including a reserve for sales tax
payables) of Eligible Red Man Business International Accounts outstanding at such date; plus

          (z) the aggregate of (i) 60% of the value (after deduction of such reserves as established or
modified by the Collateral Agent in the exercise of its Permitted Discretion) of Eligible Red Man
Business Inventory at such date consisting of oil country tubular goods held for sale in the
ordinary course of the Red Man Group’s business, calculated on the basis of the lower of cost or
market; (ii) 50% of the value (after deduction of such reserves as established or modified by the
Collateral Agent in the exercise of its Permitted Discretion) of Eligible Red Man Business
Inventory at such date consisting of consumable supplies held for sale in the ordinary course of
the Red Man Group’s business, calculated on the basis of the lower of cost or market, and (iii) 60%
of the value (after deduction of such reserves as established or modified by the Collateral Agent
in the exercise of its Permitted Discretion) of Eligible Red Man Business Inventory at such date
consisting of line pipe held for sale in the ordinary course of the Red Man Group’s business,
calculated on the basis of the lower of cost or market.

For purposes hereof, the net amount of Eligible Red Man Business Accounts or Eligible Red Man
Business International Accounts, as the case may be, at any time shall be the face amount of such
Eligible Red Man Business Accounts or such Eligible Red Man Business International

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Accounts, less any and all returns, discounts (which may, at Agent’s option, be calculated on
shortest terms), credits, allowances or excise taxes of any nature at any time issued, owing,
claimed by Account Debtors, granted, outstanding or payable in connection with such Accounts at
such time.

     “Increased Amount Date” shall have the meaning provided in Section 2.14.

     “Indebtedness” of any Person shall mean (a) all indebtedness of such Person for
borrowed money, (b) the deferred purchase price of assets or services that in accordance with GAAP
would be included as liabilities in the balance sheet of such Person, (c) the face amount of all
letters of credit issued for the account of such Person and, without duplication, all drafts drawn
thereunder, (d) all Indebtedness of a second Person secured by any Lien on any property owned by
such first Person, whether or not such Indebtedness has been assumed, (e) all Capitalized Lease
Obligations of such Person, (f) all obligations of such Person under interest rate swap, cap or
collar agreements, interest rate future or option contracts, currency swap agreements, currency
future or option contracts, commodity price protection agreements or other commodity price hedging
agreements and other similar agreements and (g) without duplication, all Guarantee Obligations of
such Person, provided that Indebtedness shall not include (i) trade payables and accrued
expenses, in each case payable directly or through a bank clearing arrangement and arising in the
ordinary course of business, (ii) deferred or prepaid revenue, (iii) purchase price holdbacks in
respect of a portion of the purchase price of an asset to satisfy warranty or other unperformed
obligations of the respective seller and (iv) all intercompany Indebtedness having a term not
exceeding 364 days (inclusive of any roll-over or extensions of terms) and made in the ordinary
course of business.

     “Indemnified Taxes” shall mean all Taxes (other than Excluded Taxes) and Other Taxes.

     “Intercreditor Agreement” means an intercreditor agreement substantially in the form
of Exhibit O, as it may be amended, restated, amended and restated, supplemented or
otherwise modified from time to time.

     “Interest Period” shall mean, with respect to any Revolving Credit Loan, the interest
period applicable thereto, as determined pursuant to Section 2.9.

     “Interest Rate Agreement” means any interest rate swap agreement, interest rate cap
agreement, interest rate collar agreement, interest rate hedging agreement or other similar
agreement or arrangement, each of which is for the purpose of hedging the interest rate exposure
associated with Borrower’s and its Subsidiaries’ operations and not for speculative purposes.

     “Inventory” has the meaning assigned to such term in the Security Agreement.

     “Inventory Appraisal” shall mean (a) on the Closing Date, with respect to the Credit
Parties other than the Red Man Group, the appraisal prepared by HILCO Appraisal Services, LLC dated
December 28, 2006 and (b) thereafter, the most recent inventory appraisal conducted by an
independent appraisal firm and delivered pursuant to Section 9.14 hereof.

     “Investment” shall mean, for any Person: (a) the acquisition (whether for cash,
property, services or securities or otherwise) of Stock, Stock Equivalents, bonds, notes,
debentures,

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partnership or other ownership interests or other securities of any other Person (including
any “short sale” or any sale of any securities at a time when such securities are not owned by the
Person entering into such sale); (b) the making of any deposit with, or advance, loan or other
extension of credit to, any other Person (including the purchase of property from another Person
subject to an understanding or agreement, contingent or otherwise, to resell such property to such
Person), but excluding any such advance, loan or extension of credit having a term not exceeding
364 days arising in the ordinary course of business; or (c) the entering into of any guarantee of,
or other contingent obligation with respect to, Indebtedness.

     “Investors” shall mean the Sponsors, the Management Investors and each other investor
providing a portion of the Equity Investments on the Closing Date.

     “Joinder Agreement” shall mean an agreement substantially in the form of
Exhibit M.

     “L/C Maturity Date” shall mean the date that is five Business Days prior to the
Revolving Credit Maturity Date.

     “L/C Participant” shall have the meaning provided in Section 3.3(a).

     “L/C Participation” shall have the meaning provided in Section 3.3(a).

     “Lender” shall have the meaning provided in the preamble to this Agreement.

     “Lender Default” shall mean (a) the failure (which has not been cured) of a Lender to
make available its portion of any Borrowing or to fund its portion of any unreimbursed payment
under Section 3.3, (b) a Lender having notified the Administrative Agent and/or the
Borrower that it does not intend to comply with the obligations under Section 2.1(a),
2.1(b), 2.1(d) or 3.3, or (c) a Lender being deemed insolvent or becoming
the subject of a bankruptcy or insolvency proceeding.

     “Letter of Credit” shall mean each letter of credit issued pursuant to Section
3.1.

     “Letter of Credit Commitment” shall mean $60,000,000, as the same may be reduced from
time to time pursuant to Section 3.1.

     “Letter of Credit Exposure” shall mean, with respect to any Lender, at any time, the
sum of (a) the amount of any Unpaid Drawings in respect of which such Lender has made (or is
required to have made) payments to the Letter of Credit Issuer pursuant to Section 3.4(a)
at such time and (b) such Lender’s Revolving Credit Commitment Percentage of the Letters of Credit
Outstanding at such time (excluding the portion thereof consisting of Unpaid Drawings in respect of
which the Lenders have made (or are required to have made) payments to the Letter of Credit Issuer
pursuant to Section 3.4(a)).

     “Letter of Credit Fee” shall have the meaning provided in Section 4.1(b).

     “Letter of Credit Issuer” shall mean JPMorgan Chase Bank, N.A. and any of its
Affiliates or any replacement or successor pursuant to Section 3.6. The Letter of Credit
Issuer may, in its discretion, arrange for one or more Letters of Credit to be issued by Affiliates
of the Letter of

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Credit Issuer, and in each such case the term “Letter of Credit Issuer” shall include any such
Affiliate with respect to Letters of Credit issued by such Affiliate. In the event that there is
more than one Letter of Credit Issuer at any time, references herein and in the other Credit
Documents to the Letter of Credit Issuer shall be deemed to refer to the Letter of Credit Issuer in
respect of the applicable Letter of Credit or to all Letter of Credit Issuers, as the context
requires.

     “Letters of Credit Outstanding” shall mean, at any time, the sum of, without
duplication, (a) the aggregate Stated Amount of all outstanding Letters of Credit and (b) the
aggregate amount of all Unpaid Drawings in respect of all Letters of Credit.

     “Letter of Credit Request” shall have the meaning provided in Section 3.2.

     “Level I Status” shall mean, on any date, the Consolidated Total Debt to Consolidated
EBITDA Ratio is greater than or equal to 2.75 to 1.00 as of such date.

     “Level II Status” shall mean, on any date, the circumstance that Level I Status does
not exist and the Consolidated Total Debt to Consolidated EBITDA Ratio is greater than or equal to
2.00 to 1.00 as of such date.

     “Level III Status” shall mean, on any date, the circumstance that the Consolidated
Total Debt to Consolidated EBITDA Ratio is less than 2.00 to 1.00 as of such date.

     “LIBOR Loan” shall mean any LIBOR Revolving Credit Loan.

     “LIBOR Rate” shall mean, in the case of any LIBOR Revolving Credit Loan, with respect
to each day during each Interest Period pertaining to such LIBOR Loan, (a) the rate of interest
determined on the basis of the rate for deposits in Dollars for a period equal to such Interest
Period commencing on the first day of such Interest Period appearing on Page 3750 of the Telerate
screen as of 11:00 a.m. (London time) two Business Days prior to the beginning of such Interest
Period multiplied by (b) the Statutory Reserve Rate. In the event that any such rate does not
appear on the applicable Page of the Telerate Service (or otherwise on such service), the
“LIBOR Rate” for the purposes of this paragraph shall be determined by reference to such
other publicly available service for displaying LIBOR rates as may be agreed upon by the
Administrative Agent and the Borrower or, in the absence of such agreement, the “LIBOR
Rate” for the purposes of this paragraph shall instead be the rate per annum notified to the
Administrative Agent by the Reference Lender as the rate at which the Reference Lender is offered
Dollar deposits at or about 11:00 a.m. (London time) two Business Days prior to the beginning of
such Interest Period in the interbank LIBOR market where the LIBOR and foreign currency and
exchange operations in respect of its LIBOR Loans are then being conducted for delivery on the
first day of such Interest Period for the number of days comprised therein and in an amount
comparable to the amount of its LIBOR Revolving Credit Loan, as the case may be, to be outstanding
during such Interest Period.

     “LIBOR Revolving Credit Loan” shall mean any Revolving Credit Loan bearing interest at
a rate determined by reference to the LIBOR Rate.

     “Lien” shall mean any mortgage, pledge, security interest, hypothecation, assignment,
lien (statutory or other) or similar encumbrance (including any agreement to give any of the

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foregoing, any conditional sale or other title retention agreement or any lease in the nature
thereof).

     “Loan” shall mean any Revolving Credit Loan, Swingline Loan or New Revolving Loan made
by any Lender and Protective Advances made by Administrative Agent hereunder.

     “Management Investors” shall mean the directors, management officers and employees of
the Borrower and its Subsidiaries who are investors in the Borrower (or any direct or indirect
parent thereof) on the Closing Date.

     “Mandatory Borrowing” shall have the meaning provided in Section 2.1(d).

     “Material Adverse Change” shall mean any event or circumstance which has resulted or
is reasonably likely to result in a material adverse change in the business, assets, operations,
properties or financial condition of the Borrower and its Subsidiaries, taken as a whole or that
would materially adversely affect the ability of the Borrower and the other Credit Parties, taken
as a whole, to perform their respective payment obligations under this Agreement or any of the
other Credit Documents.

     “Material Adverse Effect” shall mean a circumstance or condition affecting the
business, assets, operations, properties or financial condition of the Borrower and the
Subsidiaries, taken as a whole, that would materially adversely affect (a) the business, assets,
operations, properties, or financial condition of the Borrower and its Subsidiaries, taken as a
whole, (b) the ability of the Borrower and the other Credit Parties, taken as a whole, to perform
their respective payment obligations under this Agreement or any of the other Credit Documents or
(c) the rights and remedies of the Administrative Agent , Collateral Agent and the Lenders under
this Agreement or any of the other Credit Documents.

     “Material Subsidiary” shall mean, at any date of determination, each Restricted
Subsidiary of the Borrower (a) whose total assets at the last day of the Test Period ending on the
last day of the most recent fiscal period for which Section 9.1 Financials have been delivered were
equal to or greater than 5% of the consolidated total assets of the Borrower and the Restricted
Subsidiaries at such date or (b) whose gross revenues for such Test Period were equal to or greater
than 5% of the consolidated gross revenues of the Borrower and the Restricted Subsidiaries for such
period, in each case determined in accordance with GAAP.

     “McJ Holding” shall have the meaning provided in the preamble to this Agreement.

     “McJunkin Business” shall mean the business conducted by the Borrower and its
Subsidiaries other than the Red Man Business.

     “Minimum Borrowing Amount” shall mean (a) with respect to a Borrowing of Revolving
Credit Loans, $1,000,000 and (b) with respect to a Borrowing of Swingline Loans, $250,000.

     “Minimum Equity Investment Amount” shall have the meaning provided in the recitals
hereto.

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     “Moody’s” shall mean Moody’s Investors Service, Inc. or any successor by merger or
consolidation to its business.

     “Net Cash Proceeds” shall mean, with respect to any Prepayment Event, (a) the gross
cash proceeds (including payments from time to time in respect of installment obligations, if
applicable) received by or on behalf of the Borrower or any of the Restricted Subsidiaries in
respect of such Prepayment Event or issuance, as the case may be, less (b) the sum of:

          (i) the amount, if any, of all taxes paid or estimated to be payable by the Borrower or
any of the Restricted Subsidiaries in connection with such Prepayment Event,

          (ii) the amount of any reasonable reserve established in accordance with GAAP against
any liabilities (other than any taxes deducted pursuant to clause (i) above) (x) associated
with the assets that are the subject of such Prepayment Event and (y) retained by the
Borrower or any of the Restricted Subsidiaries, provided that the amount of any
subsequent reduction of such reserve (other than in connection with a payment in respect of
any such liability) shall be deemed to be Net Cash Proceeds of such a Prepayment Event
occurring on the date of such reduction,

          (iii) the amount of any Indebtedness secured by a Lien on the assets that are the
subject of such Prepayment Event to the extent that the instrument creating or evidencing
such Indebtedness requires that such Indebtedness be repaid upon consummation of such
Prepayment Event,

          (iv) the amount of any proceeds of such Prepayment Event that the Borrower or any
Subsidiary has reinvested (or intends to reinvest within the Reinvestment Period or has
entered into a binding commitment prior to the last day of the Reinvestment Period to
reinvest) in the business of the Borrower or any of the Restricted Subsidiaries,
provided that any portion of such proceeds that has not been so reinvested
within such Reinvestment Period (with respect to such Prepayment Event, the “Deferred
Net Cash Proceeds”) shall, unless the Borrower or a Subsidiary has entered into a
binding commitment prior to the last day of such Reinvestment Period to reinvest such
proceeds, (x) be deemed to be Net Cash Proceeds of a Prepayment Event occurring on the last
day of such Reinvestment Period or 180 days after the date the Borrower or such Subsidiary
has entered into such binding commitment, as applicable, and (y) be applied to the repayment
of Revolving Loans in accordance with Section 5.2(b); and

          (v) reasonable and customary fees.

     “Net Orderly Liquidation Value” shall mean, the orderly liquidation value (net of
costs and expenses estimated to be incurred in connection with such liquidation) of the Eligible
Inventory that is estimated to be recoverable in an orderly liquidation of such Eligible Inventory,
as determined from time to time by reference to the most recent Inventory Appraisal.

     “New Revolving Credit Commitments” shall have the meaning provided in Section
2.14.

     “New Revolving Loan Lender” shall have the meaning provided in Section 2.14.

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     “New Revolving Loans” shall have the meaning provided in Section 2.14.

     “New Term Loan Commitments” shall have the meaning provided in the Term Loan Credit
Agreement.

     “Non-Cash Charges” shall mean (a) losses on asset sales (other than asset sales in the
ordinary course of business), disposals or abandonments, (b) any impairment charge or asset
write-off related to intangible assets (including good-will), long-lived assets, and investments in
debt and equity securities pursuant to GAAP, (c) all losses from investments recorded using the
equity method, (d) stock-based awards compensation expense, and (e) other non-cash charges
(provided that if any non-cash charges referred to in this clause (e) represent an accrual
or reserve for potential cash items in any future period, the cash payment in respect thereof in
such future period shall be subtracted from Consolidated EBITDA to such extent, and excluding
amortization of a prepaid cash item that was paid in a prior period).

     “Non-Consenting Lender” shall have the meaning provided in Section 14.7(b).

     “Non-Core Assets” shall mean the assets described on Schedule 1.1(e).

     “Non-Defaulting Lender” shall mean and include each Lender other than a Defaulting
Lender.

     “Non-U.S. Lender” shall mean any Lender that is not, for United States federal income
tax purposes, (a) a citizen or resident of the United States, (b) a corporation or partnership or
entity treated as a corporation or partnership created or organized in or under the laws of the
United States, or any political subdivision thereof, (c) an estate whose income is subject to U.S.
federal income taxation regardless of its source or (d) a trust if a court within the United States
is able to exercise primary supervision over the administration of such trust and one or more
United States persons have the authority to control all substantial decisions of such trust or a
trust that has a valid election in effect under applicable U.S. Treasury regulations to be treated
as a United States person.

     “Non-U.S. Participant” shall mean any Participant that if it were a Lender would
qualify as a Non-U.S. Lender.

     “Notice of Borrowing” shall mean each notice of a Borrowing of Revolving Credit Loans
pursuant to Section 2.3(b) and each notice of a Borrowing of Swingline Loans pursuant to
Section 2.3(c).

     “Notice of Conversion or Continuation” shall have the meaning provided in Section
2.6.

     “Obligations” shall have the meaning assigned to such term in the Security Documents.

     “Organizational Documents” means (a) with respect to any corporation, its certificate
or articles of incorporation or organization, as amended, and its by-laws, as amended, (b) with
respect to any limited partnership, its certificate of limited partnership (if any), as amended,
and its partnership agreement, as amended, (c) with respect to any general partnership, its
partnership

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agreement, as amended, and (d) with respect to any limited liability company, its articles of
organization (if any), as amended, and its operating agreement, as amended.

     “Original Closing Date” shall mean January 31, 2007.

     “Original Transaction Expenses” shall have the meaning assigned to the term
“Transaction Expense” in the Existing Revolving Credit Agreement.

     “Original Transactions” shall have the meaning assigned to the term “Transactions” in
the Existing Revolving Credit Agreement.

     “Other Taxes” shall mean any and all present or future stamp, documentary or any other
excise, property or similar taxes (including interest, fines, penalties, additions to tax and
related expenses with regard thereto) arising directly from any payment made or required to be made
under this Agreement or from the execution or delivery of, registration or enforcement of,
consummation or administration of, or otherwise with respect to, this Agreement or any other Credit
Document.

     “Participant” shall have the meaning provided in Section 14.6(c).

     “Patriot Act” shall have the meaning provided in Section 14.18.

     “PBGC” shall mean the Pension Benefit Guaranty Corporation established pursuant to
Section 4002 of ERISA, or any successor thereto.

     “Perfection Certificate” shall mean a certificate of the Borrower in the form of
Exhibit E or any other form approved by the Administrative Agent.

     “Permitted Acquisition” shall mean the acquisition, by merger or otherwise, by the
Borrower or any of the Restricted Subsidiaries of assets or Stock or Stock Equivalents, so long as
(a) such acquisition and all transactions related thereto shall be consummated in accordance with
applicable law; (b) such acquisition shall result in the issuer of such Stock or Stock Equivalents
becoming a Restricted Subsidiary and a Subsidiary Guarantor, to the extent required by Section
9.11; (c) such acquisition shall result in the Administrative Agent, for the benefit of the
Secured Parties, being granted a security interest in any Stock, Stock Equivalent or any assets so
acquired, to the extent required by Sections 9.11 and/or 9.17; (d) after giving
effect to such acquisition, no Default or Event of Default shall have occurred and be continuing;
(e) after giving effect to such acquisition, Excess Availability shall be equal to or greater than
$30,000,000 and (f) the Borrower shall be in compliance, on a Pro Forma Basis after giving effect
to such acquisition (including any Indebtedness assumed or permitted to exist or incurred pursuant
to Sections 10.1(B)(j) and 10.1(B)(k), respectively, and any related Pro Forma
Adjustment), with the covenants set forth in Section 10.9 of the Term Loan Credit
Agreement, as such covenant is recomputed as at the last day of the most recently ended Test Period
under such Section as if such acquisition had occurred on the first day of such Test Period.

     Notwithstanding the definition of Borrowing Base, in connection with and subsequent to any
Permitted Acquisition, the Accounts and Inventory acquired by the Borrower or any Credit Party, or,
subject to compliance with Section 9.11 of the Credit Agreement, of the Person so

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acquired, may be included in the calculation of the Borrowing Base and thereafter if all
criteria set forth in the definitions of Eligible Accounts and Eligible Inventory and Borrowing
Base Guarantor have been satisfied and, if the aggregate value (or Cost in the case of Inventory)
of such Accounts and Inventory is in excess of $20,000,000 and only to the extent reasonably
requested by the Administrative Agent, the Administrative Agent shall have received a collateral
audit and appraisal of such Accounts and Inventory acquired by the applicable Credit Parties or
owned by such Person acquired by the applicable Credit Parties which shall be reasonably
satisfactory in scope, form and substance to the Administrative Agent; provided, that if no
collateral audit and appraisal is delivered to and approved by the Administrative Agent with
respect to such Accounts and Inventory, then the lowest recovery rates from the current Inventory
Appraisal shall apply to such Accounts and Inventory.

     “Permitted Additional Debt” shall mean senior unsecured or subordinated Indebtedness,
issued by the Borrower or a Subsidiary Guarantor, (a) the terms of which (i) do not provide for any
scheduled repayment, mandatory redemption or sinking fund obligation prior to the date that is 90
days following the final maturity of the Term Loans (as in effect on the Closing Date) (other than
customary offers to purchase upon a change of control, asset sale or event of loss and customary
acceleration rights after an event of default) and (ii) to the extent subordinated provide for
customary subordination to the Obligations under the Credit Documents, (b) the covenants, events of
default, guarantees and other terms of which (other than interest rate and redemption premiums),
taken as a whole, are not more restrictive to the Borrower and the Subsidiaries than those in this
Agreement; provided that a certificate of an Authorized Officer of the Borrower is
delivered to the Administrative Agents at least five Business Days (or such shorter period as the
Administrative Agents may reasonably agree) prior to the incurrence of such Indebtedness, together
with a reasonably detailed description of the material terms and conditions of such Indebtedness or
drafts of the documentation relating thereto, stating that the Borrower has determined in good
faith that such terms and conditions satisfy the foregoing requirement shall be conclusive evidence
that such terms and conditions satisfy the foregoing requirement unless the Administrative Agents
notify the Borrower within such period that it disagrees with such determination (including a
reasonable description of the basis upon which it disagrees), and (c) of which no Subsidiary of the
Borrower (other than a Guarantor) is an obligor.

     “Permitted Discretion” shall mean a determination made by Administrative Agent and/or
CIT, in its capacity as a Co-Collateral Agent, in the exercise of its reasonable credit judgment
(from the perspective of a secured asset-based lender), exercised in good faith and subject to
Section 15.2.

     “Permitted Investments” shall mean:

     (a) securities issued or unconditionally guaranteed by the United States government or
any agency or instrumentality thereof, in each case having maturities of not more than 12
months from the date of acquisition thereof;

     (b) securities issued by any state of the United States of America or any political
subdivision of any such state or any public instrumentality thereof or any political
subdivision of any such state or any public instrumentality thereof having maturities of not
more than 12 months from the date of acquisition thereof and, at the

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time of acquisition, having an investment grade rating generally obtainable from either
S&P or Moody’s (or, if at any time neither S&P nor Moody’s shall be rating such obligations,
then from another nationally recognized rating service);

     (c) commercial paper issued by any Lender or any bank holding company owning any
Lender;

     (d) commercial paper maturing no more than 12 months after the date of creation thereof
and, at the time of acquisition, having a rating of at least A-1 or P-1 from either S&P or
Moody’s (or, if at any time neither S&P nor Moody’s shall be rating such obligations, an
equivalent rating from another nationally recognized rating service);

     (e) domestic and LIBOR certificates of deposit or bankers’ acceptances maturing no more
than two years after the date of acquisition thereof issued by any Lender or any other bank
having combined capital and surplus of not less than $250,000,000 in the case of domestic
banks;

     (f) repurchase agreements with a term of not more than 30 days for underlying
securities of the type described in clauses (a), (b) and (e) above entered into with any
bank meeting the qualifications specified in clause (e) above or securities dealers of
recognized national standing;

     (g) marketable short-term money market and similar funds (x) either having assets in
excess of $250,000,000 or (y) having a rating of at least A-1 or P-1 from either S&P or
Moody’s (or, if at any time neither S&P nor Moody’s shall be rating such obligations, an
equivalent rating from another nationally recognized rating service);

     (h) shares of investment companies that are registered under the Investment Company Act
of 1940 and substantially all the investments of which are one or more of the types of
securities described in clauses (a) through (g) above; and

     (i) in the case of Investments by any Restricted Foreign Subsidiary or Investments made
in a country outside the United States of America, Permitted Investments shall also include
((i) direct obligations of the sovereign nation (or any agency thereof) in which such
Restricted Foreign Subsidiary is organized and is conducting business or where such
Investment is made, or in obligations fully and unconditionally guaranteed by such sovereign
nation (or any agency thereof), in each case maturing within a two years after such date and
having, at the time of the acquisition thereof, a rating equivalent to at least A-1 from S&P
and at least P-1 from Moody’s, (ii) investments of the type and maturity described in
clauses (a) through (h) above of foreign obligors, which Investments or obligors (or the
parents of such obligors) have ratings described in such clauses or equivalent ratings from
comparable foreign rating agencies, (iii) shares of money market mutual or similar funds
which invest exclusively in assets otherwise satisfying the requirements of this definition
(including this proviso) and (iv) other short-term investments utilized by Foreign
Restricted Subsidiaries in accordance with normal investment practices for cash management
in investments analogous to the foregoing investments in clauses (a) through (i).

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     “Permitted Liens” shall mean:

     (a) Liens for taxes, assessments or governmental charges or claims not yet due or which
are being contested in good faith and by appropriate proceedings for which appropriate
reserves have been established in accordance with GAAP;

     (b) Liens in respect of property or assets of the Borrower or any of the Subsidiaries
imposed by law, such as carriers’, warehousemen’s and mechanics’ Liens and other similar
Liens arising in the ordinary course of business, in each case so long as such Liens arise
in the ordinary course of business and do not individually or in the aggregate have a
Material Adverse Effect;

     (c) Liens arising from judgments or decrees in circumstances not constituting an Event
of Default under Section 11.1;

     (d) Liens incurred or deposits made in connection with workers’ compensation,
unemployment insurance and other types of social security, or to secure the performance of
tenders, statutory obligations, surety and appeal bonds, bids, leases, government contracts,
performance and return-of-money bonds and other similar obligations incurred in the ordinary
course of business or otherwise constituting Investments permitted by Section 10.5;

     (e) ground leases in respect of real property on which facilities owned or leased by
the Borrower or any of its Subsidiaries are located;

     (f) easements, rights-of-way, restrictions, minor defects or irregularities in title
and other similar charges or encumbrances not interfering in any material respect with the
business of the Borrower and its Subsidiaries, taken as a whole;

     (g) any interest or title of a lessor or secured by a lessor’s interest under any lease
permitted by this Agreement;

     (h) Liens in favor of customs and revenue authorities arising as a matter of law to
secure payment of customs duties in connection with the importation of goods;

     (i) Liens on goods the purchase price of which is financed by a documentary letter of
credit issued for the account of the Borrower or any of its Subsidiaries, provided
that such Lien secures only the obligations of the Borrower or such Subsidiaries in respect
of such letter of credit to the extent permitted under Section 10.1(B);

     (j) leases or subleases granted to others not interfering in any material respect with
the business of the Borrower and its Subsidiaries, taken as a whole;

     (k) Liens arising from precautionary Uniform Commercial Code financing statement or
similar filings made in respect of operating leases entered into by the Borrower or any of
its Subsidiaries; and

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     (l) Liens created in the ordinary course of business in favor of banks and other
financial institutions over credit balances of any bank accounts of the Borrower and the
Restricted Subsidiaries held at such banks or financial institutions, as the case may be, to
facilitate the operation of cash pooling and/or interest set-off arrangements in respect of
such bank accounts in the ordinary course of business.

     “Permitted Sale Leaseback” shall mean any Sale Leaseback consummated by the Borrower
or any of the Restricted Subsidiaries after the Closing Date, provided that any
such Sale Leaseback not between the Borrower and any Guarantor or any Guarantor and another
Guarantor is consummated for fair value as determined at the time of consummation in good faith by
the Borrower or such Restricted Subsidiary and, in the case of any Sale Leaseback (or series of
related Sales Leasebacks) the aggregate proceeds of which exceed $25,000,000, the board of
directors of the Borrower or such Restricted Subsidiary (which such determination may take into
account any retained interest or other Investment of the Borrower or such Restricted Subsidiary in
connection with, and any other material economic terms of, such Sale Leaseback).

     “Person” shall mean any individual, partnership, joint venture, firm, corporation,
limited liability company, association, trust or other enterprise or any Governmental Authority.

     “Plan” shall mean any multiemployer or single-employer plan, as defined in Section
4001 of ERISA and subject to Title IV of ERISA, that is or was within any of the preceding six plan
years maintained or contributed to by (or to which there is or was an obligation to contribute or
to make payments to) the Borrower, a Subsidiary or an ERISA Affiliate.

     “Platform” shall have the meaning provided in Section 14.17(b).

     “Post-Acquisition Period” means, with respect to any Permitted Acquisition, the period
beginning on the date such Permitted Acquisition is consummated and ending on the last day of the
fourth full consecutive fiscal quarter immediately following the date on which such Permitted
Acquisition is consummated.

     “Prepayment Event” shall mean any Asset Sale Prepayment Event or Casualty Event.

     “Prime Rate” means the rate of interest quoted in The Wall Street Journal, Money Rates
Section as the Prime Rate (currently defined as the base rate on corporate loans posted by at least
75% of the nation’s thirty (30) largest banks), as in effect from time to time. The Prime Rate is
a reference rate and does not necessarily represent the lowest or best rate actually charged to any
customer. The Administrative Agent or any other Lender may make commercial loans or other loans at
rates of interest at, above or below the Prime Rate.

     “Pro Forma Adjustment” shall mean, for any Test Period that includes all or any part
of a fiscal quarter included in any Post-Acquisition Period, with respect to the Acquired EBITDA of
the applicable Acquired Entity or Business or the Consolidated EBITDA of the Borrower, the pro
forma increase or decrease in such Acquired EBITDA or such Consolidated EBITDA, as the case may be,
projected by the Borrower in good faith as a result of (a) actions taken during such
Post-Acquisition Period for the purposes of realizing reasonably identifiable and factually
supportable cost savings or (b) any additional costs incurred during such Post-Acquisition Period,
in each case in connection with the combination of the operations of such Acquired

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Entity or Business with the operations of the Borrower and the Restricted Subsidiaries;
provided that, so long as such actions are taken during such Post-Acquisition Period or
such costs are incurred during such Post-Acquisition Period, as applicable, it may be assumed, for
purposes of projecting such pro forma increase or decrease to such Acquired EBITDA or such
Consolidated EBITDA, as the case may be, that such cost savings will be realizable during the
entirety of such Test Period, or such additional costs, as applicable, will be incurred during the
entirety of such Test Period; provided further that any such pro forma increase or
decrease to such Acquired EBITDA or such Consolidated EBITDA, as the case may be, shall be without
duplication for cost savings or additional costs already included in such Acquired EBITDA or such
Consolidated EBITDA, as the case may be, for such Test Period.

     “Pro Forma Adjustment Certificate” shall mean any certificate of an Authorized Officer
of the Borrower delivered pursuant to Section 9.1(h) or Section 9.1(d).

     “Pro Forma Basis”, “Pro Forma Compliance” and “Pro Forma Effect” shall
mean, with respect to compliance with any test or covenant hereunder, that (A) to the extent
applicable, the Pro Forma Adjustment shall have been made and (B) all Specified Transactions and
the following transactions in connection therewith shall be deemed to have occurred as of the first
day of the applicable period of measurement in such test or covenant: (a) income statement items
(whether positive or negative) attributable to the property or Person subject to such Specified
Transaction, (i) in the case of a sale, transfer or other disposition of all or substantially all
Capital Stock in any Subsidiary of the Borrower or any division, product line, or facility used for
operations of the Borrower or any of its Subsidiaries, shall be excluded, and (ii) in the case of a
Permitted Acquisition or Investment described in the definition of “Specified Transaction”, shall
be included, (b) any retirement of Indebtedness, and (c) any Indebtedness incurred or assumed by
the Borrower or any of the Restricted Subsidiaries in connection therewith and if such Indebtedness
has a floating or formula rate, shall have an implied rate of interest for the applicable period
for purposes of this definition determined by utilizing the rate which is or would be in effect
with respect to such Indebtedness as at the relevant date of determination; provided that,
without limiting the application of the Pro Forma Adjustment pursuant to (A) above, the foregoing
pro forma adjustments may be applied to any such test or covenant solely to the extent that such
adjustments are consistent with the definition of Consolidated EBITDA and give effect to events
(including operating expense reductions) that are (i) (x) directly attributable to such
transaction, (y) expected to have a continuing impact on the Borrower and the Restricted
Subsidiaries and (z) factually supportable or (ii) otherwise consistent with the definition of Pro
Forma Adjustment.

     “Protective Advances” shall have the meaning provided in Section 2.15(a).

     “Real Estate” shall have the meaning provided in Section 9.1(i).

     “Red Man” shall have the meaning provided in the recitals to this Agreement.

     “Red Man Business” shall mean the business conducted by the Red Man Group on the
Closing Date.

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     “Red Man Distributors” shall mean a company to be formed after the Closing Date and
owned by the Borrower or a Borrowing Base Guarantor and certain existing shareholders of Red Man.

     “Red Man Group” shall have the meaning provided in the definition of Incorporated
Borrowing Base.

     “Red Man Transaction Agreement” shall have the meaning provided in the recitals to
this Agreement.

     “Red Man Transaction” shall have the meaning provided in the recitals to this
Agreement.

     “Reference Lender” shall mean JPMorgan Chase Bank, N.A. (or its successor).

     “Register” shall have the meaning provided in Section 14.6(b)(iv).

     “Regulation D” shall mean Regulation D of the Board as from time to time in effect and
any successor to all or a portion thereof establishing reserve requirements.

     “Regulation T” shall mean Regulation T of the Board as from time to time in effect and
any successor to all or a portion thereof establishing margin requirements.

     “Regulation U” shall mean Regulation U of the Board as from time to time in effect and
any successor to all or a portion thereof establishing margin requirements.

     “Regulation X” shall mean Regulation X of the Board as from time to time in effect and
any successor to all or a portion thereof establishing margin requirements.

     “Reinvestment Period” shall mean 15 months following the date of an Asset Sale
Prepayment Event or Casualty Event.

     “Related Parties” shall mean, with respect to any specified Person, such Person’s
Affiliates and the directors, officers, employees, agents, trustees and advisors of such Person and
any Person that possesses, directly or indirectly, the power to direct or cause the direction of
the management or policies of such Person, whether through the ability to exercise voting power, by
contract or otherwise.

     “Report” shall mean reports prepared in good faith by an Agent or another Person
showing the results of appraisals, field examinations or audits pertaining to the Borrower’s assets
from information furnished by or on behalf of the Borrower, after an Agent has exercised its rights
of inspection pursuant to this Agreement, which Reports may be distributed to the Lenders by the
applicable Agent.

     “Reportable Event” shall mean an event described in Section 4043 of ERISA and the
regulations thereunder.

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     “Required Lenders” shall mean, at any date, (a) Non-Defaulting Lenders having or
holding a majority of the Adjusted Total Revolving Credit Commitment at such date or (b) if the
Total Revolving Credit Commitment has been terminated or for the purposes of acceleration pursuant
to Section 11, the holders (excluding Defaulting Lenders) of a majority of the outstanding
principal amount of the Loans and Letter of Credit Exposures (excluding the Loans and Letter of
Credit Exposure of Defaulting Lenders) in the aggregate at such date.

     “Requirement of Law” shall mean, as to any Person, the Certificate of Incorporation
and by-laws or other organizational or governing documents of such Person, and any law, treaty,
rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in
each case applicable to or binding upon such Person or any of its property or assets or to which
such Person or any of its property or assets is subject.

     “Reserves” shall mean any and all reserves which the Administrative Agent deems
necessary, in its Permitted Discretion, to from time to time establish against the gross amounts of
Eligible Accounts and Eligible Inventory.

     “Restricted Foreign Subsidiary” shall mean a Foreign Subsidiary that is a Restricted
Subsidiary.

     “Restricted Subsidiary” shall mean any Subsidiary of the Borrower other than an
Unrestricted Subsidiary.

     “Revolving Credit Commitment” shall mean, (a) with respect to each Lender that is a
Lender on the date hereof, the amount set forth opposite such Lender’s name on
Schedule 1.1(c) as such Lender’s “Revolving Credit Commitment” and (b) in the case of any
Lender that becomes a Lender after the date hereof, the amount specified as such Lender’s
“Revolving Credit Commitment” (which amount shall include the New Revolving Credit Commitment, if
any) in the Assignment and Acceptance pursuant to which such Lender assumed a portion of the Total
Revolving Credit Commitment, in each case as the same may be changed from time to time pursuant to
terms hereof. The aggregate amount of the Revolving Credit Commitment as of the Closing Date is
$650,000,000.

     “Revolving Credit Commitment Percentage” shall mean at any time, for each Lender, the
percentage obtained by dividing (a) such Lender’s Revolving Credit Commitment by (b) the aggregate
amount of the Revolving Credit Commitments, provided that at any time when the Total
Revolving Credit Commitment shall have been terminated, each Lender’s Revolving Credit Commitment
Percentage shall be its Revolving Credit Commitment Percentage as in effect immediately prior to
such termination.

     “Revolving Credit Exposure” shall mean, with respect to any Lender at any time, the
sum of (a) the aggregate principal amount of the Revolving Credit Loans of such Lender then
outstanding, (b) such Lender’s Letter of Credit Exposure at such time, (c) such Lender’s Revolving
Credit Commitment Percentage of the aggregate principal amount of all outstanding Swingline Loans
and (d) such Lender’s Revolving Credit Commitment Percentage of the aggregate principal amount of
all outstanding Protective Advances; provided that, clause (d) of this definition shall be
disregarded with respect to any Protective Advance solely for purposes of

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calculating Excess Availability and solely to the extent that the making of such Protective
Advance would result in the occurrence of a Cash Dominion Event.

     “Revolving Credit Loans” shall have the meaning provided in Section 2.1(b).

     “Revolving Credit Maturity Date” shall mean the date that is six (6) years after the
Closing Date, or, if such date is not a Business Day, the next preceding Business Day.

     “Revolving Credit Termination Date” shall mean the date on which the Revolving Credit
Commitments shall have terminated, no Revolving Credit Loans shall be outstanding and the Letters
of Credit Outstanding shall have been reduced to zero.

     “Rollover Equity” shall have the meaning provided in the recitals hereto.

     “Sale Leaseback” shall mean any transaction or series of related transactions pursuant
to which the Borrower or any of the Restricted Subsidiaries (a) sells, transfers or otherwise
disposes of any property, real or personal, whether now owned or hereafter acquired, and (b) as
part of such transaction, thereafter rents or leases such property or other property that it
intends to use for substantially the same purpose or purposes as the property being sold,
transferred or disposed.

     “S&P” shall mean Standard & Poor’s Ratings Services or any successor by merger or
consolidation to its business.

     “SEC” shall mean the Securities and Exchange Commission or any successor thereto.

     “Section 9.1 Financials” shall mean the financial statements delivered, or required to
be delivered, pursuant to Section 9.1(a) or (b) together with the accompanying officer’s
certificate delivered, or required to be delivered, pursuant to Section 9.1(d).

     “Secured Leverage Ratio” shall mean, as of any date of determination, the ratio of (a)
Consolidated Secured Debt as of the last day of the relevant Test Period to (b) Consolidated EBITDA
for such Test Period.

     “Secured Parties” shall have the meaning assigned to such term in the applicable
Security Documents.

     “Security Agreement” shall mean the Security Agreement entered into by the Borrower,
the other grantors party thereto and the Collateral Agent for the benefit of the Lenders,
substantially in the form of Exhibit G, as the same may be amended, supplemented or
otherwise modified from time to time.

     “Security Documents” shall mean, collectively, (a) the Guarantee, (b) the Security
Agreement, (c) the Intercreditor Agreement and (d) each other security agreement or other
instrument or document executed and delivered pursuant to Section 9.11 or 9.17 or
pursuant to any of the Security Documents to secure any of the Obligations.

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     “Sold Entity or Business” shall have the meaning provided in the definition of the
term “Consolidated EBITDA”.

     “Solvent” shall mean, with respect to the Borrower, that as of the Closing Date, both
(a) (i) the sum of the Borrower’s debt (including contingent liabilities) does not exceed the
present fair saleable value of the Borrower’s present assets; (ii) the Borrower’s capital is not
unreasonably small in relation to its business as contemplated on the Closing Date; and (iii) the
Borrower has not incurred and does not intend to incur, or believe that it will incur, debts
including current obligations beyond its ability to pay such debts as they become due (whether at
maturity or otherwise); and (b) such Person is “solvent” within the meaning given that term and
similar terms under applicable laws relating to fraudulent transfers and conveyances. For purposes
of this definition, the amount of any contingent liability at any time shall be computed as the
amount that, in light of all of the facts and circumstances existing at such time, represents the
amount that can reasonably be expected to become an actual or matured liability (irrespective of
whether such contingent liabilities meet the criteria for accrual under Statement of Financial
Accounting Standard No. 5).

     “Specified Subsidiary” shall mean, at any date of determination (a) any Material
Subsidiary or (b) any Unrestricted Subsidiary (i) whose total assets at the last day of the Test
Period ending on the last day of the most recent fiscal period for which Section 9.1 Financials
have been delivered were equal to or greater than 15% of the consolidated total assets of the
Borrower and the Subsidiaries at such date, (ii) whose gross revenues for such Test Period were
equal to or greater than 15% of the consolidated gross revenues of the Borrower and the
Subsidiaries for such period, in each case determined in accordance with GAAP and (c) each other
Subsidiary that, when such Subsidiary’s total assets or gross revenues are aggregated with the
total assets or gross revenues, as applicable, of each other Subsidiary that is the subject of an
Event of Default described in Section 11.5 would constitute a Specified Subsidiary under
clause (a) or (b) above.

     “Specified Transaction” shall mean, with respect to any period, any Investment, sale,
transfer or other disposition of assets, incurrence or repayment of Indebtedness, Dividend,
Subsidiary designation, New Revolving Credit Commitment or other event that by the terms of this
Agreement requires “Pro Forma Compliance” with a test or covenant hereunder or requires
such test or covenant to be calculated on a “Pro Forma Basis.”

     “Sponsor” shall mean GS Capital Partners V Fund, L.P. and its respective Affiliates.

     “Stated Amount” of any Letter of Credit shall mean the maximum amount from time to
time available to be drawn thereunder, determined without regard to whether any conditions to
drawing could then be met.

     “Status” shall mean, as to the Borrower as of any date, the existence of Level I
Status, Level II Status or Level III Status, as the case may be on such date. Changes in Status
resulting from changes in the Consolidated Total Debt to Consolidated EBITDA Ratio shall become
effective (the date of such effectiveness, the “Effective Date”) as of the first day
following the last day of the most recent fiscal year or period for which (a) Section 9.1
Financials are delivered to the Lenders under Section 9.1 and (b) an officer’s certificate
is delivered by the Borrower to

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the Lenders setting forth, with respect to such Section 9.1 Financials, the
then-applicable Status, and shall remain in effect until the next change to be effected pursuant to
this definition, provided that (i) if the Borrower shall have made any payments in respect
of interest or commitment fees during the period (the “Interim Period”) from and including
the Effective Date to but excluding the day any change in Status is determined as provided above,
then the amount of the next such payment due on or after such day shall be increased or decreased
by an amount equal to any underpayment or overpayment so made by the Borrower during such Interim
Period and (ii) each determination of the Consolidated Total Debt to Consolidated EBITDA Ratio
pursuant to this definition shall be made with respect to the Test Period ending at the end of the
fiscal period covered by the relevant financial statements.

     “Statutory Reserve Rate” shall mean for any day as applied to any LIBOR Loan, a
fraction (expressed as a decimal), the numerator of which is the number one and the denominator of
which is the number one minus the aggregate of the maximum reserve percentages that are in effect
on that day (including any marginal, special, emergency or supplemental reserves), expressed as a
decimal, as prescribed by the Board and to which the Administrative Agent is subject, for
eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D
of the Board). Such reserve percentages shall include those imposed pursuant to such Regulation D.
LIBOR Loans shall be deemed to constitute eurocurrency funding and to be subject to such reserve
requirements without benefit of or credit for proration, exemptions or offsets that may be
available from time to time to any Lender under such Regulation D or any comparable regulation.
The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any
change in any reserve percentage.

     “Stock” shall mean shares of capital stock or shares in the capital, as the case may
be (whether denominated as common stock or preferred stock or ordinary shares or preferred shares,
as the case may be), beneficial, partnership or membership interests, participations or other
equivalents (regardless of how designated) of or in a corporation, partnership, limited liability
company or equivalent entity, whether voting or non-voting.

     “Stock Equivalents” shall mean all securities convertible into or exchangeable for
Stock and all warrants, options or other rights to purchase or subscribe for any Stock, whether or
not presently convertible, exchangeable or exercisable.

     “Subordinated Indebtedness” shall mean Indebtedness of the Borrower or any Guarantor
that is by its terms subordinated in right of payment to the obligations of the Borrower and such
Guarantor, as applicable, under this Agreement.

     “Subsidiary” of any Person shall mean and include (a) any corporation more than 50% of
whose Stock of any class or classes having by the terms thereof ordinary voting power to elect a
majority of the directors of such corporation (irrespective of whether or not at the time Stock of
any class or classes of such corporation shall have or might have voting power by reason of the
happening of any contingency) is at the time owned by such Person directly or indirectly through
Subsidiaries, (b) any partnership, association, joint venture or other entity in which such Person
directly or indirectly through Subsidiaries has more than a 50% equity interest at the time and (c)
with respect to the Borrower, Red Man Distributors. Unless otherwise expressly provided, all
references herein to a “Subsidiary” shall mean a Subsidiary of the Borrower.

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     “Subsidiary Guarantors” shall mean (a) each Domestic Subsidiary (other than an
Excluded Subsidiary) existing on the Closing Date and (b) each Domestic Subsidiary that becomes a
party to the Guarantee after the Closing Date pursuant to Section 9.11 or otherwise.

     “Successor Borrower” shall have the meaning provided in Section 10.3(a).

     “Super-Majority Lenders” shall mean, at any date, (a) Non-Defaulting Lenders having or
holding at least 75% of the Adjusted Total Revolving Credit Commitment at such date or (b) if the
Total Revolving Credit Commitment has been terminated, Non-Defaulting Lenders having or holding at
least 75% of the outstanding principal amount of the Loans and Letter of Credit Exposures
(excluding the Loans and Letter of Credit Exposure of Defaulting Lenders) in the aggregate at such
date.

     “Swingline Commitment” shall mean $60,000,000.

     “Swingline Lender” shall mean CIT in its capacity as lender of Swingline Loans
hereunder.

     “Swingline Loans” shall have the meaning provided in Section 2.1(c).

     “Swingline Maturity Date” shall mean, with respect to any Swingline Loan, the date
that is five Business Days prior to the Revolving Credit Maturity Date.

     “Syndication Agent” shall mean Bank of America, N.A., together with its affiliates, as
the syndication agent for the Lenders under this Agreement and the other Credit Documents.

     “Taxes” shall mean any and all present or future taxes, duties, levies, imposts,
assessments, deductions, withholdings or other similar charges imposed by any Governmental
Authority whether computed on a separate, consolidated, unitary, combined or other basis and any
and all liabilities (including interest, fines, penalties or additions to tax) with respect to the
foregoing.

     “Term Loans” shall have the meaning provided in the recitals hereto.

     “Term Loan Credit Agreement” shall mean that certain term loan credit agreement, as
amended, restated, increased or otherwise supplemented in accordance with the Intercreditor
Agreement, dated as of the Original Closing Date, by and among the Borrower, Lehman Commercial
Paper Inc., as administrative agent and collateral agent, Goldman Sachs Credit Partners L.P. and
Lehman Brothers Inc., as the co-lead arrangers and joint bookrunners, and Goldman Sachs Credit
Partners L.P., as the syndication agent.

     “Test Period” shall mean, for any determination under this Agreement, the four
consecutive fiscal quarters of the Borrower then last ended.

     “Total Commitment” shall mean the Total Revolving Credit Commitment.

     “Total Credit Exposure” shall mean, at any date, the Total Revolving Credit Commitment
at such date.

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     “Total Revolving Credit Commitment” shall mean the sum of the Revolving Credit
Commitments of all the Lenders.

     “Transaction Expenses” shall mean any fees or expenses incurred or paid by the
Borrower or any of its Subsidiaries in connection with the Transactions, this Agreement and the
other Credit Documents and the transactions contemplated hereby and thereby.

     “Transactions” shall mean, collectively, the transactions contemplated by this
Agreement, the Term Loan Credit Agreement, the Red Man Transaction and the Equity Investments.

     “Transfer” shall have the meaning provided in Section 2.15(b).

     “Transfer Date” shall have the meaning provided in Section 2.15(b).

     “Transferee” shall have the meaning provided in Section 14.6(e).

     “Trigger Date” shall mean the date on which Section 9.1 Financials are delivered to
the Lenders under Section 9.1 for the fiscal quarter ending on March 31, 2008.

     “Type” shall mean as to any Revolving Credit Loan, its nature as an ABR Loan or a
LIBOR Revolving Credit Loan.

     “Unfunded Current Liability” of any Plan shall mean the amount, if any, by which the
present value of the accrued benefits under the Plan as of the close of its most recent plan year,
determined in accordance with Statement of Financial Accounting Standards No. 87 as in effect on
the date hereof, based upon the actuarial assumptions that would be used by the Plan’s actuary in a
termination of the Plan, exceeds the fair market value of the assets allocable thereto.

     “Unpaid Drawing” shall have the meaning provided in Section 3.4(a).

     “Unrestricted Subsidiary” shall mean (a) any Subsidiary of the Borrower that is formed
or acquired after the Closing Date, provided that at such time (or promptly thereafter) the
Borrower designates such Subsidiary an Unrestricted Subsidiary in a written notice to the
Administrative Agent, (b) any Restricted Subsidiary subsequently re-designated as an Unrestricted
Subsidiary by the Borrower in a written notice to the Administrative Agent, provided that
in the case of (a) and (b), (x) such designation or re-designation shall be deemed to be an
Investment on the date of such re-designation in an Unrestricted Subsidiary in an amount equal to
the sum of (i) the Borrower’s direct or indirect equity ownership percentage of the net worth of
such designation or re-designated Restricted Subsidiary immediately prior to such designation or
re-designation (such net worth to be calculated without regard to any guarantee provided by such
designated or re-designated Restricted Subsidiary) and (ii) the aggregate principal amount of any
Indebtedness owed by such designated or re-designated Restricted Subsidiary to the Borrower or any
other Restricted Subsidiary immediately prior to such designated or re-designation, all calculated,
except as set forth in the parenthetical to clause (i), on a consolidated basis in accordance with
GAAP and (y) no Default or Event of Default would result from such designation or re-designation
and (c) each Subsidiary of an Unrestricted Subsidiary; provided, however, that at
the time of any written designation or re-designation by the Borrower to the Administrative Agent
that any Unrestricted Subsidiary shall no longer

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constitute an Unrestricted Subsidiary, such Unrestricted Subsidiary shall cease to be an
Unrestricted Subsidiary to the extent no Default or Event of Default would result from such
designation or re-designation. On or promptly after the date of its formation, acquisition,
designation or re-designation, as applicable, each Unrestricted Subsidiary (other than an
Unrestricted Subsidiary that is a Foreign Subsidiary) shall have entered into a tax sharing
agreement containing terms that, in the reasonable judgment of the Administrative Agent, provide
for an appropriate allocation of tax liabilities and benefits. An Unrestricted Subsidiary which
has been re-designated as a Restricted Subsidiary may not be subsequently re-designated as an
Unrestricted Subsidiary.

     “Voting Stock” shall mean, with respect to any Person, such Person’s Stock or Stock
Equivalents having the right to vote for the election of directors of such Person under ordinary
circumstances.

     1.2 Other Interpretive Provisions. With reference to this Agreement and each other
Credit Document, unless otherwise specified herein or in such other Credit Document:

     (a) The meanings of defined terms are equally applicable to the singular and plural
forms of the defined terms.

     (b) The words “herein”, “hereto”, “hereof” and “hereunder” and words of similar import
when used in any Credit Document shall refer to such Credit Document as a whole and not to
any particular provision thereof.

     (c) Article, Section, Exhibit and Schedule references are to the Credit Document in
which such reference appears.

     (d) The term “including” is by way of example and not limitation.

     (e) The term “documents” includes any and all instruments, documents, agreements,
certificates, notices, reports, financial statements and other writings, however evidenced,
whether in physical or electronic form.

     (f) In the computation of periods of time from a specified date to a later specified
date, the word “from” means “from and including”; the words “to” and “until” each mean “to
but excluding”; and the word “through” means “to and including”.

     (g) Section headings herein and in the other Credit Documents are included for
convenience of reference only and shall not affect the interpretation of this Agreement or
any other Credit Document.

     1.3 Accounting Terms; Exchange Rates. (a) All accounting terms not specifically
or completely defined herein shall be construed in conformity with, and all financial data
(including financial ratios and other financial
calculations) required to be submitted pursuant to this Agreement shall be prepared in
conformity with, GAAP.

     (b) Notwithstanding anything to the contrary herein, for purposes of determining compliance
with any test or covenant contained in this Agreement with respect to any period

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during which any
Specified Transaction occurs, the Consolidated Total Debt to Consolidated EBITDA and the
Consolidated EBITDA to Consolidated Interest Expense Ratio shall be calculated with respect to such
period and such Specified Transaction on a Pro Forma Basis.

     (c) For purposes of determining compliance under Sections 7.1(d), 10.4, 10.5 (other than with
respect to determining the amount of any Indebtedness), and 10.6 with respect to any amount in a
Foreign Currency, such amount shall be deemed to equal the Dollar Equivalent thereof based on the
average Exchange Rate for a Foreign Currency for the most recent twelve-month period immediately
prior to the date of determination determined in a manner consistent with that used in calculating
Consolidated EBITDA for the related period. For purposes of determining compliance with Sections
10.1, 10.2 and 10.5, with respect to any amount of Indebtedness in a Foreign Currency, compliance
will be determined at the time of incurrence or advancing thereof using the Dollar Equivalent
thereof at the Exchange Rate in effect at the time of such incurrence or advancement.

     1.4 Rounding. Any financial ratios required to be maintained by the Borrower pursuant
to this Agreement (or required to be satisfied in order for a specific action to be permitted under
this Agreement) shall be calculated by dividing the appropriate component by the other component,
carrying the result to one place more than the number of places by which such ratio is expressed
herein and rounding the result up or down to the nearest number (with a rounding-up if there is no
nearest number).

     1.5 References to Agreements, Laws, Etc. Unless otherwise expressly provided herein,
(a) references to Organization Documents, agreements (including the Credit Documents) and other
Contractual Obligations shall be deemed to include all subsequent amendments, restatements,
amendment and restatements, extensions, supplements and other modifications thereto, but only to
the extent that such amendments, restatements, amendment and restatements, extensions, supplements
and other modifications are permitted by any Credit Document; and (b) references to any Applicable
Law shall include all statutory and regulatory provisions consolidating, amending, replacing,
supplementing or interpreting such Applicable Law.

     SECTION 2.Amount and Terms of Credit

     2.1
Commitments. (a) [Intentionally Omitted]

     (b) (i) Subject to and upon the terms and conditions herein set forth, each Lender having
a Revolving Credit Commitment severally agrees to make a loan or loans denominated in Dollars (each
a “Revolving Credit Loan” and, collectively, the “Revolving Credit Loans”) to the
Borrower which Revolving Credit Loans (A) shall be made at any time and from time to time on and
after the Closing Date and prior to the Revolving Credit Maturity Date, (B) may, at the option of
the Borrower be incurred and maintained as, and/or converted into, ABR Loans or LIBOR Revolving
Credit Loans, provided that all Revolving Credit Loans made by each of the Lenders pursuant
to the same Borrowing shall, unless otherwise specifically provided herein, consist entirely of
Revolving Credit Loans of the same Type, (C) may be repaid and reborrowed in accordance with the
provisions hereof, (D) shall not, for any such Lender at any time, after giving effect thereto and
to the application of the proceeds thereof, result in such Lender’s Revolving Credit Exposure at
such time exceeding such Lender’s Revolving Credit Commitment

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at such time and (E) shall not, after
giving effect thereto and to the application of the proceeds thereof, result at any time in the
aggregate amount of the Lenders’ Revolving Credit Exposures at such time exceeding the lesser of
the Total Revolving Credit Commitment and the Borrowing Base then in effect.

          (ii) Each Lender may at its option make any LIBOR Loan by causing any domestic or foreign
branch or Affiliate of such Lender to make such Loan, provided that (A) any exercise of
such option shall not affect the obligation of the Borrower to repay such Loan and (B) in
exercising such option, such Lender shall use its reasonable efforts to minimize any increased
costs to the Borrower resulting therefrom (which obligation of the Lender shall not require it to
take, or refrain from taking, actions that it determines would result in increased costs for which
it will not be compensated hereunder or that it determines would be otherwise disadvantageous to it
and in the event of such request for costs for which compensation is provided under this Agreement,
the provisions of Section 3.5 shall apply). On the Revolving Credit Maturity Date, all
Revolving Credit Loans shall be repaid in full.

     (c) Subject to and upon the terms and conditions herein set forth, the Swingline Lender in its
individual capacity agrees, at any time and from time to time on and after the Closing Date and
prior to the Swingline Maturity Date, to make a loan or loans (each a “Swingline Loan” and,
collectively, the “Swingline Loans”) to the Borrower in Dollars, which Swingline Loans (i)
shall be ABR Loans, (ii) shall have the benefit of the provisions of Section 2.1(d),
(iii) shall not exceed at any time outstanding the Swingline Commitment, (iv) shall not, after
giving effect thereto and to the application of the proceeds thereof, result at any time in the
aggregate amount of the Lenders’ Revolving Credit Exposures at such time exceeding the lesser of
Total Revolving Credit Commitment and the Borrowing Base then in effect and (v) may be repaid and
reborrowed in accordance with the provisions hereof. On the Swingline Maturity Date, each
outstanding Swingline Loan shall be repaid in full. The Swingline Lender shall not make any
Swingline Loan after receiving a written notice from the Borrower or any Lender stating that a
Default or Event of Default exists and is continuing until such time as the Swingline Lender shall
have received written notice of (i) rescission of all such notices from the party or parties
originally delivering such notice or (ii) the waiver of such Default or Event of Default in
accordance with the provisions of Section 14.1.

     (d) On any Business Day, the Swingline Lender may, in its sole discretion, and shall at least
weekly, give notice to the Lenders with a Revolving Credit Commitment that all then-
outstanding Swingline Loans shall be funded with a Borrowing of Revolving Credit Loans, in
which case Revolving Credit Loans constituting ABR Loans (each such Borrowing, a “Mandatory
Borrowing”) shall be made on the immediately succeeding Business Day by all Lenders with a
Revolving Credit Commitment pro rata based on each Lender’s Revolving Credit Commitment Percentage,
and the proceeds thereof shall be applied directly to the Swingline Lender to repay the Swingline
Lender for such outstanding Swingline Loans. Each Lender with a Revolving Credit Commitment hereby
irrevocably agrees to make such Revolving Credit Loans upon one Business Day’s notice pursuant to
each Mandatory Borrowing in the amount and in the manner specified in the preceding sentence and on
the date specified to it in writing by the Swingline Lender notwithstanding (i) that the amount of
the Mandatory Borrowing may not comply with the minimum amount for each Borrowing specified in
Section 2.2, (ii) whether any conditions specified in Section 7 are then satisfied,
(iii) whether a Default or

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an Event of Default has occurred and is continuing, (iv) the date of
such Mandatory Borrowing or (v) any reduction in the Total Commitment after any such Swingline
Loans were made. In the event that, in the sole judgment of the Swingline Lender, any Mandatory
Borrowing cannot for any reason be made on the date otherwise required above (including as a result
of the commencement of a proceeding under the Bankruptcy Code in respect of the Borrower), each
Lender with a Revolving Credit Commitment hereby agrees that it shall forthwith purchase from the
Swingline Lender (without recourse or warranty) such participation of the outstanding Swingline
Loans as shall be necessary to cause the Lenders to share in such Swingline Loans ratably based
upon their respective Revolving Credit Commitment Percentages, provided that all
principal and interest payable on such Swingline Loans shall be for the account of the Swingline
Lender until the date the respective participation is purchased and, to the extent attributable to
the purchased participation, shall be payable to the Lender purchasing same from and after such
date of purchase.

     2.2 Minimum Amount of Each Borrowing; Maximum Number of Borrowings. The aggregate
principal amount of each Borrowing of Revolving Credit Loans shall be in a multiple of $1,000,000
and Swingline Loans shall be in a multiple of $250,000 and, in each case, shall not be less than
the Minimum Borrowing Amount with respect thereto (except that Mandatory Borrowings shall be made
in the amounts required by Section 2.1(d)). More than one Borrowing may be incurred on any
date, provided that at no time shall there be outstanding more than six (6) Borrowings of
LIBOR Loans under this Agreement.

     2.3 Notice of Borrowing. (a) [Intentionally Omitted.]

     (b) Whenever the Borrower desires to incur Revolving Credit Loans (other than Mandatory
Borrowings or borrowings to repay Unpaid Drawings), it shall give the Administrative Agent at the
Administrative Agent’s Office, (i) prior to 1:00 p.m. (New York City Time) at least three Business
Days’ prior written notice (or telephonic notice promptly confirmed in writing) of each Borrowing
of LIBOR Revolving Credit Loans, and (ii) written notice prior to 10:00 a.m. (New York City time)
on the date of such Borrowing (or telephonic notice promptly confirmed in writing) of each
Borrowing of ABR Loans. Such Notice of Borrowing, except as otherwise expressly provided in
Section 2.10, shall specify (i) the
aggregate principal amount of the Revolving Credit Loans to be made pursuant to such
Borrowing, (ii) the date of Borrowing (which shall be a Business Day) and (iii) whether the
respective Borrowing shall consist of ABR Loans or LIBOR Revolving Credit Loans and, if LIBOR
Revolving Credit Loans, the Interest Period to be initially applicable thereto. The Administrative
Agent shall promptly give each Lender written notice (or telephonic notice promptly confirmed in
writing) of each proposed Borrowing of Revolving Credit Loans, of such Lender’s proportionate share
thereof and of the other matters covered by the related Notice of Borrowing.

     (c) Whenever the Borrower desires to incur Swingline Loans hereunder, it shall give the
Administrative Agent written notice (or telephonic notice promptly confirmed in writing) of each
Borrowing of Swingline Loans prior to 1:00 p.m. (New York City time) on the date of such Borrowing.
Each such notice shall specify (i) the aggregate principal amount of the Swingline Loans to be
made pursuant to such Borrowing and (ii) the date of Borrowing (which shall be a Business Day).
The Administrative Agent shall promptly give the Swingline Lender written

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notice (or telephonic
notice promptly confirmed in writing) of each proposed Borrowing of Swingline Loans and of the
other matters covered by the related Notice of Borrowing.

     (d) Mandatory Borrowings shall be made upon the notice specified in Section 2.1(d),
with the Borrower irrevocably agreeing, by its incurrence of any Swingline Loan, to the making of
Mandatory Borrowings as set forth in such Section.

     (e) Borrowings to reimburse Unpaid Drawings shall be made upon the notice specified in
Section 3.4(a).

     (f) Without in any way limiting the obligation of the Borrower to confirm in writing any
notice it may give hereunder by telephone, the Administrative Agent may act prior to receipt of
written confirmation without liability upon the basis of such telephonic notice believed by the
Administrative Agent in good faith to be from an Authorized Officer of the Borrower. In each such
case, the Borrower hereby waives the right to dispute the Administrative Agent’s record of the
terms of any such telephonic notice.

     2.4 Disbursement of Funds. (a) No later than 12:00 Noon (New York City time) on
the date specified in each Notice of Borrowing (including Mandatory Borrowings), each Lender will
make available its pro rata portion, if any, of each Borrowing requested to be made on such date in
the manner provided below, provided that all Swingline Loans shall be made available in the
full amount thereof by the Swingline Lender no later than 3:00 p.m. (New York City time) on the
date requested.

     (b) Each Lender shall make available all amounts it is to fund to the Borrower under any
Borrowing for its applicable Commitments, and in immediately available funds to the Administrative
Agent at the Administrative Agent’s Office and the Administrative Agent will (except in the case of
Mandatory Borrowings and Borrowings to repay Unpaid Drawings) make available to the Borrower, by
depositing to an account designated by the Borrower to the Administrative Agent the aggregate of
the amounts so made available in Dollars. Unless the
Administrative Agent shall have been notified by any Lender prior to the date of any such
Borrowing that such Lender does not intend to make available to the Administrative Agent its
portion of the Borrowing or Borrowings to be made on such date, the Administrative Agent may assume
that such Lender has made such amount available to the Administrative Agent on such date of
Borrowing, and the Administrative Agent, in reliance upon such assumption, may (in its sole
discretion and without any obligation to do so) make available to the Borrower a corresponding
amount. If such corresponding amount is not in fact made available to the Administrative Agent by
such Lender and the Administrative Agent has made available same to the Borrower, the
Administrative Agent shall be entitled to recover such corresponding amount from such Lender. If
such Lender does not pay such corresponding amount forthwith upon the Administrative Agent’s demand
therefor the Administrative Agent shall promptly notify the Borrower and the Borrower shall
immediately pay such corresponding amount to the Administrative Agent. The Administrative Agent
shall also be entitled to recover from such Lender or the Borrower interest on such corresponding
amount in respect of each day from the date such corresponding amount was made available by the
Administrative Agent to the Borrower to the date such corresponding amount is recovered by the
Administrative Agent, at a rate per annum equal to (i) if paid by such Lender, the Federal Funds
Effective Rate or (ii) if paid

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by the Borrower, the then-applicable rate of interest or fees,
calculated in accordance with Section 2.8, for the respective Loans.

     (c) Nothing in this Section 2.4 shall be deemed to relieve any Lender from its
obligation to fulfill its commitments hereunder or to prejudice any rights that the Borrower may
have against any Lender as a result of any default by such Lender hereunder (it being understood,
however, that no Lender shall be responsible for the failure of any other Lender to fulfill its
commitments hereunder).

     2.5 Repayment of Loans; Evidence of Debt. (a) The Borrower shall repay to the
Administrative Agent in Dollars, for the benefit of the applicable Lenders, on the Revolving Credit
Maturity Date, the then-unpaid Revolving Credit Loans made to the Borrower. The Borrower shall
repay to the Administrative Agent in Dollars, for the account of the Swingline Lender, on the
Swingline Maturity Date, the then-unpaid Swingline Loans.

     (b) Each Lender shall maintain in accordance with its usual practice an account or accounts
evidencing the indebtedness of the Borrower to the appropriate lending office of such Lender
resulting from each Loan made by such lending office of such Lender from time to time, including
the amounts of principal and interest payable and paid to such lending office of such Lender from
time to time under this Agreement.

     (c) The Administrative Agent shall maintain the Register pursuant to Section 14.6(b),
and a sub account for each Lender, in which Register and subaccounts (taken together) shall be
recorded (i) the amount of each Loan made hereunder, whether such Loan is a Revolving Credit Loan
or a Swingline Loan, as applicable, the Type of each Loan made and the Interest Period applicable
thereto, (ii) the amount of any principal or interest due and payable or to become due and payable
from the Borrower to each Lender or the Swingline Lender hereunder and (iii) the amount of any sum
received by the Administrative Agent hereunder from the Borrower and each
Lender’s share thereof. After the occurrence and during the continuation of an Event of
Default, the Register shall be available for inspection by any Lender (solely with respect to its
own interest) at any reasonable time and upon reasonable prior notice.

     (d) The entries made in the Register and accounts and subaccounts maintained pursuant to
paragraphs (b) and (c) of this Section 2.5 shall, to the extent permitted by applicable
law, be prima facie evidence of the existence and amounts of the obligations of the Borrower
therein recorded; provided, however, that the failure of any Lender or the
Administrative Agent to maintain such account, such Register or such subaccount, as applicable, or
any error therein, shall not in any manner affect the obligation of the Borrower to repay (with
applicable interest) the Loans made to the Borrower by such Lender in accordance with the terms of
this Agreement.

     2.6 Conversions and Continuations. (a) The Borrower shall have the option on any
Business Day to convert all or a portion equal to at least the Minimum Borrowing Amount of the
outstanding principal amount of Revolving Credit Loans made to the Borrower (as applicable) of one
Type into a Borrowing or Borrowings of another Type and the Borrower shall have the option on any
Business Day to continue the outstanding principal amount of any LIBOR Revolving Credit Loans as
LIBOR Revolving Credit Loans for an additional Interest Period, on the last Business Day of the
existing Interest Period, provided that (i) no partial conversion of

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LIBOR Revolving Credit Loans shall reduce the outstanding principal amount of LIBOR Revolving
Credit Loans made pursuant to a single Borrowing to less than the Minimum Borrowing Amount, (ii)
ABR Loans may not be converted into LIBOR Revolving Credit Loans if a Default or Event of Default
is in existence on the date of the conversion and the Administrative Agent has or the Required
Lenders have determined in its or their sole discretion not to permit such conversion, (iii) LIBOR
Loans may not be continued as LIBOR Loans for an additional Interest Period if an Event of Default
is in existence on the date of the proposed continuation and the Administrative Agent has or the
Required Lenders have determined in its or their sole discretion not to permit such continuation
and (iv) Borrowings resulting from conversions pursuant to this Section 2.6 shall be
limited in number as provided in Section 2.2. Each such conversion or continuation shall
be effected by the Borrower by giving the Administrative Agent at the Administrative Agent’s Office
prior to 1:00 p.m. (New York City time) at least three Business Days’ prior written notice or
written notice prior to 10:00 a.m. (New York City time) on the same Business Day in the case of a
conversion into ABR Loans (or, in each case, telephonic notice promptly confirmed in writing)
(each, a “Notice of Conversion or Continuation”) specifying the Revolving Credit Loans to
be so converted or continued, the Type of Revolving Credit Loans to be converted or continued into
and, if such Revolving Credit Loans are to be converted into or continued as LIBOR Loans, the
Interest Period to be initially applicable thereto. The Administrative Agent shall give each
Lender notice as promptly as practicable of any such proposed conversion or continuation affecting
any of its Revolving Credit Loans.

     (b) If any Default or Event of Default is in existence at the time of any proposed
continuation of any LIBOR Loans and the Administrative Agent has or the Required Lenders have
determined in its or their sole discretion not to permit such continuation, such LIBOR Loans shall
be automatically converted on the last day of the current Interest Period into ABR Loans. If upon
the expiration of any Interest Period in respect of LIBOR Loans, the Borrower has failed to elect a
new Interest Period to be applicable thereto as provided in paragraph (a) above, the Borrower shall
be deemed to have elected to continue such Borrowing of LIBOR Loans into a Borrowing of ABR Loans,
effective as of the expiration date of such current Interest Period.

     2.7 Pro Rata Borrowings. Each Borrowing of Revolving Credit Loans under this Agreement shall be granted by the
Lenders pro rata on the basis of their then-applicable Revolving Credit Commitments. It is
understood that (a) no Lender shall be responsible for any default by any other Lender in its
obligation to make Loans hereunder and that each Lender shall be obligated to make the Loans
provided to be made by it hereunder, regardless of the failure of any other Lender to fulfill its
commitments hereunder and (b) other than as expressly provided herein with respect to a Defaulting
Lender, failure by a Lender to perform any of its obligations under any of the Credit Documents
shall not release any Person from performance of its obligation under any Credit Document.

     2.8 Interest. (a) The unpaid principal amount of each ABR Loan shall bear interest from the date of
the Borrowing thereof until maturity (whether by acceleration or otherwise) at a rate per annum
that shall at all times be the Applicable ABR Margin plus the ABR in effect from time to time.

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     (b) The unpaid principal amount of each LIBOR Loan shall bear interest from the date of the
Borrowing thereof until maturity thereof (whether by acceleration or otherwise) at a rate per annum
that shall at all times be the Applicable LIBOR Margin in effect from time to time plus the
relevant LIBOR Rate.

     (c) If all or a portion of (i) the principal amount of any Loan or (ii) any interest payable
thereon shall not be paid when due (whether at the stated maturity, by acceleration or otherwise),
such overdue amount shall bear interest (including post-petition interest in any proceeding under
the Bankruptcy Code or other applicable bankruptcy laws) at a rate per annum that is (x) in the
case of overdue principal, the rate that would otherwise be applicable thereto plus 2% or
(y) in the case of any overdue interest, to the extent permitted by applicable law, the rate
described in Section 2.8(a) plus 2% from and including the date of such non-payment
to but excluding the date on which such amount is paid in full (after as well as before judgment).
Payment or acceptance of the increased rates of interest provided for in this Section 2.8 is not a
permitted alternative to timely payment and shall not constitute a waiver of any Event of Default
or otherwise prejudice or limit any rights or remedies of Administrative Agent or any Lender.

     (d) Interest on each Loan shall accrue from and including the date of any Borrowing to but
excluding the date of any repayment thereof and shall be payable (i) in respect of each ABR Loan,
quarterly in arrears on the last day of each March, June, September and December, (ii) in respect
of each LIBOR Loan, on the last day of each Interest Period applicable thereto and, in the case of
an Interest Period in excess of three months, on each date occurring at three-month intervals after
the first day of such Interest Period, (iii) in respect of each Loan (except, other than in the
case of prepayments, any ABR Loan), on any prepayment date (on the amount prepaid), at maturity
(whether by acceleration or otherwise) and, after such maturity, on demand.

     (e) All computations of interest hereunder shall be made in accordance with Section
5.5.

     (f) The Administrative Agent, upon determining the interest rate for any Borrowing of LIBOR
Loans, shall promptly notify the Borrower and the relevant Lenders thereof. Each such
determination shall, absent clearly demonstrable error, be final and conclusive and binding on all
parties hereto.

     2.9 Interest Periods. At the time the Borrower gives a Notice of Borrowing or Notice of Conversion or
Continuation in respect of the making of, or conversion into or continuation as, a Borrowing of
LIBOR Loans (in the case of the initial Interest Period applicable thereto) or prior to 10:00 a.m.
(New York City time) on the third Business Day prior to the expiration of an Interest Period
applicable to a Borrowing of LIBOR Loans, the Borrower shall have the right to elect by giving the
Administrative Agent written notice (or telephonic notice promptly confirmed in writing) the
Interest Period applicable to such Borrowing, which Interest Period shall, at the option of
the Borrower be a one, two, three, six or (if available to all the Lenders as determined by such
Lenders in good faith based on prevailing market conditions) a nine or twelve month period.

     Notwithstanding anything to the contrary contained above:

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     (a) the initial Interest Period for any Borrowing of LIBOR Loans shall commence on the date of
such Borrowing (including the date of any conversion from a Borrowing of ABR Loans) and each
Interest Period occurring thereafter in respect of such Borrowing shall commence on the day on
which the next preceding Interest Period expires;

     (b) if any Interest Period relating to a Borrowing of LIBOR Revolving Credit Loans begins on
the last Business Day of a calendar month or begins on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest Period, such Interest Period
shall end on the last Business Day of the calendar month at the end of such Interest Period;

     (c) if any Interest Period would otherwise expire on a day that is not a Business Day, such
Interest Period shall expire on the next succeeding Business Day, provided that if any
Interest Period would otherwise expire on a day that is not a Business Day but is a day of the
month after which no further Business Day occurs in such month, such Interest Period shall expire
on the next preceding Business Day; and

     (d) the Borrower shall not be entitled to elect any Interest Period if such Interest Period
would extend beyond the applicable maturity date of such Loan.

     2.10 Increased Costs, Illegality, etc. (a) In the event that (x) in the case of clause (i) below, the Administrative Agent or
(y) in the case of clauses (ii) and (iii) below, any Lender shall have reasonably determined (which
determination shall, absent clearly demonstrable error, be final and conclusive and binding upon
all parties hereto):

          (i) on any date for determining the LIBOR Rate for any Interest Period that (x) deposits in
the principal amounts of the Loans comprising such LIBOR Borrowing are not generally available in
the relevant market or (y) by reason of any changes arising on or after the Closing Date affecting
the interbank LIBOR market, adequate and fair means do not exist for ascertaining the applicable
interest rate on the basis provided for in the definition of LIBOR Rate; or

          (ii) at any time, that such Lender shall incur increased costs or reductions in the amounts
received or receivable hereunder with respect to any LIBOR Loans (other than any such increase or
reduction attributable to Taxes) because of (x) any change since the date hereof in any applicable
law, governmental rule, regulation, guideline or order (or in the interpretation or administration
thereof and including the introduction of any new law or governmental rule, regulation, guideline
or order), such as, for example, without limitation, a change in official reserve requirements,
and/or (y) other circumstances affecting the interbank LIBOR market or the position of such Lender
in such market; or

          (iii) at any time, that the making or continuance of any LIBOR Loan has become unlawful by
compliance by such Lender in good faith with any law, governmental rule, regulation, guideline or
order (or would conflict with any such governmental rule, regulation, guideline or order not having
the force of law even though the failure to comply therewith would not be unlawful), or has become
impracticable as a result of a contingency occurring after the date hereof that materially and
adversely affects the interbank LIBOR market;

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then, and in any such event, such Lender (or the Administrative Agent, in the case of clause (i)
above) shall within a reasonable time thereafter give notice (if by telephone, confirmed in
writing) to the Borrower and to the Administrative Agent of such determination (which notice the
Administrative Agent shall promptly transmit to each of the other Lenders). Thereafter (x) in the
case of clause (i) above, LIBOR Revolving Credit Loans shall no longer be available until such time
as the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving
rise to such notice by the Administrative Agent no longer exist (which notice the Administrative
Agent agrees to give at such time when such circumstances no longer exist), and any Notice of
Borrowing or Notice of Conversion given by the Borrower with respect to LIBOR Revolving Credit
Loans that have not yet been incurred shall be deemed rescinded by the Borrower (y) in the case of
clause (ii) above, the Borrower shall pay to such Lender, promptly after receipt of written demand
therefor such additional amounts (in the form of an increased rate of, or a different method of
calculating, interest or otherwise as such Lender in its reasonable discretion shall determine) as
shall be required to compensate such Lender for such increased costs or reductions in amounts
receivable hereunder (it being agreed that a written notice as to the additional amounts owed to
such Lender, showing in reasonable detail the basis for the calculation thereof, submitted to the
Borrower by such Lender shall, absent clearly demonstrable error, be final and conclusive and
binding upon all parties hereto) and (z) in the case of clause (iii) above, the Borrower shall take
one of the actions specified in Section 2.10(b) as promptly as possible and, in any event,
within the time period required by law.

     (b) At any time that any LIBOR Loan is affected by the circumstances described in Section
2.10(a)(ii) or (iii), the Borrower may (and in the case of a LIBOR Loan affected
pursuant to Section 2.10(a)(iii) shall) either (x) if the affected LIBOR Loan is then being
made pursuant to a Borrowing, cancel said Borrowing by giving the Administrative Agent telephonic
notice (confirmed promptly in writing) thereof on the same date that the Borrower was notified by a
Lender pursuant to Section 2.10(a)(ii) or (iii) or (y) if the affected LIBOR Loan
is then outstanding, upon at least three Business Days’ notice to the Administrative Agent, require
the affected Lender to convert each such LIBOR Revolving Credit Loan into an ABR Loan,
provided that if more than one Lender is affected at any time, then all affected Lenders
must be treated in the same manner pursuant to this Section 2.10(b).

     (c) If, after the date hereof, the adoption of any applicable law, rule or regulation
regarding capital adequacy, or any change therein, or any change in the interpretation or
administration thereof by any governmental authority, the National Association of Insurance
Commissioners, central bank or comparable agency charged with the interpretation or administration
thereof, or compliance by a Lender or its parent with any request or directive made or adopted
after the date hereof regarding capital adequacy (whether or not having the force of law) of any
such authority, association, central bank or comparable agency, has or would have the effect of
reducing the rate of return on such Lender’s or its parent’s or its Affiliate’s
capital or assets as a consequence of such Lender’s commitments or obligations hereunder to a
level below that which such Lender or its parent or its Affiliate could have achieved but for such
adoption, effectiveness, change or compliance (taking into consideration such Lender’s or its
parent’s policies with respect to capital adequacy), then from time to time, promptly after demand
by such Lender (with a copy to the Administrative Agent), the Borrower shall pay to such Lender
such additional amount or amounts as will compensate such Lender or its parent for such reduction,
it being understood and agreed, however, that a Lender shall not be entitled to

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such compensation
as a result of such Lender’s compliance with, or pursuant to any request or directive to comply
with, any such law, rule or regulation as in effect on the date hereof. Each Lender, upon
determining in good faith that any additional amounts will be payable pursuant to this Section
2.10(c), will give prompt written notice thereof to the Borrower which notice shall set forth
in reasonable detail the basis of the calculation of such additional amounts, although the failure
to give any such notice shall not, subject to Section 2.13, release or diminish the
Borrower’s obligations to pay additional amounts pursuant to this Section 2.10(c) upon
receipt of such notice.

     (d) It is understood that to the extent duplicative of Section 5.4, this Section
2.10 shall not apply to Taxes.

     2.11 Compensation. If (a) any payment of principal of any LIBOR Loan is made by the Borrower to or for the
account of a Lender other than on the last day of the Interest Period for such LIBOR Loan as a
result of a payment or conversion pursuant to Section 2.5, 2.6, 2.10, 5.1, 5.2 or
14.7, as a result of acceleration of the maturity of the Loans pursuant to Section
11 or for any other reason, (b) any Borrowing of LIBOR Loans is not made as a result of a
withdrawn Notice of Borrowing, (c) any ABR Loan is not converted into a LIBOR Loan as a result of a
withdrawn Notice of Conversion or Continuation, (d) any LIBOR Loan is not continued as an LIBOR
Loan, as the case may be, as a result of a withdrawn Notice of Conversion or Continuation or (e)
any prepayment of principal of any LIBOR Loan is not made as a result of a withdrawn notice of
prepayment pursuant to Section 5.1 or 5.2, the Borrower shall, after receipt of a written
request by such Lender (which request shall set forth in reasonable detail the basis for requesting
such amount), pay to the Administrative Agent for the account of such Lender any amounts required
to compensate such Lender for any additional losses, costs or expenses that such Lender may
reasonably incur as a result of such payment, failure to convert, failure to continue or failure to
prepay, including any loss, cost or expense (excluding loss of anticipated profits) actually
incurred by reason of the liquidation or reemployment of deposits or other funds acquired by any
Lender to fund or maintain such LIBOR Loan.

     2.12 Change of Lending Office. Each Lender agrees that, upon the occurrence of any event giving rise to the operation of
Section 2.10(a)(ii), 2.10(a)(iii), 2.10(b), 3.5 or 5.4 with
respect to such Lender, it will, if requested by the Borrower use reasonable efforts (subject to
overall policy considerations of such Lender) to designate another lending office for any Loans
affected by such event, provided that such designation is made on such terms that such
Lender and its lending office suffer no economic, legal or regulatory disadvantage, with the object
of avoiding the consequence of the
event giving rise to the operation of any such Section. Nothing in this Section 2.12
shall affect or postpone any of the obligations of the Borrower or the right of any Lender provided
in Section 2.10, 3.5 or 5.4.

     2.13 Notice of Certain Costs. Notwithstanding anything in this Agreement to the contrary, to the extent any notice
required by Section 2.10, 2.11, 3.5 or 5.4 is given by any Lender more than
180 days after such Lender has knowledge (or should have had knowledge) of the occurrence of the
event giving rise to the additional cost, reduction in amounts, loss, tax or other additional
amounts described in such Sections, such Lender shall not be entitled to compensation under
Section 2.10, 2.11, 3.5 or 5.4, as the case may be, for any such
amounts incurred or accruing prior to the 181st day prior to the giving of such notice to the
Borrower;

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provided that if the event giving rise to such additional cost, reduction in
amounts, loss, tax or other additional amounts has a retroactive effect, then the 180 day period
referred to above shall be extended to include the period of retroactive effect thereof.

     2.14 Incremental Facilities. (a) Borrower may by written notice to Administrative Agent elect to request the
establishment of one or more increases in Revolving Credit Commitments (the “New Revolving
Credit Commitments”) by an aggregate amount (together with any New Term Loan Commitments
obtained after the Closing Date) not in excess of the aggregate amounts permitted by clauses (w),
(x) & (y) hereafter and not less than $10,000,000 individually (or such lesser amount which shall
be approved by Administrative Agent). Each such notice shall specify the date (each, an
“Increased Amount Date”) on which the Borrower proposes that the New Revolving Credit
Commitments shall be effective, which shall be a date not less than ten Business Days after the
date on which such notice is delivered to Administrative Agent. The New Revolving Credit
Commitments (together with any New Term Loan Commitments obtained after the Closing Date) shall not
exceed the sum of: (w)  up to $200,000,000 solely to the extent used to fund the exercise of the
CanHCo Call Right (as defined under the Red Man Transaction Agreement as in effect on the date
hereof) and the refinancing of certain indebtedness of Midfield Supply Co., plus (x) up to
an additional $150,000,000, plus (y) only after the entire amount in the preceding clause
(x) has been drawn, an amount such that on a Pro Forma Basis after giving effect to the borrowings
to be made on the Increased Amount Date (which shall be deemed to be equal to the amount of the New
Revolving Credit Commitments for the purposes of this clause (y)) and all Specified Transactions
after the beginning of the relevant Test Period but prior to or simultaneous with such borrowing,
the Secured Leverage Ratio shall equal or be less than 4.75 to 1.00; provided that any
Lender offered or approached to provide all or a portion of the New Revolving Credit Commitments
may elect or decline, in its sole discretion, to provide a New Revolving Credit Commitments. Such
New Revolving Credit Commitments shall become effective, as of such Increased Amount Date;
provided that (i) no Default or Event of Default shall exist on such Increased Amount Date
before or after giving effect to such New Revolving Credit Commitments, as applicable; (ii) both
before and after giving effect to the making of any New Revolving Loans, each of the conditions set
forth in Section 7 shall be satisfied; (iii) Borrower and its Subsidiaries shall be in Pro
Forma Compliance with the Borrowing Base as of the last day of the most recently ended fiscal
quarter after giving
effect to such New Revolving Credit Commitments and any Specified Transaction to be
consummated in connection therewith; (iv) the New Revolving Credit Commitments shall be effected
pursuant to one or more Joinder Agreements executed and delivered by the Borrower and
Administrative Agent, and each of which shall be recorded in the Register and shall be subject to
the requirements set forth in Section 5.4(d) and (e); (v) Borrower shall make any
payments required pursuant to Section 2.11 in connection with the New Revolving Credit
Commitments, as applicable; and (vi) Borrower shall deliver or cause to be delivered any legal
opinions or other documents reasonably requested by Administrative Agent in connection with any
such transaction.

     (b) On any Increased Amount Date on which New Revolving Loan Commitments are effected, subject
to the satisfaction of the foregoing terms and conditions, (i) each of the Lenders with Revolving
Credit Commitments shall assign to each Lender with a New Revolving Credit Commitment (each, a
“New Revolving Loan Lender”) and each of the New Revolving Loan Lenders shall purchase from
each of the Lenders with Revolving Credit Commitments, at the

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principal amount thereof (together
with accrued interest), such interests in the Revolving Credit Loans outstanding on such Increased
Amount Date as shall be necessary in order that, after giving effect to all such assignments and
purchases, such Revolving Credit Loans will be held by existing Lenders with Revolving Credit Loans
and New Revolving Loan Lenders ratably in accordance with their Revolving Credit Commitments after
giving effect to the addition of such New Revolving Credit Commitments to the Revolving Credit
Commitments, (ii) each New Revolving Credit Commitment shall be deemed for all purposes a Revolving
Credit Commitment and each Loan made thereunder (a “New Revolving Loan”) shall be deemed,
for all purposes, a Revolving Credit Loan and (iii) each New Revolving Loan Lender shall become a
Lender with respect to the New Revolving Loan Commitment and all matters relating thereto.

     (c) [Intentionally Omitted].

     (d) The terms and provisions of the New Revolving Loans and New Revolving Credit Commitments
shall be identical to the Revolving Credit Loans and the Revolving Credit Commitments.

     (e) Each Joinder Agreement may, without the consent of any other Lenders, effect such
amendments to this Agreement and the other Credit Documents as may be necessary or appropriate, in
the opinion of the Administrative Agent, to effect the provision of this Section 2.14.

     2.15 Protective Advances. (a) Subject to the limitations set forth below, the Administrative Agent is authorized
by the Borrower and the Lenders, from time to time in the Administrative Agent’s sole discretion
(but shall have absolutely no obligation to), to make Loans to the Borrower, on behalf of all
Lenders, which the Administrative Agent, in its Permitted Discretion, deems necessary or desirable
(i) to preserve or protect the Collateral or any portion thereof or (ii) to enhance the likelihood
of, or maximize the amount of, repayment of the Loans and other Obligations (any of such Loans are
herein referred to as “Protective Advances”); provided that no Protective Advance
shall cause the aggregate amount of the Lenders’ Revolving Credit
Exposures at such time exceed the Total Revolving Credit Commitment then in effect;
provided further that, the aggregate amount of Protective Advances outstanding at
any time pursuant to clauses (i) and (ii) above shall not exceed an amount equal to five percent
(5%) of the Total Revolving Credit Commitment then in effect. Protective Advances may be made even
if the conditions precedent set forth in Section 7 have not been satisfied. The Protective
Advances shall be secured by the Liens in favor of the Collateral Agent in and to the Collateral
and shall constitute Obligations hereunder. All Protective Advances shall be ABR Borrowings. The
Administrative Agent’s authorization to make Protective Advances may be revoked at any time by the
Required Lenders. Any such revocation must be in writing and shall become effective prospectively
upon the Administrative Agent’s receipt thereof. At any time that there is sufficient Excess
Availability and the conditions precedent set forth in Section 7 have been satisfied, the
Administrative Agent may request the Lenders to make a Revolving Loan to repay a Protective
Advance. At any other time the Administrative Agent may require the Lenders to fund their risk
participations described in Section 2.15(b).

     (b) Upon the making of a Protective Advance by the Administrative Agent (whether before or
after the occurrence of a Default or Event of Default), each Lender shall be deemed,

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without further action by any party hereto, to have unconditionally and irrevocably purchased from the
Administrative Agent without recourse or warranty, an undivided interest and participation in such
Protective Advance in proportion to its Revolving Credit Commitment Percentage. Each Lender shall
transfer (a “Transfer”) the amount of such Lender’s Revolving Credit Commitment Percentage
of the outstanding principal amount of the applicable Protective Advance with respect to such
purchased interest and participation promptly when requested to the Administrative Agent, to such
account of the Administrative Agent as the Administrative Agent may designate, but in any case not
later than 3:00 p.m., New York City time, on the Business Day notified (if notice is provided by
the Administrative Agent prior to 12:00 p.m. New York City time, and otherwise on the immediately
following Business Day (the “Transfer Date”). Transfers may occur during the existence of
a Default or Event of Default and whether or not the applicable conditions precedent set forth in
Section 7 have then been satisfied. Such amounts transferred to the Administrative Agent
shall be applied against the amount of the Protective Advance and, together with Lender’s Revolving
Credit Commitment Percentage of such Protective Advance, shall constitute Loans of such Lenders,
respectively. If any such amount is not transferred to the Administrative Agent by any Lender on
such Transfer Date, the Administrative Agent shall be entitled to recover such amount on demand
from such Lender together with interest thereon as specified in Section 2.08. From and
after the date, if any, on which any Lender is required to fund, and funds, its participation in
any Protective Advance purchased hereunder, the Administrative Agent shall promptly distribute to
such Lender, such Lender’s Revolving Credit Commitment Percentage of all payments of principal and
interest and all proceeds of Collateral received by the Administrative Agent in respect of such
Protective Advance.

     SECTION 3. Letters of Credit

     3.1 Letters of Credit. (a) Subject to and upon the terms and conditions herein set forth, at any time and
from time to time after the Closing Date and prior to the L/C Maturity Date, the Letter of
Credit Issuer agrees to issue upon the request of, and for the benefit of the Borrower and the
Restricted Subsidiaries letters of credit in Dollars (the “Letters of Credit” and each, a
“Letter of Credit”) in such form as may be approved by the Letter of Credit Issuer in its
reasonable discretion; provided that the Borrower shall be a co-applicant, and
jointly and severally liable with respect to, each Letter of Credit issued for the account of a
Restricted Subsidiary.

     Notwithstanding the foregoing, (i) no Letter of Credit shall be issued the Stated Amount of
which, when added to the Letters of Credit Outstanding at such time, would exceed the Letter of
Credit Commitment then in effect; (ii) no Letter of Credit shall be issued the Stated Amount of
which would cause the aggregate amount of the Lender’s Revolving Credit Exposures at such time to
exceed the lesser of the Total Revolving Credit Commitment and the Borrowing Base then in effect;
(iii) each Letter of Credit shall have an expiration date occurring no later than one year after
the date of issuance thereof, unless otherwise agreed upon by the Administrative Agent and the
Letter of Credit Issuer; provided, that (x) that in no event shall such expiration date
occur later than the L/C Maturity Date and (y) each Letter of Credit may, upon the request of the
Borrower, include a provision whereby such Letter of Credit shall be renewed automatically for
additional consecutive periods of twelve (12) months or less (but not beyond the L/C Maturity
Date); (iv) each Letter of Credit shall be denominated in Dollars; (v) no Letter of Credit shall be

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issued if it would be illegal under any applicable law for the beneficiary of the Letter of Credit
to have a Letter of Credit issued in its favor; (vi) no Letter of Credit shall be issued if such
Letter of Credit is not in form reasonably acceptable to the Letter of Credit Issuer, and (vii) no
Letter of Credit shall be issued by a Letter of Credit Issuer after it has received a written
notice from any Credit Party or any Lender stating that a Default or Event of Default has occurred
and is continuing until such time as the Letter of Credit Issuer shall have received a written
notice of (x) rescission of such notice from the party or parties originally delivering such notice
or (y) the waiver of such Default or Event of Default in accordance with the provisions of
Section 14.1.

     (b) Upon at least one Business Day’s prior written notice (or telephonic notice promptly
confirmed in writing) to the Administrative Agent and the Letter of Credit Issuer (which notice the
Administrative Agent shall promptly transmit to each of the applicable Lenders), the Borrower shall
have the right, on any day, permanently to terminate or reduce the Letter of Credit Commitment in
whole or in part, provided that, after giving effect to such termination or reduction, the
Letters of Credit Outstanding shall not exceed the Letter of Credit Commitment.

     (c) Except as otherwise agreed between the Borrower and the Letter of Credit Issuer, each
Letter of Credit (other than each standby Letter of Credit), shall be subject to the Uniform
Customs and Practice for Documentary Credits (1993 Revision), International Chamber of Commerce
Publication No. 500, as from time to time amended, and to the extent not inconsistent therewith,
shall also be subject to the New York Uniform Commercial Code as in effect from time to time.
Except as otherwise agreed between the Borrower and the Letter of Credit Issuer, each standby
Letter of Credit shall be subject to The International Standby Practices (ISP98 – International
Chamber of Commerce Publication No. 590), as from time to time amended, and to the extent not
inconsistent therewith, shall also be subject to the New York Uniform Commercial Code as in effect
from time to time.

     (d) The parties hereto agree that the Existing Letters of Credit shall be deemed Letters of
Credit for all purposes under this Agreement, without any further action by the Borrower.

     3.2 Letter of Credit Requests. (a) Whenever the Borrower desires that a Letter of Credit be issued for its account,
it shall give the Administrative Agent and the Letter of Credit Issuer at least five (or such
lesser number as may be agreed upon by the Administrative Agent and the Letter of Credit Issuer)
Business Days’ written notice thereof. Each notice shall be executed by the Borrower and shall be
in the form of Exhibit H (each a “Letter of Credit Request”). The Administrative
Agent shall promptly transmit copies of each Letter of Credit Request to each Lender.

     (b) The making of each Letter of Credit Request shall be deemed to be a representation and
warranty by the Borrower that the Letter of Credit may be issued in accordance with, and will not
violate the requirements of, Section 3.1(b).

     3.3 Letter of Credit Participations. (a) Immediately upon the issuance by the Letter of Credit Issuer of any Letter of
Credit (and on the Closing Date in respect of Existing Letters of Credit), the Letter of Credit
Issuer shall be deemed to have sold and transferred to each other

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Lender (each such other Lender,
in its capacity under this Section 3.3, an “L/C Participant”), and each such L/C
Participant shall be deemed irrevocably and unconditionally to have purchased and received from the
Letter of Credit Issuer, without recourse or warranty, an undivided interest and participation
(each an “L/C Participation”), to the extent of such L/C Participant’s Revolving Credit
Commitment Percentage in such Letter of Credit, each substitute letter of credit, each drawing made
thereunder and the obligations of the Borrower under this Agreement with respect thereto, and any
security therefor or guaranty pertaining thereto; provided that the Letter of Credit Fees
will be paid directly to the Administrative Agent for the ratable account of the L/C Participants
as provided in Section 4.1(b) and the L/C Participants shall have no right to receive any
portion of any Fronting Fees.

     (b) In determining whether to pay under any Letter of Credit, the relevant Letter of Credit
Issuer shall have no obligation relative to the L/C Participants other than to confirm that any
documents required to be delivered under such Letter of Credit have been delivered and that they
appear to comply on their face with the requirements of such Letter of Credit. Any action taken or
omitted to be taken by the relevant Letter of Credit Issuer under or in connection with any Letter
of Credit issued by it, if taken or omitted in the absence of gross negligence or willful
misconduct, shall not create for the Letter of Credit Issuer any resulting liability.

     (c) In the event that the Letter of Credit Issuer makes any payment under any Letter of Credit
issued by it and the Borrower shall not have repaid such amount in full to the respective Letter of
Credit Issuer pursuant to Section 3.4(a), the Letter of Credit Issuer shall promptly notify
the Administrative Agent and each applicable L/C Participant of such failure, and each such L/C
Participant shall promptly and unconditionally pay to the Administrative Agent for the account of
the Letter of Credit Issuer, the amount of such L/C Participant’s Revolving Credit
Commitment Percentage of such unreimbursed payment in Dollars and in immediately available
funds; provided, however, that no L/C Participant shall be obligated to pay to the
Administrative Agent for the account of the respective Letter of Credit Issuer its Revolving Credit
Commitment Percentage of such unreimbursed amount arising from any wrongful payment made by the
Letter of Credit Issuer under a Letter of Credit as a result of acts or omissions constituting
willful misconduct or gross negligence on the part of the Letter of Credit Issuer. If the Letter
of Credit Issuer so notifies, prior to 11:00 a.m. (New York City time) on any Business Day, any L/C
Participant required to fund a payment under a Letter of Credit, such L/C Participant shall make
available to the Administrative Agent for the account of the Letter of Credit Issuer such L/C
Participant’s Revolving Credit Commitment Percentage of the amount of such payment on such Business
Day in immediately available funds. If and to the extent such L/C Participant shall not have so
made its Revolving Credit Commitment Percentage of the amount of such payment available to the
Administrative Agent for the account of the Letter of Credit Issuer, such L/C Participant agrees to
pay to the Administrative Agent for the account of the Letter of Credit Issuer, forthwith on
demand, such amount, together with interest thereon for each day from such date until the date such
amount is paid to the Administrative Agent for the account of the Letter of Credit Issuer at the
Federal Funds Effective Rate. The failure of any L/C Participant to make available to the
Administrative Agent for the account of the Letter of Credit Issuer its Revolving Credit Commitment
Percentage of any payment under any Letter of Credit shall not relieve any other L/C Participant of
its obligation hereunder to make available to the Administrative Agent for the account of the
Letter of Credit Issuer its Revolving Credit Commitment Percentage of any payment under such Letter
of Credit on the date required, as specified above, but no L/C

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Participant shall be responsible for
the failure of any other L/C Participant to make available to the Administrative Agent such other
L/C Participant’s Revolving Credit Commitment Percentage of any such payment.

     (d) Whenever the Letter of Credit Issuer receives a payment in respect of an unpaid
reimbursement obligation as to which the Administrative Agent has received for the account of the
Letter of Credit Issuer any payments from the L/C Participants pursuant to paragraph (c) above, the
Letter of Credit Issuer shall pay to the Administrative Agent and the Administrative Agent shall
promptly pay to each L/C Participant that has paid its Revolving Credit Commitment Percentage of
such reimbursement obligation, in Dollars and in immediately available funds, an amount equal to
such L/C Participant’s share (based upon the proportionate aggregate amount originally funded by
such L/C Participant to the aggregate amount funded by all L/C Participants) of the principal
amount of such reimbursement obligation and interest thereon accruing after the purchase of the
respective L/C Participations.

     (e) The obligations of the L/C Participants to make payments to the Administrative Agent for
the account of a Letter of Credit Issuer with respect to Letters of Credit shall be irrevocable and
not subject to counterclaim, set-off or other defense or any other qualification or exception
whatsoever and shall be made in accordance with the terms and conditions of this Agreement under
all circumstances, including under any of the following circumstances:

     (i) any lack of validity or enforceability of this Agreement or any of the
other Credit Documents;

     (ii) the existence of any claim, set-off, defense or other right that the
Borrower may have at any time against a beneficiary named in a Letter of Credit, any
transferee of any Letter of Credit (or any Person for whom any such transferee may
be acting), the Administrative Agent, the Letter of Credit Issuer, any Lender or
other Person, whether in connection with this Agreement, any Letter of Credit, the
transactions contemplated herein or any unrelated transactions (including any
underlying transaction between the Borrower and the beneficiary named in any such
Letter of Credit);

     (iii) any draft, certificate or any other document presented under any Letter
of Credit proving to be forged, fraudulent, invalid or insufficient in any respect
or any statement therein being untrue or inaccurate in any respect;

     (iv) the surrender or impairment of any security for the performance or
observance of any of the terms of any of the Credit Documents; or

     (v) the occurrence of any Default or Event of Default;

provided, however, that no L/C Participant shall be obligated to pay to the
Administrative Agent for the account of the Letter of Credit Issuer its Revolving Credit Commitment
Percentage of any unreimbursed amount arising from any wrongful payment made by the Letter of
Credit Issuer under a Letter of Credit as a result of acts or omissions constituting willful
misconduct or gross negligence on the part of the Letter of Credit Issuer.

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     3.4 Agreement to Repay Letter of Credit Drawings. (a) The Borrower hereby agrees to reimburse the relevant Letter of Credit Issuer, by
making payment in Dollars to the Administrative Agent in immediately available funds for any
payment or disbursement made by the Letter of Credit Issuer under any Letter of Credit (each such
amount so paid until reimbursed, an “Unpaid Drawing”) no later than the date that is one
Business Day after the date on which the Borrower receives notice of such payment or reimbursement
(the “Reimbursement Date”), with interest on the amount so paid or disbursed by the Letter
of Credit Issuer, to the extent not reimbursed prior to 5:00 p.m. (New York City time) on the
Reimbursement Date, from and including the Reimbursement Date to but excluding the date the Letter
of Credit Issuer is reimbursed therefor at a rate per annum that shall at all times be the
Applicable ABR Margin plus the ABR as in effect from time to time, provided that,
notwithstanding anything contained in this Agreement to the contrary, (i) unless the Borrower shall
have notified the Administrative Agent and the relevant Letter of Credit Issuer prior to 10:00 a.m.
(New York City time) on the Reimbursement Date that the Borrower intends to reimburse the relevant
Letter of Credit Issuer for the amount of such drawing with funds other than the proceeds of Loans,
the Borrower shall be deemed to have given a Notice of Borrowing requesting that, with respect to
Letters of Credit, the Lenders with Revolving Credit Commitments make Revolving Credit Loans (which
shall be ABR Loans) on the Reimbursement Date in the amount of such drawing and (ii) the
Administrative Agent shall promptly notify each relevant L/C Participant of such drawing and the
amount of its Revolving Credit Loan to be made in respect thereof, and each L/C Participant shall
be irrevocably obligated to make a Revolving Credit Loan to the Borrower in the manner deemed to
have been requested in the
amount of its Revolving Credit Commitment Percentage of the applicable Unpaid Drawing by 12:00
noon (New York City time) on such Reimbursement Date by making the amount of such Revolving Credit
Loan available to the Administrative Agent. Such Revolving Credit Loans shall be made without
regard to the Minimum Borrowing Amount. The Administrative Agent shall use the proceeds of such
Revolving Credit Loans solely for purpose of reimbursing the Letter of Credit Issuer for the
related Unpaid Drawing.

     (b) (i) The obligations of the Borrower under this Section 3.4 to reimburse the Letter
of Credit Issuer with respect to Unpaid Drawings (including, in each case, interest thereon) shall
be absolute and unconditional under any and all circumstances and irrespective of any set-off,
counterclaim or defense to payment that the Borrower or any other Person may have or have had
against the Letter of Credit Issuer, the Administrative Agent or any Lender (including in its
capacity as an L/C Participant), including any defense based upon the failure of any drawing under
a Letter of Credit (each a “Drawing”) to conform to the terms of the Letter of Credit or
any non-application or misapplication by the beneficiary of the proceeds of such Drawing,
provided that the Borrower shall not be obligated to reimburse the Letter of Credit Issuer
for any wrongful payment made by the Letter of Credit Issuer under the Letter of Credit issued by
it as a result of acts or omissions constituting willful misconduct or gross negligence on the part
of the Letter of Credit Issuer.

          (ii) The Borrower further agrees with the Letter of Credit Issuer that the Letter of Credit
Issuer shall not be responsible for, and the Borrower’s reimbursement obligations under Section
3.4 shall not be affected by, among other things, (A) the validity or genuineness of documents
or of any endorsements thereon, even though such documents shall in fact prove to be invalid,
fraudulent or forged, (B) any dispute between or among the Borrower and any beneficiary of any
Letter of Credit or any other party to which such Letter of Credit may be transferred, (C)

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any claims whatsoever of the Borrower against any beneficiary of such Letter of Credit or any such
transferee, or (D) any change in the time, manner or place of payment of, or in any other term of,
all or any of the Obligations of the Borrower in respect of any Letter of Credit or any other
amendment or waiver of or any consent to departure from the terms of any Letter of Credit or any
document executed or delivered in connection with the issuance or payment thereof

     3.5 Increased Costs. If after the date hereof, the adoption of any applicable law, rule or regulation, or any
change therein, or any change in the interpretation or administration thereof by any Governmental
Authority, central bank or comparable agency charged with the interpretation or administration
thereof, or actual compliance by the Letter of Credit Issuer or any L/C Participant with any
request or directive made or adopted after the date hereof (whether or not having the force of
law), by any such authority, central bank or comparable agency shall either (a) impose, modify or
make applicable any reserve, deposit, capital adequacy or similar requirement against letters of
credit issued by the Letter of Credit Issuer, or any L/C Participant’s L/C Participation therein,
or (b) impose on the Letter of Credit Issuer or any L/C Participant any other conditions affecting
its obligations under this Agreement in respect of Letters of Credit or L/C Participations therein
or any Letter of Credit or such L/C Participant’s L/C Participation therein, and the result of any
of the foregoing is to increase the cost to the Letter of Credit Issuer or such L/C Participant of
issuing, maintaining or participating in any Letter of Credit, or to reduce the
amount of any sum received or receivable by the Letter of Credit Issuer or such L/C
Participant hereunder (other than any such increase or reduction attributable to taxes) in respect
of Letters of Credit or L/C Participations therein, then, promptly after receipt of written demand
to the Borrower by the Letter of Credit Issuer or such L/C Participant, as the case may be, (a copy
of which notice shall be sent by the Letter of Credit Issuer or such L/C Participant to the
Administrative Agent (with respect to Letter of Credit issued on account of the Borrower)) the
Borrower shall pay to the Letter of Credit Issuer or such L/C Participant such additional amount or
amounts as will compensate the Letter of Credit Issuer or such L/C Participant for such increased
cost or reduction, it being understood and agreed, however, that the Letter of Credit Issuer or a
L/C Participant shall not be entitled to such compensation as a result of such Person’s compliance
with, or pursuant to any request or directive to comply with, any such law, rule or regulation as
in effect on the date hereof. A certificate submitted to the Borrower by the relevant Letter of
Credit Issuer or a L/C Participant, as the case may be, (a copy of which certificate shall be sent
by the Letter of Credit Issuer or such L/C Participant to the Administrative Agent (with respect to
Letters of Credit issued on account of the Borrower)) setting forth in reasonable detail the basis
for the determination of such additional amount or amounts necessary to compensate the Letter of
Credit Issuer or such L/C Participant as aforesaid shall be conclusive and binding on the Borrower
absent clearly demonstrable error.

     3.6 New or Successor Letter of Credit Issuer. (a) The Letter of Credit Issuer may resign as a Letter of Credit Issuer upon 60 days’
prior written notice to the Administrative Agent, the Lenders and the Borrower. The Borrower may
replace the Letter of Credit Issuer for any reason upon written notice to the Administrative Agent
and the Letter of Credit Issuer. The Borrower may add Letter of Credit Issuers at any time upon
notice to the Administrative Agent. If the Letter of Credit Issuer shall resign or be replaced, or
if the Borrower shall decide to add a new Letter of Credit Issuer under this Agreement, then the
Borrower may appoint from among the Lenders a successor issuer of Letters of Credit or a new Letter
of Credit Issuer, as the case may be, or, with the consent of the Administrative Agent (such
consent not to be unreasonably

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withheld), another successor or new issuer of Letters of Credit,
whereupon such successor issuer shall succeed to the rights, powers and duties of the replaced or
resigning Letter of Credit Issuer under this Agreement and the other Credit Documents, or such new
issuer of Letters of Credit shall be granted the rights, powers and duties of a Letter of Credit
Issuer hereunder, and the term “Letter of Credit Issuer” shall mean such successor or such new
issuer of Letters of Credit effective upon such appointment. At the time such resignation or
replacement shall become effective, the Borrower shall pay to the resigning or replaced Letter of
Credit Issuer all accrued and unpaid fees pursuant to Sections 4.1(c) and
4.1(d). The acceptance of any appointment as a Letter of Credit Issuer hereunder whether
as a successor issuer or new issuer of Letters of Credit in accordance with this Agreement, shall
be evidenced by an agreement entered into by such new or successor issuer of Letters of Credit, in
a form satisfactory to the Borrower and the Administrative Agent and, from and after the effective
date of such agreement, such new or successor issuer of Letters of Credit shall become a “Letter of
Credit Issuer” hereunder. After the resignation or replacement of a Letter of Credit Issuer
hereunder, the resigning or replaced Letter of Credit Issuer shall remain a party hereto and shall
continue to have all the rights and obligations of a Letter of Credit Issuer under this Agreement
and the other Credit Documents with respect to Letters of Credit issued by it prior to such
resignation or replacement, but shall not be required to issue additional Letters of
Credit. In connection with any resignation or replacement pursuant to this clause (a) (but,
in case of any such resignation, only to the extent that a successor issuer of Letters of Credit
shall have been appointed), either (i) the Borrower, the resigning or replaced Letter of Credit
Issuer and the successor issuer of Letters of Credit shall arrange to have any outstanding Letters
of Credit issued by the resigning or replaced Letter of Credit Issuer replaced with Letters of
Credit issued by the successor issuer of Letters of Credit or (ii) the Borrower shall cause the
successor issuer of Letters of Credit, if such successor issuer is reasonably satisfactory to the
replaced or resigning Letter of Credit Issuer, to issue “back-stop” Letters of Credit naming the
resigning or replaced Letter of Credit Issuer as beneficiary for each outstanding Letter of Credit
issued by the resigning or replaced Letter of Credit Issuer, which new Letters of Credit shall have
a face amount equal to the Letters of Credit being back-stopped and the sole requirement for
drawing on such new Letters of Credit shall be a drawing on the corresponding back-stopped Letters
of Credit. After any resigning or replaced Letter of Credit Issuer’s resignation or replacement as
Letter of Credit Issuer, the provisions of this Agreement relating to a Letter of Credit Issuer
shall inure to its benefit as to any actions taken or omitted to be taken by it (A) while it was a
Letter of Credit Issuer under this Agreement or (B) at any time with respect to Letters of Credit
issued by such Letter of Credit Issuer.

     (b) To the extent that there are, at the time of any resignation or replacement as set forth
in clause (a) above, any outstanding Letters of Credit, nothing herein shall be deemed to impact or
impair any rights and obligations of any of the parties hereto with respect to such outstanding
Letters of Credit (including, without limitation, any obligations related to the payment of Fees or
the reimbursement or funding of amounts drawn), except that the Borrower, the resigning or replaced
Letter of Credit Issuer and the successor issuer of Letters of Credit shall have the obligations
regarding outstanding Letters of Credit described in clause (a) above.

     3.7 Role of the Letter of Credit Issuer. (a) The responsibility of the Letter of Credit Issuer to the Borrower in connection
with any draft presented for payment under any Letter of Credit shall, in addition to any payment
obligation expressly provided for in such Letter of Credit, be limited to determining that the
documents (including each draft) delivered under such

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Letter of Credit in connection with such
presentment are in conformity with such Letter of Credit. In addition, each Lender and the
Borrower agree that, in paying any drawing or demand for payment under any Letter of Credit, the
Letter of Credit Issuer of such Letter of Credit shall not have any responsibility to inquire as to
the validity or accuracy of any document presented in connection with such drawing or demand for
payment or the authority of the Person executing or delivering the same. In determining whether to
pay under any Letter of Credit, the relevant Letter of Credit Issuer shall have no obligation
relative to the Borrower other than to confirm that any documents required to be delivered under
such Letter of Credit have been delivered and that they appear to comply on their face with the
requirements of such Letter of Credit. Any action taken or omitted to be taken by the relevant
Letter of Credit Issuer under or in connection with any Letter of Credit issued by it, if taken or
omitted in the absence of gross negligence or willful misconduct, shall not create for the Letter
of Credit Issuer any resulting liability.

     (b) Neither the Letter of Credit Issuer nor any of the respective correspondents, participants
or assignees of the Letter of Credit Issuer shall be liable to any Lender for: (i) any
action taken or omitted in connection herewith in respect of any Letter of Credit at the
request or with the approval or deemed approval of the Required Lenders; (ii) any action taken or
omitted in respect of any Letter of Credit in the absence of gross negligence or willful
misconduct; or (iii) the due execution, effectiveness, validity or enforceability of any Letter of
Credit or any document delivered in connection with the issuance or payment of such Letter of
Credit.

     SECTION 4. Fees; Commitments

     4.1 Fees. (a) (i) The Borrower agrees to pay to the Administrative Agent in Dollars, for the account of
each Lender (in each case pro rata according to the respective Revolving Credit Commitments of all
such Lenders), a commitment fee for each day from and including the Closing Date to but excluding
the Revolving Credit Termination Date. Such commitment fee shall be payable in arrears (x) on the
last day of each March, June, September and December (for the three-month period (or portion
thereof) ended on such day for which no payment has been received) and (y) on the Revolving Credit
Termination Date (for the period ended on such date for which no payment has been received pursuant
to clause (x) above), and shall be computed for each day during such period at a rate per annum
equal to the Commitment Fee Rate in effect on such day on the Available Commitments in effect on
such day.

          (ii) Notwithstanding the foregoing, the Borrower shall not be obligated to pay any amounts to
any Defaulting Lender pursuant to this Section 4.1.

     (b) The Borrower agrees to pay to the Administrative Agent in Dollars for the account of the
Lenders pro rata on the basis of their respective Letter of Credit Exposure, a fee in respect of
each Letter of Credit (the “Letter of Credit Fee”), for the period from and including the
date of issuance of such Letter of Credit to but excluding the termination date of such Letter of
Credit computed at the per annum rate for each day equal to the Applicable LIBOR Margin for
Revolving Credit Loans minus 0.125% per annum on the average daily Stated Amount of such Letter of
Credit. Such Letter of Credit Fees shall be due and payable quarterly in arrears on the last day
of each March, June, September and December and on the date upon which the Total Revolving Credit
Commitment terminates and the Letters of Credit Outstanding shall have been reduced to zero.

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     (c) The Borrower agrees to pay to the Administrative Agent in Dollars for the account of the
Letter of Credit Issuer a fee in respect of each Letter of Credit issued by it (the “Fronting
Fee”), for the period from and including the date of issuance of such Letter of Credit to but
excluding the termination date of such Letter of Credit, computed at the rate for each day equal to
0.125% per annum on the average daily Stated Amount of such Letter of Credit (or at such other rate
per annum as agreed in writing between the Borrower and the Letter of Credit Issuer). Such
Fronting Fees shall be due and payable quarterly in arrears on the last day of each March, June,
September and December and on the date upon which the Total Revolving Credit Commitment terminates
and the Letters of Credit Outstanding shall have been reduced to zero.

     (d) The Borrower agrees to pay directly to the Letter of Credit Issuer in Dollars upon each
issuance of, drawing under, and/or amendment of, a Letter of Credit issued by it such amount as the
Letter of Credit Issuer and the Borrower shall have agreed upon for issuances of, drawings under or
amendments of, letters of credit issued by it.

     (e) The Borrower agrees to pay to each of the Co-Collateral Agents, for its own account, fees
in the amounts and at the times set forth in the Co-Collateral Agent Fee Letters.

     4.2 Voluntary Reduction of Revolving Credit Commitments. Upon at least one Business Day’s prior written notice (or telephonic notice promptly
confirmed in writing) to the Administrative Agent at the Administrative Agent’s Office (which
notice the Administrative Agent shall promptly transmit to each of the Lenders), the Borrower (on
behalf of itself) shall have the right, without premium or penalty, on any day, permanently to
terminate or reduce the Revolving Credit Commitments in whole or in part, provided that (a)
any such reduction shall apply proportionately and permanently to reduce the Revolving Credit
Commitment of each of the Lenders, (b) any partial reduction pursuant to this Section 4.2
shall be in the amount of at least $5,000,000 and (c) after giving effect to such termination or
reduction and to any prepayments of the Loans made on the date thereof in accordance with this
Agreement, the aggregate amount of the Lenders’ Revolving Credit Exposures shall not exceed the
lesser of the Total Revolving Credit Commitment and the Borrowing Base then in effect.

     4.3 Mandatory Termination of Commitments. (a) [Intentionally Omitted.]

     (b) The Total Revolving Credit Commitment shall terminate at 5:00 p.m. (New York City time) on
the Revolving Credit Maturity Date.

     (c) The Swingline Commitment shall terminate at 5:00 p.m. (New York City time) on the
Swingline Maturity Date.

     SECTION 5. Payments

     5.1 Voluntary Prepayments. The Borrower shall have the right to prepay Revolving Credit Loans and Swingline Loans, in
each case, without premium or penalty, in whole or in part from time to time on the following terms
and conditions: (a) the Borrower shall give the Administrative Agent and at the Administrative
Agent’s Office written notice (or telephonic notice promptly confirmed in writing) of its intent to
make such prepayment, the amount of such prepayment and (in the case of LIBOR Loans) the specific
Borrowing(s) pursuant to which

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made, which notice shall be given by the Borrower no later than (i)
in the case of a LIBOR Loans, 12:00 noon (New York City time) three Business Days prior to or (ii)
in the case of ABR Loans, 12:00 noon (New York City time) on, the date of such prepayment and shall
promptly be transmitted by the Administrative Agent to each of the Lenders or the Swingline Lender,
as the case may be; (b) each partial prepayment of any Borrowing of Revolving Credit Loans shall be
in a multiple of $100,000 and
in an aggregate principal amount of at least $1,000,000 and each partial prepayment of
Swingline Loans shall be in a multiple of $10,000 and in an aggregate principal amount of at least
$250,000, provided that no partial prepayment of LIBOR Revolving Credit Loans made pursuant
to a single Borrowing shall reduce the outstanding LIBOR Revolving Credit Loans made pursuant to
such Borrowing to an amount less than the Minimum Borrowing Amount for LIBOR Revolving Credit Loans
and (c) any prepayment of LIBOR Revolving Credit Loans pursuant to this Section 5.1 on any
day other than the last day of an Interest Period applicable thereto shall be subject to compliance
by the Borrower with the applicable provisions of Section 2.11. At the Borrower’s election
in connection with any prepayment pursuant to this Section 5.1, such prepayment shall not
be applied to any Revolving Credit Loan of a Defaulting Lender.

     5.2 Mandatory Prepayments. (a) [Intentionally Omitted].

     (b) Repayment of Revolving Credit Loans. If on any date the aggregate amount of the
Lenders’ Revolving Credit Exposures (all the foregoing, collectively, the “Aggregate Revolving
Credit Outstandings”) exceeds 100% of the Total Revolving Credit Commitment or the Borrowing
Base as then in effect, the Borrower shall forthwith repay on such date first, the
principal amount of all Protective Advances, second, after all Protective Advances have
been paid in full, the principal amount of all Swingline Loans and third, after all
Swingline Loans have been paid in full, Revolving Credit Loans in an amount equal to such excess.
If, after giving effect to the prepayment of all outstanding Protective Advances, Swingline Loans
and Revolving Credit Loans, the Aggregate Revolving Credit Outstandings exceed the Total Revolving
Credit Commitment or Borrowing Base then in effect, the Borrower shall pay to the Administrative
Agent an amount in cash equal to such excess and the Administrative Agent shall instruct the
Collateral Agent to hold such payment for the benefit of the Lenders as security for the
obligations of the Borrower hereunder (including obligations in respect of Letters of Credit
Outstanding) pursuant to a cash collateral agreement to be entered into in form and substance
satisfactory to the Administrative Agent (which shall permit certain Investments in Permitted
Investments satisfactory to the Administrative Agent, until the proceeds are applied to the secured
obligations).

     (c) [Intentionally Omitted].

     (d) [Intentionally Omitted].

     (e) Application to Revolving Credit Loans. With respect to each prepayment of
Revolving Credit Loans required by Section 5.2(b), the Borrower may designate (i) the Types
of Loans that are to be prepaid and the specific Borrowing(s) pursuant to which made and (ii) the
Revolving Credit Loans to be prepaid, provided that (y) each prepayment of any
Loans made pursuant to a Borrowing shall be applied pro rata among such Loans; and (z)
notwithstanding the provisions of the preceding clause (y), no prepayment made pursuant to
Section 5.2(b) of

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Revolving Credit Loans shall be applied to the Revolving Credit Loans of
any Defaulting Lender. In the absence of a designation by the Borrower as described in the
preceding sentence, the Administrative Agent shall, subject to the above, make such designation in
its reasonable discretion with a view, but no obligation, to minimize breakage costs owing under
Section 2.11.

     (f) LIBOR Interest Periods. In lieu of making any payment pursuant to this
Section 5.2 in respect of any LIBOR Loan other than on the last day of the Interest Period
therefor so long as no Event of Default shall have occurred and be continuing, the Borrower at its
option may deposit with the Administrative Agent an amount equal to the amount of the LIBOR Loan to
be prepaid and such LIBOR Loan shall be repaid on the last day of the Interest Period therefor in
the required amount. Such deposit shall be held by the Administrative Agent in a corporate time
deposit account established on terms reasonably satisfactory to the Administrative Agent, earning
interest at the then-customary rate for accounts of such type. Such deposit shall constitute cash
collateral for the Obligations, provided that the Borrower may at any time direct
that such deposit be applied to make the applicable payment required pursuant to this
Section 5.2.

     5.3 Method and Place of Payment. (a) Except as otherwise specifically provided herein, all payments under this
Agreement shall be made by the Borrower, without set-off, counterclaim or deduction of any kind, to
the Administrative Agent for the ratable account of the Lenders entitled thereto, the Letter of
Credit Issuer or the Swingline Lender entitled thereto, as the case may be, not later than 12:00
Noon (New York City time) on the date when due and shall be made in immediately available funds at
the Administrative Agent’s Office or at such other office as the Administrative Agent shall specify
for such purpose by notice to the Borrower, it being understood that written or facsimile notice by
the Borrower to the Administrative Agent to make a payment from the funds in the Borrower’s account
at the Administrative Agent’s Office shall constitute the making of such payment to the extent of
such funds held in such account. All repayments or prepayments of Loans (whether of principal,
interest or otherwise) hereunder shall be made in Dollars. The Administrative Agent will
thereafter cause to be distributed on the same day (if payment was actually received by the
Administrative Agent prior to 2:00 p.m. (New York City time) on such day) like funds relating to
the payment of principal or interest or Fees ratably to the Lenders entitled thereto.

     (b) Any payments under this Agreement that are made later than 2:00 p.m. (New York City time)
shall be deemed to have been made on the next succeeding Business Day. Whenever any payment to be
made hereunder shall be stated to be due on a day that is not a Business Day, the due date thereof
shall be extended to the next succeeding Business Day and, with respect to payments of principal,
interest shall be payable during such extension at the applicable rate in effect immediately prior
to such extension.

     5.4 Net Payments. (a) Any and all payments made by or on behalf of the Borrower or any Guarantor under
this Agreement or any other Credit Document shall be made free and clear of, and without deduction
or withholding for or on account of, any Indemnified Taxes; provided that if the Borrower
or any Guarantor shall be required by law to deduct or withhold any Indemnified Taxes from such
payments, then (i) the sum payable shall be increased as necessary so that after making all
required deductions and withholdings (including deductions or withholdings applicable to additional
sums payable under this Section 5.4) the Administrative

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Agent, the Collateral Agent, the
Letter of Credit Issuer or any Lender, as the case may be, receives an
amount equal to the sum it would have received had no such deductions or withholdings been
made, (ii) the Borrower or any Guarantor shall make such deductions or withholdings and (iii) the
Borrower or any Guarantor shall pay the full amount deducted or withheld to the relevant
Governmental Authority in accordance with applicable law. Whenever any Indemnified Taxes are
payable by the Borrower, as promptly as possible thereafter, the Borrower shall send to the
Administrative Agent for its own account or for the account of such Lender, as the case may be, a
certified copy of an original official receipt (or other evidence acceptable to such Lender, acting
reasonably) received by the Borrower showing payment thereof.

     (b) The Borrower shall pay and shall indemnify and hold harmless the Administrative Agent, the
Collateral Agent, the Letter of Credit Issuer and each Lender with regard to any Other Taxes
(whether or not such Other Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority).

     (c) The Borrower shall indemnify and hold harmless the Administrative Agent, the Collateral
Agent, any Letter of Credit Issuer and each Lender within 15 Business Days after written demand
therefor, for the full amount of any Indemnified Taxes imposed on, or paid by, the Administrative
Agent, the Collateral Agent, the Letter of Credit Issuer or such Lender as the case may be, on or
with respect to any payment by or on account of any obligation of Borrower or any Guarantor under
this Agreement or under any other Credit Document (including Indemnified Taxes imposed or asserted
on or attributable to amounts payable under this Section 5.4) and any reasonable expenses
arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or
legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount
of such payment or liability delivered to the Borrower by a Lender or by the Administrative Agent,
any Letter of Credit Issuer or the Collateral Agent on its own behalf or on behalf of a Lender
shall be conclusive absent manifest error.

     (d) Each Non-U.S. Lender making or acquiring a loan to the Borrower shall:

          (i) deliver to the Borrower and the Administrative Agent two copies of either (x) in the case
of a Non-U.S. Lender claiming exemption from U.S. federal withholding tax under Section 871(h) or
881(c) of the Code with respect to payments of “portfolio interest”, United States Internal Revenue
Service Form W-8BEN (together with a certificate representing that such Non-U.S. Lender is not a
bank for purposes of Section 881(c) of the Code, is not a 10-percent shareholder (within
the meaning of Section 871(h)(3)(B) of the Code) of the Borrower and is not a controlled
foreign corporation related to the Borrower (within the meaning of Section 864(d)(4) of the
Code)), (y) Internal Revenue Service Form W-8BEN or Form W-8ECI, or (z) Internal Revenue Service
Form W-8IMY (together with the forms and certificates described in clauses (x) and (y), as
appropriate), in each case properly completed and duly executed by such Non-U.S. Lender claiming
complete exemption from, or reduced rate of, U.S. Federal withholding tax on payments by the
Borrower under this Agreement; and

          (ii) deliver to the Borrower and the Administrative Agent two further copies of any such form
or certification (or any applicable successor form) on or before the date that

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any such form or
certification expires or becomes obsolete and after the occurrence of any event requiring a change
in the most recent form previously delivered by it to the Borrower;

unless in any such case any Change in Law or other event has occurred prior to the date on which
any such delivery would otherwise be required that renders any such form inapplicable or would
prevent such Lender from duly completing and delivering any such form with respect to it and such
Lender so advises the Borrower and the Administrative Agent. Each Person that shall become a
Participant pursuant to Section 14.6 or a Lender pursuant to Section 14.6 shall,
upon the effectiveness of the related transfer, be required to provide all the forms and statements
required pursuant to this Section 5.4(d), provided that in the case of a
Participant such Participant shall furnish all such required forms and statements to the Lender
from which the related participation shall have been purchased.

     (e) Each Lender that is entitled to an exemption from or reduction of non-U.S. withholding tax
under the laws of the jurisdiction in which any Borrower or Guarantor is organized, or any treaty
to which such jurisdiction is a party, with respect to payments under this Agreement or any other
Credit Document by such Borrower or Guarantor shall deliver to such Borrower or Guarantor (with a
copy to the Administrative Agent), as applicable, at the time or times prescribed by applicable law
and reasonably requested by such Borrower or Guarantor, as applicable, such properly completed and
executed documentation prescribed by applicable law as will permit such payments to be made without
such withholding or at such reduced rate, provided that such Lender is legally entitled to
complete, execute and deliver such documentation, such documentation is necessary in order for such
exemption or reduction to apply and in such Lender’s reasonable judgment the completion, execution
or submission would not materially prejudice the legal position of the Lender. In addition, each
Lender shall deliver such other documentation prescribed by applicable law and reasonably requested
by the Borrower or the Administrative Agent (including an IRS Form W-8 or W-9) as will enable the
Borrower or the Administrative Agent to determine whether such Lender is subject to United States
backup withholding or information reporting requirements.

     (f) If the Borrower determines in good faith that a reasonable basis exists for contesting any
taxes for which indemnification has been demanded hereunder, the relevant Lender, the
Administrative Agent or the Collateral Agent, as applicable, shall cooperate with the Borrower in a
reasonable challenge of such taxes at the Borrower’s expense if so requested by the Borrower. If
any Lender, the Administrative Agent or the Collateral Agent, as applicable, receives a refund of a
tax for which a payment has been made by the Borrower pursuant to this Agreement, which refund in
the good faith judgment of such Lender, the Administrative Agent or the Collateral Agent, as the
case may be, is attributable to such payment made by the Borrower, then the Lender, the
Administrative Agent or the Collateral Agent, as the case may be, shall reimburse the Borrower for
such amount (together with any interest received thereon) as the Lender, Administrative Agent or
the Collateral Agent, as the case may be, determines to be the proportion of the refund as will
leave it, after such reimbursement, in no better or worse position (taking into account expenses or
any taxes imposed on the refund) than it would have been in if the payment had not been required.
A Lender, the Administrative Agent or the Collateral Agent shall claim any refund that it
determines is available to it, unless it concludes in its reasonable discretion that it would be
adversely affected by making such a claim. The Borrower, upon the request of the Lender, the
Administrative Agent or the Collateral Agent, as applicable, agrees to

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repay the amount paid over
to the Borrower to the Lender, the Administrative Agent or the Collateral Agent, as applicable, in
the event the Lender, the Administrative Agent or the Collateral Agent, as applicable, is required
to repay the refund to the Governmental Authority.
Neither the Lender, the Administrative Agent nor the Collateral Agent shall be obliged to
disclose any information regarding its tax affairs or computations to the Borrower in connection
with this paragraph (f) or any other provision of this Section 5.4.

     (g) The agreements in this Section 5.4 shall survive the termination of this Agreement
and the payment of the Loans and all other amounts payable hereunder.

     5.5 Computations of Interest and Fees. (a) Interest on LIBOR Loans and, except as provided in the next succeeding sentence,
ABR Loans shall be calculated on the basis of a 360-day year for the actual days elapsed. Interest
on ABR Loans in respect of which the rate of interest is calculated on the basis of the Prime Rate
and interest on overdue interest shall be calculated on the basis of a 365- (or 366-, as the case
may be) day year for the actual days elapsed.

     (b) Fees and Letters of Credit Outstanding shall be calculated on the basis of a 365- (or
366-, as the case may be) day year for the actual days elapsed.

     5.6 Limit on Rate of Interest.

     (a) No Payment shall exceed Lawful Rate. Notwithstanding any other term of this
Agreement, the Borrower shall not be obliged to pay any interest or other amounts under or in
connection with this Agreement in excess of the amount or rate permitted under or consistent with
any applicable law, rule or regulation.

     (b) Payment at Highest Lawful Rate. If the Borrower is not obliged to make a payment
which it would otherwise be required to make, as a result of Section 5.6(a), the Borrower
shall make such payment to the maximum extent permitted by or consistent with applicable laws,
rules and regulations.

     (c) Adjustment if any Payment exceeds Lawful Rate. If any provision of this Agreement
or any of the other Credit Documents would obligate the Borrower to make any payment of interest or
other amount payable to any Lender in an amount or calculated at a rate which would be prohibited
by any applicable law, rule or regulation, then notwithstanding such provision, such amount or rate
shall be deemed to have been adjusted with retroactive effect to the maximum amount or rate of
interest, as the case may be, as would not be so prohibited by law, such adjustment to be effected,
to the extent necessary, by reducing the amount or rate of interest required to be paid by the
Borrower to the affected Lender under Section 2.8.

Notwithstanding the foregoing, and after giving effect to all adjustments contemplated thereby, if
any Lender shall have received from the Borrower an amount in excess of the maximum permitted by
any applicable law, rule or regulation, then the Borrower shall be entitled, by notice in writing
to the Administrative Agent to obtain reimbursement from that Lender in an amount equal to such
excess, and pending such reimbursement, such amount shall be deemed to be an amount payable by that
Lender to the Borrower.

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     SECTION 6. Conditions Precedent to Initial Borrowing

     The initial Borrowing under this Agreement is subject to the satisfaction of the following
conditions precedent, except as otherwise agreed between the Borrower and the Administrative Agent.

     6.1 Credit Documents. The Administrative Agent shall have received:

     (a) this Agreement, executed and delivered by a duly authorized officer of the Borrower
and each Lender;

     (b) the Guarantee, executed and delivered by a duly authorized officer of each
Guarantor;

     (c) the Security Agreement, executed and delivered by a duly authorized officer of each
grantor party thereto; and

     (d) the Intercreditor Agreement, executed and delivered by a duly authorized officer of
each Credit Party, the Collateral Agent and Lehman Commercial Paper Inc., as collateral
agent under the Term Loan Credit Agreement.

     6.2 [Reserved].

     (b) All documents and instruments, including Uniform Commercial Code or other applicable
personal property and fixture security financing statements, required by law or reasonably
requested by the Collateral Agent, as applicable, to be filed, registered or recorded to create the
Liens intended to be created by the Security Agreement and perfect such Liens to the extent
required by, and with the priority required by, the Security Agreement shall have been filed,
registered or recorded or delivered to the Collateral Agent for filing, registration or recording
(except those to be filed, registered, recorded or delivered pursuant to Section 9.17(c)).

     (c) [Intentionally Omitted].

     (d) The Borrower shall deliver to the Collateral Agent a completed Perfection Certificate,
executed and delivered by an Authorized Officer of the Borrower, together with all attachments
contemplated thereby.

     6.3 Legal Opinions. The Administrative Agent shall have received the executed legal opinions of (a) Simpson
Thacher & Bartlett LLP, special New York counsel to the Borrower, substantially in the form of
Exhibit I-1 and (b) local counsel to the Borrower in certain jurisdictions as may be
reasonably requested by the Administrative Agent, substantially in the form(s) of Exhibit
I-2.
The Borrower, the other Credit Parties and the Administrative Agent hereby instruct such
counsel to deliver such legal opinions.

     6.4 First Amendment to Term Loan Credit Agreement and Intercreditor Agreement. The Borrower
shall deliver to the Collateral Agent a fully-executed copy of the First
Amendment to Term Loan Credit Agreement and the Intercreditor Agreement.

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     6.5 Equity Investments; Existing Indebtedness. (a) Equity Investments in an amount equal to not less than the Minimum Equity Investment
Amount shall have been made and (b) after giving effect to the Transactions, the Borrower and its
Subsidiaries shall have no outstanding Indebtedness other than (A) the loans and other extensions
of credit under the Revolving Credit Loans and the Term Loans and (B) other Indebtedness listed on
Schedule 10.1.

     6.6 Closing Certificates. The Administrative Agent shall have received a certificate of each Credit Party, dated the
Closing Date, substantially in the form of Exhibit J, with appropriate insertions, executed
by the President or any Vice President and the Secretary or any Assistant Secretary of such Credit
Party, and attaching the documents referred to in Section 6.7.

     6.7 Organizational Documents; Incumbency. The Administrative Agent shall have received a copy of (a) each Organizational Document of
each Credit Party certified, to the extent applicable, as of a recent date by the applicable
Governmental Authority, (b) signature and incumbency certificates of the Authorized Officers of
each Credit Party executing the Credit Documents to which it is a party; (c) resolutions of the
Board of Directors or similar governing body of each Credit Party (A) approving and authorizing the
execution, delivery and performance of Credit Documents to which it is a party and (B) in the case
of the Borrower, the extensions of credit contemplated hereunder, certified as of the Closing Date
by its secretary or an assistant secretary as being in full force and effect without modification
or amendment and (d) a good standing certificate from the applicable Governmental Authority of each
Credit Party’s jurisdiction of incorporation, organization or formation.

     6.8 Fees. The Co-Lead Arrangers and the Collateral Agent shall have received the fees to be received
on the Closing Date set forth in the Fee Letter and the Collateral Agent Fee Letter, respectively.
The Lenders shall have received the fees in the amounts previously agreed in writing by the Agents
and such Lenders to be received on the Closing Date and all expenses (including the reasonable
fees, disbursements and other charges of counsel) for which invoices have been presented prior to
the Closing Date shall have been paid.

     6.9 Representations and Warranties. On the Closing Date, the representations and warranties made by the Credit Parties in
Section 8.2, 8.3(a), Section 8.5 and Section 8.7, as they relate to
the Credit Parties at such time, shall be true and correct in all material respects.

     6.10 Related Agreements. Administrative Agent shall have received a fully executed or conformed copy of the Red Man
Transaction Agreement which shall be in full force and effect.

     6.11 Solvency Certificate. On the Closing Date, Administrative Agent shall have received a certificate from an
Authorized Officer of the Borrower, with appropriate attachments and demonstrating that after
giving effect to the consummation of the Transactions, the Borrower on a consolidated basis with
its Subsidiaries is Solvent.

     6.12 Historical Financial Statements. Lenders shall have received the Historical Financial Statements.

     6.13 Red Man Transaction. Concurrently with the initial Credit Event made hereunder, the Red Man Transaction shall
have been consummated in accordance with the terms

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of the Red Man Transaction Agreement, without
giving effect to any amendments or waivers thereto that are materially adverse to the Lenders
without the reasonable consent of the Agents.

     6.14 Insurance. Certificates of insurance evidencing the existence of insurance to be maintained by the
Borrower pursuant to Section 9.3 and, if applicable, the designation of the Collateral
Agent as an additional insured and loss payee as its interest may appear thereunder, or solely as
the additional insured, as the case may be, thereunder (provided that if such endorsement
as additional insured cannot be delivered by the Closing Date, the Administrative Agent may consent
to such endorsement being delivered at such later date as it deems appropriate in the
circumstances).

     6.15 Pro Forma Financial Statements. The Administrative Agent shall have received a pro forma consolidated balance sheet of
Borrower as of September 30, 2007 and a pro forma statement of income for the twelve month period
ending on such balance sheet date, in each case, after giving effect to the Transactions, together
with a certificate of an Authorized Officer of Borrower to the effect that such balance sheets
accurately present the pro forma financial position of Borrower and its Subsidiaries in a manner
consistent with previous disclosures to the Co-Lead Arrangers, unless disclosed in the notes to the
pro forma statements.

     6.16 Borrowing Base Certificate. The Administrative Agent shall have received a Borrowing Base Certificate effective as of
the Business Day preceding the day such initial Loans are to be funded or any such initial Letter
of Credit is to be issued.

     6.17 Initial Borrowings. The aggregate amount of the initial Loans and Letters of Credit hereunder on the Closing
Date shall not exceed $450,000,000.

     SECTION 7. Conditions Precedent to All Credit Events

     The agreement of each Lender to make any Loan requested to be made by it on any date
(excluding Mandatory Borrowings and Protective Advances) and the obligation of the Letter of Credit
Issuer to issue Letters of Credit on any date is subject to the satisfaction of the following
conditions precedent:

     7.1 No Default; Representations and Warranties; Excess Availability. At the time of each Credit Event and also after giving effect thereto (other than any
Credit Event on the Closing Date) (a) no Default or Event of Default shall have occurred and be
continuing, (b) all representations and warranties made by any Credit Party contained herein or in
the other Credit Documents shall be true and correct in all material respects with the same effect
as though such representations and warranties had been made on and as of the date of such Credit
Event (except where such representations and warranties expressly relate to an earlier date, in
which case such representations and warranties shall have been true and correct in all material
respects as of such earlier date), (c) Excess Availability of not less than the amount of the
proposed Borrowing shall exist and (d) if Excess Availability (after giving effect to the proposed
Borrowing) is less than 7% of the then existing Total Revolving Credit Commitment, the Consolidated
Fixed Charge Coverage Ratio, calculated on a Pro Forma Basis on the date of such proposed Borrowing
and for the most recent Test Period, after giving effect to such proposed Borrowing and all
Specified

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Transactions after the beginning of the relevant Test Period but prior to or simultaneous
with such proposed Borrowing, would not be less than 1.0:1.0.

     7.2 Notice of Borrowing; Letter of Credit Request. (a) [Intentionally Omitted].

     (b) Prior to the making of each Revolving Credit Loan (other than any Revolving Credit Loan
made pursuant to Section 3.4(a)) and each Swingline Loan, the Administrative Agent shall
have received a Notice of Borrowing (whether in writing or by telephone) meeting the requirements
of Section 2.3.

     (c) Prior to the issuance of each Letter of Credit, the Administrative Agent and the Letter of
Credit Issuer shall have received a Letter of Credit Request meeting the requirements of
Section 3.2(a).

The acceptance of the benefits of each Credit Event shall constitute a representation and warranty
by each Credit Party to each of the Lenders that all the applicable conditions specified above
exist as of that time.

     SECTION 8. Representations, Warranties and Agreements

     In order to induce the Lenders to enter into this Agreement, to make the Loans and issue or
participate in Letters of Credit as provided for herein, the Borrower (with respect to itself and
its Subsidiaries) makes the following representations and warranties to, and agreements with, the
Lenders, all of which shall survive the execution and delivery of this Agreement and the making of
the Loans and the issuance of the Letters of Credit:

     8.1 Corporate Status. The Borrower and each Material Subsidiary (a) is a duly organized and validly existing
corporation or other entity in good standing under the laws of the jurisdiction of its organization
and has the corporate or other organizational power and authority to own its property and assets
and to transact the business in which it is engaged and (b) has duly qualified and is authorized to
do business and is in good standing in all jurisdictions where it is required to be so qualified,
except where the failure to be so qualified could not reasonably be expected to result in a
Material Adverse Effect.

     8.2 Corporate Power and Authority. Each Credit Party has the corporate or other organizational power and authority to execute,
deliver and carry out the terms and provisions of the Credit Documents to which it is a party and
has taken all necessary corporate or other organizational action to authorize the execution,
delivery and performance of the Credit Documents to which it is a party. Each Credit Party has
duly executed and delivered each Credit Document to which it is a party and each such Credit
Document constitutes the legal, valid and binding obligation of such Credit Party enforceable in
accordance with its terms, except as the enforceability thereof may be limited by bankruptcy,
insolvency or similar laws affecting creditors’ rights generally and subject to general principles
of equity. Each Credit Party is in compliance with all laws, orders, writs and injunctions except
to the extent that failure to do so could not reasonably be expected to have a Material Adverse
Effect.

     8.3 No Violation. Neither the execution, delivery or performance by any Credit Party of the Credit Documents
to which it is a party nor compliance with the terms and provisions

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thereof nor the consummation of
the Red Man Transaction and the other transactions contemplated hereby or thereby will (a)
contravene any applicable provision of any material law, statute, rule, regulation, order, writ,
injunction or decree of any court or governmental instrumentality, (b) result in any breach of any
of the terms, covenants, conditions or provisions of, or constitute a default under, or result in
the creation or imposition of (or the obligation to create or impose) any Lien upon any of the
property or assets of such Credit Party or any of the Restricted Subsidiaries (other than Liens
created under the Credit Documents) pursuant to, the terms of any material indenture, loan
agreement, lease agreement, mortgage, deed of trust, agreement or other material instrument to
which such Credit Party or any of the Restricted Subsidiaries is a party or by which it or any
of its property or assets is bound or (c) violate any provision of the certificate of
incorporation, by-laws or other constitutional documents of such Credit Party or any of the
Restricted Subsidiaries.

     8.4 Litigation. There are no actions, suits or proceedings (including Environmental Claims) pending or, to
the knowledge of the Borrower, threatened with respect to the Borrower or any of its Subsidiaries
that could reasonably be expected to result in a Material Adverse Effect or a Material Adverse
Change.

     8.5 Margin Regulations. Neither Borrower nor any of its Subsidiaries is engaged principally, as one or more of its
important activities, in the business of extending credit for the purpose of purchasing any “margin
stock” as defined in Regulation U. Neither the making of any Loan hereunder nor the use of the
proceeds thereof will violate the provisions of Regulation T, U or X of the Board.

     8.6 Governmental Approvals. The execution, delivery and performance of the Red Man Transaction Agreement or any Credit
Document does not require any consent or approval of, registration or filing with, or any other
action by, any Governmental Authority, except for (i) such as have been obtained or made and are in
full force and effect, (ii) filings and recordings in respect of the Liens created pursuant to the
Security Documents and (iii) such licenses, approvals, authorizations or consents the failure to
obtain or make could not reasonably be expected to have a Material Adverse Effect.

     8.7 Investment Company Act. No Credit Party is an “investment company”, or a company “controlled” by an “investment
company”, within the meaning of the Investment Company Act of 1940, as amended.

     8.8 True and Complete Disclosure. (a) None of the factual information and data (taken as a whole) heretofore or
contemporaneously furnished by or on behalf of the Borrower, any of the Subsidiaries or any of
their respective authorized representatives in writing to the Administrative Agent and/or any
Lender on or before the Closing Date (including (i) the Confidential Information Memorandum and
(ii) all information contained in the Credit Documents) for purposes of or in connection with this
Agreement or any transaction contemplated herein contained any untrue statement or omitted to state
any material fact necessary to make such information and data (taken as a whole) not misleading at
such time in light of the circumstances under which such information or data was furnished, it
being understood and agreed that for purposes of this Section 8.8(a), such factual
information and data shall not include projections and pro forma financial information.

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     (b) The projections and pro forma financial information contained in the information and data
referred to in paragraph (a) above were based on good faith estimates and assumptions
believed by such Persons to be reasonable at the time made, it being recognized by the Lenders
that such projections as to future events are not to be viewed as facts and that actual results
during the period or periods covered by any such projections may differ from the projected results.

     8.9 Financial Condition; Financial Statements. The (a) unaudited historical consolidated financial information of the Borrower as set
forth in the Confidential Information Memorandum, and (b) the Historical Financial Statements, in
each case present or will, when provided, present fairly in all material respects the combined
financial position of the Borrower and its Subsidiaries at the respective dates of said
information, statements and results of operations for the respective periods covered thereby. The
financial statements referred to in clause (b) of this Section 8.9 have been prepared in
accordance with GAAP, consistently applied (except to the extent provided in the notes to said
financial statements), and the audit reports accompanying such financial statements are not subject
to any qualification as to the scope of the audit or the status of the Borrower as a going concern.
There has been no Material Adverse Change since December 31, 2006; provided, that on the
Closing Date, the representation in this sentence shall not apply to the Red Man Group.

     8.10 Tax Returns and Payments. The Borrower and each of the Subsidiaries has filed all federal income tax returns and all
other material tax returns, domestic and foreign, required to be filed by it and has paid all
income and other material Taxes payable by it that have become due, other than those (a) not yet
delinquent or (b) contested in good faith as to which adequate reserves have been provided in
accordance with GAAP and which could not reasonably be expected to result in a Material Adverse
Effect. The Borrower and each of the Subsidiaries have paid, or have provided adequate reserves
(in the good faith judgment of the management of the Borrower) in accordance with GAAP for the
payment of, all material federal, state, provincial and foreign income taxes applicable for all
prior fiscal years and for the current fiscal year to the Closing Date.

     8.11 Compliance with ERISA. (a) Each Plan is in compliance with ERISA, the Code and any applicable Requirement of
Law; no Reportable Event has occurred (or is reasonably likely to occur) with respect to any Plan;
no Plan is insolvent or in reorganization (or is reasonably likely to be insolvent or in
reorganization), and no written notice of any such insolvency or reorganization has been given to
the Borrower, any Subsidiary or any ERISA Affiliate; no Plan (other than a multiemployer plan) has
an accumulated or waived funding deficiency (or is reasonably likely to have such a deficiency);
none of the Borrower, any Subsidiary or any ERISA Affiliate has incurred (or is reasonably likely
expected to incur) any liability to or on account of a Plan pursuant to Section 409, 502(i),
502(l), 515, 4062, 4063, 4064, 4069, 4201 or 4204 of ERISA or Section 4971 or 4975 of the Code or
has been notified in writing that it will incur any liability under any of the foregoing Sections
with respect to any Plan; no proceedings have been instituted (or are reasonably likely to be
instituted) to terminate or to reorganize any Plan or to appoint a trustee to administer any Plan,
and no written notice of any such proceedings has been given to the Borrower, any Subsidiary or any
ERISA Affiliate; and no lien imposed under the
Code or ERISA on the assets of the Borrower or any Subsidiary or any ERISA Affiliate exists
(or is reasonably likely to exist) nor has the Borrower, any Subsidiary

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or any ERISA Affiliate been
notified in writing that such a lien will be imposed on the assets of the Borrower, any Subsidiary
or any ERISA Affiliate on account of any Plan, except to the extent that a breach of any of the
representations, warranties or agreements in this Section 8.11 would not result,
individually or in the aggregate, in an amount of liability that would be reasonably likely to have
a Material Adverse Effect. No Plan (other than a multiemployer plan) has an Unfunded Current
Liability that would, individually or when taken together with any other liabilities referenced in
this Section 8.11, be reasonably likely to have a Material Adverse Effect. With respect to
Plans that are multiemployer plans (as defined in Section 3(37) of ERISA), the representations and
warranties in this Section 8.11(a), other than any made with respect to (i) liability under
Section 4201 or 4204 of ERISA or (ii) liability for termination or reorganization of such Plans
under ERISA, are made to the best knowledge of the Borrower.

     (b) All Foreign Plans are in compliance with, and have been established, administered and
operated in accordance with, the terms of such Foreign Plans and applicable law, except for any
failure to so comply, establish, administer or operate the Foreign Plans as would not reasonably be
expected to have a Material Adverse Effect. All contributions or other payments which are due with
respect to each Foreign Plan have been made in full and there are no funding deficiencies
thereunder, except to the extent any such events would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

     8.12 Subsidiaries. Schedule 8.12 lists each Subsidiary of the Borrower (and the direct and indirect
ownership interest of the Borrower therein), in each case existing on the Closing Date. To the
knowledge of the Borrower, after due inquiry, each Material Subsidiary as of the Closing Date has
been so designated on Schedule 8.12.

     8.13 Intellectual Property. The Borrower and each of the Restricted Subsidiaries have obtained all intellectual
property, free from burdensome restrictions, that are necessary for the operation of their
respective businesses as currently conducted and as proposed to be conducted, except where the
failure to obtain any such rights could not reasonably be expected to have a Material Adverse
Effect.

     8.14 Environmental Laws. (a) Except as could not reasonably be expected to have a Material Adverse Effect: (i)
the Borrower and each of the Subsidiaries and all Real Estate are, and have been, in compliance
with, and possess all permits, licenses and registrations required pursuant to, all Environmental
Laws; (ii) neither the Borrower, nor any of the Subsidiaries is subject to any Environmental Claim
or any other liability under any Environmental Law; (iii) the Borrower and its Subsidiaries are not
conducting, or required to conduct, any investigation, removal, remedial or other corrective action
pursuant to any Environmental Law at any location, including any Real Estate currently owned or
leased by the Borrower or any of its Subsidiaries, and any real
property to which the Borrower or any of its Subsidiaries may have sent Hazardous Materials;
and (iv) no underground storage tank or related piping, or any impoundment or other disposal area
containing Hazardous Materials is located at, on or under any Real Estate currently owned or leased
by the Borrower or any of its Subsidiaries.

     (b) Neither the Borrower, nor any of the Subsidiaries has treated, stored, transported,
released or disposed or arranged for disposal or transport for disposal of Hazardous Materials at,

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on, under or from any currently or formerly owned or leased Real Estate or facility in a manner
that could reasonably be expected to have a Material Adverse Effect.

     8.15 Properties. The Borrower and each of the Subsidiaries have good and marketable title to or leasehold
interest in all properties that are necessary for the operation of their respective businesses as
currently conducted and as proposed to be conducted, free and clear of all Liens (other than any
Liens permitted by this Agreement or the Term Loan Credit Agreement) and except where the failure
to have such good title could not reasonably be expected to have a Material Adverse Effect.

     8.16 Solvency. On the Closing Date (after giving effect to the Transactions), immediately following the
making of each Loan and after giving effect to the application of the proceeds of such Loans, the
Borrower on a consolidated basis with its Subsidiaries will be Solvent.

     SECTION 9. Affirmative Covenants

     The Borrower hereby covenants and agrees that on the Closing Date and thereafter, until the
Commitments, the Swingline Commitment and each Letter of Credit have terminated and the Loans and
Unpaid Drawings, together with interest, Fees and all other Obligations incurred hereunder, are
paid in full:

     9.1 Information Covenants. The Borrower will furnish to the Administrative Agent:

     (a) Annual Financial Statements. As soon as available and in any event on or
before the date on which such financial statements are required to be filed with the SEC
(or, if such financial statements are not required to be filed with the SEC, on or before
the date that is 105 days after the end of each such fiscal year), the consolidated balance
sheet of the Borrower and the Restricted Subsidiaries as at the end of such fiscal year, and
the related consolidated statement of operations and consolidated statement of cash flows
for such fiscal year, setting forth comparative consolidated figures for the preceding
fiscal year, and certified by independent certified public accountants of recognized
national standing whose opinion shall not be qualified as to the scope of audit or as to the
status of the Borrower or any of the Material Subsidiaries (or group of Subsidiaries that
together would constitute a Material Subsidiary) as a going concern, together in any event
with a certificate of such accounting firm stating that in the course
of its regular audit of the business of the Borrower and the Material Subsidiaries,
which audit was conducted in accordance with generally accepted auditing standards, such
accounting firm has obtained no knowledge of any Default or Event of Default relating to
Section 10.9 that has occurred and is continuing or, if in the opinion of such
accounting firm such a Default or Event of Default has occurred and is continuing, a
statement as to the nature thereof which shall be certified by a Financial Officer of the
Borrower.

     (b) Quarterly Financial Statements. As soon as available and in any event on
or before the date on which such financial statements are required to be filed with the SEC
with respect to each of the first three quarterly accounting periods in each fiscal year of
the Borrower (or, if such financial statements are not required to be filed with the SEC,

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on or before the date that is sixty (60) days after the end of each such quarterly accounting
period), the consolidated balance sheet of (i) the Borrower and the Restricted Subsidiaries
and (ii) the Borrower and its Subsidiaries, in each case as at the end of such quarterly
period and the related consolidated statement of operations for such quarterly accounting
period and for the elapsed portion of the fiscal year ended with the last day of such
quarterly period, and the related consolidated statement of cash flows for the elapsed
portion of the fiscal year ended with the last day of such quarterly period, and setting
forth comparative consolidated figures for the related periods in the prior fiscal year or,
in the case of such consolidated balance sheet, for the last day of the prior fiscal year,
all of which shall be certified by a Financial Officer of the Borrower, subject to changes
resulting from audit and normal year-end audit adjustments.

     (c) Monthly Financial Statements. As soon as available and in any event on or
before the date that is thirty (30) days after the end of each fiscal month of Borrower, the
consolidated balance sheet of (i) the Borrower and the Restricted Subsidiaries and (ii) the
Borrower and its Subsidiaries, in each case as at the end of such fiscal month and the
related consolidated statement of operations for such fiscal month and for the elapsed
portion of the fiscal year ended with the last day of such fiscal month, and the related
consolidated statement of cash flows for the elapsed portion of the fiscal year ended with
the last day of such fiscal month, and setting forth comparative consolidated figures for
the related periods in the prior fiscal year or, in the case of such consolidated balance
sheet, for the last day of the prior fiscal year, all of which shall be certified by a
Financial Officer of the Borrower, subject to changes resulting from audit and normal
year-end audit adjustments.

     (d) Budgets. Not more than sixty (60) days after the commencement of each
fiscal year of the Borrower, a budget of the Borrower in reasonable detail for such fiscal
year as customarily prepared by management of the Borrower for their internal use consistent
in scope with the financial statements provided pursuant to Section 9.1(a), setting
forth the principal assumptions upon which such budgets are based.

     (e) Officer’s Certificates. At the time of the delivery of the financial
statements provided for in Sections 9.1(a) and (b), a certificate of an
Authorized Officer of the Borrower to the effect that no Default or Event of Default exists
or, if any Default or Event of Default does exist, specifying the nature and extent thereof,
which certificate shall set forth (i) the Consolidated Fixed Charge Coverage Ratio (and
accompanying
calculations) as at the end of such fiscal year or period, as the case may be, (ii) a
specification of any change in the identity of the Restricted Subsidiaries and Unrestricted
Subsidiaries as at the end of such fiscal year or period, as the case may be, from the
Restricted Subsidiaries and Unrestricted Subsidiaries, respectively, provided to the Lenders
on the Closing Date or the most recent fiscal year or period, as the case may be, (iii) the
then applicable Status and (iv) the amount of any Pro Forma Adjustment not previously set
forth in a Pro Forma Adjustment Certificate or any change in the amount of a Pro Forma
Adjustment set forth in any Pro Forma Adjustment Certificate previously provided and, in
either case, in reasonable detail, the calculations and basis therefor. At the time of the
delivery of the financial statements provided for in Section 9.1(a), (i) a
certificate of an Authorized Officer of the Borrower setting forth in reasonable detail the

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Applicable Amount as at the end of the fiscal year to which such financial statements relate
and (ii) a certificate of an Authorized Officer of the Borrower setting forth the
information required pursuant to Section 1(a) of the Perfection Certificate or
confirming that there has been no change in such information since the Closing Date or the
date of the most recent certificate delivered pursuant to this subsection (e)(ii), as the
case may be.

     (f) Borrowing Base Certificates. As soon as available but in any event within
twenty-five (25) days of the end of each calendar month, a Borrowing Base Certificate (which
shall be calculated in a consistent manner with the most recently delivered Borrowing Base
Certificate) and supporting information in connection therewith as of the end of such month,
provided that the Borrower will be required to furnish a Borrowing Base Certificate
and supporting information in connection therewith within four (4) days of the end of each
calendar week as of the end of such calendar week if (A) a Cash Dominion Event is continuing
or (B) an Event of Default has occurred and is continuing and the Administrative Agent so
requests.

     (g) Collateral Reports. As soon as available but in any event within
twenty-five (25) days of the end of each calendar month, in each case as of the period then
ended:

     (i) a detailed aging of the Borrower’s and Guarantors’ Accounts reconciled to
the Borrowing Base Certificate delivered as of such date in a form reasonably
acceptable to the Administrative Agent;

     (ii) a schedule detailing the Borrower’s and Guarantors’ Inventory, in form
reasonably satisfactory to the Administrative Agent, (1) by location (showing
Inventory located with a third party under any consignment, bailee arrangement, or
warehouse agreement, in each case, to the extent the Cost of Inventory at such
location exceeds $50,000 in the aggregate which Inventory shall be valued at Cost
and adjusted for Reserves as the Administrative Agent has previously indicated to
the Borrower are deemed by the Administrative Agent to be appropriate in their
Permitted Discretion, (2) including a report of material variances or other results
of Inventory counts performed by the Borrower or any Guarantor since the last
Inventory schedule, and (3) reconciled to the Borrowing Base Certificate delivered
as of such date;

     (iii) a worksheet of calculations prepared by the Borrower to determine
Eligible Accounts and Eligible Inventory, such worksheets detailing the Accounts and
Inventory excluded from Eligible Accounts and Eligible Inventory and the reason for
such exclusion; and

     (iv) a schedule and aging of the Borrower’s and each Guarantor’s accounts
payable presented at the vendor level.

     (h) Notice of Default or Litigation. Promptly after an Authorized Officer of
the Borrower or any of the Subsidiaries obtains knowledge thereof, notice of (i) the
occurrence of any event that constitutes a Default or Event of Default, which notice shall

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specify the nature thereof, the period of existence thereof and what action the Borrower
proposes to take with respect thereto and (ii) any litigation or governmental proceeding
pending against the Borrower or any of the Subsidiaries that could reasonably be expected to
result in a Material Adverse Effect or a Material Adverse Change.

     (i) Environmental Matters. The Borrower will promptly advise the
Administrative Agent in writing after obtaining knowledge of any one or more of the
following environmental matters, unless such environmental matters could not, individually
or when aggregated with all other such matters, be reasonably expected to result in a
Material Adverse Effect:

     (i) Any pending or threatened Environmental Claim against any Credit Party or
any current or former Real Estate;

     (ii) Any condition or occurrence on or otherwise related to any current or
former Real Estate that (x) could reasonably be expected to result in noncompliance
by any Credit Party with any applicable Environmental Law or (y) could reasonably be
anticipated to form the basis of an Environmental Claim against any Credit Party or
any current or former Real Estate;

     (iii) Any condition or occurrence on or otherwise related to any current or
former Real Estate that could reasonably be anticipated to cause such Real Estate to
be subject to any restrictions on the ownership, occupancy, use or transferability
of such Real Estate under any Environmental Law; and

     (iv) The conduct or need to conduct of any investigation, or any removal,
remedial or other corrective action in response to the actual or alleged presence,
release or threatened release of any Hazardous Material on, at, under or from any
current or former Real Estate or otherwise related to Environmental Law.

All such notices shall describe in reasonable detail the nature of the claim, investigation,
condition, occurrence or removal or remedial action and the response thereto. The term
“Real Estate” shall mean land, buildings and improvements owned or leased by any Credit
Party, but excluding all operating fixtures and equipment, whether or not incorporated into
improvements.

     (j) Other Information. Promptly upon filing thereof, copies of any filings
(including on Form 10-K, 10-Q or 8-K) or registration statements with, and reports to, the
SEC or any analogous Government Authority in any relevant jurisdiction by the Borrower or
any of the Subsidiaries (other than amendments to any registration statement (to the extent
such registration statement, in the form it becomes effective, is delivered to the Lenders
and the Administrative Agent), exhibits to any registration statement and, if applicable,
any registration statements on Form S-8) and copies of all financial statements, proxy
statements, notices and reports that the Borrower or any of the Subsidiaries shall send to
the holders of any publicly issued debt of the Borrower and/or any of the Subsidiaries in
their capacity as such holders (in each case to the extent not

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theretofore delivered to the
Lenders and the Administrative Agent pursuant to this Agreement) and, with reasonable
promptness, such other information (financial or otherwise) as the Administrative Agent on
its own behalf or on behalf of any Lender (acting through the Administrative Agent) may
reasonably request in writing from time to time.

     (k) Pro Forma Adjustment Certificate. Not later than any date on which
financial statements are delivered with respect to any Test Period in which a Pro Forma
Adjustment is made as a result of the consummation of the acquisition of any Acquired Entity
or Business by the Borrower or any Restricted Subsidiary for which there shall be a Pro
Forma Adjustment, a certificate of an Authorized Officer of the Borrower setting forth the
amount of such Pro Forma Adjustment and, in reasonable detail, the calculations and basis
therefor.

     (l) Information Regarding Collateral. Reasonably promptly but not later than
sixty (60) days following the occurrence of any change referred to in subclauses (i) through
(iv) below, written notice of any change (i) in the legal name of any Credit Party, (ii) in
the jurisdiction of organization or location of any Credit Party for purposes of the Uniform
Commercial Code, (iii) in the identity or type of organization of any Credit Party or (iv)
in the Federal Taxpayer Identification Number or organizational identification number of any
Credit Party. The Borrower shall also promptly provide the Collateral Agent with certified
Organizational Documents reflecting any of the changes described in the first sentence of
this clause (l).

     Notwithstanding the foregoing, the obligations in paragraphs (a) and (b) of this Section
9.1 may be satisfied with respect to financial information of the Borrower and the Restricted
Subsidiaries by furnishing (A) the applicable financial statements of any direct or indirect parent
of the Borrower or (B) the Borrower’s (or any direct or indirect parent thereof’s), as applicable,
Form 10-K or 10-Q, as applicable, filed with the SEC; provided that, with respect
to each of clauses (A) and (B) above, to the extent such information relates to a parent of the
Borrower, such information is accompanied by consolidating information that explains in reasonable
detail the differences between the information relating to such parent, on the one hand, and the
information relating to the Borrower and the Restricted Subsidiaries on a standalone basis, on the
other hand.

     9.2 Books, Records and Inspections. The Borrower will, and will cause each of the Subsidiaries to, permit officers and
designated representatives of the Administrative Agents or the Required Lenders to visit and
inspect any of the properties or assets of the Borrower and any such Subsidiary in whomsoever’s
possession to the extent that it is within such party’s control to permit such inspection, and to
examine the books and records of the Borrower and any such Subsidiary and discuss the affairs,
finances and accounts of the Borrower and of any such Subsidiary with, and be advised as to the
same by, its and their officers and independent accountants, all at such reasonable times and
intervals and to such reasonable extent as the Administrative Agents or the Required Lenders may
desire; provided that, excluding any such visits and inspections during the
continuation of an Event of Default, only the Administrative Agent (or any of their respective
representatives or independent contractors) on behalf of the Required Lenders may exercise rights
of the Administrative Agent and the Lenders under this

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Section 9.2 and the Administrative
Agent shall not exercise such rights more often than two times during any calendar year absent the
existence of an Event of Default and only one such time shall be at the Borrower’s expense unless
Excess Availability is less than 7% of the then Existing Total Revolving Credit Commitments, in
which case the second time shall also be at the Borrower’s expense; provided further that when an
Event of Default exists, the Administrative Agent (or any of its representatives or independent
contractors) or any representative of the Required Lenders may do any of the foregoing at the
expense of the Borrower at any time during normal business hours and upon reasonable advance
notice. The Administrative Agent and the Required Lenders shall give the Borrower the opportunity
to participate in any discussions with the Borrower’s independent public accountants.

     9.3 Maintenance of Insurance. The Borrower will, and will cause each of the Material Subsidiaries to, at all times
maintain in full force and effect, with insurance companies that the Borrower believes (in the good
faith judgment of the management of the Borrower) are financially sound and responsible at the time
the relevant coverage is placed or renewed, insurance in at least such amounts (after giving effect
to any self-insurance which the Borrower believes (in the good faith judgment of management of the
Borrower) is reasonable and prudent in light of the size and nature of its business) and against at
least such risks (and with such risk retentions) as the Borrower believes (in the good faith
judgment of management of the Borrower) is reasonable and prudent in light of the size and nature
of its business; and will furnish to the Administrative Agent (for delivery to the Lenders), upon
written request from the Administrative Agent, information presented in reasonable detail as to the
insurance so carried. Each such policy of insurance shall (i) name Collateral Agent, on behalf of
Secured Parties as an additional insured thereunder as its interests may appear and (ii) in the
case of each casualty insurance policy, contain a loss payable clause or endorsement reasonably
satisfactory in form and substance to Collateral Agent, that names Collateral Agent, on behalf of
Lenders as the loss payee thereunder and provides for at least thirty days’ prior written notice to
Collateral Agent of any modification or cancellation of such policy.

     9.4 Payment of Taxes. Each Credit Party will pay and discharge, and will cause each of the Subsidiaries to pay
and discharge, all material taxes, assessments and governmental charges or levies imposed upon
it or upon its income or profits, or upon any properties belonging to it, prior to the date on
which material penalties attach thereto, and all lawful material claims that, if unpaid, could
reasonably be expected to become a material Lien upon any properties of each Credit Party or any of
the Restricted Subsidiaries, provided that no Credit Party, nor any of the Subsidiaries
shall be required to pay any such tax, assessment, charge, levy or claim that is being contested in
good faith and by proper proceedings if it has maintained adequate reserves (in the good faith
judgment of the management of the Borrower) with respect thereto in accordance with GAAP and the
failure to pay could not reasonably be expected to result in a Material Adverse Effect.

     9.5 Consolidated Corporate Franchises. The Borrower will do, and will cause each Material Subsidiary to do, or cause to be done,
all things necessary to preserve and keep in full force and effect its existence, corporate rights
and authority, except to the extent that the failure to do so could not reasonably be expected to
have a Material Adverse Effect; provided, however, that the Borrower and its
Subsidiaries may consummate any transaction permitted under Section 10.3, 10.4 or
10.5.

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     9.6 Compliance with Statutes, Regulations, etc. The Borrower will, and will cause each Subsidiary to, comply with all applicable laws,
rules, regulations and orders applicable to it or its property, including all governmental
approvals or authorizations required to conduct its business, and to maintain all such governmental
approvals or authorizations in full force and effect, in each case except where the failure to do
so, individually or in the aggregate, could not reasonably be expected to have a Material Adverse
Effect.

     9.7 ERISA. Promptly after the Borrower or any Subsidiary or any ERISA Affiliate knows or has reason to
know of the occurrence of any of the following events that, individually or in the aggregate
(including in the aggregate such events previously disclosed or exempt from disclosure hereunder,
to the extent the liability therefor remains outstanding), would be reasonably likely to have a
Material Adverse Effect, the Borrower will deliver to each of the Lenders a certificate of an
Authorized Officer or any other senior officer of the Borrower setting forth details as to such
occurrence and the action, if any, that the Borrower, such Subsidiary or such ERISA Affiliate is
required or proposes to take, together with any notices (required, proposed or otherwise) given to
or filed with or by the Borrower, such Subsidiary, such ERISA Affiliate, the PBGC, a Plan
participant (other than notices relating to an individual participant’s benefits) or the Plan
administrator with respect thereto: that a Reportable Event has occurred; that an accumulated
funding deficiency has been incurred or an application is to be made to the Secretary of the
Treasury for a waiver or modification of the minimum funding standard (including any required
installment payments) or an extension of any amortization period under Section 412 of the
Code with respect to a Plan; that a Plan having an Unfunded Current Liability has been or is to be
terminated, reorganized, partitioned or declared insolvent under Title IV of ERISA (including the
giving of written notice thereof); that a Plan has an Unfunded Current Liability that has or will
result in a lien under ERISA or the Code; that proceedings will be or have been instituted to
terminate a Plan having an Unfunded Current Liability (including the giving of written notice
thereof); that a proceeding has been instituted against the Borrower, a Subsidiary or an ERISA
Affiliate pursuant to Section 515 of ERISA to collect a delinquent contribution to a Plan; that the
PBGC has notified the Borrower, any Subsidiary or any ERISA Affiliate of its intention to appoint a
trustee to administer any Plan; that the Borrower, any Subsidiary or any ERISA Affiliate has failed
to make a required installment or other payment pursuant to Section 412 of the Code with respect to
a Plan; or that the Borrower, any Subsidiary or any ERISA Affiliate has incurred or will incur (or
has been notified in writing that it will incur) any liability (including any contingent or
secondary liability) to or on account of a Plan pursuant to Section 409, 502(i), 502(l), 515, 4062,
4063, 4064, 4069, 4201 or 4204 of ERISA or Section 4971 or 4975 of the Code.

     9.8 Maintenance of Properties. The Borrower will, and will cause each of the Restricted Subsidiaries to, keep and maintain
all property material to the conduct of its business in good working order and condition, ordinary
wear and tear excepted, except to the extent that the failure to do so could reasonably be expected
to have a Material Adverse Effect.

     9.9 Transactions with Affiliates. The Borrower will conduct, and cause each of the Restricted Subsidiaries to conduct, all
transactions with any of its Affiliates (other than the Borrower or the Restricted Subsidiaries) on
terms that are substantially as favorable to the Borrower or such Restricted Subsidiary as it would
obtain in a comparable arm’s-length transaction with a Person that is not an Affiliate,
provided that the foregoing restrictions shall not

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apply to (a) the payment of customary
fees to the Sponsors for management, consulting and financial services rendered to the Borrower and
the Subsidiaries and customary investment banking fees paid to the Sponsors for services rendered
to the Borrower and the Subsidiaries in connection with divestitures, acquisitions, financings and
other transactions, (b) transactions permitted by Section 10.6, (c) Transaction Expenses,
(d) the issuance of Stock or Stock Equivalents of the Borrower to the management of the Borrower
(or any direct or indirect parent thereof) or any of its Subsidiaries in connection with the
Transactions or pursuant to arrangements described in clause (f) of this Section 9.9, (e)
loans and other transactions by the Borrower and the Restricted Subsidiaries to the extent
permitted under Section 10, (f) employment and severance arrangements between the Borrower
and the Restricted Subsidiaries and their respective officers and employees in the ordinary course
of business, (g) payments by the Borrower (and any direct or indirect parent thereof) and the
Restricted Subsidiaries pursuant to the tax sharing agreements among the Borrower (and any such
parent) and the Restricted Subsidiaries on customary terms to the extent attributable to the
ownership or operation of the Borrower and the Restricted Subsidiaries, (h) the payment of
customary fees and reasonable out of pocket costs to, and indemnities provided on behalf of,
directors, managers, consultants, officers and employees of the Borrower and the Restricted
Subsidiaries in the ordinary course of business to the extent attributable to the ownership or
operation of the Borrower and the Restricted Subsidiaries, (i) transactions pursuant to permitted
agreements in existence on the Closing Date and set forth on Schedule 9.9 or any amendment
thereto to the extent such an amendment is not adverse, taken as a whole, to the Lenders in any
material respect, and (j) customary payments by the Borrower and any Restricted Subsidiaries to the
Sponsors made for any financial advisory, financing, underwriting or placement services or
in respect of other investment banking activities (including in connection with acquisitions
or divestitures), which payments are approved by the majority of the members of the board of
directors or a majority of the disinterested members of the board of directors of the Borrower (or
any direct or indirect parent thereof), in good faith.

     9.10 End of Fiscal Years; Fiscal Quarters. The Borrower will, for financial reporting purposes, cause (a) each of its, and each of its
Subsidiaries’, fiscal years to end on December 31 of each year and (b) each of its, and each of its
Subsidiaries’, fiscal quarters to end on dates consistent with such fiscal year-end and the
Borrower’s past practice; provided, however, that the Borrower may, upon written
notice to the Administrative Agent, change the financial reporting convention specified above to
any other financial reporting convention reasonably acceptable to the Administrative Agent, in
which case the Borrower and the Administrative Agent will, and are hereby authorized by the Lenders
to, make any adjustments to this Agreement that are necessary in order to reflect such change in
financial reporting.

     9.11 Additional Guarantors and Grantors. Except as set forth in Section 10.1(B)(j) or 10.1(B)(k) and subject to any
applicable limitations set forth in the Security Documents, the Borrower will cause each direct or
indirect Subsidiary (other than any Excluded Subsidiary) formed or otherwise purchased or acquired
after the date hereof (including pursuant to a Permitted Acquisition) to execute a supplement to
each of the Guarantee and the Security Agreement, substantially in the form of Annex B or
Annex 1, as applicable, to the respective agreement in order to become a Guarantor under
the Guarantee and a grantor under Security Agreement or, to the extent reasonably requested by the
Collateral Agent, enter into a new Security Agreement in form and substance reasonably satisfactory
to the Collateral Agent.

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     9.12 [Intentionally Omitted.]

     9.13 Use of Proceeds. (a) The Borrower will use the proceeds of all Revolving Loans made on the Closing Date
to effect the Red Man Transaction and Debt Repayment and to pay Transaction Expenses; and

     (b) The Borrower will use Letters of Credit and the proceeds of all other Revolving Credit
Loans and Swingline Loans for general corporate purposes (including Permitted Acquisitions and
permitted dividends) and to pay Transaction Expenses.

     9.14 Appraisals; Field Examinations. At any time that the Administrative Agent or Collateral Agent reasonably requests, the
Borrower will, and will cause each Borrowing Base Guarantor to, permit Administrative Agent,
Collateral Agent or professionals (including consultants, accountants, lawyers and appraisers)
retained by the Administrative Agent or Collateral Agent, on reasonable prior notice and
during normal business hours and with reasonable frequency, to conduct appraisals and commercial
finance examinations or updates thereof including, without limitation, of (i) the Borrower’s
practices in the computation of the Borrowing Base and (ii) the assets included in the Borrowing
Base and related financial information such as, but not limited to, sales, gross margins, payables,
accruals and reserves, in each case, prepared on a basis reasonably satisfactory to the
Administrative Agent and Collateral Agent and at the sole expense of the Borrower;
provided, however, if no Default or Event of Default shall have occurred and be continuing,
only one (1) such appraisal and one (1) such examination or update per fiscal year shall be
conducted at Borrower’s expense; provided, further, however, that if Excess
Availability is less than 7% of the then existing Total Revolving Credit Commitment, one (1)
additional appraisal and one (1) additional examination or update per fiscal year may be conducted
without cost to the Borrower.

     9.15 Interest Rate Protection. No later than 90 days following the Closing Date and at all times thereafter until the
third anniversary of the Closing Date, Borrower shall obtain and cause to be maintained protection
against fluctuations in interest rates pursuant to one or more Interest Rate Agreements in order to
ensure that no less than 50% of the aggregate principal amount of the total Indebtedness of the
Borrower and its Subsidiaries then outstanding is either (i) subject to such Interest Rate
Agreements or (ii) Indebtedness that bears interest at a fixed rate.

     9.16 Collateral Access Agreements. Borrower and each Guarantor shall use commercially reasonable efforts to obtain a
Collateral Access Agreement with respect to Inventory which is located in any location leased by
such Credit Party, located in any third-party warehouse or in the possession of a bailee, in each
case, to the extent the Cost of Inventory at such location exceeds $50,000 in the aggregate.

     9.17 Further Assurances. (a) The Borrower will, and will cause each other Credit Party to, execute any and all
further documents, financing statements, agreements and instruments, and take all such further
actions (including the filing and recording of financing statements and other documents), which may
be required under any applicable law, or which the Collateral Agent or the Required Lenders may
reasonably request, in order to grant, preserve, protect and perfect the validity and priority of
the security interests created or intended to be

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created by the Security Agreement, all at the
expense of the Borrower and the Restricted Subsidiaries.

     (b) If any assets are acquired by the Borrower or any other Credit Party after the Closing
Date (other than assets constituting Collateral under the Security Agreement that become subject to
the Lien of the Security Agreement upon acquisition thereof) that are of the nature secured by the
Security Agreement, the Borrower will notify the Collateral Agent, and, if requested by the
Collateral Agent, the Borrower will cause such assets to be subjected to a Lien securing the
applicable Obligations and will take, and cause the other Credit Parties to take, such actions as
shall be necessary or reasonably requested by the Collateral Agent to grant and perfect
such Liens consistent with the applicable requirements of the Security Documents, including
actions described in clause (a) of this Section 9.17, all at the expense of the Borrower.

     (c) The Borrower agrees that it will, or will cause its relevant Subsidiaries to, complete
each of the actions described on Schedule 9.17(c) as soon as commercially reasonable and by
no later than the date set forth in Schedule 9.17(c) with respect to such action or such
later date as the Administrative Agent may reasonably agree.

     (d) The Borrower agrees that it will cause Red Man Distributors to comply with the terms of
this Agreement and the other Loan Documents and will not permit Red Man Distributors to amend,
restate, supplement or otherwise modify its Organizational Documents in a manner that amends the
subrogation rights or is materially adverse to the Lenders (other than as required by the
applicable Governmental Authority to become certified as a minority business enterprise) without
obtaining the prior written consent of the Administrative Agent and Collateral Agent to such
amendment, restatement, supplement or other modification.

     SECTION 10. Negative Covenants

     The Borrower (for itself and each of its Restricted Subsidiaries) hereby covenants and agrees
that on the Closing Date (immediately after consummation of the Red Man Transaction) and
thereafter, until the Commitments, the Swingline Commitment and each Letter of Credit have
terminated and the Loans and Unpaid Drawings, together with interest, Fees and all other
Obligations incurred hereunder, are paid in full:

     10.1 Limitation on Indebtedness. (A) The Borrower will not, and will not permit any of the Restricted Subsidiaries to,
incur, create, assume or permit to exist, directly or indirectly (collectively, “incur” and
collectively, an “incurrence”), any Indebtedness; provided, however, that
Borrower and the Restricted Subsidiaries will be entitled to incur Indebtedness if the Consolidated
Total Debt to Consolidated EBITDA Ratio at the time such additional Indebtedness is incurred would
have been no greater than 5.50 to 1.0 determined on a Pro Forma Basis (including a pro forma
application of the net proceeds therefrom), as if the additional Indebtedness had been incurred and
the application of proceeds therefrom had occurred at the beginning of the most recent Test Period;
provided, that such additional Indebtedness shall not be secured Indebtedness unless (i)
the Secured Leverage Ratio at the time such additional Indebtedness is incurred would have been no
greater than 5.0 to 1.0, determined on a Pro Forma Basis in the manner set forth above, (ii) such
secured Indebtedness has a later final maturity and a longer weighted average life than the Term
Loans, (iii) the Liens securing such Indebtedness

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shall be subordinate to the Liens securing the
Obligations and the “Obligations” (as defined in the Term Loan Credit Agreement) and (iv) the
holders of such Indebtedness, the Collateral Agent and the collateral agent under the Term Loan
Credit Agreement shall have entered into an intercreditor agreement in a form reasonably
satisfactory to Collateral Agent.

     (B) The limitation set forth in clause (A) of this Section 10.1 will not prohibit any
of the following:

     (a) Indebtedness arising under the Credit Documents and the Term Loan Agreement;

     (b) Indebtedness of (i) the Borrower or any Subsidiary Guarantor owing to the Borrower or any
Restricted Subsidiary, (ii) any Subsidiary who is not a Guarantor owing to any other Subsidiary who
is not a Guarantor and (iii) subject to compliance with Section 10.5, any Subsidiary who is
not a Guarantor owing to the Borrower or any Subsidiary Guarantor;

     (c) Indebtedness in respect of any bankers’ acceptance, bank guarantees, letter of credit,
warehouse receipt or similar facilities entered into in the ordinary course of business (including
in respect of workers compensation claims, health, disability or other employee benefits or
property, casualty or liability insurance or self-insurance or other Indebtedness with respect to
reimbursement-type obligations regarding workers compensation claims);

     (d) subject to compliance with Section 10.5, Guarantee Obligations incurred by (i)
Restricted Subsidiaries in respect of Indebtedness of the Borrower or other Restricted Subsidiaries
that is permitted to be incurred under this Agreement and (ii) the Borrower in respect of
Indebtedness of the Restricted Subsidiaries that is permitted to be incurred under this Agreement,
provided that, except as provided in clauses (j) and (k) below, there shall be no Guarantee
(a) by a Restricted Subsidiary that is not a Guarantor of any Indebtedness of the Borrower and (b)
in respect of any Permitted Additional Debt, unless such Guarantee is made by a Guarantor and, in
the case of Permitted Additional Debt that is subordinated, is subordinated;

     (e) Guarantee Obligations (i) incurred in the ordinary course of business in respect of
obligations of (or to) suppliers, customers, franchisees, lessors and licensees or (ii) or
otherwise constituting Investments permitted by Section 10.5;

     (f) (i) Indebtedness (including Indebtedness arising under Capital Leases) incurred within 270
days of the acquisition, construction or improvement of fixed or capital assets to finance the
acquisition, construction or improvement of such fixed or capital assets, (ii) Indebtedness arising
under Capital Leases entered into in connection with Permitted Sale Leasebacks and (iii)
Indebtedness arising under Capital Leases, other than Capital Leases in effect on the date hereof
and Capital Leases entered into pursuant to subclauses (i) and (ii) above, provided, that the
aggregate amount of Indebtedness incurred pursuant to this subclause (iii) shall not exceed
$20,000,000 at any time outstanding, and (iv) any modification, replacement, refinancing,
refunding, renewal or extension of any Indebtedness specified in subclause (i), (ii) or (iii)
above, provided that, except to the extent otherwise expressly permitted hereunder, the
principal amount thereof (including pursuant to clause (iii)) does not exceed the principal amount
thereof outstanding immediately prior to such modification, replacement, refinancing, refunding,
renewal or extension, except by an amount equal to the unpaid accrued

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interest and premium thereon
plus other reasonable amounts paid and fees and expenses incurred in connection with such
modification, replacement, refinancing, refunding, renewal or extension;

     (g) Indebtedness outstanding on the date hereof (i) listed on Schedule 10.1 and any
modification, replacement, refinancing, refunding, renewal or extension thereof, provided
that, except to the extent otherwise expressly permitted hereunder, (x) the principal amount
thereof does not exceed the principal amount thereof outstanding immediately prior to such
modification, replacement, refinancing, refunding, renewal or extension, except by an amount equal
to the unpaid accrued interest and premium thereon plus other reasonable amounts paid and fees and
expenses incurred in connection with such modification, replacement, refinancing,
refunding, renewal or extension plus an amount equal to any existing commitment
unutilized and letters of credit undrawn thereunder and (y) the direct and contingent obligors with
respect to such Indebtedness are not changed and (ii) owing by the Borrower to any Restricted
Subsidiary or by any Restricted Subsidiary to the Borrower or any other Restricted Subsidiary;

     (h) Indebtedness in respect of Hedge Agreements;

     (i) [Reserved];

     (j) (i) Indebtedness of a Person or Indebtedness attaching to assets of a Person that, in
either case, becomes a Restricted Subsidiary (or is a Restricted Subsidiary that survives a merger
with such Person) or Indebtedness attaching to assets that are acquired by the Borrower or any
Restricted Subsidiary, in each case after the Closing Date as the result of a Permitted
Acquisition, provided, that (w) such Indebtedness existed at the time such Person became a
Restricted Subsidiary or at the time such assets were acquired and, in each case, was not created
in anticipation thereof, (x) such Indebtedness is not guaranteed in any respect by the Borrower or
any Restricted Subsidiary (other than by any such Person that so becomes a Restricted Subsidiary or
is the survivor of a merger with such Person and any of its Subsidiaries) and (y) such Person
executes a supplement to each of the Guarantee and the Security Agreement to the extent required
under Section 9.11, provided that the requirements of this subclause (y) shall not
apply to (I) an aggregate amount at any time outstanding of up to the greater of (A) $300,000,000
or (B) 10% of Consolidated Total Assets at the time of the incurrence of such Indebtedness
(less all Indebtedness as to which the proviso to clause (k)(i)(y) below then applies) at
such time of such Indebtedness (and modifications, replacements, refinancings, refundings, renewals
and extensions thereof pursuant to subclause (ii) below) and (II) any Indebtedness of the type that
could have been incurred under Section 10.1(B)(f), and (ii) any modification, replacement,
refinancing, refunding, renewal or extension of any Indebtedness specified in subclause (i) above,
provided that, except to the extent otherwise expressly permitted hereunder, (X) the
principal amount of any such Indebtedness does not exceed the principal amount thereof outstanding
immediately prior to such modification, replacement, refinancing, refunding, renewal or extension
except by an amount equal to the unpaid accrued interest and premium thereon plus other
reasonable amounts paid and fees and expenses incurred in connection with such modification,
replacement, refinancing, refunding, renewal or extension plus an amount equal to any
existing commitment unutilized and letters of credit undrawn thereunder and (Y) the direct and
contingent obligors with respect to such Indebtedness are not changed;

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     (k) (i) Permitted Additional Debt of the Borrower or any Restricted Subsidiary incurred to
finance a Permitted Acquisition, provided that (x) if such Indebtedness is incurred by a
Restricted Subsidiary that is not a Guarantor, such Indebtedness is not guaranteed by the Borrower
or any Guarantor except as permitted by Section 10.5(g) and (y) such acquired Person
executes a supplement to the Guarantee and the Security Agreement (or alternative guarantee and
security arrangements in relation to the Obligations reasonably acceptable to the Collateral Agent)
to the extent required under Section 9.11, provided that the requirements of this
subclause (y) shall not apply to an aggregate amount at any time outstanding of up to the greater
of (A) $300,000,000 or (B) 10% of Consolidated Total Assets at the time of the incurrence of such
Indebtedness (less all Indebtedness as to which clause (I) of the proviso to clause
(j)(i)(y) above then applies) at such time of the aggregate of such Indebtedness (and
modifications, replacements, refinancings, refundings, renewals and extensions thereof pursuant to
subclause (ii) below), and (ii) any modification, replacement, refinancing, refunding, renewal or
extension of any Indebtedness specified in subclause (i) above, provided that, except to
the extent otherwise expressly permitted hereunder, (x) the principal amount of any such
Indebtedness does not exceed the principal amount thereof outstanding immediately prior to such
modification, replacement, refinancing, refunding, renewal or extension except by an amount equal
to the unpaid accrued interest and premium thereon plus other reasonable amounts paid and
fees and expenses incurred in connection with such modification, replacement, refinancing,
refunding, renewal or extension plus an amount equal to any existing commitment unutilized
and letters of credit undrawn thereunder and (y) the direct and contingent obligors with respect to
such Indebtedness are not changed;

     (l) Indebtedness in respect of performance bonds, bid bonds, appeal bonds, surety bonds and
completion guarantees and similar obligations not in connection with money borrowed, in each case
provided in the ordinary course of business, including those incurred to secure health, safety and
environmental obligations in the ordinary course of business;

     (m) (i) Indebtedness incurred in connection with any Permitted Sale Leaseback
(provided that the Net Cash Proceeds thereof are promptly applied to the prepayment of the
Term Loans to the extent required by Section 5.2 of the Term Loan Credit Agreement) and
(ii) any refinancing, refunding, renewal or extension of any Indebtedness specified in subclause
(i) above, provided that, except to the extent otherwise permitted hereunder, (x) the
principal amount of any such Indebtedness is not increased above the principal amount thereof
outstanding immediately prior to such refinancing, refunding, renewal or extension and (y) the
direct and contingent obligors with respect to such Indebtedness are not changed;

     (n) (i) additional Indebtedness and (ii) any refinancing, refunding, renewal or extension of
any Indebtedness specified in subclause (i) above; provided that the aggregate amount of
Indebtedness incurred and remaining outstanding pursuant to this clause (n) shall not
 at any time exceed the greater of (w) $150,000,000 and (x) 5% of Consolidated Total Assets at
the time of the incurrence of such Indebtedness; provided, however, not more than
the greater of (y) $50,000,000 and (z) 1.5% of Consolidated Total Assets at the time of the
incurrence of such Indebtedness in aggregate principal amount of Indebtedness of the Borrower or
any Subsidiary Guarantor incurred under this clause (n) shall be secured;

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     (o) Indebtedness in respect of Permitted Additional Debt to the extent that the Net Cash
Proceeds therefrom are, immediately after the receipt thereof, applied to the prepayment of Term
Loans in accordance with Section 5.2 of the Term Loan Credit Agreement;

     (p) Indebtedness in respect of overdraft facilities, employee credit card programs and other
cash management arrangements in the ordinary course of business;

     (q) unsecured Indebtedness in respect of obligations of the Borrower or any Restricted
Subsidiary to pay the deferred purchase price of goods or services or progress payments in
connection with such goods and services, provided that such obligations are incurred in
connection with open accounts extended by suppliers on customary trade terms (which require that
all such payments be made within 60 days after the incurrence of the related obligation) in the
ordinary course of business and not in connection with the borrowing of money or Hedging
Agreements;

     (r) Indebtedness arising from agreements of the Borrower or any Restricted Subsidiary
providing for indemnification, adjustment of purchase price or similar obligations, in each case
entered into in connection with Permitted Acquisitions, other Investments and the disposition of
any business, assets or Capital Stock permitted hereunder, other than Guarantee Obligations
incurred by any Person acquiring all or any portion of such business, assets or Capital Stock for
the purpose of financing such acquisition, provided that (i) such Indebtedness is not
reflected on the balance sheet of the Borrower or any Restricted Subsidiary (contingent obligations
referred to in a footnote to financial statements and not otherwise reflected on the balance sheet
will not be deemed to be reflected on such balance sheet for purposes of this clause (i)) and (ii)
the maximum assumable liability in respect of all such Indebtedness shall at no time exceed the
gross proceeds, including non-cash proceeds (the fair market value of such non-cash proceeds being
measured at the time received and without giving effect to any subsequent changes in value),
actually received by the Borrower and the Restricted Subsidiaries in connection with such
disposition;

     (s) Indebtedness of the Borrower or any Restricted Subsidiary consisting of (i) obligations to
pay insurance premiums or (ii) take or pay obligations contained in supply agreements, in each case
arising in the ordinary course of business and not in connection with the borrowing of money or
Hedging Agreements;

     (t) Indebtedness representing deferred compensation to employees of the Borrower (or any
direct or indirect parent thereof) and the Restricted Subsidiaries incurred in the ordinary course
of business;

     (u) Unsecured, subordinated Indebtedness consisting of promissory notes in an aggregate
principal amount of not more than $10,000,000 issued by the Borrower or any
Guarantor to current or former officers, managers, consultants, directors and employees (or
their respective spouses, former spouses, successors, executors, administrators, heirs, legatees or
distributees) to finance the purchase or redemption of Stock or Stock Equivalents of the Borrower
(or any direct or indirect parent thereof) permitted by Section 10.6;

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     (v) Indebtedness consisting of obligations of the Borrower or the Restricted Subsidiaries
under deferred compensation or other similar arrangements incurred by such Person in connection
with the Transactions and Permitted Acquisitions or any other Investment expressly permitted
hereunder;

     (w) cash management obligations and other Indebtedness in respect of netting services,
automatic clearinghouse arrangements, overdraft protections and similar arrangements in each case
in connection with deposit accounts; and

     (x) all premiums (if any), interest (including post-petition interest), fees, expenses,
charges and additional or contingent interest on obligations described in clauses (a) through (w)
above.

     10.2 Limitation on Liens. The Borrower will not, and will not permit any of the
Restricted Subsidiaries to, create, incur, assume or suffer to exist any Lien upon any property or
assets of any kind (real or personal, tangible or intangible) of the Borrower or any Restricted
Subsidiary, whether now owned or hereafter acquired, except:

     (a) Liens arising under the Credit Documents;

     (b) Permitted Liens;

     (c) (i) Liens securing Indebtedness permitted pursuant to Section 10.1(B)(f),
provided that (x) such Liens attach at all times only to the assets so financed except for
accessions to such property Indebtedness and the proceeds and the products thereof and (y) that
individual financings of equipment provided by one lender may be cross collateralized to other
financings of equipment provided by such lender, and (ii) Liens on the assets of Restricted
Subsidiaries that are not Guarantors securing Indebtedness permitted pursuant to Section
10.1(B)(n) and (p);

     (d) Liens existing on the date hereof and listed on Schedule 10.2;

     (e) the replacement, extension or renewal of any Lien permitted by clauses (a) through (d)
above and clause (f) of this Section 10.2 upon or in the same assets (other than after
acquired property that is affixed or incorporated into the property covered by such Lien or
financed by Indebtedness permitted under Section 10.1(B) and proceeds and products thereof)
theretofore subject to such Lien or the replacement, extension or renewal (without increase in the
amount or change in any direct or contingent obligor except to the extent otherwise permitted
hereunder) of the Indebtedness secured thereby;

     (f) Liens existing on the assets of any Person that becomes a Restricted Subsidiary (or is a
Restricted Subsidiary that survives a merger with such Person), or existing on assets
acquired, pursuant to a Permitted Acquisition or other Investment to the extent the Liens on
such assets secure Indebtedness permitted by Section 10.1(B)(j) or other obligations
permitted by this Agreement, provided that such Liens attach at all times only to the same
assets that such Liens (other than after acquired property that is affixed or incorporated into the
property covered by such Lien or financed by Indebtedness permitted under Section 10.1(B)
and proceeds and products thereof) attached to, and secure only the same Indebtedness or
obligations (or any modifications, refinancings, extensions, renewals, refundings or replacements
of such

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Indebtedness permitted by Section 10.1(B)) that such Liens secured, immediately prior to
such Permitted Acquisition or other Investment, as applicable;

     (g) (i) Liens placed upon the Stock and Stock Equivalents of any Restricted Subsidiary
acquired pursuant to a Permitted Acquisition to secure Indebtedness incurred pursuant to
Section 10.1(B)(k) in connection with such Permitted Acquisition and (ii) Liens placed upon
the assets of such Restricted Subsidiary to secure a guarantee by, or Indebtedness of, such
Restricted Subsidiary of any Indebtedness of the Borrower or any other Restricted Subsidiary
incurred pursuant to Section 10.1(B)(k);

     (h) Liens securing Indebtedness or other obligations of the Borrower or a Subsidiary in favor
of the Borrower or any Subsidiary that is a Guarantor and Liens securing Indebtedness or other
obligations of any Subsidiary that is not a Guarantor in favor of any Subsidiary that is not a
Guarantor;

     (i) Liens (i) of a collection bank arising under Section 4-210 of the Uniform
Commercial Code on items in the course of collection, (ii) attaching to commodity trading accounts
or other commodities brokerage accounts incurred in the ordinary course of business; and (iii) in
favor of a banking institution arising as a matter of law encumbering deposits (including the right
of set-off) and which are within the general parameters customary in the banking industry;

     (j) Liens (i) on cash advances in favor of the seller of any property to be acquired in an
Investment permitted pursuant to Sections 10.5 to be applied against the purchase price for
such Investment, and (ii) consisting of an agreement to sell, transfer, lease or otherwise dispose
of any property in a transaction permitted under Section 10.4, in each case, solely to the
extent such Investment or sale, disposition, transfer or lease, as the case may be, would have been
permitted on the date of the creation of such Lien;

     (k) Liens arising out of conditional sale, title retention, consignment or similar
arrangements for sale of goods entered into by the Borrower or any of the Restricted Subsidiaries
in the ordinary course of business permitted by this Agreement;

     (l) Liens deemed to exist in connection with Investments in repurchase agreements permitted
under Section 10.5;

     (m) Liens encumbering reasonable customary initial deposits and margin deposits and similar
Liens attaching to commodity trading accounts or other brokerage accounts incurred in the ordinary
course of business and not for speculative purposes;

     (n) Liens that are contractual rights of set-off (i) relating to the establishment of
depository relations with banks not given in connection with the issuance of Indebtedness, (ii)
relating to pooled deposit or sweep accounts of the Borrower or any Restricted Subsidiary to permit
satisfaction of overdraft or similar obligations incurred in the ordinary course of business of the
Borrower and the Restricted Subsidiaries or (iii) relating to purchase orders and other agreements
entered into with customers of the Borrower or any Restricted Subsidiary in the ordinary course of
business;

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     (o) Liens solely on any cash earnest money deposits made by the Borrower or any of the
Restricted Subsidiaries in connection with any letter of intent or purchase agreement permitted
hereunder;

     (p) Liens on insurance policies and the proceeds thereof securing the financing of the
premiums with respect thereto;

     (q) Liens securing obligations under the Term Loan Agreement; and

     (r) additional Liens so long as the aggregate principal amount of the obligations so secured
does not exceed the greater of (y) $50,000,000 at any time outstanding and (z) 1.5% of Consolidated
Total Assets at the time of the incurrence of such obligations.

     10.3 Limitation on Fundamental Changes. Except as expressly permitted by Section
10.4 or 10.5, the Borrower will not, and will not permit any of the Restricted
Subsidiaries to, enter into any merger, consolidation or amalgamation, or liquidate, wind up or
dissolve itself (or suffer any liquidation or dissolution), or convey, sell, lease, assign,
transfer or otherwise dispose of, all or substantially all its business units, assets or other
properties, except that:

     (a) so long as no Default or Event of Default would result therefrom, any Subsidiary of
the Borrower or any other Person may be merged or consolidated with or into the Borrower,
provided that (i) the Borrower shall be the continuing or surviving corporation or
(ii) if the Person formed by or surviving any such merger or consolidation is not the
Borrower (such Person, the “Successor Borrower”), (A) the Successor Borrower shall
be an entity organized or existing under the laws of the United States, any state thereof,
the District of Columbia or any territory thereof, (B) the Successor Borrower shall
expressly assume all the obligations of the Borrower under this Agreement and the other
Credit Documents pursuant to a supplement hereto or thereto in form reasonably satisfactory
to the Administrative Agent, (C) each Guarantor, unless it is the other party to such merger
or consolidation, shall have by a supplement to the Guarantee confirmed that its Guarantee
shall apply to the Successor Borrower’s obligations under this Agreement, (D) each
Subsidiary grantor and each Subsidiary pledgor, unless it is the other party to such merger
or consolidation, shall have by a supplement to the Security Agreement confirmed that its
obligations thereunder shall apply to the Successor Borrower’s obligations under this
Agreement, and (E) the Borrower shall have delivered to the Administrative Agent (x) an
officer’s certificate stating that such merger or consolidation and such supplements to this
Agreement
preserve the enforceability of the Guarantee and the perfection and priority of the
Liens under the Security Documents and (y) if reasonably requested by the Administrative
Agent, an opinion of counsel to the effect that such merger or consolidation does not
violate this Agreement or any other Credit Document, and provided further
that if the foregoing are satisfied, the Successor Borrower will succeed to, and be
substituted for, such Borrower under this Agreement;

     (b) any Subsidiary of the Borrower or any other Person may be merged, amalgamated or
consolidated with or into any one or more Subsidiaries of the Borrower, provided
that (i) in the case of any merger, amalgamation or consolidation involving one

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or more
Restricted Subsidiaries, (A) a Restricted Subsidiary shall be the continuing or surviving
corporation or (B) the Borrower shall take all steps necessary to cause the Person formed by
or surviving any such merger, amalgamation or consolidation (if other than a Restricted
Subsidiary) to become a Restricted Subsidiary, (ii) in the case of any merger, amalgamation
or consolidation involving one or more Guarantors, a Guarantor shall be the continuing or
surviving corporation or the Person formed by or surviving any such merger, amalgamation or
consolidation (if other than a Guarantor) shall execute a supplement to the Guarantee
Agreement and the Security Agreement in form and substance reasonably satisfactory to the
Collateral Agent in order to become a Guarantor and grantor of Collateral for the benefit
of the Secured Parties, (iii) no Default or Event of Default would result from the
consummation of such merger, amalgamation or consolidation, (iv) the Borrower shall be in
compliance, on a Pro Forma Basis after giving effect to such merger, amalgamation or
consolidation, with the covenant set forth in Section 10.9 of the Term Loan
Agreement, as such covenant is recomputed as at the last day of the most recently ended Test
Period under such Section as if such merger or consolidation had occurred on the first day
of such Test Period, and (v) the Borrower shall have delivered to the Administrative Agent
an officer’s certificate stating that such merger, amalgamation or consolidation and such
supplements to any Security Document preserve the enforceability of the Guarantee and the
perfection and priority of the Liens under the Security Documents;

     (c) any Restricted Subsidiary that is not a Guarantor may sell, lease, transfer or
otherwise dispose of any or all of its assets (upon voluntary liquidation or otherwise) to
the Borrower, a Guarantor or any other Restricted Subsidiary;

     (d) any Guarantor may sell, lease, transfer or otherwise dispose of any or all of its
assets (upon voluntary liquidation or otherwise) to the Borrower or any other Guarantor; and

     (e) any Restricted Subsidiary may liquidate or dissolve if (i) the Borrower determines
in good faith that such liquidation or dissolution is in the best interests of the Borrower
and is not materially disadvantageous to the Lenders and (ii) to the extent such Restricted
Subsidiary is a Credit Party, any assets or business not otherwise disposed of or
transferred in accordance with Section 10.4 or 10.5, or, in the case of any
such business, discontinued, shall be transferred to, or otherwise owned or conducted by,
another Credit Party after giving effect to such liquidation or dissolution.

     10.4 Limitation on Sale of Assets. The Borrower will not, and will not permit any of
the Restricted Subsidiaries to, (i) convey, sell, lease, assign, transfer or otherwise dispose of
any of its property, business or assets (including receivables and leasehold interests), whether
now owned or hereafter acquired (other than any such sale, transfer, assignment or other
disposition resulting from any casualty or condemnation, of any assets of the Borrower or the
Restricted Subsidiaries) or (ii) sell to any Person (other than the Borrower or a Guarantor) any
shares owned by it of any Restricted Subsidiary’s Stock and Stock Equivalents, except that:

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     (a) the Borrower and the Restricted Subsidiaries may sell, transfer or otherwise
dispose of (i) used or surplus equipment, vehicles, inventory and other assets in the
ordinary course of business and (ii) Permitted Investments;

     (b) the Borrower and the Restricted Subsidiaries may sell, transfer or otherwise
dispose of other assets (other than accounts receivable) (each a “Disposition”) for
fair value, provided that:

     (i) with respect to any Disposition pursuant to this clause (b) for a purchase
price in excess of $10,000,000, the Borrower or a Restricted Subsidiary shall
receive not less than 75% of such consideration in the form of cash or Permitted
Investments; provided that for the purposes of this clause (i):

     (A) any liabilities (as shown on the Borrower’s or such Restricted
Subsidiary’s most recent balance sheet provided hereunder or in the
footnotes thereto) of the Borrower or such Restricted Subsidiary, other than
liabilities that are by their terms subordinated to the payment in cash of
the Obligations, that are assumed by the transferee with respect to the
applicable Disposition and for which the Borrower and all of the Restricted
Subsidiaries shall have been validly released by all applicable creditors in
writing,

     (B) any securities received by the Borrower or such Restricted
Subsidiary from such transferee that are converted by the Borrower or such
Restricted Subsidiary into cash (to the extent of the cash received) within
180 days following the closing of the applicable Disposition, and

     (C) any Designated Non-Cash Consideration received by the Borrower or
such Restricted Subsidiary in respect of such Disposition having an
aggregate fair market value, taken together with all other Designated
Non-Cash Consideration received pursuant to this Section 10.4(b) and
Section 10.4(c) that is at that time outstanding, not in excess of
6% of Consolidated Total Assets at the time of the receipt of such
Designated Non-Cash Consideration, with the fair market value of each item
of Designated Non-Cash Consideration being measured at the time received and
without giving effect to subsequent changes in value,

shall in each case under this clause (i) be deemed to be cash;

     (ii) [intentionally omitted];

     (iii) with respect to any such sale, transfer or disposition (or series of
related sales, transfers or dispositions), the Borrower shall be in compliance, on a
Pro Forma Basis after giving effect to such sale, transfer or disposition, with the
covenant set forth in Section 10.9 of the Term Loan Agreement), as such
covenant is recomputed as at the last day of the most recently ended Test Period
under such Section as if such sale, transfer or disposition had occurred on the
first day of such Test Period; and

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     (iv) after giving effect to any such sale, transfer or disposition, no Default
or Event of Default shall have occurred and be continuing;

     (c) the Borrower and the Restricted Subsidiaries may make sales of assets to the
Borrower or to any Restricted Subsidiary, provided that with respect to any such
sales to Restricted Subsidiaries that are not Guarantors:

     (i) such sale, transfer or disposition shall be for fair value;

     (ii) with respect to any Disposition pursuant to this clause (c) for a purchase
price in excess of $10,000,000, the Borrower or a Restricted Subsidiary shall
receive not less than 75% of such consideration in the form of cash or Permitted
Investments; provided that for the purposes of this clause (ii):

     (A) any liabilities (as shown on the Borrower’s or such Restricted
Subsidiary’s most recent balance sheet provided hereunder or in the
footnotes thereto) of the Borrower or such Restricted Subsidiary, other than
liabilities that are by their terms subordinated to the payment in cash of
the Obligations, that are assumed by the transferee with respect to the
applicable Disposition and for which the Borrower and all of the Restricted
Subsidiaries shall have been validly released by all applicable creditors in
writing,

     (B) any securities received by the Borrower or such Restricted
Subsidiary from such transferee that are converted by the Borrower or such
Restricted Subsidiary into cash (to the extent of the cash received) within
180 days following the closing of the applicable Disposition,

     (C) any Designated Non-Cash Consideration received by the Borrower or
such Restricted Subsidiary in respect of such Disposition having an
aggregate fair market value, taken together with all other Designated
Non-Cash Consideration received pursuant to this Section 10.4(c) and
Section 10.4(b) that is at that time outstanding, not in excess of
6% of Consolidated Total Assets at the time of the receipt of such
Designated Non-Cash Consideration, with the fair market value of each item
of Designated Non-Cash Consideration being measured at the time received and
without giving effect to subsequent changes in value,

shall in each case under this clause (ii) be deemed to be cash; and

     (iii) [intentionally omitted].

     (d) the Borrower and any Restricted Subsidiary may effect any transaction permitted by
Section 10.3, 10.5 or 10.6;

     (e) in addition to selling or transferring accounts receivable pursuant to the other
provisions hereof, the Borrower and the Restricted Subsidiaries may sell or discount without
recourse accounts receivable arising in the ordinary course of business

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in connection with
the compromise or collection thereof consistent with such Person’s current credit and
collection practices;

     (f) the Borrower and the Restricted Subsidiaries may lease, sublease, license or
sublicense (on a non-exclusive basis with respect to any intellectual property) real,
personal or intellectual property in the ordinary course of business;

     (g) sales, transfers and other dispositions of property to the extent that (i) such
property is exchanged for credit against the purchase price of similar replacement property
or (ii) the proceeds of such Disposition are promptly applied to the purchase price of such
replacement property;

     (h) sales, transfers and other dispositions of property pursuant to Permitted Sale
Leaseback transactions;

     (i) Dispositions of Non-Core Assets; and

     (j) sales, transfers and other dispositions of Investments in joint ventures to the
extent required by, or made pursuant to customary buy/sell arrangements between, the joint
venture parties set forth in joint venture arrangements and similar binding arrangements.

     10.5 Limitation on Investments. The Borrower will not, and will not permit any of the
Restricted Subsidiaries to, make any advance, loan, extensions of credit or capital contribution
to, or purchase any stock, bonds, notes, debentures or other securities of or any assets of, or
make any other Investment in, any Person, except:

     (a) extensions of trade credit and asset purchases in the ordinary course of business;

     (b) Permitted Investments;

     (c) loans and advances to officers, directors and employees of the Borrower (or any
direct or indirect parent thereof) or any of its Subsidiaries (i) for reasonable and
customary business-related travel, entertainment, relocation and analogous ordinary business
purposes (including employee payroll advances), (ii) in connection with such
Person’s purchase of Stock or Stock Equivalents of the Borrower (or any direct or
indirect parent thereof) to the extent that the amount of such loans and advances are
contributed to the Borrower in cash and (iii) for purposes not described in the foregoing
clauses (i) and (ii), in an aggregate principal amount outstanding not to exceed $5,000,000;

     (d) Investments existing on, or contemplated as of, the date hereof and listed on
Schedule 10.5 and any extensions, renewals or reinvestments thereof, so long as the
aggregate amount of all Investments pursuant to this clause (d) is not increased at any time
above the amount of such Investments existing on the date hereof;

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     (e) Investments received in connection with the bankruptcy or reorganization of
suppliers or customers and in settlement of delinquent obligations of, and other disputes
with, customers arising in the ordinary course of business or upon foreclosure with respect
to any secured Investment or other transfer of title with respect to any secured Investment;

     (f) Investments to the extent that payment for such Investments is made solely with
Stock or Stock Equivalents of the Borrower;

     (g) Investments (i) in any Guarantor or the Borrower, (ii) in Restricted Subsidiaries
that are not Guarantors, in an aggregate amount pursuant to this clause (ii) not to exceed
(x) the greater of (A) $50,000,000 and (B) 1.5% of Consolidated Total Assets at the time of
the incurrence of such Investment plus (y) the Applicable Amount at such time, and
(iii) in Restricted Subsidiaries that are not Guarantors so long as such Investment is part
of a series of simultaneous Investments by Restricted Subsidiaries in other Restricted
Subsidiaries that result in the proceeds of the initial Investment being invested in one or
more Guarantors;

     (h) Investments constituting Permitted Acquisitions;

     (i) (i) Investments (including Investments in Unrestricted Subsidiaries) and (ii)
Investments in joint ventures or similar entities that do not constitute Restricted
Subsidiaries, in each case, as valued at the fair market value of such Investment at the
time each such Investment is made, in an amount that, at the time such Investment is made,
would not exceed the sum of (x) the greater of (A) $100,000,000 and (B) 3% of Consolidated
Total Assets at the time of the incurrence of such Investment, plus (y) the
Applicable Amount at such time plus (z) an amount equal to any repayments, interest,
returns, profits, distributions, income and similar amounts actually received in cash in
respect of any such Investment (which amount shall not exceed the amount of such Investment
valued at the fair market value of such Investment at the time such Investment was made),

     (j) Investments constituting non-cash proceeds of sales, transfers and other
dispositions of assets to the extent permitted by Section 10.4;

     (k) Investments made to repurchase or retire Stock of the Borrower or any direct or
indirect parent thereof owned by any employee stock ownership plan or key employee stock
ownership plan of the Borrower (or any direct or indirect parent thereof);

     (l) Investments permitted under Section 10.6;

     (m) loans and advance to any direct or indirect parent of the Borrower in lieu of, and
not in excess of the amount of, dividends to the extent permitted to be made to such parent
in accordance with Section 10.6;

     (n) Investments consisting of extensions of credit in the nature of accounts receivable
or notes receivable arising from the grant of trade credit in the ordinary course of
business, and Investments received in satisfaction or partial satisfaction thereof from

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financially troubled account debtors and other credits to suppliers in the ordinary course
of business;

     (o) Investments in the ordinary course of business consisting of Article 3 endorsements
for collection or deposit and Article 4 customary trade arrangements with customers
consistent with past practices;

     (p) advances of payroll payments to employees in the ordinary course of business;

     (q) [Intentionally Omitted];

     (r) Guarantee Obligations of the Borrower or any Restricted Subsidiary of leases (other
than Capitalized Leases) or of other obligations that do not constitute Indebtedness, in
each case entered into in the ordinary course of business;

     (s) Investments made to repurchase or retire equity interests of the Borrower (or any
direct or indirect parent thereof) owned by any employee stock ownership plan or key
employee stock ownership plan of the Borrower (or any direct or indirect parent thereof);

     (t) Investments of a Restricted Subsidiary acquired after the Closing Date or of any
Person merged into the Borrower or merged or consolidated with a Restricted Subsidiary in
accordance with Section 10.3 after the Closing Date to the extent that such
Investments were not made in contemplation of or in connection with such acquisition, merger
or consolidation and were in existence on the date of such acquisition, merger or
consolidation; and

          (u) Investments with respect to the purchase of the outstanding Stock and Stock Equivalents of
Red Man Pipe and Supply Canada, Ltd. in accordance with the exercise of the CanHCo Call Right (as
defined in the Redman Acquisition Agreement) so long as no Default or Event of Default exists or
would exist after giving effect thereto.

     10.6
Limitation on Dividends. The Borrower will not declare or pay any dividends (other than dividends payable solely in
its Stock) or return any capital to its stockholders or make any other distribution, payment or
delivery of property or cash to its stockholders as such, or redeem, retire, purchase or otherwise
acquire, directly or indirectly, for consideration, any shares of any class of its Stock or Stock
Equivalents or the Stock or Stock Equivalents of any direct or indirect parent now or hereafter
outstanding, or set aside any funds for any of the foregoing purposes, or permit any of the
Restricted Subsidiaries to purchase or otherwise acquire for consideration (other than in
connection with an Investment permitted by Section 10.5) any Stock or Stock Equivalents of
the Borrower, now or hereafter outstanding (all of the foregoing “dividends”),
provided that, (x) to the extent that a dividend, distribution or any other return of
capital pursuant to paragraph (c) below is funded with a Borrowing hereunder, Excess Availability
is not less than $100,000,000 after giving effect to such dividend, distribution or other return of
capital and (y) so long as no Default or Event of Default exists or would exist after giving effect
thereto:

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     (a) the Borrower may redeem in whole or in part any of its Stock or Stock Equivalents
for another class of its Stock or Stock Equivalents or with proceeds from substantially
concurrent equity contributions or issuances of new Stock or Stock Equivalents,
provided that such new Stock or Stock Equivalents contain terms and provisions at
least as advantageous to the Lenders in all respects material to their interests as those
contained in the Stock or Stock Equivalents redeemed thereby;

     (b) the Borrower may (or may make dividends to permit any direct or indirect parent
thereof to) repurchase shares of its (or such parent’s) Stock or Stock Equivalents held by
officers, directors and employees of the Borrower and its Subsidiaries, so long as such
repurchase is pursuant to, and in accordance with the terms of, management and/or employee
stock plans, stock subscription agreements or shareholder agreements; provided, that
the aggregate amount of all cash paid in respect of all such shares so repurchased in any
calendar year does not exceed the sum of (i) $10,000,000 plus (ii) all amounts obtained by
the Borrower during such calendar year from the sale of such Stock or Stock Equivalents to
other officers, directors and employees of the Borrower and its Subsidiaries in connection
with any permitted compensation and incentive arrangements plus (iii) all amounts obtained
from any key-man life insurance policies received during such calendar year;
provided further that the aggregate amount permitted by the foregoing
proviso with respect to any calendar year commencing with 2008 shall be increased by 100% of
the amount of unused share repurchases for the immediately preceding year (such amount, a
“carry-over amount”) without giving effect to any carry-over amount that was added
in such preceding calendar year and assuming any such carry-over amount is utilized first
and so long as the aggregate amount of cash paid in respect of all such shares so
repurchased in any calendar year does not exceed $20,000,000; and provided
still further the aggregate amount of all cash paid in respect of all such
 shares so repurchased in any calendar year may exceed the aggregate amount permitted by the
foregoing provisos if Excess Availability is not less than $100,000,000 after giving effect
to such dividend, distribution or other return of capital;

     (c) the Borrower may pay dividends on the Stock or Stock Equivalents, provided
that the amount of any such dividends pursuant to this clause (c) shall not exceed
an amount equal to (i)(a) $50,000,000 or (b) $100,000,000, if the Consolidated
Total Debt to Consolidated EBITDA Ratio for the Test Period last ended is less than
4.00:1.00, determined on a Pro Forma Basis after giving effect to such dividend, less any
amount expended pursuant to Section 10.7(a)(i)(x) plus (ii) the Applicable Amount at such
time; and

     (d) the Borrower may pay dividends:

     (i) so long as the Borrower is a member of a group filing a consolidated,
combined, unitary or affiliated tax return with a parent, the proceeds of which
will be used to pay (or to make dividends to allow any direct or indirect parent of
the Borrower to pay) within 30 days of the receipt thereof, the tax liability to
each relevant jurisdiction in respect of such consolidated, combined, unitary or
affiliated returns for the relevant jurisdiction of such parent to the extent such
tax liability is directly attributable to the taxable income of the

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Borrower or its
Subsidiaries (that are included in such consolidated, combined, unitary or
affiliated tax return), determined as if the Borrower and such Subsidiaries filed a
separate consolidated, combined, unitary or affiliated tax return as a stand-alone
group;

     (ii) the proceeds of which shall be used to allow any direct or indirect parent
of Borrower to pay (A) its operating expenses incurred in the ordinary course of
business and other corporate overhead costs and expenses (including administrative,
legal, accounting and similar expenses provided by third parties), which are
reasonable and customary and incurred in the ordinary course of business, in an
aggregate amount not to exceed $2,000,000 in any fiscal year of the Borrower plus
any reasonable and customary indemnification claims made by directors or officers of
the Borrower (or any parent thereof) attributable to the ownership or operations of
the Borrower and its Subsidiaries or (B) fees and expenses otherwise (x) due and
payable by the Borrower or any of its Subsidiaries and (y) permitted to be paid by
the Borrower or such Subsidiary under this Agreement;

     (iii) the proceeds of which shall be used to pay franchise taxes and other
fees, taxes and expenses required to maintain the corporate existence of any direct
or indirect parent of the Borrower, within thirty (30) days of the receipt thereof;

     (iv) in amount equal to the Net Cash Proceeds of any Disposition of Non-Core
Assets for the purposes of complying with the requirements of the Red Man
Transaction Agreement or the Merger Agreement (as defined in the Existing Revolving
Credit Agreement), as applicable, relating thereto;

     (v) to any direct or indirect parent of the Borrower to finance any Investment
permitted to be made pursuant to Section 10.5; provided that (A)
such dividend shall be made substantially concurrently with the closing of such
Investment and (B) such parent shall, immediately following the closing thereof,
cause (1) all property acquired (whether assets, Stock or Stock Equivalents) to be
contributed to the Borrower or its Restricted Subsidiaries or (2) the merger
(to the extent permitted in Section 10.5) of the Person formed or acquired
into the Borrower or its Restricted Subsidiaries in order to consummate such
Permitted Acquisition; and

               (vi) in an amount not to exceed the amount necessary to effect the Investment described in
Section 10.5(u).

     10.7 Limitations on Debt Payments and Amendments. (a) The Borrower will not, and
will not permit any Restricted Subsidiary to, prepay, repurchase or redeem or otherwise defease any
Subordinated Indebtedness; provided, however, that so long as no Default or Event
of Default shall have occurred and be continuing at the date of such prepayment, repurchase,
redemption or other defeasance or would result after giving effect thereof and Excess Availability
is not less than $50,000,000 after giving effect to such prepayment, repurchase,

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redemption or
other defeasance, the Borrower or any Restricted Subsidiary may prepay, repurchase or redeem
Subordinated Indebtedness (i) for an aggregate price not in excess of (x)(A) $50,000,000 or (B)
$100,000,000, if the Consolidated Total Debt to Consolidated EBITDA Ratio for the Test Period last
ended is less than 4.00:1.00, determined on a Pro Forma Basis after giving effect to such
prepayment, repurchase, redemption or other defeasance, less any amount expended pursuant to
Section 10.6(c)(i) plus (y) the Applicable Amount at the time of such prepayment, repurchase or
redemption, or (ii) with the proceeds of Subordinated Indebtedness that (A) is permitted by
Section 10.1(B) (other than Section 10.1(B)(o)) and (B) has terms material to the
interests of the Lenders not materially less advantageous to the Lenders than those of such
Subordinated Indebtedness being refinanced.

     (b) The Borrower will not waive, amend, modify, terminate or release any Subordinated
Indebtedness to the extent that any such waiver, amendment, modification, termination or release
would be adverse to the Lenders in any material respect.

     10.8 Limitations on Sale Leasebacks. The Borrower will not, and will not permit any
of the Restricted Subsidiaries to, enter into or effect any Sale Leasebacks, other than Permitted
Sale Leasebacks.

     10.9 [Reserved].

     10.10 Changes in Business. The Borrower and the Subsidiaries, taken as a whole, will
not fundamentally and substantively alter the character of their business, taken as a whole, from
the business conducted by the Borrower and the Subsidiaries, taken as a whole, on the Closing Date
and other business activities incidental or related to any of the foregoing.

     10.11 Burdensome Agreements. The Borrower will not, and will not permit any Restricted Subsidiary to, enter into or
permit to exist any contractual obligation (other than this Agreement or any other Credit Document)
that limits the ability of (a) any Restricted Subsidiary that is not a Guarantor to make dividends
to the Borrower or any Guarantor or (b) the Borrower or any Subsidiary Guarantor to create, incur,
assume or suffer to exist Liens on property of such Person for the benefit of the Lenders with
respect to the Obligations; provided that the foregoing clauses (a) and (b) shall not apply
to contractual obligations which (i) (x) exist on the date hereof and (to the extent not otherwise
permitted by this Section 10.11) are listed on Schedule 10.11 and (y) to the extent
contractual obligations permitted by clause (x) are set forth in an agreement evidencing
Indebtedness, are set forth in any agreement evidencing any permitted renewal, extension or
refinancing of such Indebtedness so long as such renewal, extension or refinancing does not expand
the scope of such contractual obligation, (ii) are binding on a Restricted Subsidiary at the time
such Restricted Subsidiary first becomes a Restricted Subsidiary of the Borrower, so long as such
contractual obligations were not entered into solely in contemplation of such Person becoming a
Restricted Subsidiary of the Borrower; (iii) represent Indebtedness of a Restricted Subsidiary of
the Borrower which is not a Credit Party which is permitted by Section 10.1, (iv) arise in
connection with any Disposition permitted by Section 10.4, (v) are customary provisions in
joint venture agreements and other similar agreements applicable to joint ventures permitted under
Section 10.5 and applicable solely to such joint venture entered into in the ordinary
course of business, (vi) are negative pledges and restrictions on Liens in favor of any holder of
Indebtedness permitted under Section 10.1 but solely to the extent any

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negative pledge
relates to the property financed by or the subject of such Indebtedness, (vii) are customary
restrictions on leases, subleases, licenses or asset sale agreements otherwise permitted hereby so
long as such restrictions relate to the assets subject thereto, (viii) comprise restrictions
imposed by any agreement relating to secured Indebtedness permitted pursuant to Section
10.1 to the extent that such restrictions apply only to the property or assets securing such
Indebtedness or, in the case of secured Indebtedness incurred pursuant to Section
10.1(B)(j) or Section 10.1(B)(k)) only, to the Restricted Subsidiaries incurring or
guaranteeing such Indebtedness, (ix) are customary provisions restricting subletting or assignment
of any lease governing a leasehold interest of the Borrower or any Restricted Subsidiary, (x) are
customary provisions restricting assignment of any agreement entered into in the ordinary course of
business, (xi) are restrictions on cash or other deposits imposed by customers under contracts
entered into in the ordinary course of business, and (xii) exist under the Term Loan Credit
Agreement or any documentation relating to such debt.

     SECTION 11. Events of Default

     Upon the occurrence of any of the following specified events (each an “Event of
Default”):

     11.1 Payments. The Borrower shall (a) default in the payment when due of any
principal of the Loans or (b) default, and such default shall continue for five or more days, in
the payment when due of any interest or stamping fees on the Loans or any Fees or any Unpaid
Drawings or of any other amounts owing hereunder or under any other Credit Document; or

     11.2 Representations, etc. Any representation, warranty or statement made or deemed
made by any Credit Party herein or in any Security Document or any certificate, statement, report
or other document delivered or required to be delivered pursuant hereto or thereto shall prove to
be untrue in any material respect on the date as of which made or deemed made; or

     11.3 Covenants. Any Credit Party shall:

     (a) default in the due performance or observance by it of any term, covenant or
agreement contained in Section 9.1(h) or Section 10;

     (b) default in the due performance or observance by it of any term, covenant or
agreement contained in Section 9.1(f) and such default shall continue unremedied for
a period of at least ten (10) Business Days after the earlier of the date on which an
Authorized Officer of the Borrower has knowledge of such default and the date of receipt of
written notice by the Borrower from the Administrative Agent or the Required Lenders; or

     (c) default in the due performance or observance by it of any term, covenant or
agreement (other than those referred to in Section 11.1 or 11.2 or clauses
(a) or (b) of this Section 11.3) contained in this Agreement, any Security Document
or the Fee Letter and such default shall continue unremedied for a period of at least thirty
(30) days after receipt of written notice by the Borrower from the Administrative Agent or
the Required Lenders; or

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     11.4 Default Under Other Agreements. (a) The Borrower or any of the Restricted
Subsidiaries shall (i) default in any payment with respect to any Indebtedness (other than the
Obligations) in excess of $30,000,000 in the aggregate, for the Borrower and such Restricted
Subsidiaries, beyond the period of grace, if any, provided in the instrument or agreement under
which such Indebtedness was created or (ii) default in the observance or performance of any
agreement or condition relating to any such Indebtedness or contained in any instrument or
agreement evidencing, securing or relating thereto, or any other event shall occur or condition
exist (other than, with respect to Indebtedness consisting of any Hedge Agreements, termination
events or equivalent events pursuant to the terms of such Hedge Agreements), the effect of which
default or other event or condition is to cause, or to permit the holder or holders of such
Indebtedness (or a trustee or agent on behalf of such holder or holders) to cause, any such
Indebtedness to become due prior to its stated maturity; or (b) without limiting the provisions of
clause (a) above, any such Indebtedness shall be declared to be due and payable, or required to be
prepaid other than by a regularly scheduled required prepayment or as a mandatory prepayment (and,
with respect to Indebtedness consisting of any Hedge Agreements, other than due to a termination
event or equivalent event pursuant to the terms of such Hedge Agreements), prior to the stated
maturity thereof; or

     11.5 Bankruptcy, etc. The Borrower or any Specified Subsidiary shall commence a voluntary case, proceeding or
action concerning itself under (a) Title 11 of the United States Code entitled “Bankruptcy,” or (b)
in the case of any Foreign Subsidiary that is a Specified Subsidiary, any domestic or foreign law
relating to bankruptcy, judicial management, insolvency reorganization or relief of debtors
legislation of its jurisdiction of incorporation, in each case as now or hereafter in effect, or
any successor thereto (collectively, the “Bankruptcy Code”); or an involuntary case,
proceeding or action is commenced against the Borrower or any Specified Subsidiary and the petition
is not controverted within 10 days after commencement of the case, proceeding or action; or an
involuntary case, proceeding or action is commenced against the Borrower or any Specified
Subsidiary and the petition is not dismissed within 60 days after commencement of the case,
proceeding or action; or a custodian (as defined in the Bankruptcy Code), judicial manager,
receiver, receiver manager, trustee or similar person is appointed for, or takes charge of, all or
substantially all of the property of the Borrower or any Specified Subsidiary; or the Borrower or
any Specified Subsidiary commences any other proceeding or action under any reorganization,
arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or
similar law of any jurisdiction whether now or hereafter in effect relating to the Borrower or any
Specified Subsidiary; or there is commenced against the Borrower or any Specified Subsidiary any
such proceeding or action that remains undismissed for a period of 60 days; or the Borrower or any
Specified Subsidiary is adjudicated insolvent or bankrupt; or any order of relief or other order
approving any such case or proceeding or action is entered; or the Borrower or any Specified
Subsidiary suffers any appointment of any custodian receiver, receiver manager, trustee or the like
for it or any substantial part of its property to continue undischarged or unstayed for a period of
60 days; or the Borrower or any Specified Subsidiary makes a general assignment for the benefit of
creditors; or any corporate action is taken by the Borrower or any Specified Subsidiary for the
purpose of effecting any of the foregoing; or

     11.6 ERISA. (a) Any Plan shall fail to satisfy the minimum funding standard
required for any plan year or part thereof or a waiver of such standard or extension of any
amortization

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period is sought or granted under Section 412 of the Code; any Plan is or shall have
been terminated or is the subject of termination proceedings under ERISA (including the giving of
written notice thereof); an event shall have occurred or a condition shall exist in either case
entitling the PBGC to terminate any Plan or to appoint a trustee to administer any Plan (including
the giving of written notice thereof); any Plan shall have an accumulated funding deficiency
(whether or not waived); the Borrower or any Subsidiary or any ERISA Affiliate has incurred or is
likely to incur a liability to or on account of a Plan under Section 409, 502(i), 502(l), 515,
4062, 4063, 4064, 4069, 4201 or 4204 of ERISA or Section 4971 or 4975 of the Code (including the
giving of written notice thereof); (b) there could result from any event or events set forth in
clause (a) of this Section 11.6 the imposition of a lien, the granting of a security
interest, or a liability, or the reasonable likelihood of incurring a lien, security interest or
liability; and (c) such lien, security interest or liability will or would be reasonably likely to
have a Material Adverse Effect; or

     11.7 Guarantee. Any Guarantee provided by any Material Subsidiary or any material
provision thereof shall cease to be in full force or effect or any such Guarantor thereunder or any
Credit Party shall
deny or disaffirm in writing any such Guarantor’s obligations under the Guarantee (or any of
the foregoing shall occur with respect to a Guarantee provided by a Subsidiary that is not a
Material Subsidiary and shall continue unremedied for a period of at least 5 Business Days after
receipt of written notice by the Borrower from the Administrative Agent, the Collateral Agent or
the Required Lenders); or

     11.8 [Reserved].; or

     11.9 Security Agreement. The Security Agreement pursuant to which the assets of the
Borrower or any Material Subsidiary are pledged as Collateral or any material provision thereof
shall cease to be in full force or effect (other than pursuant to the terms hereof or thereof or as
a result of acts or omissions of the Collateral Agent or any Lender) or any grantor thereunder or
any Credit Party shall deny or disaffirm in writing any grantor’s obligations under the Security
Agreement (or any of the foregoing shall occur with respect to Collateral provided by a Subsidiary
that is not a Material Subsidiary and shall continue unremedied for a period of at least 5 Business
Days after receipt of written notice by the Borrower from the Administrative Agent, the Collateral
Agent or the Required Lenders); or

     11.10 [Intentionally Omitted].

     11.11 Judgments. One or more judgments or decrees shall be entered against the
Borrower or any of the Restricted Subsidiaries involving a liability of $30,000,000 or more in the
aggregate for all such judgments and decrees for the Borrower and the Restricted Subsidiaries (to
the extent not paid or fully covered by insurance provided by a carrier not disputing coverage) and
any such judgments or decrees shall not have been satisfied, vacated, discharged or stayed or
bonded pending appeal within 60 days from the entry thereof; or

     11.12 Change of Control. A Change of Control shall occur; or

     11.13 Subordination. The subordination provisions of any document or instrument
evidencing any Permitted Additional Debt having a principal amount in excess of $15,000,000

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that
are subordinated shall be invalidated or otherwise cease to be legal, valid and binding obligations
of the holders of such Permitted Additional Debt, enforceable in accordance with their terms;

     then, (1) upon the occurrence of any Event of Default described in Section 11.5,
automatically, and (2) upon the occurrence of any other Event of Default, at the request of (or
with the consent of) Required Lenders, upon notice to the Borrower by Administrative Agent,
(A) the Revolving Credit Commitments of each Lender and the obligation of the Letter of Credit
Issuer to issue any Letter of Credit shall immediately terminate; (B) each of the following shall
immediately become due and payable, in each case without presentment, demand, protest or other
requirements of any kind, all of which are hereby expressly waived by each Credit Party: (I) the
unpaid principal amount of and accrued interest on the Loans, (II) an amount equal to the maximum
amount that may at any time be drawn under all Letters of Credit then outstanding (regardless of
whether any beneficiary under any such Letter of Credit shall have presented, or shall be entitled
at such time to present, the drafts or other documents or certificates required to draw under such
Letters of Credit), and (III) all other Obligations; provided, the foregoing shall not
affect in any way the obligations of Lenders under Section 2.1(d) or Section 3.3(a); (C)
Administrative Agent may cause Collateral Agent to enforce any and all Liens and security interests
created pursuant to Security Documents; and (D) Administrative Agent shall direct the Borrower to
pay (and the Borrower hereby agrees upon receipt of such notice, or upon the occurrence of any
Event of Default specified in Section 11.5 to pay) to Administrative Agent such additional amounts
of cash as reasonably requested by the Letter of Credit Issuer, to be held as security for the
Borrower’s reimbursement Obligations in respect of Letters of Credit then outstanding.

     SECTION 12. [Reserved].

     SECTION 13. The Administrative Agent

     13.1 Appointment. (a) Each Lender hereby irrevocably designates and appoints the
Administrative Agent as the agent of such Lender under this Agreement and the other Credit
Documents, and each such Lender irrevocably authorizes the Administrative Agent, in such capacity,
to take such action on its behalf under the provisions of this Agreement and the other Credit
Documents and to exercise such powers and perform such duties as are expressly delegated to the
Administrative Agent by the terms of this Agreement and the other Credit Documents, together with
such other powers as are reasonably incidental thereto. Notwithstanding any provision to the
contrary elsewhere in this Agreement, the Administrative Agent shall not have any duties or
responsibilities, except those expressly set forth herein, or any fiduciary relationship with any
Lender, and no implied covenants, functions, responsibilities, duties, obligations or liabilities
shall be read into this Agreement or any other Credit Document or otherwise exist against the
Administrative Agent. The provisions of this Section 13 are solely for the benefit of the Agents,
any sub-agent and the Lenders and no Credit Party shall have any rights as a third party
beneficiary of any of the provisions hereof. In performing its functions and duties hereunder,
each Agent shall act solely as an agent of Lenders and does not assume and shall not be deemed to
have assumed any obligation towards or relationship of agency or trust with or for Borrower or any
of its Subsidiaries. Except as expressly otherwise provided in this Agreement, the Administrative
Agent shall have and may use its sole discretion with respect to

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(i) the determination of the
applicability of ineligibility criteria and other determinations with
respect to the calculation of the Borrowing Base, (ii) the making of Protective Advances
pursuant to Section 2.15, and (iii) the exercise of remedies pursuant to Section
11.

     (b) The Administrative Agent, each Lender, the Swingline Lender and the Letter of Credit
Issuer hereby irrevocably designate and appoint the Collateral Agent as its agent under this
Agreement and the other Credit Documents, and the Administrative Agent, each Lender, the Swingline
Lender and the Letter of Credit Issuer irrevocably authorize the Collateral Agent, in such
capacity, (i) to take such action on their behalf under the provisions of this Agreement and the
other Credit Documents and to exercise such powers and perform such duties as are expressly
delegated to the Collateral Agent by the terms of this Agreement and the other Credit Documents,
together with such other powers as are reasonably incidental thereto and (ii) to enter into any and
all of the Security Documents (including, for the avoidance of doubt, the Intercreditor Agreement)
together with such other documents as shall be necessary to give effect to (x) the ranking and
priority of Indebtedness contemplated by the Intercreditor Agreement and (y) the Collateral
contemplated by the other Security Documents, on its behalf. For the avoidance of doubt, each
Lender agrees to be bound by the terms of the Intercreditor Agreement to the same extent as if it
were a party thereto. Notwithstanding any provision to the contrary elsewhere in this Agreement,
the Collateral Agent shall not have any duties or responsibilities, except those expressly set
forth herein, or any fiduciary relationship with the Administrative Agent, any Lender, the
Swingline Lender or the Letter of Credit Issuer, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other
Credit Document or otherwise exist against the Collateral Agent.

     (c) The Syndication Agent, in its capacity as such, shall not have any obligations, duties or
responsibilities under this Agreement but shall be entitled to all benefits of this Section
13.

     (d) Each Co-Documentation Agent, in its capacity as such, shall not have any obligations,
duties or responsibilities under this Agreement but shall be entitled to all benefits of this
Section 13.

     13.2 Delegation of Duties. Administrative Agent may perform any and all of its duties
and exercise its rights and powers under this Agreement or under any other Credit Document by or
through any one or more sub-agents appointed by Administrative Agent. Administrative Agent and any
such sub-agent may perform any and all of its duties and exercise its rights and powers by or
through their respective Affiliates. The exculpatory, indemnification and other provisions of this
Section 13.2 and of Section 13.7 shall apply to any the Affiliates of Administrative Agent and
shall apply to their respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Administrative Agent. All of the rights,
benefits, and privileges (including the exculpatory and indemnification provisions) of this Section
13 and Section 14.5 shall apply to any such sub-agent and to the Affiliates of any such sub-agent,
and shall apply to their respective activities as sub-agent as if such sub-agent and Affiliates
were named herein. Notwithstanding anything herein to the contrary, with respect to each sub-agent
appointed by the Administrative Agent, (i) such sub-agent shall be a third party beneficiary under
this Agreement with respect to all such rights, benefits and privileges (including exculpatory
rights and rights to indemnification) and shall

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have all of the rights and benefits of a third party beneficiary,
including an independent right of action to enforce such rights, benefits and privileges (including
exculpatory rights and rights to indemnification) directly, without the consent or joinder of any
other Person, against any or all of the Credit Parties and the Lenders, (ii) such rights, benefits
and privileges (including exculpatory rights and rights to indemnification) shall not be modified
or amended without the consent of such sub-agent, and (iii) such sub-agent shall only have
obligations to Administrative Agent and not to any Credit Party, Lender or any other Person and no
Credit Party, Lender or any other Person shall have any rights, directly or indirectly, as a third
party beneficiary or otherwise, against such sub-agent.

     13.3 General Immunity. (a) No Responsibility for Certain Matters. No Agent
shall be responsible to any Lender for the execution, effectiveness, genuineness, validity,
enforceability, collectability or sufficiency hereof or any other Credit Document or for any
representations, warranties, recitals or statements made herein or therein or made in any written
or oral statements or in any financial or other statements, instruments, reports or certificates or
any other documents furnished or made by any Agent to Lenders or by or on behalf of any Credit
Party, or for the financial condition or business affairs of any Credit Party or any other Person
liable for the payment of any Obligations, nor shall any Agent be required to ascertain or inquire
as to the performance or observance of any of the terms, conditions, provisions, covenants or
agreements contained in any of the Credit Documents or as to the use of the proceeds of the Loans
or as to the existence or possible existence of any Event of Default or Default or to make any
disclosures with respect to the foregoing. Anything contained herein to the contrary
notwithstanding, Administrative Agent shall not have any liability arising from confirmations of
the amount of outstanding Loans or the Letters of Credit Outstanding or the component amounts
thereof.

     (b) Exculpatory Provisions. No Agent nor any of its officers, partners, directors,
employees or agents shall be liable to Lenders for any action taken or omitted by any Agent under
or in connection with any of the Credit Documents except to the extent caused by such Agent’s gross
negligence or willful misconduct. Each Agent shall be entitled to refrain from any act or the
taking of any action (including the failure to take an action) in connection herewith or any of the
other Credit Documents or from the exercise of any power, discretion or authority vested in it
hereunder or thereunder unless and until such Agent shall have received instructions in respect
thereof from Required Lenders (or such other Lenders as may be required to give such instructions
under Section 14.1) and, upon receipt of such instructions from Required Lenders (or such other
Lenders, as the case may be), such Agent shall be entitled to act or (where so instructed) refrain
from acting, or to exercise such power, discretion or authority, in accordance with such
instructions. Without prejudice to the generality of the foregoing, (i) each Agent shall be
entitled to rely, and shall be fully protected in relying, upon any communication, instrument or
document believed by it to be genuine and correct and to have been signed or sent by the proper
Person or Persons and shall be entitled to rely and shall be protected in relying on opinions and
judgments of attorneys (who may be attorneys for Borrower and its Subsidiaries), accountants,
experts and other professional advisors selected by it; and (ii) no Lender shall have any right of
action whatsoever against any Agent as a result of such Agent acting or (where so instructed)
refraining from acting hereunder or any of the other Credit Documents in accordance
with the instructions of Required Lenders (or such other Lenders as may be required to give
such instructions under Section 14.1)

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     13.4 Reliance by Agents. The Administrative Agent and the Collateral Agent shall be
entitled to rely, and shall be fully protected in relying, upon any writing, resolution, notice,
consent, certificate, affidavit, letter, telecopy, telex or teletype message, statement, order or
other document or conversation believed by it to be genuine and correct and to have been signed,
sent or made by the proper Person or Persons and upon advice and statements of legal counsel
(including counsel to the Borrower), independent accountants and other experts selected by the
Administrative Agent or the Collateral Agent. The Administrative Agent may deem and treat the
Lender specified in the Register with respect to any amount owing hereunder as the owner thereof
for all purposes unless a written notice of assignment, negotiation or transfer thereof shall have
been filed with the Administrative Agent. The Administrative Agent and the Collateral Agent shall
be fully justified in failing or refusing to take any action under this Agreement or any other
Credit Document unless it shall first receive such advice or concurrence of the Required Lenders as
it deems appropriate or it shall first be indemnified to its satisfaction by the Lenders against
any and all liability and expense that may be incurred by it by reason of taking or continuing to
take any such action. The Administrative Agent and the Collateral Agent shall in all cases be
fully protected in acting, or in refraining from acting, under this Agreement and the other Credit
Documents in accordance with a request of the Required Lenders, and such request and any action
taken or failure to act pursuant thereto shall be binding upon all the Lenders and all future
holders of the Loans.

     13.5 Notice of Default. Neither the Administrative Agent nor the Collateral Agent
shall be deemed to have knowledge or notice of the occurrence of any Default or Event of Default
hereunder unless it has received notice from a Lender or the Borrower referring to this Agreement,
describing such Default or Event of Default and stating that such notice is a “notice of default”.
In the event that the Administrative Agent receives such a notice, it shall give notice thereof to
the Lenders. The Administrative Agent shall take such action with respect to such Default or Event
of Default as shall be reasonably directed by the Required Lenders, provided that unless
and until the Administrative Agent shall have received such directions, the Administrative Agent
may (but shall not be obligated to) take such action, or refrain from taking such action, with
respect to such Default or Event of Default as it shall deem advisable in the best interests of the
Lenders (except to the extent that this Agreement requires that such action be taken only with the
approval of the Required Lenders or each of the Lenders, as applicable).

     13.6 Non-Reliance on Administrative Agent, Collateral Agent and Other Lenders. Each
Lender expressly acknowledges that neither the Administrative Agent nor the Collateral Agent nor
any of their respective officers, directors, employees, agents, attorneys-in-fact or Affiliates has
made any representations or warranties to it and that no act by the Administrative Agent or the
Collateral Agent hereinafter taken, including any review of the affairs of the Borrower, any
Guarantor or any other Credit Party, shall be deemed to constitute
any representation or warranty by the Administrative Agent or the Collateral Agent to any
Lender, the Swingline Lender or the Letter of Credit Issuer. Each Lender, Swingline Lender and
Letter of Credit Issuer represents to the Administrative Agent and the Collateral Agent that it
has, independently and without reliance upon the Administrative Agent, the Collateral Agent or any
other Lender, and based on such documents and information as it has deemed appropriate, made its
own appraisal of and investigation into the business, operations, property, financial and other
condition and creditworthiness of the Borrower, any Guarantor and any other Credit Party and made
its own decision to make its Loans hereunder and enter into this Agreement. Each Lender

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also
represents that it will, independently and without reliance upon the Administrative Agent, the
Collateral Agent or any other Lender, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit analysis, appraisals and decisions in
taking or not taking action under this Agreement and the other Credit Documents, and to make such
investigation as it deems necessary to inform itself as to the business, operations, property,
financial and other condition and creditworthiness of the Borrower, any Guarantor and any other
Credit Party. Except for notices, reports and other documents expressly required to be furnished
to the Lenders by the Administrative Agent hereunder, neither the Administrative Agent nor the
Collateral Agent shall have any duty or responsibility to provide any Lender with any credit or
other information concerning the business, assets, operations, properties, financial condition,
prospects or creditworthiness of the Borrower, any Guarantor or any other Credit Party that may
come into the possession of the Administrative Agent or the Collateral Agent any of their
respective officers, directors, employees, agents, attorneys-in-fact or Affiliate. Notwithstanding
anything herein to the contrary, each Lender acknowledges that the lien and security interest
granted to the Collateral Agent pursuant to the Security Agreement or other applicable Security
Document, and the exercise of any right or remedy by the Collateral Agent thereunder, are subject
to the provisions of the Intercreditor Agreement and that in the event of any conflict between the
terms of the Intercreditor Agreement and such Security Document, the terms of the Intercreditor
Agreement shall govern and control.

     13.7 Indemnification. The Lenders agree to indemnify the Administrative Agent and the
Collateral Agent and any sub-agent thereof, each in its capacity as such (to the extent not
reimbursed by the Borrower and without limiting the obligation of the Borrower to do so), ratably
according to their respective portions of the Total Credit Exposure in effect on the date on which
indemnification is sought (or, if indemnification is sought after the date upon which the
Commitments shall have terminated and the Loans shall have been paid in full, ratably in accordance
with their respective portions of the Total Credit Exposure in effect immediately prior to such
date), from and against any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs (including legal fees and costs), expenses or disbursements of any kind
whatsoever that may at any time (including at any time following the payment of the Loans) be
imposed on, incurred by or asserted against the Administrative Agent or the Collateral Agent or
such sub-agent in any way relating to or arising out of, the Commitments, this Agreement, any of
the other Credit Documents or any documents contemplated by or referred to herein or therein or the
transactions contemplated hereby or thereby or any action taken or omitted by the Administrative
Agent or the Collateral Agent or such sub-agent under or in connection with any of the foregoing,
provided that no Lender shall be liable for the payment of any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements resulting from the Administrative Agent’s or the Collateral Agent’s or such
sub-agent’s gross negligence or willful misconduct. The agreements in this Section 13.7 shall
survive the payment of the Loans and all other amounts payable hereunder.

     13.8 Agents in their Individual Capacity. The agency hereby created shall in no way
impair or affect any of the rights and powers of, or impose any duties or obligations upon, any
Agent or any sub-agent thereof in its individual capacity as a Lender hereunder. With respect to
its participation in the Loans and the Letters of Credit, each Agent and any sub-agent thereof
shall have the same rights and powers hereunder as any other Lender and may exercise the same

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as if
it were not performing the duties and functions delegated to it hereunder, and the term “Lender”
shall, unless the context clearly otherwise indicates, include each Agent or any sub-agent thereof
in its individual capacity. Any Agent or any sub-agent thereof and its respective Affiliates may
accept deposits from, lend money to, own securities of, and generally engage in any kind of
banking, trust, financial advisory or other business with Borrower or any of its Affiliates as if
it were not performing the duties specified herein, and may accept fees and other consideration
from the Borrower for services in connection herewith and otherwise without having to account for
the same to Lenders.

     13.9 Successor Agents. The Administrative Agent may resign as Administrative Agent
and the Collateral Agent may resign as Collateral Agent upon 20 days’ prior written notice to the
Lenders and the Borrower. If the Administrative Agent shall resign as Administrative Agent or the
Collateral Agent shall resign as Collateral Agent under this Agreement and the other Credit
Documents, then the Required Lenders shall appoint from among the Lenders a successor
Administrative Agent or successor Collateral Agent, as applicable, which successor agent in each
case, shall be approved by the Borrower (which approval shall not be unreasonably withheld) so long
as no Default or Event of Default is continuing, whereupon such successor agent shall succeed to
the rights, powers and duties of the Administrative Agent or the Collateral Agent, as the case may
be, and the term “Administrative Agent” or “Collateral Agent”, as the case may be, shall mean such
successor agent effective upon such appointment and approval, and the former Administrative Agent’s
or Collateral Agent’s rights, powers and duties as Administrative Agent or Collateral Agent, as the
case may be, shall be terminated, without any other or further act or deed on the part of such
former Administrative Agent or Collateral Agent, as the case may be, or any of the parties to this
Agreement or any holders of the Loans. After any retiring Administrative Agent’s or Collateral
Agent’s resignation as Administrative Agent or Collateral Agent, as the case may be, the provisions
of this Section 13 shall inure to its benefit as to any actions taken or omitted to be
taken by it while it was Administrative Agent or Collateral Agent under this Agreement and the
other Credit Documents.

     13.10 Withholding Tax. To the extent required by any applicable law, the
Administrative Agent may withhold from any interest payment to any Lender an amount equivalent to
any applicable withholding tax. If the Internal Revenue Service or any authority of the United
States or other jurisdiction asserts a claim that the Administrative Agent did not properly
withhold tax from amounts paid to
or for the account of any Lender (because the appropriate form was not delivered, was not
properly executed, or because such Lender failed to notify the Administrative Agent of a change in
circumstances which rendered the exemption from, or reduction of, withholding tax ineffective, or
for any other reason), such Lender shall indemnify the Administrative Agent (to the extent that the
Administrative Agent has not already been reimbursed by the Borrower and without limiting the
obligation of the Borrower to do so) fully for all amounts paid, directly or indirectly, by the
Administrative Agent as tax or otherwise, including penalties and interest, together with all
expenses incurred, including legal expenses, allocated staff costs and any out of pocket expenses.

     13.11 REPORTS AND FINANCIAL STATEMENTS; DISCLAIMER BY LENDERS. By signing this
Agreement, each Lender:

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     (a) is deemed to have requested that the Agents furnish such Lender and Agents hereby
agree to deliver to each Lender, promptly after it becomes available, (i) a copy of all
financial statements and Borrowing Base Certificates to be delivered by the Borrower
hereunder, (ii) a copy of any notice of Default or Event of Default received by such Agent,
(iii) a copy of each Report and (iv) a copy of each budget and certificate to be delivered
by the Borrower pursuant to Sections 9.1(d) and (e);

     (b) expressly agrees and acknowledges that no Agent (i) makes any representation or
warranty as to the accuracy of any Report, or (ii) shall be liable for any information
contained in any Report;

     (c) expressly agrees and acknowledges that the Reports are not comprehensive audits or
examinations, that the Agent or other party performing any audit or examination will inspect
only specific information regarding the Borrower and will rely significantly upon the
Borrower’s books and records, as well as on representations of the Borrower’s personnel;

     (d) agrees to keep all Reports confidential in accordance with Section 14.16;
and

     without limiting the generality of any other indemnification provision contained in this
Agreement, agrees: (i) to hold the Agents and any such other Person or Lender preparing a Report
harmless from any action the indemnifying Lender may take or conclusion the indemnifying Lender may
reach or draw from any Report in connection with any loans or other credit accommodations that the
indemnifying Lender has made or may make to the Borrower, or the indemnifying Lender’s
participation in, or the indemnifying Lender’s purchase of, a loan or loans of the Borrower; and
(ii) to pay and protect, and indemnify, defend, and hold the Agents and any such other Person or
Lender preparing a Report harmless from and against, the claims, actions, proceedings, damages,
costs, expenses, and other amounts (including reasonable costs of counsel) incurred by the Agents
and any such other Lender preparing a Report as the direct or
indirect result of any third parties who might obtain all or part of any Report through the
indemnifying Lender. Upon a Lender’s reasonable request, the Administrative Agent agrees to
deliver to such Lender a copy of the documents delivered by the Borrower to the Administrative
Agent pursuant to Section 9.1.

     SECTION 14. Miscellaneous

     14.1 Amendments and Waivers. Neither this Agreement nor any other Credit Document,
nor any terms hereof or thereof may be amended, supplemented or modified except in accordance with
the provisions of this Section 14.1. The Required Lenders may, or, with the written
consent of the Required Lenders, the Administrative Agent may, from time to time, (a) enter into
with the relevant Credit Party or Credit Parties written amendments, supplements or modifications
hereto and to the other Credit Documents for the purpose of adding any provisions to this Agreement
or the other Credit Documents or changing in any manner the rights of the Lenders or of the Credit
Parties hereunder or thereunder or (b) waive, on such terms and

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conditions as the Required Lenders
or the Administrative Agent, as the case may be, may specify in such instrument, any of the
requirements of this Agreement or the other Credit Documents or any Default or Event of Default and
its consequences; provided, however, that no such waiver and no such amendment,
supplement or modification shall directly (i) forgive or reduce any portion of any Loan or Unpaid
Drawing or extend the final scheduled maturity date of any Loan or Unpaid Drawing or reduce the
stated rate (it being understood that any change to the definitions of Consolidated Total Debt to
Consolidated EBITDA Ratio, Secured Leverage Ratio or Consolidated Fixed Charge Coverage Ratio or in
the component definitions thereof shall not constitute a reduction in the stated rate and only the
consent of the Required Lenders shall be necessary to waive any obligation of the Borrower to pay
interest at the “default rate” or amend Section 2.8(c)), or forgive any portion, or extend
the date for the payment, of any interest or fee payable hereunder (other than as a result of
waiving the applicability of any post-default increase in interest rates), or extend the final
expiration date of any Lender’s Commitment or extend the final expiration date of any Letter of
Credit beyond the L/C Maturity Date, or increase the aggregate amount of the Commitments of any
Lender, or amend or modify any provisions of Section 5.3(a) (with respect to the ratable
allocation of any payments only), 2.4 (with respect to the ratable disbursement of funds)
and 14.8(a), in each case without the written consent of each Lender directly and adversely
affected thereby, or (ii) amend, modify or waive any provision of this Section 14.1 or
reduce the percentages specified in the definitions of the term “Required Lenders” or
“Super-Majority Lenders” or consent to the assignment or transfer by the Borrower of its rights and
obligations under any Credit Document to which it is a party (except as permitted pursuant to
Section 10.3), in each case without the written consent of each Lender directly and
adversely affected thereby, or (iii) amend, modify or waive any provision of Section 13
without the written consent of the then-current Administrative Agent, or (iv) amend, modify or
waive any provision of Section 3 with respect to any rights or obligations of the Letter of Credit
Issuer, Section 5.4 in a manner that directly and adversely affects the rights of the Letter of
Credit Issuer set forth therein or Section 14.6(b) or Section 14.7 to eliminate or reduce the
Letter of Credit Issuer’s right to consent to assignments of Revolving Credit Commitments or
Revolving Credit Loans, without the written consent of the Letter of Credit Issuer, or (v) amend,
modify or waive any provisions hereof relating to Swingline Loans without the written consent
of the Swingline Lender, or (vi) increase the advance rates or modify the definition of
“Borrowing Base” or any component definition thereof if such increase or modification is intended
to have the effect of making more credit available, in each case without the prior written consent
of the Super-Majority Lenders and, solely in the case of an increase to the $30,000,000 figure in
clause (o) of the definition of Eligible Account and/or clause (a) of the definition of Eligible
Red Man Business Account, the prior written consent of all Lenders; provided that the
foregoing shall not limit the discretion of the Administrative Agent to establish, change or
eliminate Reserves or otherwise exercise its Permitted Discretion, or (vii) release or limit the
liability of all or substantially all of the Guarantors under the Guarantee (except as expressly
permitted by the Guarantee) or release all or substantially all of the Collateral under the
Security Agreement (except with respect to transactions in accordance with Section 10.4) without
the prior written consent of each Lender, or (viii) amend Section 2.9 so as to permit
Interest Period intervals greater than six months without regard to availability to Lenders,
without the written consent of each Lender directly and adversely affected thereby; or (ix) amend,
modify or waive any provisions hereof relating to the Administrative Agent in a manner that
directly and adversely affects it rights and obligations hereunder without the written consent

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of
the Administrative Agent; or (x) amend, modify or waive any provisions hereof relating to the
Collateral Agent in a manner that directly and adversely affects it rights and obligations
hereunder without the written consent of the Collateral Agent. Any such waiver and any such
amendment, supplement or modification shall apply equally to each of the affected Lenders and shall
be binding upon the Borrower, such Lenders, the Administrative Agent and all future holders of the
affected Loans. In the case of any waiver, the Borrower, the Lenders and the Administrative Agent
shall be restored to their former positions and rights hereunder and under the other Credit
Documents, and any Default or Event of Default waived shall be deemed to be cured and not
continuing, it being understood that no such waiver shall extend to any subsequent or other Default
or Event of Default or impair any right consequent thereon.

     Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to
approve or disapprove any amendment, waiver or consent hereunder, except that the Commitment of
such Lender may not be increased or extended without the consent of such Lender (it being
understood that any Commitments or Loans held or deemed held by any Defaulting Lender shall be
excluded for a vote of the Lenders hereunder requiring any consent of the Lenders).

     14.2 Notices. Unless otherwise expressly provided herein, all notices and other
communications provided for hereunder or under any other Credit Document shall be in writing
(including by facsimile transmission). All such written notices shall be mailed, faxed or
delivered to the applicable address, facsimile number or electronic mail address, and all notices
and other communications expressly permitted hereunder to be given by telephone shall be made to
the applicable telephone number, as follows:

     (a) if to the Borrower, the Administrative Agent, the Letter of Credit Issuer or the
Swingline Lender, to the address, facsimile number, electronic mail address or telephone
number specified for such Person on Schedule 14.2 or to such other address,
facsimile number, electronic mail address or telephone number as shall be designated by
such party in a notice to the other parties; and

     (b) if to any other Lender, to the address, facsimile number, electronic mail address
or telephone number specified in its Administrative Questionnaire or to such other address,
facsimile number, electronic mail address or telephone number as shall be designated by such
party in a notice to the Borrower, the Administrative Agent, the Letter of Credit Issuer and
the Swingline Lender.

All such notices and other communications shall be deemed to be given or made upon the earlier to
occur of (i) actual receipt by the relevant party hereto and (ii) (A) if delivered by hand or by
courier, when signed for by or on behalf of the relevant party hereto; (B) if delivered by mail,
three (3) Business Days after deposit in the mails, postage prepaid; (C) if delivered by facsimile,
when sent and receipt has been confirmed by telephone; and (D) if delivered by electronic mail,
when delivered; provided that notices and other communications to the Administrative Agent
or the Lenders pursuant to Sections 2.3, 2.6, 2.9, 4.2 and 5.1 shall not be effective until
received.

     14.3 No Waiver; Cumulative Remedies. No failure to exercise and no delay in
exercising, on the part of the Administrative Agent, the Collateral Agent or any Lender, any

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right,
remedy, power or privilege hereunder or under the other Credit Documents shall operate as a waiver
thereof, nor shall any single or partial exercise of any right, remedy, power or privilege
hereunder preclude any other or further exercise thereof or the exercise of any other right,
remedy, power or privilege. The rights, remedies, powers and privileges herein provided are
cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

     14.4 Survival of Representations and Warranties. All representations and warranties
made hereunder, in the other Credit Documents and in any document, certificate or statement
delivered pursuant hereto or in connection herewith shall survive the execution and delivery of
this Agreement and the making of the Loans hereunder.

     14.5 Payment of Expenses and Taxes. The Borrower agrees (a) to pay or reimburse the
Agents for all their reasonable and documented out-of-pocket costs and expenses incurred in
connection with the development, preparation and execution of, and any amendment, supplement or
modification to, this Agreement and the other Credit Documents and any other documents prepared in
connection herewith or therewith, and the consummation and administration of the transactions
contemplated hereby and thereby, including the reasonable and documented costs, fees and expenses
associated with the initial collateral appraisal and field examination and all subsequent
appraisals, examinations or updates to the extent set forth in Section 9.14 and the reasonable
fees, disbursements and other charges of Latham & Watkins LLP, one local counsel in each relevant
local jurisdiction and such additional counsel to the extent consented to by the Borrower, (b) to
pay or reimburse each Lender, Letter of Credit Issuer and Agent for all its reasonable and
documented costs and expenses incurred in connection with the enforcement or
preservation of any rights under this Agreement, the other Credit Documents and any such other
documents, including the reasonable fees, disbursements and other charges of one counsel to the
Administrative Agent, Collateral Agent and the other Agents (unless there is an actual or perceived
conflict of interest in which case each such Person may retain its own counsel), (c) to pay,
indemnify, and hold harmless each Lender, Letter of Credit Issuer and Agent from, any and all
recording and filing fees and (d) to pay, indemnify, and hold harmless each Lender, Letter of
Credit Issuer and Agent and their respective directors, officers, employees, trustees, investment
advisors and agents from and against any and all other liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever, including reasonable and documented fees, disbursements and other charges of one
primary counsel and one local counsel in each relevant jurisdiction to such indemnified Persons
(unless there is an actual or perceived conflict of interest or the availability of different
claims or defenses in which case each such Person may retain its own counsel), related to the
Transactions or with respect to the execution, delivery, enforcement, performance and
administration of this Agreement, the other Credit Documents and any such other documents,
including, without limitation, any of the foregoing relating to the violation of, noncompliance
with or liability under, any Environmental Law or to any actual or alleged presence, release or
threatened release of Hazardous Materials or any other Environmental Claims involving or
attributable to the operations of the Borrower, any of its Subsidiaries or any of the Real Estate
(all the foregoing in this clause (d), collectively, the “indemnified liabilities”),
provided that the Borrower shall have no obligation hereunder to the Administrative Agent
or any Lender nor any of their Related Parties with respect to indemnified liabilities to the
extent attributable to the bad faith, gross negligence or willful misconduct of, or material breach
of the Credit Documents by, the party to be indemnified or any of its Related Parties (other than
its trustees and advisors). All amounts

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payable under this Section 14.5 shall be paid within ten
(10) Business Days of receipt by the Borrower of an invoice relating thereto setting forth such
expense in reasonable detail. No Person indemnified under this Section 14.5 shall be liable for
any special, indirect, consequential or punitive damages relating to this Agreement or any other
Credit Document or arising out of its activities in connection herewith or therewith. The
agreements in this Section 14.5 shall survive repayment of the Loans and all other amounts payable
hereunder

     14.6 Successors and Assigns; Participations and Assignments. (a) The provisions
of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns permitted hereby (including any Affiliate of the Letter of Credit
Issuer that issues any Letter of Credit), except that (i) the Borrower may not assign or otherwise
transfer any of its rights or obligations hereunder without the prior written consent of each
Lender (and any attempted assignment or transfer by the Borrower or without such consent shall be
null and void) and (ii) no Lender may assign or otherwise transfer its rights or obligations
hereunder except in accordance with this Section 14.6. Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than the parties hereto,
their respective successors and assigns permitted hereby (including any Affiliate of the Letter of
Credit Issuer that issues any Letter of Credit), Participants (to the extent provided in paragraph
(c) of this Section 14.6) and, to the extent expressly contemplated hereby, the Related
Parties of each of the Administrative Agent, the Letter of Credit Issuer and the Lenders) any legal
or equitable right, remedy or claim under or by reason of this Agreement.

(b) (i) Subject to the conditions set forth in paragraph (b)(ii) below, any
Lender may assign to one or more assignees all or a portion of its rights and
obligations under this Agreement (including all or a portion of its Commitments and
the Loans at the time owing to it) with the prior written consent of:

     (A) the Borrower (which consent shall not be unreasonably withheld or
delayed; provided that it being understood that, without limitation,
the Borrower shall have the right to withhold its consent to any assignment
if, in order for such assignment to comply with applicable law, the Borrower
would be required to obtain the consent of, or make any filing or
registration with, any Governmental Authority), provided that no
consent of the Borrower shall be required for an assignment to a Lender, an
Affiliate of a Lender, an Approved Fund (unless increased costs would result
therefrom at any time when no Event of Default under Section 11.1 or
Section 11.5 is continuing) or, if an Event of Default under
Section 11.1 or Section 11.5 has occurred and is continuing,
any other assignee;

     (B) the Administrative Agent (which consent shall not be unreasonably
withheld or delayed; provided that no consent of the Administrative
Agent shall be required for an assignment to a Lender, an Affiliate of a
Lender, an Approved Fund), or, in the case of assignments in connection with
the initial syndication of Commitments and Loans only, the Co-Lead
Arrangers, and, except in connection with the initial syndication of
Revolving Credit Commitments or Revolving Loans, the Swingline Lender and
the applicable Letter of Credit Issuer;

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     (ii) Assignments shall be subject to the following additional conditions:

     (A) except in the case of an assignment to a Lender, an Affiliate of a
Lender or an Approved Fund or an assignment of the entire remaining amount
of the assigning Lender’s Commitment or Loans, or assignments in connection
with the initial syndication of Commitments and Loans (in amounts, and to
such Persons, as previously agreed between the Borrower and the Co-Lead
Arrangers), the amount of the Commitment or Loans of the assigning Lender
subject to each such assignment (determined as of the date the Assignment
and Acceptance with respect to such assignment is delivered to the
Administrative Agent) shall not be less than $5,000,000, and increments of
$1,000,000 in excess thereof, unless each of the Borrower and the
Administrative Agent otherwise consents (which consents shall not be
unreasonably withheld or delayed), provided that no such
consent of the Borrower shall be required if an Event of Default under
Section 11.1 or Section 11.5 has occurred and is continuing;
provided, further, that contemporaneous assignments to a
single assignee
made by Affiliates of Lenders and related Approved Funds shall be
aggregated for purposes of meeting the minimum assignment amount
requirements stated above;

     (B) each partial assignment shall be made as an assignment of a
proportionate part of all the assigning Lender’s rights and obligations
under this Agreement, provided that this clause shall not be
construed to prohibit the assignment of a proportionate part of all the
assigning Lender’s rights and obligations in respect of one Class of
Commitments or Loans;

     (C) the parties to each assignment shall execute and deliver to the
Administrative Agent an Assignment and Acceptance, together with a
processing and recordation fee of $3,500, provided that only one
such fee shall be payable in the event of simultaneous assignments to or
from two or more Approved Funds; and

     (D) the assignee, if it shall not be a Lender, shall deliver to the
Administrative Agent an administrative questionnaire in a form approved by
the Administrative Agent (the “Administrative Questionnaire”).

     For the purpose of this Section 14.6(b), the term “Approved Fund” means
any Person (other than a natural person) that is engaged in making, purchasing,
holding or investing in bank loans and similar extensions of credit in the ordinary
course and that is administered, advised or managed by (a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or an Affiliate of an entity that
administers, advises or manages a Lender.

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     (iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(v)
of this Section 14.6, from and after the effective date specified in each
Assignment and Acceptance, the assignee thereunder shall be a party hereto and, to
the extent of the interest assigned by such Assignment and Acceptance, have the
rights and obligations of a Lender under this Agreement, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and
Acceptance, be released from its obligations under this Agreement (and, in the case
of an Assignment and Acceptance covering all of the assigning Lender’s rights and
obligations under this Agreement, such Lender shall cease to be a party hereto but
shall continue to be entitled to the benefits of Sections 2.10, 2.11, 3.5,
5.4 and 14.5). Any assignment or transfer by a Lender of rights or
obligations under this Agreement that does not comply with this Section 14.6
shall be treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with paragraph (c) of
this Section 14.6.

     (iv) The Administrative Agent, acting for this purpose as an agent of the
Borrower shall maintain at the Administrative Agent’s Office a copy of each
Assignment and Acceptance delivered to it and a register for the recordation of the
names and addresses of the Lenders, and the Commitments of, and principal
amount of the Loans and any payment made by the Letter of Credit Issuer under
any Letter of Credit owing to, each Lender pursuant to the terms hereof from time to
time (the “Register”). Further, the Register shall contain the name and
address of the Administrative Agent and the lending office through which each such
Person acts under this Agreement. The entries in the Register shall be conclusive
absent manifest error, and the Borrower, the Administrative Agent, the Letter of
Credit Issuer and the Lenders shall treat each Person whose name is recorded in the
Register pursuant to the terms hereof as a Lender hereunder for all purposes of this
Agreement. The Register shall be available for inspection by the Borrower or any
Lender (with respect to any entry relating to such Lender’s Loans) at any reasonable
time and from time to time upon reasonable prior notice.

     (v) Upon its receipt of a duly completed Assignment and Acceptance executed by
an assigning Lender and an assignee, the assignee’s completed Administrative
Questionnaire (unless the assignee shall already be a Lender hereunder), the
processing and recordation fee referred to in paragraph (b) of this Section 14.6
and any written consent to such assignment required by paragraph (b) of this
Section 14.6, the Administrative Agent shall accept such Assignment and
Acceptance and record the information contained therein in the Register.

(c) (i) Any Lender may, without the consent of the Borrower, the
Administrative Agent, the Letter of Credit Issuer or the Swingline Lender, sell
participations to one or more banks or other entities (each, a
“Participant”) in all or a portion of such Lender’s rights and obligations
under this Agreement (including all or a portion of its Commitments and the Loans
owing to it), provided that (A) such Lender’s obligations under this
Agreement shall remain unchanged, (B) such Lender shall remain solely responsible to
the other parties hereto for the performance of such obligations and (C) the
Borrower, the

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Administrative Agent, the
Letter of Credit Issuer and the other Lenders shall continue to deal solely and
directly with such Lender in connection with such Lender’s rights and obligations
under this Agreement. Any agreement or instrument pursuant to which a Lender sells
such a participation shall provide that such Lender shall retain the sole right to
enforce this Agreement and to approve any amendment, modification or waiver of any
provision of this Agreement or any other Credit Document, provided that such
agreement or instrument may provide that such Lender will not, without the consent
of the Participant, agree to any amendment, modification or waiver described in the
first proviso to Section 14.1 under subsections (i), (vi), and (vii) that
affects such Participant. Subject to paragraph (c)(ii) of this Section
14.6, the Borrower agrees that each Participant shall be entitled to the
benefits of Sections 2.10, 2.11 and 5.4 to the same extent
as if it were a Lender (subject to the requirements of those Sections) and had
acquired its interest by assignment pursuant to paragraph (b) of this Section
14.6. To the extent permitted by law, each Participant also shall be entitled
to the benefits of Section 14.8(b) as though it were a Lender, provided such
Participant agrees to be subject to Section 14.8(a) as though it were a
Lender.

     (ii) A Participant shall not be entitled to receive any greater payment under
Section 2.10 or 5.4 than the applicable Lender would have been entitled to
receive with respect to the participation sold to such Participant, unless the sale
of the participation to such Participant is made with the Borrower’s prior written
consent (which consent shall not be unreasonably withheld).

     (d) Any Lender may, without the consent of the Borrower or the Administrative Agent, at any
time pledge or assign a security interest in all or any portion of its rights under this Agreement
to secure obligations of such Lender, including any pledge or assignment to secure obligations to a
Federal Reserve Bank, and this Section 14.6 shall not apply to any such pledge or
assignment of a security interest, provided that no such pledge or assignment of a security
interest shall release a Lender from any of its obligations hereunder or substitute any such
pledgee or assignee for such Lender as a party hereto. In order to facilitate such pledge or
assignment, the Borrower hereby agrees that, upon request of any Lender at any time and from time
to time after the Borrower has made its initial borrowing hereunder, the Borrower shall provide to
such Lender, at the Borrower’s own expense, a promissory note, substantially in the form of
Exhibit L evidencing the Revolving Credit Loans and Swingline Loans, respectively, owing to
such Lender.

     (e) Subject to Section 14.16, the Borrower authorizes each Lender to disclose to any
Participant, secured creditor of such Lender or assignee (each, a “Transferee”) and any
prospective Transferee any and all financial information in such Lender’s possession
concerning the Borrower and its Affiliates that has been delivered to such Lender by or on behalf
of the Borrower and its Affiliates pursuant to this Agreement or which has been delivered to such
Lender by or on behalf of the Borrower and its Affiliates in connection with such Lender’s credit
evaluation of the Borrower and its Affiliates prior to becoming a party to this Agreement.

     14.7 Replacements of Lenders under Certain Circumstances. (a) The Borrower shall be permitted to
replace any Lender that (a) requests
reimbursement for amounts owing pursuant

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to Section 2.10, 3.5 or 5.4, (b) is
affected in the manner described in Section 2.10(a)(iii) and as a result thereof any of the
actions described in such Section is required to be taken or (c) becomes a Defaulting Lender, with
a replacement bank or other financial institution, provided that (i) such replacement does
not conflict with any Requirement of Law, (ii) no Event of Default shall have occurred and be
continuing at the time of such replacement, (iii) the Borrower shall repay (or the replacement bank
or institution shall purchase, at par) all Loans and other amounts (other than any disputed
amounts), pursuant to Section 2.10, 2.11, 3.5 or 5.4, as the case may be) owing to
such replaced Lender prior to the date of replacement, (iv) the replacement bank or institution, if
not already a Lender, and the terms and conditions of such replacement, shall be reasonably
satisfactory to the Administrative Agent, the Swingline Lender and the Letter of Credit Issuer, (v)
the replaced Lender shall be obligated to make such replacement in accordance with the provisions
of Section 14.6 (provided that the Borrower shall be obligated to pay the
registration and processing fee referred to therein) and (vi) any such replacement shall not be
deemed to be a waiver of any rights that the Borrower, the Administrative Agent or any other Lender
shall have against the replaced Lender.

     (b) If any Lender (such Lender, a “Non-Consenting Lender”) has failed to consent to a
proposed amendment, waiver, discharge or termination, then provided no Event of Default then
exists, the Borrower shall have the right (unless such Non-Consenting Lender grants such consent)
to replace such Non-Consenting Lender by requiring such Non-Consenting Lender to assign its Loans,
and its Commitments hereunder to one or more assignees reasonably acceptable to the Administrative
Agent, the Swingline Lender and the Letter of Credit Issuer, provided that: (a) all
Obligations of the Borrower owing to such Non-Consenting Lender being replaced shall be paid in
full to such Non-Consenting Lender concurrently with such assignment, (b) the replacement Lender
shall purchase the foregoing by paying to such Non-Consenting Lender a price equal to the principal
amount thereof plus accrued and unpaid interest thereon and (c) the replacement Lender shall grant
such consent. In connection with any such assignment, the Borrower, Administrative Agent, such
Non-Consenting Lender and the replacement Lender shall otherwise comply with Section 14.6.

     14.8 Adjustments; Set-off. (a) If any Lender (a “benefited Lender”) shall at
any time receive any payment
of all or part of its Loans, or interest thereon, or receive any collateral in respect thereof
(whether voluntarily or involuntarily, by set-off, pursuant to events or proceedings of the nature
referred to in Section 11.5, or otherwise), in a greater proportion than any such payment
to or collateral received by any other Lender, if any, in respect of such other Lender’s Loans, or
interest thereon, such benefited Lender shall purchase for cash from the other Lenders a
participating interest in
such portion of each such other Lender’s Loan, or shall provide such other Lenders with the
benefits of any such collateral, or the proceeds thereof, as shall be necessary to cause such
benefited Lender to share the excess payment or benefits of such collateral or proceeds ratably
with each of the Lenders; provided, however, that if all or any portion of such
excess payment or benefits is thereafter recovered from such benefited Lender, such purchase shall
be rescinded, and the purchase price and benefits returned, to the extent of such recovery, but
without interest.

     (b) After the occurrence and during the continuance of an Event of Default, in addition to any
rights and remedies of the Lenders provided by law, each Lender shall have the right, without prior
notice to the Borrower, any such notice being expressly waived by the

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Borrower to the extent
permitted by applicable law, subject to the consent of the Administrative Agent (such consent not
to be unreasonably withheld) upon any amount becoming due and payable by the Borrower hereunder
(whether at the stated maturity, by acceleration or otherwise) to set-off and appropriate and apply
against such amount any and all deposits (general or special, time or demand, provisional or
final), in any currency, and any other credits, indebtedness or claims, in any currency, in each
case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or
owing by such Lender or any branch or agency thereof to or for the credit or the account of the
Borrower. Each Lender agrees promptly to notify the Borrower and the Administrative Agent after
any such set-off and application made by such Lender, provided that the failure to give
such notice shall not affect the validity of such set-off and application.

     14.9 Counterparts. This Agreement may be executed by one or more of the parties to this Agreement on any
number of separate counterparts (including by facsimile or other electronic transmission), and all
of said counterparts taken together shall be deemed to constitute one and the same instrument. A
set of the copies of this Agreement signed by all the parties shall be lodged with the Borrower and
the Administrative Agent.

     14.10 Severability. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction.

     14.11 Integration. This Agreement and the other Credit Documents represent the agreement of the Borrower, the
Collateral Agent, the Administrative Agent and the Lenders with respect to the subject matter
hereof, and there are no promises, undertakings, representations or warranties by the Borrower, the
Administrative Agent, the Collateral Agent or any Lender relative to subject matter hereof not
expressly set forth or referred to herein or in the other Credit Documents.

     14.12 GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED
BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

     14.13 Submission to Jurisdiction; Waivers. Each party hereto hereby irrevocably and unconditionally:

     (a) submits for itself and its property in any legal action or proceeding relating to
this Agreement and the other Credit Documents to which it is a party, or for recognition and
enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of
the courts of the State of New York, the courts of the United States of America for the
Southern District of New York and appellate courts from any thereof;

     (b) consents that any such action or proceeding may be brought in such courts and
waives any objection that it may now or hereafter have to the venue of any such

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action or
proceeding in any such court or that such action or proceeding was brought in an
inconvenient court and agrees not to plead or claim the same;

     (c) agrees that service of process in any such action or proceeding may be effected by
mailing a copy thereof by registered or certified mail (or any substantially similar form of
mail), postage prepaid, to such Person at its address set forth on Schedule 14.2 at
such other address of which the Administrative Agent shall have been notified pursuant to
Section 14.2;

     (d) agrees that nothing herein shall affect the right to effect service of process in
any other manner permitted by law or shall limit the right to sue in any other jurisdiction;
and

     (e) waives, to the maximum extent not prohibited by law, any right it may have to claim
or recover in any legal action or proceeding referred to in this Section 14.13 any
special, exemplary, punitive or consequential damages.

     14.14 Acknowledgments. The Borrower hereby acknowledges that:

     (a) it has been advised by counsel in the negotiation, execution and delivery of this
Agreement and the other Credit Documents;

     (b) neither the Administrative Agent nor the Collateral Agent nor any Lender has any
fiduciary relationship with or duty to the Borrower arising out of or in connection with
this Agreement or any of the other Credit Documents, and the relationship between
Administrative Agent, the Collateral Agent and Lenders, on one hand, and the Borrower, on
the other hand, in connection herewith or therewith is solely that of debtor and creditor;
and

     (c) no joint venture is created hereby or by the other Credit Documents or otherwise
exists by virtue of the transactions contemplated hereby among the Lenders or among the
Borrower and the Lenders.

     14.15 WAIVERS OF JURY TRIAL. THE BORROWER, EACH AGENT AND EACH LENDER HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL
BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT
AND FOR ANY COUNTERCLAIM THEREIN.

     14.16 Confidentiality. The Administrative Agent, each Co-Lead Arranger and each Lender shall hold all non-public
information furnished by or on behalf of the Borrower in connection with such Lender’s evaluation
of whether to become a Lender hereunder or obtained by such Lender, the Administrative Agent or the
Co-Lead Arrangers pursuant to the requirements of this Agreement (“Confidential
Information”), confidential in accordance with its customary procedure for handling
confidential information of this nature and (in the case of a Lender that is a bank) in accordance
with safe and sound banking practices and in any event may (i) make disclosure as required or
requested by any governmental agency or representative thereof or pursuant to legal process or to
such Lender’s, the Administrative Agent’s or Co-Lead

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Arrangers’ attorneys, professional advisors or
independent auditors or Affiliates, provided that unless specifically prohibited by
applicable law or court order, each Lender, each Co-Lead Arranger and the Administrative Agent
shall notify the Borrower of any request by any governmental agency or representative thereof
(other than any such request in connection with an examination of the financial condition of such
Lender by such governmental agency or other routine examinations of such Lender by such
governmental agency) for disclosure of any such non-public information prior to disclosure of such
information, and provided, further, that in no event shall any Lender, Co-Lead Arranger or the
Administrative Agent be obligated or required to return any materials furnished by the Borrower or
any Subsidiary of the Borrower, (ii) make disclosures of such information reasonably required by
any bona fide or potential assignee, transferee or participant in connection with the contemplated
assignment, transfer or participation by such Lender of any Loans or any participations therein or
by any direct or indirect contractual counterparties (or the professional advisors thereto) in
Hedge Agreements or any other swap or derivative transaction relating to the Borrower and its
obligations (provided, such assignees, transferees, participants, counterparties and advisors are
advised of and agree to be bound by provisions that in substance are equivalent to those in this
Section 14.16), (iii) make disclosure of such information reasonably required by any lender or
other Person providing financing to such Lender (provided such lenders or other Persons are advised
of the confidential nature of such information and agree to keep such information confidential on
terms consistent with this Section 14.16), and (iv) make disclosure to any rating agency,
provided that, prior to any disclosure, such rating agency shall undertake in writing to
preserve the confidentiality of any Confidential Information received by it from any of the Agents
or any Lender.

     14.17
Direct Website Communications.

	 	(a)	 	     (i) The Borrower may, at its option, provide to the Administrative Agent
any information, documents and other materials that it is obligated to furnish to
the Administrative Agent pursuant to the Credit Documents, including, without
limitation, all notices, requests, financial statements, financial and other
reports, certificates and other information materials, but excluding any such
communication that (A) relates to a request for a new, or a conversion of an
existing, borrowing or other extension of credit (including any election of an
interest rate or interest period relating thereto), (B) relates to the payment of
any principal or other amount due under the Credit Agreement prior to the scheduled
date therefor, (C) provides notice of any default or event of default under the
Credit Agreement or (D) is required to be delivered to satisfy any condition
precedent to the effectiveness of the Credit Agreement and/or any borrowing or other
extension of credit thereunder (all such non-excluded communications being referred
to herein collectively as “Communications”), by transmitting the
Communications in an electronic/soft medium in a format reasonably acceptable to the
Administrative Agent at (212) 461-7760, Attn: Relationship Manager/McJunkin.
Nothing in this Section 14.17 shall prejudice the right of the Borrower, the
Administrative Agent or any Lender to give any notice or other communication
pursuant to any Credit Document in any other manner specified in such Credit
Document.

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	 	 	 	     (ii) The Administrative Agent agrees that the receipt of the Communications by
the Administrative Agent at its e-mail address set forth above shall constitute
effective delivery of the Communications to the Administrative Agent for purposes of
the Credit Documents. Each Lender agrees that notice to it (as provided in the next
sentence) specifying that the Communications have been posted to the Platform shall
constitute effective delivery of the Communications to such Lender for purposes of
the Credit Documents. Each Lender agrees (A) to notify the Administrative Agent in
writing (including by electronic communication) from time to time of such Lender’s
e-mail address to which the foregoing notice may be sent by electronic transmission
and (B) that the foregoing notice may be sent to such e-mail address.

     (b) The Borrower further agrees that the Administrative Agent may make the Communications
available to the Lenders by posting the Communications on Intralinks or a substantially similar
electronic transmission system (the “Platform”), so long as the access to such Platform is
limited (i) to the Agents and the Lenders and (ii) remains subject the confidentiality requirements
set forth in Section 14.16.

     (c) The Platform is provided “as is” and “as available.” The Agent Parties do not warrant the
accuracy or completeness of the Communications, or the adequacy of the platform and expressly
disclaim liability for errors or omissions in the Communications. No warranty of any kind,
express, implied or statutory, including, without limitation, any warranty
of merchantability, fitness for a particular purpose, non-infringement of third party rights
or freedom from viruses or other code defects, is made by the Agent Parties in connection with the
Communications or the platform. In no event shall the Administrative Agent, the Collateral Agent
or any of its affiliates or any of their respective officers, directors, employees, agents,
advisors or representatives (collectively, “Agent Parties”) have any liability to the
Borrower, any Lender or any other person or entity for damages of any kind, including, without
limitation, direct or indirect, special, incidental or consequential damages, losses or expenses
(whether in tort, contract or otherwise) arising out of the Borrower’s or the Administrative
Agent’s transmission of Communications through the internet, except to the extent the liability of
any Agent Party resulted from such Agent Party’s (or any of its Related Parties (other than
trustees and advisors)) gross negligence, bad faith or willful misconduct or material breach of the
Credit Documents.

     (d) The Borrower and each Lender acknowledge that certain of the Lenders may be “public-side”
Lenders (Lenders that do not wish to receive material non-public information with respect to the
Borrower, its Subsidiaries or their securities) and, if documents or notices required to be
delivered pursuant to the Credit Documents or otherwise are being distributed through the Platform,
any document or notice that the Borrower has indicated contains only publicly available information
with respect to the Borrower may be posted on that portion of the Platform designated for such
public-side Lenders. If the Borrower has not indicated whether a document or notice delivered
contains only publicly available information, the Administrative Agent shall post such document or
notice solely on that portion of the Platform designated for Lenders who wish to receive material
nonpublic information with respect to the Borrower, its Subsidiaries and their securities.
Notwithstanding the foregoing, the

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Borrower shall be under no obligation under this Section 14.17
(d) to indicate any document or notice as containing only publicly available information.

     14.18 USA PATRIOT Act. Each Lender hereby notifies the Borrower that pursuant to the requirements of the USA
Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot
Act”), it is required to obtain, verify and record information that identifies the Borrower and
each Guarantor, which information includes the name and address of the Borrower and each Guarantor
and other information that will allow such Lender to identify the Borrower and each Guarantor in
accordance with the Patriot Act.

     SECTION 15. Limitation on Permitted Discretion; Special Provisions regarding Accounts,
Inventory, and Application of Collateral Proceeds

     15.1 Accounts and Account Collections.

     (a) At any time that an Event of Default exists or has occurred and is continuing and
after notice of such action has been provided to the Borrower, Collateral Agent shall, at
its option, have the exclusive right to settle, adjust or compromise any
claim, offset, counterclaim or dispute with Account Debtors of any Credit Party or
grant any credits, discounts or allowances.

     (b) Collateral Agent shall have the right at any time or times during the continuance
of an Event of Default or Cash Dominion Event and after notice of such action has been
provided to the Borrower, in Collateral Agent’s name or in the name of a nominee of
Collateral Agent, and may communicate directly with any Account Debtor, to verify the
validity, amount or any other matter relating to any Account or other Collateral, by mail,
telephone, e-mail, facsimile transmission or otherwise. To facilitate the exercise of the
right described in the immediately preceding sentence, Borrower hereby agrees to provide
Collateral Agent upon request, at any time during the continuance of an Event of Default,
the name and address of each material Account Debtor of Borrower or any Borrowing Base
Guarantor.

     (c) Within sixty (60) days after the Closing Date (or such later date as the
Administration Agent may reasonably agree in writing), the Borrower will, and will cause
each of the Guarantors to establish and maintain, at its sole expense, blocked accounts or
lockboxes and related deposit accounts (in each case, “Blocked Accounts”) with such
banks as are reasonably acceptable to Collateral Agent into which Borrower and the
Guarantors shall promptly deposit and direct their respective Account Debtors to directly
remit all payments on Accounts and all payments constituting proceeds of Inventory or other
Collateral in the identical form in which such payments are made, whether by cash, check or
other manner and shall be identified and segregated from all other funds of the Credit
Parties. All proceeds of the Loans shall be deposited into a Blocked Account. Borrower and
Guarantors shall deliver, or cause to be delivered, to Collateral Agent a Control Agreement
duly authorized, executed and delivered by each bank where a Blocked Account for the benefit
of Borrower or any Guarantor is maintained. Except as permitted by Section
15.1(d)(iii), Borrower and Guarantors shall not establish any deposit accounts after the
Closing Date, unless Borrower or Guarantor

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(as applicable) have complied in full with the
provisions of this Section 15.1 with respect to such deposit accounts.

     (d) At all times after the initial Blocked Accounts are established pursuant to the
foregoing paragraph (c), Borrower and each Guarantor shall maintain a cash management system
which is acceptable to the Administrative Agent and the Collateral Agent (the “Cash
Management System”). The Cash Management System shall contain, among other things, the
following:

     (i) With respect to the Blocked Accounts of Borrower and such Guarantors as the
Collateral Agent shall determine in its sole discretion, the applicable bank
maintaining such Blocked Accounts shall agree, pursuant to the applicable Control
Agreement, to forward daily all amounts in each Blocked Account to one Blocked
Account designated as concentration account in the name of Borrower (the
“Concentration Account”) at the bank that shall be designated as the
Concentration Account bank for Borrower (the “Concentration Account Bank”).
The Concentration Account Bank shall agree, pursuant to the applicable Control
Agreement from and after the receipt of a notice (an “Activation Notice”)
from the Collateral Agent (which Activation Notice may be given by Collateral
Agent at any time during the existence of a Cash Dominion Event) and so long as such
Cash Dominion Event is continuing, to forward daily all amounts in the Concentration
Account to the account designated as collection account (the “Collection
Account”) which shall be under the exclusive dominion and control of the
Collateral Agent; provided that at any time when no Cash Dominion Event is
continuing, the balance standing to the credit of the Concentration Account shall be
distributed as directed by the Borrower in accordance with this Section 15.1;

     (ii) With respect to the Blocked Accounts of such Guarantors as the Collateral
Agent shall determine in its sole discretion, the applicable bank maintaining such
Blocked Accounts shall agree, from and after the receipt of an Activation Notice
from the Collateral Agent (which Activation Notice may be given by Collateral Agent
at any time during the existence of a Cash Dominion Event) and so long as such Cash
Dominion Event is continuing, to forward all amounts in each Blocked Account to the
Collection Account and to commence the process of daily sweeps from such Blocked
Account into the Collection Account; and

     (iii) Any provision of this Section 15.1 to the contrary
notwithstanding, Credit Parties may maintain payroll accounts, trust accounts or
other accounts that are not a part of the Cash Management Systems or subject to a
Control Agreement provided that no Credit Party shall accumulate or maintain cash in
such accounts (other than cash not constituting proceeds of Collateral or Loans) as
of any date of determination in excess of checks outstanding against such accounts
as of that date and amounts necessary to meet minimum balance requirements plus
$1,000,000 in the aggregate for all such accounts.

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     (e) At all times following the establishment of the Cash Management System pursuant to
this Section 15.1 and after the occurrence and during the continuation of a Cash
Dominion Event, on each Business Day, at or before 1:00 p.m. New York City time, the
Collateral Agent shall apply all funds received in the Collection Account on a daily basis
to the repayment (by transferring same to the account of or pursuant to direction of
Administrative Agent) of (i) first, fees and reimbursable expenses of Agents then due and
payable; (ii) second, to interest then due and payable on all Loans, (iii) third, the Swing
Line Loans, (iv) fourth, ABR Loans (including Protection Advances), (v) fifth, LIBOR Loans,
together with all accrued and unpaid interest thereon, and (vi) last, other amounts which
are then due and owing by the Borrower hereunder or under any other Credit Document, in each
case without a reduction in the Revolving Commitments; all further funds received in any of
the Collection Account shall, unless an Event of Default has occurred and is continuing, be
transferred or applied by the Collateral Agent in accordance with the directions of Borrower
or the respective other Borrowing Base Guarantor. If an Event of Default has occurred and
is continuing, the Collateral Agent shall not transfer or apply any such funds from the
Collection Account in accordance with such directions unless the Administrative Agent and
the Collateral Agent determine to release such funds to Borrower. Absent any such
determination by the Administrative
Agent and the Collateral Agent, all such funds in the Collection Account shall be
transferred to the Cash Collateral Account to be applied to the Obligations as they come due
(whether at stated maturity, by acceleration or otherwise). If consented to by the
Administrative Agent, the Collateral Agent and the Required Lenders, such funds in the Cash
Collateral Account may be released to Borrower.

     (f) Borrower and its directors, employees, agents and other Affiliates and Guarantors
shall, acting as trustee for Collateral Agent, receive, as the property of Collateral Agent,
any monies, checks, notes, drafts or any other payment relating to and/or proceeds of
Accounts, Inventory or other Collateral which come into their possession or under their
control and, following the establishment of the Cash Management Systems pursuant to this
Section 15.1, within three (3) Business Days after receipt thereof, shall deposit or
cause the same to be deposited in the Blocked Accounts, or remit the same or cause the same
to be remitted, in kind, to Collateral Agent.

     15.2 Limitation on Permitted Discretion..

     (a) The Administrative Agent shall have the right to establish, modify or eliminate
Reserves against Eligible Accounts and Eligible Inventory from time to time in its Permitted
Discretion. In addition, the Administrative Agent reserves the right, at any time and from
time to time after the Closing Date, to adjust any of the applicable criteria, to establish
new criteria and to adjust advance rates with respect to Eligible Accounts and Eligible
Inventory, in its Permitted Discretion, subject to clause (vi) of the proviso to Section
14.1.

     (b) Notwithstanding the foregoing or any provision in this Agreement to the contrary,
circumstances, conditions, events or contingencies arising prior to the Closing Date and
disclosed to the Co-Lead Arrangers, Administrative Agent or Collateral Agent prior to the
Closing Date shall not be the basis for any establishment or modification of

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Reserves,
eligibility criteria or advance rates unless (i) in the case of Reserves and eligibility
criteria, such Reserves or eligibility criteria were established on the Closing Date or (ii)
such circumstances, conditions, events or contingencies shall have changed in a material
respect since the Closing Date.

     (c) Any exercise of Permitted Discretion shall be based on a good faith reasonable
determination of the Administrative Agent that (i) the circumstances, conditions, events or
contingencies giving rise thereto will or reasonably could be expected to adversely affect a
material portion of the value of the Eligible Accounts or Eligible Inventory, the
enforceability or priority of the Collateral Agent’s Liens thereon or the amount the Secured
Parties would likely receive in the liquidation of any material portion of Eligible Accounts
or Eligible Inventory and (ii) the proposed action to be taken by the Administrative Agent
to mitigate the effects described in clause (i) (including the amount of any Reserve) bears
a reasonable relationship to the circumstance, condition, event or other contingency that is
the basis therefor.

     (d) Upon delivery of notice to Borrower by the Administrative Agent of its intent to
establish or increase a Reserve, the Administrative Agent shall be available to discuss the
proposed Reserve or increase, and the Borrower may take such action as may be required so
that the circumstance, condition, event or other contingency that is the basis for such
Reserve or increase no longer exists, in a manner and to the extent reasonably satisfactory
to the Administrative Agent in the exercise of its Permitted Discretion. In no event shall
such notice and opportunity limit the right of the Administrative Agent to establish or
change such Reserve, unless the Administrative Agent shall have determined in its Permitted
Discretion that the circumstance, condition, event or other contingency that is the basis
for such new Reserve or such change no longer exists or has otherwise been adequately
addressed by the Borrower.

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     IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Agreement to
be duly executed and delivered as of the date first above written.

	 	 	 	 	 
	 	MCJUNKIN CORPORATION

 	 
	 	By:  	/s/
J.F. UNDERHILL	 
	 	 	Name:  	J.F. Underhill	 
	 	 	Title:  	Chief Financial Officer	 

[SIGNATURE PAGE TO MCJUNKIN REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	GOLDMAN SACHS CREDIT PARTNERS L.P.,

as Co-Lead Arranger and Joint Bookrunner

 	 
	 	By:  	/s/
WALTER A. JACKSON	 
	 	 	Name:  	Walter A. Jackson	 
	 	 	Title:  	Authorized Signatory	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[SIGNATURE PAGE TO MCJUNKIN REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	THE CIT GROUP/BUSINESS CREDIT, INC., as

Administrative Agent and Co-Collateral Agent

 	 
	 	By:  	/s/
CYNTRA A. TRANI	 
	 	 	Name:  	Cyntra A. Trani	 
	 	 	Title:  	Senior Vice President	 
	 

[SIGNATURE PAGE TO MCJUNKIN REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as Co-Collateral Agent

 	 
	 	By:  	/s/
J.L. BARTHOLOMEW	 
	 	 	Name:  	J.L. Bartholomew	 
	 	 	Title:  	Senior Vice President	 

[SIGNATURE PAGE TO MCJUNKIN REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	LEHMAN BROTHERS INC., as Co-Lead Arranger

and Joint Bookrunner

 	 
	 	By:  	/s/ LAURIE PERPER	 
	 	 	Name:  	Laurie Perper	 
	 	 	Title:  	Senior Vice President	 

[SIGNATURE PAGE TO MCJUNKIN REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as Syndication Agent

 	 
	 	By:  	/s/ JOY L. BARTHOLOMEW
 	 
	 	 	Name:  	Joy L. Bartholomew 	 
	 	 	Title:  	Senior Vice President 	 
	 

[SIGNATURE PAGE TO MCJUNKIN REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	Allied Irish Banks, p.l.c.,
as a
Lender

 	 
	 	By:  	/s/ ALBERT D. PEREZ
 	 
	 	 	Name:  	Albert D. Perez 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	            /s/ EANNA P. MULKERE
 	 
	 	 	Name:  	Eanna P. Mulkere 	 
	 	 	Title:  	Assistant Vice President 	 
	 

[SIGNATURE PAGE TO MCJUNKIN REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as a Lender

 	 
	 	By:  	/s/ JOY L. BARTHOLOMEW
 	 
	 	 	Name:  	Joy L. Bartholomew 	 
	 	 	Title:  	Senior Vice President 	 
	 

[SIGNATURE PAGE TO MCJUNKIN REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	Bank
of Oklahoma, N.A.
as a Lender

 	 
	 	By:  	/s/ DAN HUGHES
 	 
	 	 	Name:  	Dan Hughes 	 
	 	 	Title:  	Senior Vice President 	 
	 

[SIGNATURE PAGE TO MCJUNKIN REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	Branch Banking & Trust Company,

as a Lender

 	 
	 	By:  	/s/ STEPHANIE J. COOK
 	 
	 	 	Name:  	Stephanie J. Cook 	 
	 	 	Title:  	Senior Vice President 	 
	 

[SIGNATURE PAGE TO MCJUNKIN REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	Burdale Financial Limited,
 as a Lender

 	 
	 	By:  	/s/ DAVID GRENDE
 	 
	 	 	Name:  	David Grende 	 
	 	 	Title:  	Managing Director 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	            /s/ JASON D. SCHICK
 	 
	 	 	Name:  	Jason Schick 	 
	 	 	Title:  	Vice President 	 
	 

[SIGNATURE PAGE TO MCJUNKIN REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	CATERPILLAR FINANCIAL SERVICES CORPORATION,
as a Lender

 	 
	 	By:  	/s/ CHRISTOPHER C. PATTERSON
 	 
	 	 	Name:  	Christopher C. Patterson 	 
	 	 	Title:  	Global Operations Manager — Capital Markets 	 
	 

[SIGNATURE PAGE TO MCJUNKIN REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	THE CIT GROUP/BUSINESS CREDIT, INC., as a Lender

 	 
	 	By:  	/s/ CYNTRA A. TRANI
 	 
	 	 	Name:  	Cyntra A. Trani 	 
	 	 	Title:  	Senior Vice President 	 
	 

[SIGNATURE PAGE TO MCJUNKIN REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	Citizens Bank, as a Lender

 	 
	 	By:  	/s/ TIMOTHY D. HANCHETT
 	 
	 	 	Name:  	Timothy D. Hanchett 	 
	 	 	Title:  	Senior Vice President 	 
	 

[SIGNATURE PAGE TO MCJUNKIN REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	City National Bank of West Virginia,
as a Lender

 	 
	 	By:  	/s/ JACK CAVENDER
 	 
	 	 	Name:  	Jack Cavender 	 
	 	 	Title:  	Executive Vice President 	 
	 

[SIGNATURE PAGE TO MCJUNKIN REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	Fifth Third Bank an Ohio Banking Corporation,
as a Lender

 	 
	 	By:  	/s/ WILLIAM R. HARROD
 	 
	 	 	Name:  	William R. Harrod 	 
	 	 	Title:  	Vice President 	 
	 

[SIGNATURE PAGE TO MCJUNKIN REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	General
Electric Capital Corporation,
as a Lender

 	 
	 	By:  	/s/ MARTIN J. MAHONEY
 	 
	 	 	Name:  	Martin Mahoney 	 
	 	 	Title:  	Duly Authorized Signatory 	 
	 

[SIGNATURE PAGE TO MCJUNKIN REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	The Huntington National Bank,
 as a Lender

 	 
	 	By:  	/s/ L. BLAIR DEVAN
 	 
	 	 	Name:  	L. Blair DeVan 	 
	 	 	Title:  	Vice President 	 
	 

[SIGNATURE PAGE TO MCJUNKIN REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	Israel Discount Bank of New York,
as a Lender

 	 
	 	By:  	/s/ RAHUM N. WILLIAMS
 	 
	 	 	Name:  	Rahum N. Williams 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	            /s/ JEFFREY S. ACKERMAN
 	 
	 	 	Name:  	Jeffrey S. Ackerman 	 
	 	 	Title:  	Senior Vice President 	 
	 

[SIGNATURE PAGE TO MCJUNKIN REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	JPMorgan Chase Bank, N.A.,
as a Lender

 	 
	 	By:  	/s/ KIM NGUYEN
 	 
	 	 	Name:  	Kim Nguyen 	 
	 	 	Title:  	Vice President 	 
	 

[SIGNATURE PAGE TO MCJUNKIN REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	Mizuho Corporate Bank,
as a Lender

 	 
	 	By:  	/s/ JAMES R. FAYEN
 	 
	 	 	Name:  	James R. Fayen 	 
	 	 	Title:  	Deputy General Manager 	 
	 

[SIGNATURE PAGE TO MCJUNKIN REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	National City Business Credit, Inc.,
as a Lender

 	 
	 	By:  	/s/ THOMAS J. EVANS
 	 
	 	 	Name:  	Thomas J. Evans 	 
	 	 	Title:  	Vice President 	 
	 

[SIGNATURE PAGE TO MCJUNKIN REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	North Fork Business Capital Corporation,
as a Lender

 	 
	 	By:  	/s/ MICHAEL S. BURNS
 	 
	 	 	Name:  	Michael S. Burns 	 
	 	 	Title:  	Senior Vice President 	 
	 

[SIGNATURE PAGE TO MCJUNKIN REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	PNC Bank, National Association,
as a Lender

 	 
	 	By:  	/s/ SAM V. TRABERMAN
 	 
	 	 	Name:  	Sam V. Traberman 	 
	 	 	Title:  	Vice President 	 
	 

[SIGNATURE PAGE TO MCJUNKIN REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	RZB Finance LLC,
as a Lender

 	 
	 	By:  	/s/ SHIRLEY M. RITCH
 	 
	 	 	Name:  	Shirley M. Ritch 	 
	 	 	Title:  	Assistant Vice President 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	            /s/ NICOLAS M. MORIATIS
 	 
	 	 	Name:  	Nicolas M. Moriatis 	 
	 	 	Title:  	Group Vice President
     Controller 	 
	 

[SIGNATURE PAGE TO MCJUNKIN REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	United Bank, Inc,
as a Lender

 	 
	 	By:  	/s/ JAMES A. WARD
 	 
	 	 	Name:  	James A. Ward  	 
	 	 	Title:  	Vice President 	 
	 

[SIGNATURE PAGE TO MCJUNKIN REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	UPS
Capital Corporation,
as a Lender

 	 
	 	By:  	/s/ JOHN P. HOLLOWAY
 	 
	 	 	Name:  	John P. Holloway 	 
	 	 	Title:  	Director of Portfolio Management 	 
	 

[SIGNATURE PAGE TO MCJUNKIN REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	Wachovia Bank National Association,
as a Lender

 	 
	 	By:  	/s/ STEVEN J. HAAS
 	 
	 	 	Name:  	Steven J. Haas 	 
	 	 	Title:  	Director 	 
	 

[SIGNATURE PAGE TO MCJUNKIN REVOLVING CREDIT AGREEMENT]

 

 

 

    SCHEDULE 1.1(A) — EXISTING
    LETTERS OF CREDIT

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	

    Beneficiary

	
 
	
    Expiration Date
	
 
	
 
	
    Amount
	
 
	
 
	
    Purpose
	
 
	
    Issuing Bank

	

    Brickstreet

	
 
	
 
	
    11/1/08
	
 
	
 
	
    $
	
    200,000
	
 
	
 
	
    Worker’s Comp
	
 
	
    JPMorgan Chase

	

    St. Paul Travelers

	
 
	
 
	
    12/31/07
	
 
	
 
	
    $
	
    1,775,000
	
 
	
 
	
    Insurance
	
 
	
    United Bank

	

    State of West Virginia

	
 
	
 
	
    1/31/08
	
 
	
 
	
    $
	
    1,000,000
	
 
	
 
	
    Worker’s Comp
	
 
	
    JPMorgan Chase

	

    Sentry Insurance

	
 
	
 
	
    11/1/08
	
 
	
 
	
    $
	
    75,000
	
 
	
 
	
    Insurance
	
 
	
    JPMorgan Chase

	

    Lumberman’s Mutual

	
 
	
 
	
    7/1/08
	
 
	
 
	
    $
	
    45,000
	
 
	
 
	
    Insurance
	
 
	
    JPMorgan Chase

 

 

    SCHEDULE 1.1(B) —
    BORROWING BASE GUARANTORS

 

	 	 	 	 	 	 	 
	
 
	
 
	
    McJunkin Appalachian Oilfield Supply Company

    McJunkin Development Corporation

    McJunkin Nigeria Limited

    McJunkin-Puerto Rico Corporation

    McJunkin-West Africa Corporation

    Milton Oil & Gas Company

    Ruffner Realty Company

    Greenbrier Petroleum Corporation

    Midway-Tristate Corporation

    West Oklahoma PVF Company

    Red Man Pipe & Supply Co.

    Wesco Acquisition Partners, Inc.
	
 
	
 
	
 
	
 

 

 

 

    SCHEDULE
    1.1(C) — COMMITMENTS AND ADDRESSES OF

LENDERS1

 

    Allied Irish
    Bank, p.l.c.

    Bank of America, N.A.

    Bank of Oklahoma, N.A.

    Branch Banking & Trust Company

    Burdale Financial Limited

    Caterpillar Financial Services Corporation

    The CIT Group/Business Credit, Inc.

    Citizens Bank

    City National Bank of West Virginia

    Fifth Third Bank an Ohio Banking Corporation

    General Electric Capital Corporation

    The Huntington National Bank

    Israel Discount Bank of New York

    JPMorgan Chase Bank, N.A.

    Mizuho Corporate Bank, Ltd.

    National City Business Credit, Inc.

    North Fork Business Capital Corporation

    PNC Bank, National Association

    RZB Finance LLC

    United Bank, Inc.

    UPS Capital Corporation

    Wachovia Bank, National Association
    

 

 

    1 Addresses and commitments on file with Administrative
    Agent.

 

 

    SCHEDULE
    1.1(D) — EXCLUDED SUBSIDIARIES

 

    McJunkin
    Receivables Corporation
    

     Red Man
    Pipe & Supply International, Ltd.
    

 

 

    SCHEDULE
    1.1(E) — COST SAVINGS

 

    12/31/07 — $1,120,357
    

 

 

    SCHEDULE
    1.1(F) — NON-CORE ASSETS

 

    623,521 shares
    of common stock of PrimeEnergy Corporation, which comprise
    approximately 19% of outstanding stock
    

 

    19/60
    ownership interest in Vision Exploration & Production Co.,
    LLC
    

 

    Hansford
    Street property and building (1400, 1401 and 1403 Hansford
    Street, Charleston, WV 25301)
    

 

    Beekman
    apartment (575 Park Avenue, Apt. 401, New York, NY 10021)
    

 

    Piedmont
    Farm (State Route 3, Union, WV)
    

 

    Vacant lot
    at Hillcrest Drive (835 Hillcrest Drive, Charleston, WV, 25311)
    

   

 

 

    SCHEDULE
    8.12 SUBSIDIARIES

 

	 	 	 	 	 	 	 	 	 	 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
    Material

    

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
    Subsidiary

    

	
    Name
	
 
	
 
	
    Owner
	
 
	
 
	
    Type
	
 
	
 
	
    (Y/N)

	

    McJunkin Appalachian Oilfield Supply Company

	
 
	
 
	
    McJunkin Corporation
	
 
	
 
	
    corporation
	
 
	
 
	
    Y

	

    McJunkin Nigeria Limited

	
 
	
 
	
    McJunkin Corporation
	
 
	
 
	
    corporation
	
 
	
 
	
    N

	

    McJunkin Development Corporation

	
 
	
 
	
    McJunkin Corporation
	
 
	
 
	
    corporation
	
 
	
 
	
    N

	

    McJunkin-Puerto Rico Corporation

	
 
	
 
	
    McJunkin Corporation
	
 
	
 
	
    corporation
	
 
	
 
	
    N

	

    McJunkin Receivables Corporation

	
 
	
 
	
    McJunkin Corporation
	
 
	
 
	
    corporation
	
 
	
 
	
    N

	

    McJunkin-West Africa Corporation

	
 
	
 
	
    McJunkin Corporation
	
 
	
 
	
    corporation
	
 
	
 
	
    N

	

    Milton Oil & Gas Company

	
 
	
 
	
    McJunkin Corporation
	
 
	
 
	
    corporation
	
 
	
 
	
    N

	

    Greenbrier Petroleum Corporation

	
 
	
 
	
    Milton Oil & Gas Company
	
 
	
 
	
    corporation
	
 
	
 
	
    N

	

    Ruffner Realty Company

	
 
	
 
	
    McJunkin Corporation
	
 
	
 
	
    corporation
	
 
	
 
	
    N

	

    Midway-Tristate Corporation

	
 
	
 
	
    McJunkin Appalachian Oilfield Supply Company
	
 
	
 
	
    corporation
	
 
	
 
	
    Y

	

    West Oklahoma PVF Company

	
 
	
 
	
    McJunkin Corporation
	
 
	
 
	
    corporation
	
 
	
 
	
    Y

	

    McJunkin de Angola, Lda

	
 
	
 
	
    McJunkin-West Africa Corporation (49%)/McJunkin Development
    Corporation (51%)
	
 
	
 
	
    limited liability company
	
 
	
 
	
    N

	

    Red Man Pipe & Supply Co.

	
 
	
 
	
    West Oklahoma PVF Company
	
 
	
 
	
    corporation
	
 
	
 
	
    Y

	

    Wesco Acquisition Partners, Inc.

	
 
	
 
	
    Red Man Pipe & Supply Co.
	
 
	
 
	
    corporation
	
 
	
 
	
    N

	

    Red Man Pipe and Supply Canada, Ltd.

	
 
	
 
	
    Red Man Pipe & Supply Co.
	
 
	
 
	
    corporation
	
 
	
 
	
    Y

	

    Midfield Supply ULC

	
 
	
 
	
    Red Man Pipe and Supply Canada, Ltd.
	
 
	
 
	
    corporation
	
 
	
 
	
    Y

	

    Midfield Supply USA, Ltd.

	
 
	
 
	
    Midfield Supply ULC
	
 
	
 
	
    corporation
	
 
	
 
	
    N

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

     

 

	 	 	 	 	 	 	 	 	 	 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
    Material

    

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
    Subsidiary

    

	
    Name

    
	
 
	
 
	
    Owner

    
	
 
	
 
	
    Type

    
	
 
	
 
	
    (Y/N)

	
    Mega Production Testing Inc.
	
 
	
 
	
    Midfield Supply ULC
	
 
	
 
	
    corporation
	
 
	
 
	
    N

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
    Northern Boreal Supply Ltd.
	
 
	
 
	
    Midfield Supply ULC
	
 
	
 
	
    corporation
	
 
	
 
	
    N

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
    Red Man Pipe & Supply

    International, Ltd.
	
 
	
 
	
    Red Man Pipe & Supply Co.
	
 
	
 
	
    corporation
	
 
	
 
	
    N

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
    Hagan Oilfield Supply Ltd.
	
 
	
 
	
    Midfield Supply ULC
	
 
	
 
	
    corporation
	
 
	
 
	
    N

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
    1048025 Alberta Ltd.
	
 
	
 
	
    Midfield Supply ULC
	
 
	
 
	
    corporation
	
 
	
 
	
    N

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
    1236564 Alberta Ltd.
	
 
	
 
	
    Midfield Supply ULC
	
 
	
 
	
    corporation
	
 
	
 
	
    N

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

 

 

    SCHEDULE
    9.9 — CLOSING DATE AFFILIATE TRANSACTIONS

 

    None.
    

 

 

    SCHEDULE 9.17(C) — POST
    CLOSING ACTIONS

 

    The Borrower agrees that it will, or will cause its relevant
    Subsidiaries to, complete each of the actions set forth below as
    soon as commercially reasonable and by no later than the date
    set forth opposite such action or such later date as the
    Administrative Agent may reasonably agree. All documentation
    shall be in form and substance reasonably acceptable to the
    Administrative Agent.

 

	 	 	 	 	 	 
	
    Action
	
 
	
 
	
    Date

	

    1.

	
 
	
    Deed of Trust for property located in Davis County, Utah
	
 
	
 
	
    10 Business Days

	
 
	
 
	
 
	
 
	
 
	
 

	

    2.

	
 
	
    Opinion from Utah counsel relating to item (1)
	
 
	
 
	
    10 Business Days

	
 
	
 
	
 
	
 
	
 
	
 

	

    3.

	
 
	
    Indemnity Agreement relating to item (1)
	
 
	
 
	
    10 Business Days

	
 
	
 
	
 
	
 
	
 
	
 

	

    4.

	
 
	
    Title insurance relating to item (1)
	
 
	
 
	
    10 Business Days

	
 
	
 
	
 
	
 
	
 
	
 

	

    5.

	
 
	
    Mortgage for property located in Tulsa County, Oklahoma
	
 
	
 
	
    10 Business Days

	
 
	
 
	
 
	
 
	
 
	
 

	

    6.

	
 
	
    Fixture filing for property located in Tulsa County, Oklahoma
	
 
	
 
	
    10 Business Days

	
 
	
 
	
 
	
 
	
 
	
 

	

    7.

	
 
	
    Opinion from Oklahoma counsel relating to item (5)
	
 
	
 
	
    10 Business Days

	
 
	
 
	
 
	
 
	
 
	
 

	

    8.

	
 
	
    Title insurance relating to item (5)
	
 
	
 
	
    10 Business Days

	
 
	
 
	
 
	
 
	
 
	
 

	

    9.

	
 
	
    Corrective/quit claim vesting deed for Red Man Pipe &
    Supply Co relating to OK property
	
 
	
 
	
    10 Business Days

	
 
	
 
	
 
	
 
	
 
	
 

	

    10.

	
 
	
    Deed of Trust Amendment for property located in Harris County,
    Texas
	
 
	
 
	
    10 Business Days

	
 
	
 
	
 
	
 
	
 
	
 

	

    11.

	
 
	
    Title Insurance relating to item (10)
	
 
	
 
	
    10 Business Days

	
 
	
 
	
 
	
 
	
 
	
 

	

    12.

	
 
	
    Mortgage Amendment for property located in West Baton Rouge
    Parish, Louisiana
	
 
	
 
	
    10 Business Days

	
 
	
 
	
 
	
 
	
 
	
 

	

    13.

	
 
	
    Title insurance relating to item (12)
	
 
	
 
	
    10 Business Days

	
 
	
 
	
 
	
 
	
 
	
 

	

    14.

	
 
	
    Deed of Trust Amendment for property located in Kanawha County,
    West Virginia
	
 
	
 
	
    10 Business Days

	
 
	
 
	
 
	
 
	
 
	
 

	

    15.

	
 
	
    Title insurance relating to item (13)
	
 
	
 
	
    10 Business Days

	
 
	
 
	
 
	
 
	
 
	
 

	

    16.

	
 
	
    Deed of Trust Amendment for property located in Putnam County,
    West Virginia
	
 
	
 
	
    10 Business Days

	
 
	
 
	
 
	
 
	
 
	
 

	

    17.

	
 
	
    Title insurance relating to item (16)
	
 
	
 
	
    10 Business Days

	
 
	
 
	
 
	
 
	
 
	
 

	

    18.

	
 
	
    Delivery of original stock certificates, and and executed stock
    powers in blank, for Red Man Pipe & Supply Co., Wesco
    Acquisition Partners, Inc., Red Man Pipe & Supply
    Canada, Ltd. and
	
 
	
 
	
    3 Business Days

	
 
	
 
	
 
	
 
	
 
	
 

 

 

    2

	 	 	 	 
	

    West Oklahoma PVF Company

	
 
	
 
	
 

	

    19. Releases of mortgages set forth on Schedule 10.2,
    other than those mortgages relating to the Oklahoma and Utah
    properties which shall be released within 10 Business Days
    of the closing

	
 
	
 
	
    20 Business Days

	

    20. Termination of fixture filings relating the terminated
    Bank of America revolving loan and security agreement naming Red
    Man Pipe & Supply Co. and its Subsidiaries as debtor,
    other than that fixture filing relating to the Utah property,
    which shall be released within 10 Business Days of the
    closing

	
 
	
 
	
    20 Business Days

	

    21. Loss payable endorsements contemplated by
    Section 6.14

	
 
	
 
	
    10 Business Days

	

    22. Delivery of documents effecting name change of McJunkin
    Corporation

	
 
	
 
	
    5 Business Days

	

    23. Certified copies of name change certificate for
    recording in all necessary county recorder offices

	
 
	
 
	
    5 Business Days

	

    24. Ministerial revisions to insurance certificates as
    agreed

	
 
	
 
	
    5 Business Days

	

    25. Payment of final, approved title company invoice

	
 
	
 
	
    10 Business Days

	

    26. Execute and deliver title company closing instructions

	
 
	
 
	
    10 Business Days

	
 
	
 
	
 
	
 

 

SCHEDULE 10.1 — CLOSING DATE INDEBTEDNESS

Letters of Credit

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 	Beneficiary	 	 	Expiration Date	 	 	Amount	 	 	Purpose	 	 	Issuing Bank	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Brickstreet

	 	 	11/1/08
	 	 	$	200,000	 	 	 	Worker’s Comp
	 	 	JPMorgan Chase	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	St. Paul Travelers

	 	 	12/31/07
	 	 	$	1,775,000	 	 	 	Insurance
	 	 	United Bank	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	State of West Virginia

	 	 	1/31/08
	 	 	$	1,000,000	 	 	 	Worker’s Comp
	 	 	JPMorgan Chase	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Sentry Insurance

	 	 	11/1/08
	 	 	$	75,000	 	 	 	Insurance
	 	 	JPMorgan Chase	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Lumberman’s Mutual

	 	 	7/1/08
	 	 	$	45,000	 	 	 	Insurance
	 	 	JPMorgan Chase	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

Capital Leases

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Lease Expiration	 
	 	Warehouse	 	 	State	 	 	County	 	 	Lessor	 	 	Date	 
	 	Little Rock

	 	 	AR
	 	 	Pulaski
	 	 	Hansford Associates, LP
	 	 	12/31/2016	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Bakersfield

	 	 	CA
	 	 	Kern
	 	 	Hansford Associates, LP
	 	 	3/31/2012	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Augusta

	 	 	GA
	 	 	Richmond
	 	 	Hansford Associates, LP
	 	 	12/31/2009	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Granite City

	 	 	IL
	 	 	Madison
	 	 	Hansford Associates, LP
	 	 	9/30/2009	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Calvert City

	 	 	KY
	 	 	Marshall
	 	 	Hansford Associates, LP
	 	 	10/31/2011	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Cleveland

	 	 	OH
	 	 	Summit
	 	 	Hansford Associates, LP
	 	 	10/31/2010	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	North Charleston

	 	 	SC
	 	 	Charleston
	 	 	Hansford Associates, LP
	 	 	12/31/2009	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	LaMarque

	 	 	TX
	 	 	Galveston
	 	 	Hansford Associates, LP
	 	 	12/31/2012	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Rock Springs

	 	 	WY
	 	 	Sweetwater
	 	 	Hansford Associates, LP
	 	 	3/31/2012	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

Miscellaneous

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	Commitment/	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Original	 	 	 	 	 	 	 
	 	Debtor	 	 	Debt Description	 	 	Principal	 	 	Lender/Obligee	 	 	Date	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Midfield Supply ULC

	 	 	Loan and Security
Agreement
	 	 	CAD

$150,000,000
	 	 	Bank of America
N.A.
	 	 	11/2/06	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Midfield Supply ULC

	 	 	Revolving Term Loan

Facility
	 	 	CAD

$15,000,000
	 	 	Alberta Treasury

Branch
	 	 	5/17/07	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Midfield Supply ULC

	 	 	Note Payable
	 	 	CAD

$2,500,000
	 	 	Dougins Halwa,

Daryl Loney, Don

Dashney
	 	 	3/31/07	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Midfield Supply ULC

	 	 	Note Payable
	 	 	CAD $750,000
	 	 	Selling
shareholders of
Hagan Oilfield
	 	 	4/3/07	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Midfield Supply ULC

	 	 	Note Payable
	 	 	CAD

$16,389,500
	 	 	Midfield
Holdings, Inc.
	 	 	11/2/06	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Midfield Supply ULC

	 	 	Note Payable
	 	 	CAD

$8,156,115
	 	 	Midfield
Holdings, Inc.
	 	 	4/27/07	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

    SCHEDULE 10.2 —
    CLOSING DATE LIENS

 

    Miscellaneous

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
    Debtor
	
 
	
 
	
    Debt
    Description
	
 
	
 
	
 
	
    Commitment
	
 
	
 
	
 
	
    Lender/Obligee
	
 
	
 
	
 
	
    Date
	
 

	

    Midfield Supply ULC

	
 
	
 
	
 
	
    Loan and Security

    Agreement
	
 
	
 
	
 
	
    CAD $150,000,000
	
 
	
 
	
 
	
 
	
 
	
    Bank of America, N.A.
	
 
	
 
	
 
	
 
	
    11/2/06
	
 

	

    Midfield Supply ULC

	
 
	
 
	
 
	
    Revolving Term Loan

    Facility
	
 
	
 
	
 
	
    CAD $15,000,000
	
 
	
 
	
 
	
 
	
 
	
    Alberta Treasury Branch
	
 
	
 
	
 
	
 
	
    5/17/07
	
 

	

    Red Man Pipe &

    Supply Co. and its Subsidiaries

	
 
	
 
	
 
	
    Mortgages relating to

    the terminated Bank of

    America revolving loan

    and security agreement,

    to the extent such

    mortgage releases are

    not filed on the Closing

    Date
	
 
	
 
	
 
	
N/A
	
 
	
 
	
 
	
 
	
 
	
    Bank of America, N.A.
	
 
	
 
	
 
	
 
	
    N/A
	
 

	

    Midfield Supply USA,

    Ltd.

	
 
	
 
	
 
	
    All indebtedness and

    proceeds relating

    thereto of Canadian

    Advanced Inc. owing to

    the Debtor
	
 
	
 
	
 
	
N/A
	
 
	
 
	
 
	
 
	
 
	
    Canadian Western Bank
	
 
	
 
	
 
	
 
	
    N/A
	
 

	

    Midfield Supply USA,

    Ltd.

	
 
	
 
	
 
	
    All indebtedness and

    proceeds relating

    thereto of Stanley

    Smith Professional

    Corporation owing to

    the Debtor
	
 
	
 
	
 
	
N/A
	
 
	
 
	
 
	
 
	
 
	
    HSBC Bank Canada
	
 
	
 
	
 
	
 
	
    N/A
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

 

    SCHEDULE
    10.5 — CLOSING DATE INVESTMENTS

 

    1. Investments
    held by McJunkin Corporation
    

 

	 	 	 	 
	
    Investment
	
 
	
 
	
    Percentage Of Interest

	
    Greenbrier Development Drilling

    Partners 1976

    P.O. Box 513

    Charleston, West Virginia 25322
	
 
	
 
	
    47 Units, 8.07%

	
 
	
 
	
 
	
 

	
    W.T. Massey

    200 N.W. 66th, Suite 935

    Oklahoma City, Oklahoma 73116
	
 
	
 
	
    Own various overriding royalty

    interests in oil and gas wells in

    Oklahoma

	
 
	
 
	
 
	
 

	
    &
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
    H.A. Moore

    4013 N.W. Expressway

    Suite 605

    Oklahoma City, Oklahoma 73116
	
 
	
 
	
    

    Own various overriding royalty

    interests in oil and gas wells in

    Oklahoma.

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
    PrimeEnergy Corporation

    One Landmark Square

    Stamford, Connecticut 06901
	
 
	
 
	
    Purchased 49.8% interest in K.R.M.

    Petroleum Company in 1984. Name

    changed on 5/17/90 from K.R.M.

    Petroleum to PrimeEnergy (percentage

    owned approximately 19.33% as of

    11/13/06

	
 
	
 
	
 
	
 

 

    2. Investments
    held by Milton Oil & Gas Company, a wholly owned
    subsidiary of McJunkin Corporation:
    

 

	 	 	 	 
	
    Investment
	
 
	
 
	
    Percentage Of Interest

	
    Butcher & Singer

    C/O Butcher & Singer, Inc.

    211 South Broad Street

    Philadelphia, Pennsylvania 15105
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
    Buttes 1976-1 (931)
	
 
	
 
	
    Overriding royalty interest

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
    Cabot Oil & Gas Corporation

    (formerly Appalachian Exploration

    & Development)

    C/O Cabot Petroleum Corporation

    Joint Interest Section

    921 Main Street, Suite 900

    Houston, Texas 77002
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
    B & H Partnership (935)
	
 
	
 
	
    60% working interest

	
 
	
 
	
 
	
 

 

 

	 	 	 	 	 	 
	
    Investment
	
 
	
 
	
    Percentage
    of Interest

	
    Milton Option (938)

    P & H Partnership (942)
	
 
	
 
	 
	
    60% working interest

    60% working interest
	 

	
 
	
 
	
 
	 
	
 
	 
	
    Dunne Equities

    C/O Dunne Equities

    8100 E. 22nd Street North

    Building 1100

    Wichita, Kansas 67226

    

    Currently (16) Productive Wells/Programs
	
 
	
 
	 
	
    

    

    

    

    

    

    Various %
	 

	
 
	
 
	
 
	 
	
 
	 
	
    Quad D Operating

    P.O. Box 5567

    Huntington, West Virginia 25703

    

    Closterman M-1 And M-2 (952)

    Closterman M-3 And M-4 (953)

    Closterman M-5 (954)

    Closterman M-6 (955)

    D.P. Morris Lease Well (956)
	
 
	
 
	 
	
    

    

    

    

    25% working interest

    18.75% working interest

    18.75% working interest

    18.75% working interest

    25% working interest
	 

	
 
	
 
	
 
	 
	
 
	 
	
    Devon Energy Production Co LP

    20 North Broadway

    Oklahoma City, Oklahoma 73102

    

    Clifton #1 (946)

    Hawkins #1 (948)

    Prichard #1 (949), #2, #3

    Whisenhunt (950)

    Clifton #2 (947)

    Clifton #3 (951)
	
 
	
 
	 
	
    

    

    

    

    0.90868% working interest

    1.82364% working interest

    0.32835% over-riding royalty interest

    0.161948% over-riding royalty interest

    1.0138% working interest

    1.0447% working interest
	 

	
 
	
 
	
 
	 
	
 
	 

 

    3. Investments
    held by Ruffner Realty Company, a wholly owned subsidiary of
    McJunkin Corporation:
    

 

	 	 	 	 	 	 
	
    Investment
	
 
	
 
	
    Percentage
    of Interest

	
    Auburn Lakes — Cost Basis

    185 Acres + 370 Units

    Condominium

    2901 Cedar Road

    Cleveland, Ohio
	
 
	
 
	 
	
    2.08%
	 

	
 
	
 
	
 
	 
	
 
	 
	
    First Interstate Elyria

    Shopping Center

    Elyria, Ohio
	
 
	
 
	 
	
    1.04%
	 

	
 
	
 
	
 
	 
	
 
	 
	
    First Interstate Hawthorne — Cost Basis
	
 
	
 
	 
	
    1.85%
	 

	
 
	
 
	
 
	 
	
 
	 

 

	 	 	 	 
	
    Investment
	
 
	
 
	
    Percentage Of Interest

	
    Equity Investors

    Shopping Center

    29425 Chagrin Boulevard

    Cleveland, Ohio
	
 
	
 
	
 

	
    First Interstate Mentor Centers

    Equity Investors

    Shopping Center

    29425 Chagrin Boulevard

    Cleveland, Ohio
	
 
	
 
	
    1.39%

	
    Merc-Ex Investors Ltd. Partnership. -

    Cost Basis

    Equity Investors, Inc.

    Apartment Complex

    Beachwood, Ohio
	
 
	
 
	
    7.75%

	
    One Congress Square - Cost Basis

    Sovereign Realty

    Office Building - Historic Structure

    Chicago, Illinois
	
 
	
 
	
    1.5%

	
 
	
 
	
 
	
 

 

		
	    4. 	
    Investments held by Midfield Supply ULC, a non-wholly owned subsidiary
    of McJunkin Corporation:

 

	 	 	 	 
	
    Investment
	
 
	
 
	
    Percentage Of Interest

	
    Altus Energy Services, Inc.

    1,000,000 shares of common stock
	
 
	
 
	
    Not Available

	
    Altus Energy Services, Inc.

    Warrants with respect to 1,000,000

    shares of common stock
	
 
	
 
	
    Not available

	
    Energize Oil & Gas
	
 
	
 
	
    6.6% equity interest

	
    Brooks, Clay & Feathers Ltd.
	
 
	
 
	
    6.6% equity interest

	
 
	
 
	
 
	
 

     

 

 

    SCHEDULE 10.11 —
    CLOSING DATE RESTRICTIONS

 

    None.EX-10.1.1

Exhibit 10.1.1

JOINDER AGREEMENT

JOINDER AGREEMENT, dated as of June 10, 2008 (this “Agreement”), by and among The
Huntington National Bank (a “New Loan Lender”), McJunkin Red Man Corporation (f/k/a
McJunkin Corporation), a West Virginia corporation (the “Borrower”), and The CIT
Group/Business Credit, Inc. (“CIT”), as Administrative Agent.

RECITALS:

     WHEREAS, reference is hereby made to the Revolving Loan Credit Agreement, dated as of October
31, 2007 (as amended, restated, supplemented or otherwise modified, refinanced or replaced from
time to time, the “Credit Agreement”), among the Borrower, the Lenders party thereto, CIT,
as Administrative Agent, and CIT and Bank of America, N.A., collectively, as Collateral Agent
(capitalized terms used but not defined herein having the meaning provided in the Credit
Agreement); and

     WHEREAS, subject to the terms and conditions of the Credit Agreement, the Borrower may
establish New Revolving Credit Commitments by, among other things, entering into one or more
Joinder Agreements with New Revolving Loan Lenders, as applicable;

     NOW, THEREFORE, in consideration of the premises and agreements, provisions and covenants
herein contained, the parties hereto agree as follows:

     SECTION 1. The New Loan Lender party hereto hereby agrees to commit to provide its respective
New Revolving Credit Commitment, as set forth on Schedule A annexed hereto, on the terms and
subject to the conditions set forth below:

     SECTION 2. The New Loan Lender (a) confirms that it has received a copy of the Credit
Agreement and the other Credit Documents, together with copies of the financial statements referred
to therein and such other documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into this Agreement; (b) agrees that it will, independently
and without reliance upon the Administrative Agent or any other New Loan Lender or any other Lender
or Agent and based on such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under the Credit
Agreement; (c) appoints and authorizes the Administrative Agent to take such action as agent on its
behalf and to exercise such powers under the Credit Agreement and the other Credit Documents as are
delegated to the Administrative Agent by the terms thereof, together with such powers as are
reasonably incidental thereto; and (d) agrees that it will perform in accordance with their terms
all of the obligations which by the terms of the Credit Agreement are required to be performed by
it as a New Revolving Loan Lender.

     SECTION 3. The New Loan Lender hereby agrees to make its respective Commitment on the
following terms and conditions:

     a. Credit Agreement Governs. Except as set forth in this Agreement, the New Revolving
Loans shall otherwise be subject to the provisions of the Credit Agreement and the other Credit
Documents.

 

 

     b. Borrower Certifications. By its execution of this Agreement, the undersigned
officer, to the best of his or her knowledge, and Borrower hereby certifies that (i) the
representations and warranties contained in the Credit Agreement and the other Credit Documents are
true and correct in all material respects on and as of the date hereof to the same extent as though
made on and as of the date hereof, except to the extent such representations and warranties
expressly relate to an earlier date, in which case such representations and warranties were true
and correct in all material respects on and as of such earlier date; and (ii) Borrower has
performed in all material respects all agreements and satisfied all conditions which the Credit
Agreement provides shall be performed or satisfied by it on or before the date hereof.

     c. Borrower Covenants. By its execution of this Agreement, Borrower hereby covenants
that: (i) it shall make any payments required pursuant to Section 2.11 of the Credit Agreement in
connection with the New Revolving Credit Commitments; and (ii) it shall deliver or cause to be
delivered the following legal opinions and documents: executed legal opinions of Simpson Thacher &
Bartlett, special counsel to the Borrower, and Bowles Rice McDavid Graff & Love LLP, special
counsel to the Borrower, together with all other documents reasonably requested by the
Administrative Agent in connection with this Agreement.

     d. Notice. For purposes of the Credit Agreement, the initial notice address of the
New Loan Lender shall be as set forth below its signature below.

     e. Tax Forms. For the New Loan Lender, delivered herewith to the Administrative Agent
are such forms, certificates or other evidence with respect to United States federal income tax
withholding matters as the New Loan Lender may be required to deliver to the Administrative Agent
pursuant to Section 5.4(d) and/or Section 5.4(e) of the Credit Agreement.

     f. Recordation of the New Loans. Upon execution and delivery hereof, the
Administrative Agent will record the New Revolving Loans, made by the New Loan Lender in the
Register.

     g. Amendment, Modification and Waiver. This Agreement may not be amended, modified or
waived except by an instrument or instruments in writing signed and delivered on behalf of each of
the parties hereto.

     h. Entire Agreement. This Agreement, the Credit Agreement and the other Credit
Documents constitute the entire agreement among the parties with respect to the subject matter
hereof and thereof and supersede all other prior agreements and understandings, both written and
verbal, among the parties or any of them with respect to the subject matter hereof.

     i. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK.

     j. Severability. Any term or provision of this Agreement which is invalid or
unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of
such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms

 

 

and provisions of this Agreement or affecting the validity or enforceability of any of the
terms or provisions of this Agreement in any other jurisdiction. If any provision of this Agreement
is so broad as to be unenforceable, such provision shall be interpreted to be only so broad as
would be enforceable.

     k. Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed to be an original, but all of which shall constitute one and the same agreement.

[Remainder of page intentionally left blank].

 

 

     IN WITNESS WHEREOF, each of the undersigned has caused its duly authorized officer to execute
and deliver this Joinder Agreement as of the date first above written.

	 	 	 	 	 
	 	MCJUNKIN RED MAN CORPORATION 

(f/k/a Mcjunkin Corporation)

 	 
	 	By:  	/s/
CRAIG KETCHUM	 
	 	 	Name:  	Craig Ketchum	 
	 	 	Title:  	Chief Executive Officer and President	 
	 

MCJUNKIN RED MAN CORPORATION

Joinder Agreement

 

 

	 	 	 	 	 
	 	THE HUNTINGTON NATIONAL BANK

 	 
	 	By:  	/s/
L. BLAIR DEVAN	 
	 	 	Name:  	L. Blair DeVan	 
	 	 	Title:  	Vice President	 
	 

Notice Address:

Attention:

Telephone:

Facsimile:

MCJUNKIN RED MAN CORPORATION

Joinder Agreement

 

 

	 	 	 	 	 
	 	Consented to by:

THE CIT GROUP/BUSINESS CREDIT, INC., as

Administrative Agent

 	 
	 	By:  	/s/
HOWARD TREBACH	 
	 	 	Name:  	Howard Trebach	 
	 	 	Title:  	Vice President	 
	 

MCJUNKIN RED MAN CORPORATION

Joinder Agreement

 

 

SCHEDULE A

TO JOINDER AGREEMENT

	 	 	 	 	 	 	 
	Name of New Loan	 	 	 	 
	Lender	 	Type of Commitment	 	Amount
	The Huntington National Bank
	 	Revolving Credit Commitment	 	$	5,000,000.00

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