Document:

Exhibit 10.1

Exhibit 10.1

EXECUTION COPY

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

among

NEWPARK RESOURCES, INC.,

as Borrower,

THE LENDERS FROM TIME TO TIME PARTIES HERETO,

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

BANK OF AMERICA, N.A.,

as Syndication Agent,

and

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Documentation Agent,

Dated as of November 22, 2011

J.P. MORGAN SECURITIES LLC,

as Sole Bookrunner and Joint Lead Arranger,

and

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED,

and

WELLS FARGO SECURITIES, LLC,

as Joint Lead Arrangers

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	SECTION 1. DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	1.1 Defined Terms
	 	 	1	 
	1.2 Other Definitional Provisions
	 	 	20	 
	 
	 	 	 	 
	SECTION 2. AMOUNT AND TERMS OF COMMITMENTS
	 	 	20	 
	 
	 	 	 	 
	2.1 Commitments
	 	 	20	 
	2.2 Procedure for Loan Borrowing
	 	 	22	 
	2.3 Commitment Fees, etc.
	 	 	23	 
	2.4 Termination or Reduction of Commitments
	 	 	23	 
	2.5 Optional Prepayments
	 	 	24	 
	2.6 Mandatory Prepayments
	 	 	24	 
	2.7 Revolving Loan Conversion and Continuation Options
	 	 	24	 
	2.8 Limitations on Eurodollar Tranches
	 	 	25	 
	2.9 Interest Rates and Payment Dates
	 	 	25	 
	2.10 Computation of Interest and Fees
	 	 	26	 
	2.11 Inability to Determine Interest Rate
	 	 	26	 
	2.12 Pro Rata Treatment and Payments
	 	 	26	 
	2.13 Requirements of Law
	 	 	28	 
	2.14 Taxes
	 	 	29	 
	2.15 Indemnity
	 	 	31	 
	2.16 Change of Lending Office
	 	 	31	 
	2.17 Replacement of Lenders
	 	 	32	 
	2.18 Defaulting Lenders
	 	 	32	 
	2.19 General
	 	 	34	 
	 
	 	 	 	 
	SECTION 3. LETTERS OF CREDIT
	 	 	35	 
	 
	 	 	 	 
	3.1 L/C Commitment
	 	 	35	 
	3.2 Procedure for Issuance of Letter of Credit
	 	 	35	 
	3.3 Fees and Other Charges
	 	 	35	 
	3.4 L/C Participations
	 	 	36	 
	3.5 Reimbursement Obligation of the Borrower
	 	 	37	 
	3.6 Obligations Absolute
	 	 	37	 
	3.7 Letter of Credit Payments
	 	 	38	 
	3.8 Applications
	 	 	38	 
	 
	 	 	 	 
	SECTION 4. REPRESENTATIONS AND WARRANTIES
	 	 	38	 
	 
	 	 	 	 
	4.1 Financial Condition
	 	 	38	 
	4.2 No Change
	 	 	38	 
	4.3 Existence; Compliance with Law
	 	 	39	 
	4.4 Power; Authorization; Enforceable Obligations
	 	 	39	 

 

 

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	4.5 No Legal Bar
	 	 	39	 
	4.6 Litigation
	 	 	39	 
	4.7 No Default
	 	 	40	 
	4.8 Ownership of Property; Liens
	 	 	40	 
	4.9 Intellectual Property
	 	 	40	 
	4.10 Taxes
	 	 	40	 
	4.11 Federal Regulations
	 	 	40	 
	4.12 Labor Matters
	 	 	40	 
	4.13 ERISA
	 	 	41	 
	4.14 Investment Company Act; Other Regulations
	 	 	41	 
	4.15 Subsidiaries
	 	 	41	 
	4.16 Use of Proceeds
	 	 	42	 
	4.17 Environmental Matters
	 	 	42	 
	4.18
Accuracy of Information, etc.
	 	 	43	 
	4.19 Security Documents
	 	 	43	 
	4.20 Solvency
	 	 	43	 
	 
	 	 	 	 
	SECTION 5. CONDITIONS PRECEDENT
	 	 	44	 
	 
	 	 	 	 
	5.1 Conditions to Closing Date
	 	 	44	 
	5.2 Conditions to Each Extension of Credit
	 	 	45	 
	 
	 	 	 	 
	SECTION 6. AFFIRMATIVE COVENANTS
	 	 	46	 
	 
	 	 	 	 
	6.1 Financial Statements
	 	 	46	 
	6.2 Certificates; Other Information
	 	 	47	 
	6.3 Payment of Obligations
	 	 	47	 
	6.4 Maintenance of Existence; Compliance
	 	 	47	 
	6.5 Maintenance of Property; Insurance
	 	 	48	 
	6.6 Inspection of Property; Books and Records; Discussions
	 	 	48	 
	6.7 Notices
	 	 	48	 
	6.8 Environmental Laws
	 	 	49	 
	6.9
Additional Collateral, etc.
	 	 	49	 
	 
	 	 	 	 
	SECTION 7. NEGATIVE COVENANTS
	 	 	50	 
	 
	 	 		 
	7.1 Financial Condition Covenants
	 	 	50	 
	7.2 Indebtedness
	 	 	51	 
	7.3 Liens
	 	 	52	 
	7.4 Fundamental Changes
	 	 	53	 
	7.5 Disposition of Property
	 	 	53	 
	7.6 Restricted Payments
	 	 	54	 
	7.7 Investments
	 	 	54	 
	7.8 Transactions with Affiliates
	 	 	55	 
	7.9 Sales and Leasebacks
	 	 	55	 
	7.10 Swap Agreements
	 	 	55	 
	7.11 Changes in Fiscal Periods
	 	 	56	 

 

 

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	7.12 Negative Pledge Clauses
	 	 	56	 
	7.13 Clauses Restricting Subsidiary Distributions
	 	 	56	 
	7.14 Lines of Business
	 	 	56	 
	7.15 Redemption of Senior Notes; Amendment of Indenture
	 	 	56	 
	 
	 	 	 	 
	SECTION 8. EVENTS OF DEFAULT
	 	 	57	 
	 
	 	 	 	 
	SECTION 9. THE AGENTS
	 	 	59	 
	 
	 	 	 	 
	9.1 Appointment
	 	 	59	 
	9.2 Delegation of Duties
	 	 	59	 
	9.3 Exculpatory Provisions
	 	 	60	 
	9.4 Reliance by Administrative Agent
	 	 	60	 
	9.5 Notice of Default
	 	 	60	 
	9.6 Non-Reliance on Agents and Other Lenders
	 	 	61	 
	9.7 Indemnification
	 	 	61	 
	9.8 Agent in Its Individual Capacity
	 	 	61	 
	9.9 Successor Administrative Agent
	 	 	62	 
	9.10 Documentation Agent and Syndication Agent
	 	 	62	 
	 
	 	 	 	 
	SECTION 10. MISCELLANEOUS
	 	 	62	 
	 
	 	 	 	 
	10.1 Amendments and Waivers
	 	 	62	 
	10.2 Notices
	 	 	63	 
	10.3 No Waiver; Cumulative Remedies
	 	 	64	 
	10.4 Survival of Representations and Warranties
	 	 	64	 
	10.5 Payment of Expenses and Taxes
	 	 	65	 
	10.6 Successors and Assigns; Participations and Assignments
	 	 	65	 
	10.7 Adjustments; Set-off
	 	 	68	 
	10.8 Counterparts
	 	 	69	 
	10.9 Severability; Maximum Lawful Rate
	 	 	69	 
	10.10 Integration
	 	 	69	 
	10.11 Governing Law
	 	 	69	 
	10.12 Submission To Jurisdiction; Waivers
	 	 	70	 
	10.13 Acknowledgements
	 	 	70	 
	10.14 Releases of Guarantees and Liens
	 	 	70	 
	10.15 Confidentiality
	 	 	71	 
	10.16 WAIVERS OF JURY TRIAL
	 	 	71	 
	10.17 PATRIOT Act
	 	 	72	 
	10.18 No Adverse Interpretation of Other Agreements
	 	 	72	 
	10.19 No Fiduciary Duty
	 	 	72	 
	10.20 Judgment Currency
	 	 	73	 

 

 

 

SCHEDULES:

	 	 	 
	1.1A

	 	Commitments
	1.1B

	 	Mortgaged Property
	1.1C

	 	Existing Letters of Credit
	4.4

	 	Consents, Authorizations, Filings and Notices
	4.15

	 	Subsidiaries
	4.19(a)

	 	UCC Filing Jurisdictions
	4.19(b)

	 	Mortgage Amendments Filing Jurisdictions
	7.2(d)

	 	Existing Indebtedness
	7.3(f)

	 	Existing Liens

EXHIBITS:

	 	 	 
	A

	 	Form of Amended and Restated Guarantee and Collateral Agreement
	B

	 	Form of Compliance Certificate
	C-1

	 	Form of Omnibus Officer’s Certificate
	C-2

	 	Form of Secretary’s Certificate
	D

	 	Form of Mortgage Amendment
	E

	 	Form of Assignment and Assumption
	F-1

	 	Form of Legal Opinion of Andrews Kurth LLP
	F-2

	 	Form of Legal Opinion of the Borrower’s General Counsel
	G

	 	Form of Exemption Certificate
	H

	 	Form of Commitment Increase Supplement
	I

	 	Form of Augmenting Lender Supplement
	J

	 	Form of Revolving Note
	K

	 	Form of Swingline Note
	L

	 	Form of Borrowing Notice

 

 

 

SECOND AMENDED AND RESTATED CREDIT AGREEMENT (as the same may be amended or modified from time
to time, this “Agreement”), dated as of November 22, 2011, among Newpark Resources, Inc., a
Delaware corporation (the “Borrower”), the several banks and other financial institutions
or entities from time to time parties to this Agreement (the “Lenders”), JPMorgan Chase
Bank, N.A., as the administrative agent (in such capacity, the “Administrative Agent”),
Bank of America, N.A., as syndication agent (in such capacity, the “Syndication Agent”) and
Wells Fargo Bank, National Association, as documentation agent (in such capacity, the
“Documentation Agent”).

RECITALS

WHEREAS, prior to the date hereof, the Borrower and certain subsidiaries of the Borrower
entered into a Term Credit Agreement, dated as of August 18, 2006 (the “Original Credit
Agreement”) with the lenders from time to time parties thereto, JPMorgan Chase Bank, N.A., as
administrative agent and Wilmington Trust Company, as collateral agent;

WHEREAS, subsequent thereto and to amend and restate the Original Credit Agreement, the
Borrower and certain subsidiaries of the Borrower entered into an Amended and Restated Credit
Agreement, dated as of December 21, 2007 (as amended from time to time, the “First Amended and
Restated Credit Agreement”) with the lenders from time to time parties thereto, and JPMorgan
Chase Bank, N.A. as administrative agent (among other parties); and

WHEREAS, the parties hereto wish to, and have agreed to, amend and restate the First Amended
and Restated Credit Agreement as provided in this Agreement.

NOW THEREFORE, in consideration of the premises and the terms and conditions set forth in this
Agreement, and for other good and valuable consideration, the receipt of which is hereby
acknowledged, the parties hereto hereby agree as follows:

SECTION 1. DEFINITIONS

1.1 Defined Terms. As used in this Agreement, the terms listed in this Section 1.1
shall have the respective meanings set forth in this Section 1.1.

“ABR”: for any day, a rate per annum (rounded upwards, if necessary, to the next 1/16
of 1%) equal to the highest of (a) the Prime Rate in effect on such day, (b) the Federal Funds
Effective Rate in effect on such day plus 1/2 of 1% and (c) the one-month Eurodollar Rate as
of any date of determination plus 1.0%. Any change in the ABR due to a change in the Prime
Rate, the Federal Funds Effective Rate or the Eurodollar Rate shall be effective as of the opening
of business on the effective day of such change in the Prime Rate, the Federal Funds Effective Rate
or the Eurodollar Rate, respectively.

“ABR Loans”: Revolving Loans the rate of interest applicable to which is based upon
the ABR.

“Acquisition”: any transaction, or any series of related transactions, consummated on
or after the Closing Date, by which any Loan Party (a) acquires any going business or all or
substantially all of the assets of any Person, whether through purchase of assets, merger or
otherwise or (b) directly or indirectly acquires (in one transaction or as the most recent
transaction in a series of transactions) at least a majority (in number of votes) of the Capital
Stock issued by a Person which has ordinary voting power
for the election of directors or other similar management personnel of a Person (other than
Capital Stock having such power only by reason of the happening of a contingency).

 

 

 

“Adjustment Date”: as defined in the Applicable Pricing Grid.

“Administrative Agent”: JPMCB, together with its affiliates, as arranger of the
Commitments and as the administrative agent for the Lenders under this Agreement and the other Loan
Documents, together with any of its successors.

“Affiliate”: as to any Person, any other Person that, directly or indirectly, is in
control of, is controlled by, or is under common control with, such Person. For purposes of this
definition, “control” of a Person means the power, directly or indirectly, either to (a) vote 10%
or more of the securities having ordinary voting power for the election of directors (or persons
performing similar functions) of such Person or (b) direct or cause the direction of the management
and policies of such Person, whether by contract or otherwise.

“Agents”: the collective reference to the Administrative Agent, Syndication Agent and
the Documentation Agent.

“Aggregate Exposure”: with respect to any Lender at any time, an amount equal to (a)
until the Closing Date, the amount of such Lender’s Commitment at such time and (b) thereafter, the
amount of such Lender’s Commitment then in effect or, if the Commitments have been terminated, the
amount of such Lender’s Extensions of Credit then outstanding.

“Agreement”: as defined in the preamble hereto.

“Applicable Margin”: for each Type of Loan, the rate per annum determined pursuant to
the Applicable Pricing Grid.

“Applicable Percentage”: as to any Lender at any time, the percentage which such
Lender’s Commitment then constitutes of the Total Commitments or, at any time after the Commitments
shall have expired or terminated, the percentage which the aggregate principal amount of such
Lender’s Revolving Loans then outstanding constitutes of the aggregate principal amount of the
Revolving Loans then outstanding, provided, that, in the event that the Loans are paid in
full prior to the reduction to zero of the Total Extensions of Credit, the Applicable Percentages
shall be determined in a manner designed to ensure that the outstanding Extensions of Credit (after
giving effect to the payment in full of the Loans) shall be held by the Lenders on a comparable
basis.

“Applicable Pricing Grid”: the table set forth below:

	 	 	 	 	 	 	 	 	 	 	 
	Level	 	Consolidated Leverage Ratio	 	Libor Margin	 	 	ABR Margin	 
	I
	 	Less than 1.00x	 	 	1.75	%	 	 	.75	%
	II
	 	Greater than or equal to 1.00x but less than 1.50x	 	 	2.00	%	 	 	1.00	%
	III
	 	Greater than or equal to 1.50x but less than 2.00x	 	 	2.25	%	 	 	1.25	%
	IV
	 	Greater than or equal to 2.00x but less than 2.50x	 	 	2.50	%	 	 	1.50	%
	V
	 	Greater than or equal to 2.50x but less than 3.00x	 	 	2.75	%	 	 	1.75	%
	VI
	 	Greater than or equal to 3.00x	 	 	3.00	%	 	 	2.00	%

 

2

 

For purposes of the Applicable Pricing Grid, changes in the Applicable Margin resulting from
changes in the Consolidated Leverage Ratio shall become effective on the date (the “Adjustment
Date”) that is three Business Days after the date on which financial statements are delivered
to the Lenders pursuant to Section 6.1 and shall remain in effect until the next change to be
effected pursuant to this paragraph, provided, that notwithstanding anything herein to the
contrary, until the date that financial statements of the Borrower have been delivered for the
period of two full fiscal quarters after the Closing Date, the Applicable Margin shall be as
provided in Level II of the chart above. If any financial statements referred to above are not
delivered within the time periods specified in Section 6.1, then, until the date that is three
Business Days after the date on which such financial statements are delivered, the highest rate set
forth in each column of the Applicable Pricing Grid shall apply. In addition, at all times while
an Event of Default shall have occurred and be continuing, the highest rate set forth in each
column of the Applicable Pricing Grid shall apply. Each determination of the Consolidated Leverage
Ratio for purposes of the Applicable Pricing Grid shall be made in a manner consistent with the
determination thereof pursuant to Section 7.1.

“Application”: an application, in such form as the Issuing Lender may specify from
time to time, requesting the Issuing Lender to open a Letter of Credit.

“Approved Fund”: as defined in Section 10.6(b).

“Assignee”: as defined in Section 10.6(b).

“Assignment and Assumption”: an Assignment and Assumption, substantially in the form
of Exhibit E.

“Attributable Debt”: any sale and leaseback transaction under which the Borrower or
any Subsidiary is at the time liable, at any date as of which the amount thereof is to be
determined, the then present value of the minimum rental obligations under such sale and leaseback
transaction during the remaining term thereof (after giving effect to any extensions at the option
of the lessor) computed by discounting the respective rental payments at the actual interest factor
included in such payments or, if such interest factor cannot be readily determined, at the rate of
ten percent (10%) per annum. The amount of any rental payment required to be made under any such
sale and leaseback transaction shall exclude amounts required to be paid by the lessee on account
of maintenance and repairs, insurance, taxes, assessments, utilities, operating and labor costs and
similar charges.

“Augmenting Lender”: as defined in Section 2.1(c).

“Available Commitment”: as to any Lender at any time, an amount equal to the excess,
if any, of (a) such Lender’s Commitment then in effect over (b) such Lender’s Extensions of
Credit then outstanding.

“Benefitted Lender”: as defined in Section 10.7(a).

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

“Borrower”: as defined in the preamble hereto.

 

3

 

“Borrowing Date”: any Business Day specified by the Borrower as a date on which the
Borrower requests the relevant Lenders to make Loans hereunder.

“Business”: as defined in Section 4.17(b).

“Business Day”: a day other than a Saturday, Sunday or other day on which commercial
banks in New York City are authorized or required by law to close, provided, that with
respect to notices and determinations in connection with, and payments of principal and interest
on, Eurodollar Loans, such day is also a day for trading by and between banks in Dollar deposits in
the interbank eurodollar market.

“Capital Lease Obligations”: as to any Person, the obligations of such Person to pay
rent or other amounts under any lease of (or other arrangement conveying the right to use) real or
personal property, or a combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP and, for the purposes
of this Agreement, the amount of such obligations at any time shall be the capitalized amount
thereof at such time determined in accordance with GAAP.

“Capital Stock”: any and all shares, interests, participations or other equivalents
(however designated) of capital stock issued by a corporation, any and all equivalent ownership
interests in a Person (other than a corporation) and any and all warrants, rights or options to
purchase any of the foregoing, including, without limitation, the Convertible Notes.

“Cash Equivalents”: (a) marketable direct obligations issued by, or unconditionally
guaranteed by, the United States Government or issued by any agency thereof and backed by the full
faith and credit of the United States, in each case maturing within one year from the date of
acquisition; (b) certificates of deposit, time deposits, eurodollar time deposits or overnight bank
deposits having maturities of six months or less from the date of acquisition issued by any Lender
or by any commercial bank organized under the laws of the United States or any state thereof having
combined capital and surplus of not less than $500,000,000; (c) commercial paper of an issuer rated
at least A-1 by Standard & Poor’s Ratings Services (“S&P”) or P-1 by Moody’s Investors
Service, Inc. (“Moody’s”), or carrying an equivalent rating by a nationally recognized
rating agency, if both of the two named rating agencies cease publishing ratings of commercial
paper issuers generally, and maturing within six months from the date of acquisition; (d)
repurchase obligations of any Lender or of any commercial bank satisfying the requirements of
clause (b) of this definition, having a term of not more than 30 days, with respect to securities
issued or fully guaranteed or insured by the United States government; (e) securities with
maturities of one year or less from the date of acquisition issued or fully guaranteed by any
state, commonwealth or territory of the United States, by any political subdivision or taxing
authority of any such state, commonwealth or territory or by any foreign government, the securities
of which state, commonwealth, territory, political subdivision, taxing authority or foreign
government (as the case may be) are rated at least A-1 by S&P or P-1 by Moody’s; (f) securities
with maturities of six months or less from the date of acquisition backed by standby letters of
credit issued by any Lender or any commercial bank satisfying the requirements of clause (b) of
this definition; (g) money market mutual or similar funds that invest exclusively in assets
satisfying the requirements of clauses (a) through (f) of this definition; or (h) money market
funds that (i) are rated A-1 by S&P and P-1 by Moody’s and (ii) have portfolio assets of at least
$5,000,000,000.

“Closing Date”: the date on which the conditions precedent set forth in Section 5.1
shall have been satisfied, which date is November 22, 2011.

“Code”: the Internal Revenue Code of 1986, as amended from time to time.

 

4

 

“Collateral”: all property of the Loan Parties, now owned or hereafter acquired, upon
which a Lien is purported to be created by any Security Document.

“Commitment”: as to any Lender, the obligation of such Lender to make Revolving
Loans, participate in Letters of Credit and to acquire participations in Swingline Loans in an
aggregate principal and/or face amount not to exceed the amount set forth under the heading
“Commitment” opposite such Lender’s name on Schedule 1.1A, or in the Assignment and
Assumption or Augmenting Lender Supplement pursuant to which such Lender became a party hereto, as
the same may be changed from time to time pursuant to the terms hereof. The original amount of the
Total Commitments is $125,000,000.

“Commitment Fee Rate”: 0.375% per annum.

“Commitment Period”: the period from and including the Closing Date to the earlier of
(i) the Termination Date and (ii) the date of termination of the Commitments pursuant to the terms
hereof.

“Commonly Controlled Entity”: an entity, whether or not incorporated, that is under
common control with the Borrower within the meaning of Section 4001 of ERISA or is part of a group
that includes the Borrower and that is treated as a single employer under Section 414 of the Code.

“Compliance Certificate”: a certificate duly executed by a Responsible Officer
substantially in the form of Exhibit B.

“Conduit Lender”: any special purpose corporation organized and administered by any
Lender for the purpose of making Revolving Loans otherwise required to be made by such Lender and
designated by such Lender in a written instrument; provided, that the designation by any
Lender of a Conduit Lender shall not relieve the designating Lender of any of its obligations to
fund a Revolving Loan under this Agreement if, for any reason, its Conduit Lender fails to fund any
such Loan, and the designating Lender (and not the Conduit Lender) shall have the sole right and
responsibility to deliver all consents and waivers required or requested under this Agreement with
respect to its Conduit Lender, and provided, further, that no Conduit Lender shall
(a) be entitled to receive any greater amount pursuant to Section 2.13, 2.14, 2.15 or 10.5 than the
designating Lender would have been entitled to receive in respect of the extensions of credit made
by such Conduit Lender or (b) be deemed to have any Commitment.

“Consolidated EBITDA”: for any period, Consolidated Net Income for such period
plus, without duplication and to the extent reflected as a charge in the statement of such
Consolidated Net Income for such period, the sum of (a) tax expense (excluding sales taxes and ad
valorem taxes on real property), (b) interest expense, amortization or writeoff of debt discount
and debt issuance costs and commissions, discounts and other fees and charges associated with
Indebtedness (including the Loans), (c) depreciation and amortization expense, (d) amortization of
intangibles (including, but not limited to, goodwill) and organization costs, (e) any extraordinary
or non-recurring non-cash expenses or losses (including, whether or not otherwise includable as a
separate item in the statement of such Consolidated Net Income for such period, non-cash losses on
sales of assets outside of the ordinary course of business) and (f) any non-cash Capital Stock
based compensation expenses, and minus, (a) to the extent included in the statement of such
Consolidated Net Income for such period, the sum of (i) interest income, (ii) any extraordinary,
unusual or non-recurring income or gains (including, whether or not otherwise includable as a
separate item in the statement of such Consolidated Net Income for such period, gains on the sales
of assets outside of the ordinary course of business), (iii) income tax credits (to the extent not
netted from income tax expense) and (iv) any other non-cash income and (b) any cash payments made
during such period in respect of items described in clause (e) above subsequent to the fiscal
quarter in which the
relevant non-cash expenses or losses were reflected as a charge in the statement of
Consolidated Net Income, all as determined on a consolidated basis.

 

5

 

“Consolidated Interest Expense”: for any period, total interest expense (including
that attributable to Capital Lease Obligations and Attributable Debt) of the Borrower and its
Subsidiaries for such period with respect to all outstanding Indebtedness of the Borrower and its
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 Swap Agreements in respect
of interest rates to the extent such net costs are allocable to such period in accordance with
GAAP).

“Consolidated Leverage Ratio”: as at the last day of any period, the ratio of (a)
Consolidated Total Debt on such day to (b) Consolidated EBITDA for such period.

“Consolidated Net Income”: for any period, the consolidated net income (or loss) of
the Borrower and its Subsidiaries, determined on a consolidated basis in accordance with GAAP;
provided that there shall be excluded (a) the income (or deficit) of any Person accrued
prior to the date it becomes a Subsidiary of the Borrower or is merged into or consolidated with
the Borrower or any of its Subsidiaries, (b) the income (or deficit) of any Person (other than a
Subsidiary of the Borrower) in which the Borrower or any of its Subsidiaries has an ownership
interest, except to the extent that any such income is actually received by the Borrower or such
Subsidiary in the form of dividends or similar distributions and (c) the undistributed earnings of
any Subsidiary of the Borrower to the extent that the declaration or payment of dividends or
similar distributions by such Subsidiary is not at the time permitted by the terms of any
Contractual Obligation (other than under any Loan Document) or Requirement of Law applicable to
such Subsidiary.

“Consolidated Tangible Net Assets”: the total assets of the Borrower and its
Subsidiaries as of the most recent fiscal quarter end for which a consolidated balance sheet of the
Borrower and its Subsidiaries is publicly available, minus all current liabilities (excluding the
current portion of any long-term debt) of the Borrower and its Subsidiaries reflected on such
balance sheet and minus total goodwill and other intangible assets of the Borrower and its
Subsidiaries reflected on such balance sheet, all calculated on a consolidated basis in accordance
with GAAP.

“Consolidated Total Debt”: at any date, the aggregate principal amount of all
Indebtedness of the Borrower and its Subsidiaries at such date, determined on a consolidated basis
in accordance with GAAP.

“Contractual Obligation”: as to any Person, any provision of any security issued by
such Person or of any agreement, instrument or other undertaking to which such Person is a party or
by which it or any of its property is bound.

“Convertible Notes”: the Borrower’s 4.00% Convertible Senior Notes due 2017 issued
pursuant to the Indenture described in clause (a) of the definition thereof.

“Default”: any of the events specified in Section 8, whether or not any requirement
for the giving of notice, the lapse of time, or both, has been satisfied.

 

6

 

“Defaulting Lender”: any Lender, as reasonably determined by the Administrative
Agent, that has (a) failed to fund any portion of its Loans or participations in Letters of Credit
within three Business Days of the date required to be funded by it hereunder unless such Lender
notifies the Administrative Agent and the Borrower in writing that such failure is the result of
such Lender’s determination that one or more conditions precedent to funding (each of which
conditions precedent,
together with any applicable default, shall be specifically identified in such writing) has
not been satisfied, (b) notified the Borrower, the Administrative Agent, the Issuing Lender or any
Lender in writing that it does not intend to comply with any of its funding obligations under this
Agreement or has made a public statement to the effect that it does not intend to comply with its
funding obligations under this Agreement unless such verbal notice or writing or public statement
relates to such Lender’s obligation to fund a Loan hereunder and states that such position is based
on such Lender’s determination that a condition precedent to funding (which condition precedent,
together with any applicable default, shall be specifically identified in such writing or public
statement) cannot be satisfied, (c) failed, within three Business Days after request by the
Administrative Agent, to confirm that it will comply with the terms of this Agreement relating to
its obligations to fund prospective Loans and participations in then outstanding Letters of Credit
or Swingline Loans, (d) otherwise failed to pay over to the Administrative Agent or any other
Lender any other amount required to be paid by it hereunder within three Business Days of the date
when due, unless the subject of a good-faith dispute, or (e) (i) become or is insolvent or has a
parent company that has become or is insolvent or (ii) become the subject of a bankruptcy or
insolvency proceeding, or has had a receiver, conservator, trustee or custodian appointed for it,
or has consented to, approved of or acquiesced in any such proceeding or appointment or has a
parent company that has become the subject of a bankruptcy or insolvency proceeding, or has had a
receiver, conservator, trustee or custodian appointed for it, or has consented to, approved of or
acquiesced in any such proceeding or appointment; provided that (i) if a Lender would be a
“Defaulting Lender” (A) solely by reason of events relating to a parent company of such Lender or
solely because a Governmental Authority has been appointed as receiver, conservator, trustee or
custodian for such Lender, in each case as described in clause (e) above, or (B) solely by reason
of the ownership or control by a Governmental Authority of a parent company of such Lender, the
Administrative Agent may in the case of sub-clause (A) above and shall in the case of sub-clause
(B) above, in its reasonable discretion, determine that such Lender is not a “Defaulting Lender” if
and for so long as the Administrative Agent is satisfied that such Lender will continue to perform
its funding obligations hereunder and (ii) the Administrative Agent may, by notice to the Borrower
and the Lenders, declare that a Defaulting Lender is no longer a “Defaulting Lender” if the
Administrative Agent determines, in its reasonable discretion, that the circumstances that resulted
in such Lender becoming a “Defaulting Lender” no longer apply.

“Disqualified Capital Stock” means any Capital Stock that, by its terms (or by the
terms of any security into which it is convertible or for which it is exchangeable) or upon the
happening of any event, matures or is mandatorily redeemable for any consideration other than other
Capital Stock (which would not constitute Disqualified Capital Stock), pursuant to a sinking fund
obligation or otherwise, or is convertible or exchangeable for Indebtedness or redeemable for any
consideration other than other Capital Stock (which would not constitute Disqualified Capital
Stock) at the option of the holder thereof, in whole or in part, on or prior to the date that is
one year after the earlier of (a) the Termination Date and (b) the date on which there are no Loans
(including Swingline Loans), L/C Exposure or other obligations hereunder outstanding and the Total
Commitments are terminated.

“Disposition”: with respect to any property, any sale, lease, sale and leaseback,
assignment, conveyance, transfer or other disposition thereof. The terms “Dispose” and
“Disposed of” shall have correlative meanings.

“Documentation Agent”: as defined in the preamble hereto.

“Dollars” and “$”: dollars in lawful currency of the United States.

“Domestic Investment”: any Investment in a Domestic Subsidiary or any other Person
organized under the laws of any jurisdiction within the United States.

 

7

 

“Domestic Permitted Acquisition”: any Permitted Acquisition pursuant to which (a) any
acquired or newly formed Subsidiary is a Domestic Subsidiary or (b) the assets that are the subject
of such Permitted Acquisition are acquired by a Domestic Subsidiary and are located in the United
States. If the acquired or newly formed Subsidiaries in a Permitted Acquisition are in part
Domestic Subsidiaries and in part Foreign Subsidiaries or the assets acquired in a Permitted
Acquisition are in part located in the United States and in part outside of the United States, such
Permitted Acquisition shall be treated for all purposes of this Agreement as a Domestic Permitted
Acquisition to the extent of the domestic component (as determined by the Borrower in good faith)
and as Foreign Permitted Acquisition to the extent of the foreign component (as determined by the
Borrower in good faith).

“Domestic Subsidiary”: any Subsidiary of the Borrower organized under the laws of any
jurisdiction within the United States.

“Drilling Fluids Real Estate Transaction”: either (i) the sale and lease back of real
property and related facilities or (ii) the construction or acquisition financing of real property
and related facilities proposed by the Borrower to occur after the Closing Date, which in either
case, are assets not owned by any Group Member as of the Closing Date, to be used for offices and
laboratories for Newpark Drilling Fluids LLC and its Subsidiaries proposed to be located in Harris
County, Texas in an amount not to exceed Thirty Five Million and No/100 Dollars ($35,000,000).

“Environmental Laws”: any and all foreign, Federal, state, local or municipal laws,
rules, orders, regulations, statutes, ordinances, codes, decrees, requirements of any Governmental
Authority or other Requirements of Law (including common law) regulating, relating to or imposing
liability or standards of conduct concerning protection of public health or the environment, as now
or may at any time hereafter be in effect.

“ERISA”: the Employee Retirement Income Security Act of 1974, as amended from time to
time.

“ERISA Event”: (a) any Reportable Event; (b) the existence with respect to any Plan
of a Prohibited Transaction; (c) any failure by any Pension Plan to satisfy the minimum funding
standards (within the meaning of Section 412 of the Code or Section 302 of ERISA) applicable to
such Pension Plan, including any “accumulated funding deficiency” (as defined in Section 412 of the
Code or Section 302 of ERISA), whether or not waived; (d) the filing pursuant to Section 412 of the
Code or Section 303 of ERISA of an application for a waiver of the minimum funding standard with
respect to any Pension Plan, the failure to make by its due date a required installment under
Section 412(m) of the Code with respect to any Pension Plan or the failure by any Group Member or
any Commonly Controlled Entity to make any required contribution to a Multiemployer Plan; (d) the
incurrence by any Group Member or any Commonly Controlled Entity of any liability under Title IV of
ERISA with respect to the termination of any Pension Plan, including but not limited to the
imposition of any Lien in favor of the PBGC or any Pension Plan; (f) a determination that any
Pension Plan is, or is expected to be, in “at risk” status (within the meaning of Title IV of
ERISA); (g) the receipt by any Group Member or any Commonly Controlled Entity from the PBGC or a
plan administrator of any notice relating to an intention to terminate any Pension Plan or to
appoint a trustee to administer any Pension Plan under Section 4042 of ERISA; (h) the incurrence by
any Group Member or any Commonly Controlled Entity of any liability with respect to the withdrawal
or partial withdrawal from any Pension Plan or Multiemployer Plan; or (i) the receipt by any Group
Member or any Commonly Controlled Entity of any notice, or the receipt by any Multiemployer Plan
from a Group Member of any Commonly Controlled Entity of any notice, concerning the imposition of
Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be,
insolvent, in reorganization or in endangered or critical status, within the meaning of Section 432
of the Code or Section 305 or Title IV of ERISA.

 

8

 

“Eurocurrency Reserve Requirements”: for any day as applied to a Eurodollar Loan, the
aggregate (without duplication) of the maximum rates (expressed as a decimal fraction) of reserve
requirements in effect on such day (including basic, supplemental, marginal and emergency reserves)
under any regulations of the Board or other Governmental Authority having jurisdiction with respect
thereto dealing with reserve requirements prescribed for eurocurrency funding (currently referred
to as “Eurocurrency Liabilities” in Regulation D of the Board) maintained by a member bank of the
Federal Reserve System.

“Eurodollar Base Rate”: with respect to each day during each Interest Period
pertaining to a Eurodollar Loan, the rate per annum 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 the Reuters Screen LIBOR01 Page as of 11:00 A.M., London time, two
Business Days prior to the beginning of such Interest Period. In the event that such rate does not
appear on such page (or otherwise on such screen), the “Eurodollar Base Rate” shall be
determined by reference to such other comparable publicly available service for displaying
eurodollar rates as may be selected by the Administrative Agent or, in the absence of such
availability, by reference to the rate at which the Administrative Agent is offered Dollar deposits
at or about 11:00 A.M., New York City time, two Business Days prior to the beginning of such
Interest Period in the interbank eurodollar market where its eurodollar and foreign currency and
exchange operations are then being conducted for delivery on the first day of such Interest Period
for the number of days comprised therein.

“Eurodollar Loans”: Revolving Loans the rate of interest applicable to which is based
upon the Eurodollar Rate.

“Eurodollar Rate”: with respect to each day during each Interest Period pertaining to
a Eurodollar Loan, a rate per annum determined for such day in accordance with the following
formula (rounded upward to the nearest 1/100th of 1%):

Eurodollar Base Rate

1.00 – Eurocurrency Reserve Requirements

“Eurodollar Tranche”: the collective reference to Eurodollar Loans, the then current
Interest Periods with respect to all of which begin on the same date and end on the same later date
(whether or not such Loans shall originally have been made on the same day).

“Event of Default”: any of the events specified in Section 8, provided that
any requirement for the giving of notice, the lapse of time, or both, has been satisfied.

“Excluded Foreign Subsidiary”: any Foreign Subsidiary in respect of which either (a)
the pledge of all of the Capital Stock issued by such Subsidiary as Collateral or (b) the
guaranteeing by such Subsidiary of the Obligations, would, in the good faith judgment of the
Borrower, result in adverse tax consequences to the Borrower.

“Existing Credit Agreement”: as defined in the recitals hereof.

“Existing Letters of Credit”: the letters of credit outstanding as of the Closing
Date which are listed on Schedule 1.1C.

“Existing Mortgages”: each of the mortgages and deeds of trust respectively made
pursuant to the Existing Credit Agreement by any Loan Party in favor of, or for the benefit of, the
Administrative Agent, the Lenders and others.

 

9

 

“Existing Mortgaged Property”: as defined in Section 5.1(k).

“Extensions of Credit”: as to any Lender at any time, an amount equal to the sum of
(a) the aggregate principal amount of all Revolving Loans held by such Lender then outstanding and
(b) such Lender’s Swingline Exposure and its Applicable Percentage of the L/C Obligations then
outstanding.

“FATCA”: Sections 1471 through 1474 of the Internal Revenue Code, including any
regulations or official interpretations thereof.

“Federal Funds Effective Rate”: for any day, the weighted average of the 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 average of the
quotations for the day of such transactions received by JPMCB from three federal funds brokers of
recognized standing selected by it.

“Fee Letter”: that certain letter agreement among the Borrower, J.P. Morgan Securities
LLC and the Administrative Agent, dated as of October 6, 2011.

“Fee Payment Date”: (a) the third Business Day following the last day of each March,
June, September and December and (b) the last day of the Commitment Period.

“Financial Letter of Credit”: any standby Letter of Credit that is not a Performance
Letter of Credit.

“First Amended and Restated Credit Agreement”: as defined in the recitals hereof.

“Foreign Benefit Arrangement”: any employee benefit arrangement mandated by non-US
law that is maintained or contributed to by any Group Member or any Commonly Controlled Entity.

“Foreign Currency”: Euros, Pounds Sterling, Canadian Dollars, Australian Dollars, New
Zealand Dollars, New Romanian Leus, Hungarian Forint, Mexican Pesos, Hong Kong Dollar and any other
legal currency agreed to by the relevant Issuing Lender.

“Foreign Investment”: any Investment in a Foreign Subsidiary or any other Person
organized under the laws of a jurisdiction other than any jurisdiction within the United States.

“Foreign Permitted Acquisition”: any Permitted Acquisition that is not a Domestic
Permitted Acquisition. If the acquired or newly formed Subsidiaries in a Permitted Acquisition are
in part Domestic Subsidiaries and in part Foreign Subsidiaries or the assets acquired in a
Permitted Acquisition are in part located in the United States and in part outside of the United
States, such Permitted Acquisition shall be treated for all purposes of this Agreement as Domestic
Permitted Acquisition to the extent of the domestic component (as determined by the Borrower in
good faith) and as Foreign Permitted Acquisition to the extent of the foreign component (as
determined by the Borrower in good faith).

“Foreign Plan”: each employee benefit plan (within the meaning of Section 3(3) of
ERISA, whether or not subject to ERISA) that is not subject to US law and is maintained or
contributed to by any Group member or any Commonly Controlled Entity.

“Foreign Subsidiary”: any Subsidiary of the Borrower that is not a Domestic
Subsidiary.

 

10

 

“Funding Office”: the office of the Administrative Agent specified in Section 10.2 or
such other office as may be specified from time to time by the Administrative Agent as its funding
office by written notice to the Borrower and the Lenders.

“GAAP”: generally accepted accounting principles in the United States as in effect
from time to time, except that for purposes of Section 7.1, GAAP shall be determined on the basis
of such principles in effect on the date hereof and consistent with those used in the preparation
of the most recent audited financial statements referred to in Section 4.1. In the event that any
“Accounting Change” (as defined below) shall occur and such change results in a change in the
method of calculation of financial covenants, standards or terms in this Agreement, then the
Borrower and the Administrative Agent agree to enter into negotiations in order to amend such
provisions of this Agreement so as to reflect equitably such Accounting Changes with the desired
result that the criteria for evaluating the Borrower’s financial condition shall be the same after
such Accounting Changes as if such Accounting Changes had not been made. Until such time as such
an amendment shall have been executed and delivered by the Borrower, the Administrative Agent and
the Majority Lenders, all financial covenants, standards and terms in this Agreement shall continue
to be calculated or construed as if such Accounting Changes had not occurred. “Accounting Changes”
refers to changes in accounting principles required by the promulgation of any rule, regulation,
pronouncement or opinion by the Financial Accounting Standards Board of the American Institute of
Certified Public Accountants or, if applicable, the SEC.

“Governmental Authority”: any nation or government, any state or other political
subdivision thereof, any agency, authority, instrumentality, regulatory body, court, central bank
or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative
functions of or pertaining to government, any securities exchange and any self-regulatory
organization (including the National Association of Insurance Commissioners).

“Group Members”: the collective reference to the Borrower and its Subsidiaries.

“Guarantee and Collateral Agreement”: the Second Amended and Restated Guarantee and
Collateral Agreement to be executed and delivered by the Borrower and each Subsidiary Guarantor,
substantially in the form of Exhibit A.

“Guarantee Obligation”: as to any Person (the “guaranteeing person”), any
obligation, including a reimbursement, counterindemnity or similar obligation, of the guaranteeing
Person that guarantees or in effect guarantees, or which is given to induce the creation of a
separate obligation by another Person (including any bank under any letter of credit) that
guarantees or in effect guarantees, any Indebtedness, leases, dividends or other obligations (the
“primary obligations”) of any other third Person (the “primary obligor”) in any
manner, whether directly or indirectly, including any obligation of the guaranteeing person,
whether or not contingent, (i) to purchase any such primary obligation or any property constituting
direct or indirect security therefor, (ii) to advance or supply funds (1) for the purchase or
payment of any such primary obligation or (2) to maintain working capital or equity capital of the
primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to
purchase property, securities or services primarily for the purpose of assuring the owner of any
such primary obligation of the ability of the primary obligor to make payment of such primary
obligation or (iv) otherwise to assure or hold harmless the owner of any such primary obligation
against loss in respect thereof; provided, however, that the term Guarantee
Obligation shall not include endorsements of instruments for deposit or collection in the ordinary
course of business or any guarantees by the Borrower or any Group Member guaranteeing the
obligations of any other Group Member to perform or deliver work or services in the ordinary course
of business. The amount of any Guarantee Obligation of any guaranteeing person shall be deemed to
be the lower of (a) an amount equal to the stated or determinable amount of the primary obligation
in respect of which such Guarantee Obligation is made and (b) the
maximum amount for which such guaranteeing person may be liable pursuant to the terms of the
instrument embodying such Guarantee Obligation, unless such primary obligation and the maximum
amount for which such guaranteeing person may be liable are not stated or determinable, in which
case the amount of such Guarantee Obligation shall be such guaranteeing person’s maximum reasonably
anticipated liability in respect thereof as determined by the Borrower in good faith.

 

11

 

“Increasing Lender”: as defined in Section 2.1(c).

“Indebtedness”: of any Person at any date, without duplication, (a) all indebtedness
of such Person for borrowed money, (b) all obligations of such Person for the deferred purchase
price of property or services (other than current trade payables incurred in the ordinary course of
such Person’s business), (c) all obligations of such Person evidenced by notes, bonds, debentures
or other similar instruments, (d) all indebtedness created or arising under any conditional sale or
other title retention agreement with respect to property acquired by such Person (even though the
rights and remedies of the seller or lender under such agreement in the event of default are
limited to repossession or sale of such property), (e) all Capital Lease Obligations and
Attributable Debt of such Person, (f) all obligations of such Person, contingent or otherwise, as
an account party or applicant under or in respect of acceptances, letters of credit, surety bonds
or similar arrangements, (g) the liquidation value of all mandatorily redeemable preferred Capital
Stock issued by such Person, (h) all Guarantee Obligations of such Person in respect of obligations
of the kind referred to in clauses (a) through (g) above, (i) all obligations of the kind referred
to in clauses (a) through (h) above secured by (or for which the holder of such obligation has an
existing right, contingent or otherwise, to be secured by) any Lien on property (including accounts
and contract rights) owned by such Person, whether or not such Person has assumed or become liable
for the payment of such obligation and (j) for the purposes of Section 8(e) only, all obligations
of such Person in respect of Swap Agreements. The Indebtedness of any Person shall include the
Indebtedness of any other entity (including any partnership in which such Person is a general
partner) to the extent such Person is liable therefor as a result of such Person’s ownership
interest in or other relationship with such entity, except to the extent the terms of such
Indebtedness expressly provide that such Person is not liable therefor.

“Indenture”: (a) that certain Indenture dated as of October 4, 2010, among the
Borrower, as issuer, certain Subsidiaries as guarantors and Wells Fargo Bank, National
Association, a national banking association, as trustee, as supplemented by the First Supplemental
Indenture dated as of October 4, 2010 to Indenture dated as of October 4, 2010, and (b) any
indenture, note purchase agreement or other agreement pursuant to which Indebtedness under Section
7.2(g) or any Permitted Refinancing Debt is issued, in each case, as hereafter amended or
supplemented pursuant to Section 7.15.

“Insolvency”: with respect to any Multiemployer Plan, the condition that such Plan is
insolvent within the meaning of Section 4245 of ERISA.

“Insolvent”: pertaining to a condition of Insolvency.

“Intellectual Property”: the collective reference to all rights, priorities and
privileges relating to intellectual property, whether arising under United States, multinational or
foreign laws or otherwise, including copyrights, copyright licenses, patents, patent licenses,
trademarks, trademark licenses, technology, know-how and processes, and all rights to sue at law or
in equity for any infringement or other impairment thereof, including the right to receive all
proceeds and damages therefrom.

“Interest Coverage Ratio”: as at the last day of any period, the ratio of (a)
Consolidated EBITDA for such period to (b) Consolidated Interest Expense for such period.

 

12

 

“Interest Payment Date”: (a) as to any ABR Loan, the last day of each March, June,
September and December (or, if an Event of Default is in existence, the last day of each calendar
month) to occur while such Loan is outstanding and the final maturity date of such Loan, (b) as to
any Eurodollar Loan having an Interest Period of three months or less, the last day of such
Interest Period, (c) as to any Eurodollar Loan having an Interest Period longer than three months,
each day that is three months, or a whole multiple thereof, after the first day of such Interest
Period and the last day of such Interest Period and (d) as to any Eurodollar Loan or Swingline
Loans, the date of any repayment or prepayment made in respect thereof.

“Interest Period”: as to any Eurodollar Loan, (a) initially, the period commencing on
the borrowing or conversion date, as the case may be, with respect to such Eurodollar Loan and
ending one, two, three or six months thereafter, as selected by the Borrower in its notice of
borrowing or notice of conversion, as the case may be, given with respect thereto; and (b)
thereafter, each period commencing on the last day of the next preceding Interest Period applicable
to such Eurodollar Loan and ending one, two, three or six months thereafter, as selected by the
Borrower by irrevocable notice to the Administrative Agent not later than 11:00 A.M., New York City
time, on the date that is three Business Days prior to the last day of the then current Interest
Period with respect thereto; provided that, all of the foregoing provisions relating to
Interest Periods are subject to the following:

(i) if any Interest Period would otherwise end on a day that is not a Business Day,
such Interest Period shall be extended to the next succeeding Business Day unless the result
of such extension would be to carry such Interest Period into another calendar month in
which event such Interest Period shall end on the immediately preceding Business Day;

(ii) the Borrower may not select an Interest Period that would extend beyond the
Termination Date; and

(iii) any Interest Period that begins on the last Business Day of a calendar month (or
on a day for which there is no numerically corresponding day in the calendar month at the
end of such Interest Period) shall end on the last Business Day of a calendar month.

“Investments”: as defined in Section 7.7.

“Issuing Lender”: any Lender in its capacity as issuer of any Letter of Credit. In
the event that there is more than one Issuing Lender at any time, references herein and in the
other Loan Documents to the Issuing Lender shall be deemed to refer to the Issuing Lender in
respect of the applicable Letter of Credit or to all Issuing Lenders, as the context requires.

“JPMCB”: JPMorgan Chase Bank, N.A.

“L/C Commitment”: $50,000,000.

“L/C Exposure”: at any time, a Lender’s Applicable Percentage of the total L/C
Obligations at such time.

“L/C Obligations”: at any time, an amount equal to the sum of (a) the aggregate then
undrawn and unexpired amount of the then outstanding Letters of Credit and (b) the aggregate amount
of drawings under Letters of Credit that have not then been reimbursed pursuant to Section 3.5.

“L/C Participants”: the collective reference to all the Lenders other than the
Issuing Lender.

 

13

 

“Lenders”: as defined in the preamble hereto; provided, that unless the
context otherwise requires, each reference herein to the Lenders shall be deemed to include the
Swingline Lender and any Conduit Lender.

“Letters of Credit”: as defined in Section 3.1(a).

“Lien”: any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), charge or other security interest or any preference,
priority or other security agreement or preferential arrangement of any kind or nature whatsoever
(including any conditional sale or other title retention agreement and any capital lease having
substantially the same economic effect as any of the foregoing).

“Loans”: the Revolving Loans and/or Swingline Loans, as the context requires.

“Loan Documents”: this Agreement, the Security Documents, the Notes and any
amendment, waiver, supplement or other modification to any of the foregoing.

“Loan Parties”: the Borrower and the Subsidiary Guarantors identified in clauses (i)
through (iv) of the definition thereof and each Group Member that becomes a party to a Loan
Document after the Closing Date.

“Majority Lenders”: the holders of more than 50% of the aggregate unpaid principal
amount of the Total Extensions of Credit outstanding, or prior to any termination of the
Commitments, the holders of more than 50% of the Total Commitments.

“Material Adverse Effect”: a material adverse effect on (a) the business, property,
operations, condition (financial or otherwise) or prospects of the Borrower and its Subsidiaries
taken as a whole or (b) the validity or enforceability of this Agreement or any of the other Loan
Documents or the rights or remedies of the Administrative Agent or the Lenders hereunder or
thereunder.

“Material Domestic Subsidiary”: any Subsidiary of the Borrower (a) (i) that, as of the
most recent fiscal quarter end of the Borrower for the period of four consecutive fiscal quarters
then ended, contributes greater than three percent (3%) of the Borrower’s Consolidated EBITDA for
such period or (ii) the consolidated total assets of which as of the end of such fiscal quarter
were greater than three percent (3%) of the Borrower’s consolidated total assets as of such date;
provided that, if at any time the aggregate amount of the Consolidated EBITDA contributed
by, or consolidated total assets of, all Domestic Subsidiaries that are not Material Domestic
Subsidiaries exceeds, respectively, five percent (5%) of the Borrower’s Consolidated EBITDA for any
such period or five percent (5%) of the Borrower’s Consolidated Total Assets as of the end of any
such fiscal quarter, the Borrower (or, in the event the Borrower has failed to do so within ten
days, the Administrative Agent) shall designate sufficient Domestic Subsidiaries as “Material
Domestic Subsidiaries” to eliminate such excess, and such designated Domestic Subsidiaries shall
for all purposes of this Agreement constitute Material Domestic Subsidiaries or (b) incurs, or
guarantees, any Indebtedness for borrowed money in either case the outstanding principal amount of
which is in excess of $5,000,000; provided that in the case of clause (a), a Domestic
Subsidiary with a net book value of less than $5,000,000 calculated as of the end of the most
recent fiscal quarter or whose revenues for the immediately preceding twelve month period,
calculated as of the end of the most recent fiscal quarter, were less than $5,000,000 shall not be
or become a Material Domestic Subsidiary.

“Materials of Environmental Concern”: any gasoline or petroleum (including crude oil
or any fraction thereof) or petroleum products or any hazardous or toxic substances, materials or
wastes,
defined or regulated as such in or under any Environmental Law, including asbestos,
polychlorinated biphenyls and urea-formaldehyde insulation.

 

14

 

“Mortgage Amendments”: as defined in Section 5.1(k).

“Mortgaged Properties”: the real properties listed on Schedule 1.1B, as to
which the Administrative Agent for the benefit of the Lenders has been granted a Lien pursuant to
the Mortgages, and any other real property with respect to which a mortgage or deed of trust has
been delivered pursuant to Section 6.9(b).

“Mortgages”: the Existing Mortgages and any mortgages or deeds of trust made pursuant
to Section 6.9(b).

“Multiemployer Plan”: a Plan that is a multiemployer plan as defined in Section
4001(a)(3) of ERISA.

“Non-Excluded Taxes”: as defined in Section 2.14(a).

“Non-U.S. Lender”: as defined in Section 2.14(d).

“Notes”: the collective reference to any promissory note evidencing Loans in the form
of the Revolving Note or Swingline Note attached hereto as Exhibits J and K, respectively.

“Obligations”: the unpaid principal of and interest on the Loans (including interest
accruing after the maturity of the Loans and Reimbursement Obligations and interest accruing after
the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or
like proceeding, relating to the Borrower, whether or not a claim for post-filing or post-petition
interest is allowed in such proceeding) and all other obligations and liabilities of the Borrower
to the Administrative Agent or to any Lender (or, in the case of Specified Swap Agreements, any
affiliate of any Lender), whether direct or indirect, absolute or contingent, due or to become due,
or now existing or hereafter incurred, which may arise under, out of, or in connection with, this
Agreement, any other Loan Document, the Letters of Credit, any Specified Swap Agreement, any
Specified Cash Management Services Agreement or any other document made, delivered or given in
connection herewith or therewith, whether on account of principal, interest, reimbursement
obligations, fees, indemnities, costs, expenses (including all fees, charges and disbursements of
counsel to the Administrative Agent or to any Lender that are required to be paid by the Borrower
pursuant hereto) or otherwise.

“Original Credit Agreement”: as defined in the recitals hereof.

“Other Taxes”: any and all present or future stamp or documentary taxes or any other
excise or property taxes, charges or similar levies arising from any payment made hereunder or from
the execution, delivery or enforcement of, or otherwise with respect to, this Agreement or any
other Loan Document.

“Participant”: as defined in Section 10.6(c).

“PBGC”: the Pension Benefit Guaranty Corporation established pursuant to Subtitle A
of Title IV of ERISA (or any successor).

“Pension Plan”: any Plan (other than a Multiemployer Plan) subject to the provisions
of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA and in respect of which any
Group Member or any Commonly Controlled Entity is (or, if such Plan were terminated, would
under Section 4069 of ERISA be deemed to be) an “employer” as defined in section 3(5) of ERISA.

 

15

 

“Performance Letter of Credit”: any standby Letter of Credit, or similar arrangement,
however named or described, which represents an irrevocable obligation to the beneficiary on the
part of the issuer to make payment on account of any default by the account party in the
performance of a non-financial or commercial obligation.

“Permitted Acquisitions”: Acquisitions that satisfy the following requirements: (a)
(i) the acquired company or assets are in the same or similar line of business as the Borrower or
its Subsidiaries; (ii) the Borrower or a Subsidiary is the surviving entity holding one hundred
percent (100%) of the Capital Stock in the Acquisition target; (iii) no Event of Default or Default
shall exist before or after such Acquisition; (iv) such Acquisition shall be completed in
accordance with material applicable laws; (v) the Administrative Agent shall be provided with
reasonably satisfactory opinions with regard to such Acquisition if and as it may reasonably
request; (vi) the terms of Section 6.9 are satisfied; (vii) the board of directors or similar
governing body of the acquired company approves the Acquisition; and (viii) after giving effect to
the Acquisition, on a pro forma basis, the Borrower is in compliance with Section 7.1 as of the
last day of the fiscal quarter immediately preceding such Acquisition for which financial
statements are publicly available; and (b) if such Acquisition is a Foreign Permitted Acquisition,
the cumulative aggregate consideration (defined as total net cash to be paid, plus
Indebtedness to be assumed in connection with such Acquisition), together with the aggregate amount
of Investments under Section 7.7(h) (without duplication) does not exceed the limits set forth in
said Section 7.7(h).

“Permitted Capital Stock Repurchase”: as defined in Section 7.6.

“Permitted Refinancing Debt”: Indebtedness (for purposes of this definition, “new
Debt”) incurred in exchange for, or proceeds of which are used to refinance, all of any other
Indebtedness (the “Refinanced Debt”); provided that (a) such new Debt is in an aggregate principal
amount not in excess of the sum of (i) the aggregate principal amount then outstanding of the
Refinanced Debt (or, if the Refinanced Debt is exchanged or acquired for an amount less than the
principal amount thereof to be due and payable upon a declaration of acceleration thereof, such
lesser amount) and (ii) an amount necessary to pay any fees and expenses, including premiums,
related to such exchange or refinancing; (b) such new Debt has a stated maturity no earlier than
the stated maturity of the Refinanced Debt and an average life no shorter than the average life of
the Refinanced Debt; (c) such new Debt does not have a stated interest rate in excess of the stated
interest rate of the Refinanced Debt; (d) such new Debt does not contain any covenants which are
more onerous to the Borrower and its Restricted Subsidiaries than those imposed by the Refinanced
Debt, (e) such new Debt (and any guarantees thereof by the Borrower or any Subsidiary Guarantor) is
subordinated in right of payment to the Obligations to at least the same extent as the Refinanced
Debt and such new Debt does not does not have a maturity date prior to the date that is ninety-one
(91) days after the Termination Date.

“Person”: an individual, partnership, corporation, limited liability company,
business trust, joint stock company, trust, unincorporated association, joint venture, Governmental
Authority or other entity of whatever nature.

“Plan”: any employee benefit plan as defined in Section 3(3) of ERISA, including any
employee welfare benefit plan (as defined in Section 3(1) of ERISA), any employee pension benefit
plan (as defined in Section 3(2) of ERISA), and any plan which is both an employee welfare benefit
plan and an employee pension benefit plan, and in respect of which any Group Member or any Commonly
Controlled Entity is an “employer” as defined in Section 3(5) of ERISA.

 

16

 

“Prime Rate”: the rate of interest per annum publicly announced from time to time by
JPMCB as its prime rate in effect at its principal office in New York City (the Prime Rate not
being intended to be the lowest rate of interest charged by JPMCB in connection with extensions of
credit to debtors).

“Prohibited Transaction”: has the meaning assigned to such term in Section 406 of
ERISA and Section 4975(f)(3) of the Code.

“Properties”: as defined in Section 4.17(a).

“Redemption” means with respect to any Indebtedness, the repurchase, redemption,
prepayment, repayment, defeasance or any other acquisition or retirement for value (or the
segregation of funds with respect to any of the foregoing) of such Indebtedness. “Redeem” has the
correlative meaning thereto.

“Register”: as defined in Section 10.6(b).

“Regulation U”: Regulation U of the Board as in effect from time to time.

“Reimbursement Obligation”: the obligation of the Borrower to reimburse the Issuing
Lender pursuant to Section 3.5 for amounts drawn under Letters of Credit.

“Reorganization”: with respect to any Multiemployer Plan, the condition that such
plan is in reorganization within the meaning of Section 4241 of ERISA.

“Reportable Event”: any of the events set forth in Section 4043(c) of ERISA, other
than those events as to which the thirty day notice period is waived under subsections .27, .28, .29, .30, .31, .32, .34 or .35 of PBGC Reg. § 4043.

“Requirement of Law”: 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 to which such Person or
any of its property is subject.

“Responsible Officer”: the chief executive officer, president or chief financial
officer of the Borrower, but in any event, with respect to financial matters, the chief financial
officer, treasurer or controller of the Borrower.

“Restricted Payments”: as defined in Section 7.6.

“Reuters Exchange Rate”: for any relevant date of determination and for any relevant
Foreign Currency, the Dollar average exchange rate in the interbank market expressed as the amount
of such Foreign Currency per one Dollar for settlement on the same day at 2:00 p.m. (New York, New
York time), published on Reuters Page PEBCR05, rounded to the fourth decimal point (or, if not
available at such page, then at any other replacement page of the Reuters Service displaying such
rate or on the relevant pages of Bloomberg Financial Markets).

“Revolving Exposure”: at any time, the aggregate principal amount of all Revolving
Loans outstanding at such time. The Revolving Exposure of any Lender at any time shall be its
Applicable Percentage of the total Revolving Exposure at such time.

 

17

 

“Revolving Loans”: the loans made under Section 2.1(a).

“SEC”: the Securities and Exchange Commission, any successor thereto and any
analogous Governmental Authority.

“Security Documents”: the collective reference to the Guarantee and Collateral
Agreement, the Mortgages and all other security documents hereafter delivered to the Administrative
Agent granting a Lien on any property of any Person to secure the obligations and liabilities of
any Loan Party under any Loan Document.

“Senior Notes”: the Convertible Notes and any Indebtedness issued by the Borrower
under Section 7.2(g).

“Senior Secured Leverage Ratio”: as at the last day of any period, the ratio of (a)
Consolidated Total Debt less all Indebtedness of the Borrower and its Subsidiaries outstanding on
such date which is neither (i) contractually subordinated in a right of payment to the Obligations
nor (ii) secured by any Lien to (b) Consolidated EBITDA for such period.

“Solvent”: when used with respect to any Person, means that, as of any date of
determination, (a) the amount of the “present fair saleable value” of the assets of such Person
will, as of such date, exceed the amount of all “liabilities of such Person, contingent or
otherwise”, as of such date, as such quoted terms are determined in accordance with applicable
federal and state laws governing determinations of the insolvency of debtors, (b) the present fair
saleable value of the assets of such Person will, as of such date, be greater than the amount that
will be required to pay the liability of such Person on its debts as such debts become absolute and
matured, (c) such Person will not have, as of such date, an unreasonably small amount of capital
with which to conduct its business and (d) such Person will be able to pay its debts as they
mature. For purposes of this definition, (i) “debt” means liability on a “claim”, and (ii) “claim”
means any (x) right to payment, whether or not such a right is reduced to judgment, liquidated,
unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable,
secured or unsecured or (y) right to an equitable remedy for breach of performance if such breach
gives rise to a right to payment, whether or not such right to an equitable remedy is reduced to
judgment, fixed, contingent, matured or unmatured, disputed, undisputed, secured or unsecured.

“Specified Cash Management Services Agreement”: any agreement to provide management
services, including treasury, depository, overdraft, credit or debit card, electronic funds
transfer and other cash management services entered into by the Borrower or any Subsidiary
Guarantor and any Person that is a Lender or an affiliate of a Lender at the time such Cash
Management Services Agreement is entered into.

“Specified Swap Agreement”: any Swap Agreement in respect of interest rates or
currency exchange rates entered into by the Borrower or any Subsidiary Guarantor and any Person
that is a Lender or an affiliate of a Lender at the time such Swap Agreement is entered into.

“Subsidiary”: as to any Person, a corporation, partnership, limited liability company
or other entity the shares of stock or other ownership interests having ordinary voting power
(other than stock or such other ownership interests having such power only by reason of the
happening of a contingency) to elect a majority of the board of directors or other managers of such
corporation, partnership or other entity are at the time owned, or the management of which is
otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such
Person. Unless otherwise qualified, all references to a “Subsidiary” or to “Subsidiaries” in this
Agreement shall refer to a Subsidiary or Subsidiaries of the Borrower.

 

18

 

“Subsidiary Guarantor”: (i) Newpark Drilling Fluids LLC, a Texas limited liability
company, (ii) Excalibar Minerals LLC, a Texas limited liability, (iii) Newpark Environmental
Services LLC, a Texas limited liability company, (iv) Newpark Mats & Integrated Services LLC and
(v) each Domestic Subsidiary of the Borrower which guarantees the Obligations pursuant to Section 6.9(c).

“Swap Agreement”: any agreement with respect to any swap, forward, future or
derivative transaction or option or similar agreement involving, or settled by reference to, one or
more rates, currencies, commodities, equity or debt instruments or securities, or economic,
financial or pricing indices or measures of economic, financial or pricing risk or value or any
similar transaction or any combination of these transactions; provided that no phantom
stock or similar plan providing for payments only on account of services provided by current or
former directors, officers, employees or consultants of the Borrower or any of its Subsidiaries
shall be a “Swap Agreement”.

“Swingline Exposure”: at any time, the aggregate principal amount of all Swingline
Loans outstanding at such time. The Swingline Exposure of any Lender at any time shall be its
Applicable Percentage of the total Swingline Exposure at such time.

“Swingline Lender”: JPMCB, in its capacity as lender of Swingline Loans hereunder.

“Swingline Loans”: the loans made under Section 2.1(b).

“Syndication Agent”: as defined in the preamble hereto.

“Termination Date”: the earlier of (i) November 22, 2016 and (ii) the date the
Commitments are terminated under Section 2.4 or Section 8.

“Total Commitments”: at any time, the aggregate amount of the Commitments then in
effect.

“Total Extensions of Credit”: at any time, the aggregate amount of the Extensions of
Credit of the Lenders outstanding at such time.

“Transferee”: any Assignee or Participant.

“Type”: as to any Loan, its nature as an ABR Loan or a Eurodollar Loan.

“United States”: the United States of America.

“Wholly Owned Subsidiary”: as to any Person, any other Person all of the Capital
Stock of which (other than directors’ qualifying shares required by law) is owned by such Person
directly and/or through other Wholly Owned Subsidiaries.

“Wholly Owned Subsidiary Guarantor”: any Subsidiary Guarantor that is a Wholly Owned
Subsidiary of the Borrower.

“Withdrawal Liability”: any liability to a Multiemployer Plan as a result of a
complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Title IV
of ERISA.

 

19

 

1.2 Other Definitional Provisions. (a) Unless otherwise specified therein, all terms
defined in this Agreement shall have the defined meanings when used in the other Loan Documents or
any certificate or other document made or delivered pursuant hereto or thereto.

(b) As used herein and in the other Loan Documents, and any certificate or other document made
or delivered pursuant hereto or thereto, (i) accounting terms relating to any Group Member not
defined in Section 1.1 and accounting terms partly defined in Section 1.1, to the extent not
defined, shall have the respective meanings given to them under GAAP, (ii) the words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”, (iii)
the word “incur” shall be construed to mean incur, create, issue, assume, become liable in respect
of or suffer to exist (and the words “incurred” and “incurrence” shall have correlative meanings),
(iv) the words “asset” and “property” shall be construed to have the same meaning and effect and to
refer to any and all tangible and intangible assets and properties, including cash, Capital Stock,
securities, revenues, accounts, leasehold interests and contract rights and (v) references to
agreements or other Contractual Obligations shall, unless otherwise specified, be deemed to refer
to such agreements or Contractual Obligations as amended, supplemented, restated or otherwise
modified from time to time (subject to any restrictions on such amendments, supplements,
restatements or modifications set forth herein).

(c) The words “hereof”, “herein” and “hereunder” and words of similar import, when used in
this Agreement, shall refer to this Agreement as a whole and not to any particular provision of
this Agreement, and references to a Section, Schedule or Exhibit references are to a Section,
Schedule or Exhibit to this Agreement unless otherwise specified.

(d) The meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

SECTION 2. AMOUNT AND TERMS OF COMMITMENTS

2.1 Commitments. Subject to the terms and conditions hereof, each Lender severally
agrees to (i) make Revolving Loans to the Borrower, (ii) participate in Letters of Credit and (iii)
participate in Swingline Loans and the Swingline Lender agrees to make Swingline Loans to the
Borrower. The Borrower shall repay all outstanding Loans on the Termination Date.

(a) Revolving Loans. Each Lender severally agrees to make Revolving Loans in Dollars
to the Borrower from time to time during the Commitment Period in an aggregate principal amount at
any one time outstanding which, when added to such Lender’s L/C Exposure and such Lender’s
Swingline Exposure then outstanding, does not exceed the amount of such Lender’s Commitment.
During the Commitment Period the Borrower may use the Commitments by borrowing, prepaying the
Revolving Loans in whole or in part, and reborrowing, all in accordance with the terms and
conditions hereof. The Revolving Loans may from time to time be Eurodollar Loans or ABR Loans, as
determined by the Borrower and notified to the Administrative Agent in accordance with Sections 2.2
and 2.7.

(b) Swingline Loans. Subject to the terms and conditions set forth herein, the
Swingline Lender shall make Swingline Loans under this Section to the Borrower from time to time,
in an aggregate principal amount at any time outstanding that will not result in (i) Swingline
Exposure exceeding $15,000,000 or (ii) the Total Extensions of Credit exceeding the total
Commitments; provided
that the Swingline Lender shall not be required to make a Swingline Loan to refinance an
outstanding Swingline Loan. Within the foregoing limits and subject to the conditions herein, any
such Swingline Loan repaid prior to the Termination Date may be reborrowed pursuant to the terms of
this Agreement.

 

20

 

(c) Incremental Revolving Facility. The Borrower may from time to time elect to
increase the Commitments in a minimum amount of $25,000,000 (or such lesser amount as the
difference between $75,000,000 and the amount of any previous increase of the Commitments
hereunder) so long as, after giving effect thereto, the Total Commitments do not exceed
$200,000,000. The Borrower may arrange for any such increase to be provided by one or more Lenders
(each Lender so agreeing to an increase in its Commitment, an “Increasing Lender”), or by
one or more banks, financial institutions or other entities not previously a Lender (each such
bank, financial institution or other entity, an “Augmenting Lender”), to become a party
hereto and provide a Commitment; provided that (i) each Augmenting Lender, shall be subject to the
approval of the Borrower and shall be reasonably acceptable to the Administrative Agent and each
Issuing Lender, (ii) (x) in the case of an Increasing Lender, the Borrower and such Increasing
Lender execute an agreement substantially in the form of Exhibit H hereto, and (y) in the case of
an Augmenting Lender, the Borrower and such Augmenting Lender execute an agreement substantially in
the form of Exhibit I hereto and (iii) no Lender shall have any obligation to participate
in any such increase of the Commitments. Increases and new Commitments created pursuant to this
clause shall become effective on the date agreed by the Borrower, the Administrative Agent and the
relevant Increasing Lenders and/or Augmenting Lenders, as the case may be, and the Administrative
Agent shall notify each affected Lender thereof. Notwithstanding the foregoing, no increase in the
Commitments (or in the Commitment of any Lender), shall become effective under this paragraph
unless, (i) on the proposed date of the effectiveness of such increase, the conditions set forth in
paragraphs (a) and (b) of Section 5.2 shall be satisfied or waived by the Majority Lenders and the
Administrative Agent shall have received a certificate to that effect dated such date and executed
by a Responsible Officer of the Borrower, (ii) the Administrative Agent shall have received
documents consistent with those delivered on the Closing Date under Section 5.1(g) as to the
corporate power and authority of the Borrower to borrow hereunder after giving effect to such
increase and, if requested, a legal opinion of counsel to the Borrower and (iii) if Indebtedness is
proposed to be incurred under the Commitments on the proposed date of the effectiveness of such
increase, after giving effect to any Indebtedness incurred under the increased Commitments, on a
pro forma basis, the Borrower is in compliance with Section 7.1 as of the last day of the
immediately preceding fiscal quarter for which financial statements have been delivered pursuant to
Section 6.1. On the effective date of any increase in the Commitments, (i) each relevant
Increasing Lender and Augmenting Lender shall make available to the Administrative Agent such
amounts in immediately available funds as the Administrative Agent shall determine, for the benefit
of the other relevant Lenders, as being required in order to cause, after giving effect to such
increase and the use of such amounts to make payments to such other relevant Lenders, each Lender’s
portion of the outstanding Revolving Loans of all the Lenders to equal its Applicable Percentage of
such outstanding Revolving Loans, (ii) the Borrower shall be deemed to have repaid and reborrowed
all outstanding Revolving Loans as of the date of any increase in the Commitments (with such
reborrowing to consist of the Types of Loans, with related Interest Periods if applicable,
specified in a notice delivered by the Borrower in accordance with the requirements of Section
2.2), (iii) the risk participations in outstanding Letters of Credit and Swingline Loans shall be
automatically adjusted such that each Lender shall have a risk participation in each outstanding
Letter of Credit and Swingline Loan equal to its Applicable Percentage and (iv) the Borrower shall
pay all outstanding accrued interest and fees through the effective date. The deemed payments made
pursuant to clause (ii) of the immediately preceding sentence in respect of each Eurodollar Loan
shall be subject to indemnification by the Borrower pursuant to the provisions of Section 2.15 if
the deemed payment occurs other than on the last day of the related Interest Periods.

 

21

 

2.2 Procedure for Loan Borrowing. (a) Revolving Loans. The Borrower may
borrow Revolving Loans under the Commitments during the Commitment Period on any Business Day,
provided that the Borrower shall give the Administrative Agent irrevocable notice (which
notice must be received by the Administrative Agent prior to 11:00 A.M., New York City time, (i)
three Business Days prior to the requested Borrowing Date, in the case of Eurodollar Loans or (ii)
on the day of the requested Borrowing Date, in the case of ABR Loans (provided that any
such notice of a borrowing of ABR Loans to finance payments required by Section 3.5 may be given
not later than 10:00 A.M., New York City time, on the date of the proposed borrowing), specifying
(1) the amount and Type of Revolving Loans to be borrowed, (2) the requested Borrowing Date and (3)
in the case of Eurodollar Loans, the respective amounts of each such Type of Revolving Loan and the
respective lengths of the initial Interest Period therefor. Unless otherwise specifically
requested in the respective borrowing notice, any Revolving Loans made on the Closing Date shall
initially be ABR Loans. Each borrowing under the Commitments shall be in an amount equal to (x) in
the case of ABR Loans, $1,000,000 or a whole multiple thereof (or, if the then aggregate Available
Commitments are less than $1,000,000, such lesser amount) and (y) in the case of Eurodollar Loans,
$5,000,000 or a whole multiple of $1,000,000 in excess thereof. Upon receipt of any such notice
from the Borrower, the Administrative Agent shall promptly notify each Lender thereof. Each Lender
will make the amount of its pro rata share of each borrowing available to the
Administrative Agent for the account of the Borrower at the Funding Office prior to 12:00 Noon, New
York City time, on the Borrowing Date requested by the Borrower in funds immediately available to
the Administrative Agent. Such borrowing will then be made available to the Borrower by the
Administrative Agent crediting the account of the Borrower on the books of such office with the
aggregate of the amounts made available to the Administrative Agent by the Lenders and in like
funds as received by the Administrative Agent.

(b) Swingline Loans. The Borrower may borrow Swingline Loans under the Commitments
during the Commitment Period on any Business Day, provided, that the Administrative Agent
shall receive written or telegraphic notice from the Borrower on or before 2:00 p.m. New York City
time on the day of the proposed Swingline Loan and the amount of such Borrowing (which shall be in
a minimum amount of $1,000,000 and an integral multiple of $1,000,000). Each such notice shall be
irrevocable and shall specify the requested borrowing date (which shall be a Business Day) and the
amount of the requested Swingline Loan. Not later than 3:00 p.m., New York City time, on the date
specified in such notice for such Borrowing, the Swingline Lender shall provide to the
Administrative Agent same day or immediately available funds covering the requested Swingline Loan.
Upon fulfillment of the applicable conditions set forth in Section 5.2 with respect to such
Swingline Loan, the Administrative Agent shall make available to the Borrower the proceeds of such
Swingline Loan (to the extent received from the Swingline Lender) by wire transfer of such proceeds
to such account(s) as the Borrower shall have specified in the Borrowing Request.

The Swingline Lender may by written notice given to the Administrative Agent not later than
10:00 a.m., New York City time, on any Business Day require the Lenders to acquire participations
on such Business Day in all or a portion of the Swingline Loans outstanding. Such notice shall
specify the aggregate amount of Swingline Loans in which Lenders will participate. Promptly upon
receipt of such notice, the Administrative Agent will give notice thereof to each Lender,
specifying in such notice such Lender’s Applicable Percentage of such Swingline Loan or Loans.
Each Lender hereby absolutely and unconditionally agrees, upon receipt of notice as provided above,
to pay to the Administrative Agent, for the account of the Swingline Lender, such Lender’s
Applicable Percentage of such Swingline Loan or Loans. Each Lender acknowledges and agrees that
its obligation to acquire participations in Swingline Loans pursuant to this paragraph is absolute
and unconditional and shall not be affected by any circumstance whatsoever, including the
occurrence and continuance of a Default or reduction or termination of the Commitments, and that
each such payment

 

22

 

shall be made without any offset, abatement, withholding or reduction whatsoever. Each Lender shall comply with its obligation
under this paragraph by providing to the Administrative Agent, same day or immediately available
funds covering such Lender’s Applicable Percentage of such Swingline Loan or Loans. Administrative
Agent shall promptly pay to the Swingline Lender the amounts so received by it from the Lenders.
The Administrative Agent shall notify the Borrower of any participation in any Swingline Loan
acquired pursuant to this paragraph, and thereafter payments in respect of such Swingline Loan
shall be made to the Administrative Agent and not to the Swingline Lender. Any amounts received by
the Swingline Lender from the Borrower (or other party on behalf of the Borrower) in respect of a
Swingline Loan after receipt by the Swingline Lender of the proceeds of a sale of participations
therein shall be promptly remitted to the Administrative Agent; any such amounts received by the
Administrative Agent shall be promptly remitted by the Administrative Agent to the Lenders that
shall have made their payments pursuant to this paragraph and to the Swingline Lender, as their
interests may appear; provided that any such payment so remitted shall be repaid to the
Swingline Lender or to the Administrative Agent, as applicable, if and to the extent such payment
is required to be refunded to the Borrower for any reason. The purchase of participations in a
Swingline Loan pursuant to this paragraph shall not relieve the Borrower of any default in the
payment thereof.

As to each Swingline Loan, on the earlier of (i) the Termination Date and (ii) the first date
after such Swingline Loan is made that is the 15th day thereafter or last day of a calendar month
and is at least two Business Days after such Swingline Loan is made, the Borrower shall repay to
the Swingline Lender the then unpaid principal amount of such Swingline Loan; provided that
on each date that a Revolving Loan is borrowed, the Borrower shall repay all Swingline Loans then
outstanding.

(c) Notices under this Section 2.2 shall be made by a Responsible Officer on behalf of the
Borrower.

2.3 Commitment Fees, etc. (a) The Borrower agrees to pay to the Administrative Agent
for the account of each Lender a commitment fee for the period from and including the date hereof
to the last day of the Commitment Period, computed at the Commitment Fee Rate on the average daily
amount of the Available Commitment of such Lender during the period for which payment is made,
payable quarterly in arrears on each Fee Payment Date, commencing on the first such date to occur
after the date hereof. For purposes of calculating the commitment fee, Swingline Loans will not be
considered a use of the Available Commitment.

(b) The Borrower agrees to pay to the Administrative Agent the fees in the amounts and on the
dates as set forth in the Fee Letter and to perform any other obligations contained therein.

2.4 Termination or Reduction of Commitments. (a) The Borrower shall have the right,
upon not less than three Business Days’ notice to the Administrative Agent, to terminate the
Commitments or, from time to time, to reduce the amount of the Commitments; provided that
no such termination or reduction of Commitments shall be permitted if, after giving effect thereto
and to any prepayments of the Revolving Loans made on the effective date thereof, the Total
Extensions of Credit would exceed the Total Commitments. Any such reduction shall be in an amount
equal to $1,000,000, or a whole multiple thereof, and shall reduce permanently the Commitments then
in effect.

(b) Notices under this Section 2.4 shall be made by a Responsible Officer on behalf of the
Borrower.

 

23

 

2.5 Optional Prepayments. (a) Revolving Loans. The Borrower may at any time
and from time to time prepay the Revolving Loans, in whole or in part, without premium or penalty,
upon irrevocable notice delivered to the Administrative Agent no later than 11:00 A.M., New York
City time, (i) in the case of Eurodollar Loans, three Business Days prior thereto and (ii) in the
case of ABR Loans one Business Day prior thereto, which notice shall specify the date and amount of
prepayment and whether the prepayment is of Eurodollar Loans or ABR Loans; provided, that
if a Eurodollar Loan is prepaid on any day other than the last day of the Interest Period
applicable thereto, the Borrower shall also pay any amounts owing pursuant to Section 2.15. Upon
receipt of any such notice, the Administrative Agent shall promptly notify each relevant Lender
thereof. If any such notice is given, the amount specified in such notice shall be due and payable
on the date specified therein, together with (except in the case of Loans that are ABR Loans)
accrued interest to such date on the amount prepaid.

(b) Swingline Loans. Optional prepayments of Swingline Loans shall be permitted on
the same day as written notice is received by the Administrative Agent and the Swingline Lender.

2.6 Mandatory Prepayments. The Loans shall be prepaid, and the Letters of Credit
shall be cash collateralized or replaced, to the extent such extensions of credit exceed the amount
of Total Extensions of Credit; provided however, that Liens on cash collateral to
secure Letters of Credit in accordance with the foregoing provisions of this Section 2.6 shall not
be used to determine Borrower’s compliance with the $15,000,000 limitation set forth in Section
7.3(k).

2.7 Revolving Loan Conversion and Continuation Options. (a) The Borrower may elect
from time to time to convert Eurodollar Loans to ABR Loans by giving the Administrative Agent prior
irrevocable notice of such election no later than 11:00 A.M., New York City time, on the Business
Day preceding the proposed conversion date, provided that any such conversion of Eurodollar
Loans may only be made on the last day of an Interest Period with respect thereto. The Borrower
may elect from time to time to convert ABR Loans to Eurodollar Loans by giving the Administrative
Agent prior irrevocable notice of such election no later than 11:00 A.M., New York City time, on
the third Business Day preceding the proposed conversion date (which notice shall specify the
length of the initial Interest Period therefor), provided that no ABR Loan may be converted
into a Eurodollar Loan when any Event of Default has occurred and is continuing and the
Administrative Agent or the Majority Lenders have determined in its or their sole discretion not to
permit such conversions. Upon receipt of any such notice the Administrative Agent shall promptly
notify each relevant Lender thereof.

(b) Any Eurodollar Loan may be continued as such upon the expiration of the then current
Interest Period with respect thereto by the Borrower giving irrevocable notice to the
Administrative Agent, in accordance with the applicable provisions of the term “Interest Period”
set forth in Section 1.1, of the length of the next Interest Period to be applicable to such Loan,
provided that no Eurodollar Loan may be continued as such when any Event of Default has
occurred and is continuing and the Administrative Agent has, or the Majority Lenders have,
determined in its or their sole discretion not to permit such continuations, and provided,
further, that if the Borrower shall fail to give any required notice as described above in
this paragraph or if such continuation is not permitted pursuant to the preceding proviso, each
such Loan shall be automatically converted to an ABR Loan on the last day of such then expiring
Interest Period. Upon receipt of any such notice the Administrative Agent shall promptly notify
each relevant Lender thereof.

 

24

 

(c) Notices under this Section 2.7 shall be made by a Responsible Officer on behalf of the
Borrower.

2.8 Limitations on Eurodollar Tranches. Notwithstanding anything to the contrary in
this Agreement, all borrowings, conversions and continuations of Eurodollar Loans and all
selections of Interest Periods shall be in such amounts and be made pursuant to such elections so
that (a) after giving effect thereto, the aggregate principal amount of the Eurodollar Loans
comprising each Eurodollar Tranche shall be equal to $5,000,000 or a whole multiple of $1,000,000
in excess thereof and (b) no more than ten Eurodollar Tranches shall be outstanding at any one
time.

2.9 Interest Rates and Payment Dates. (a) Each Eurodollar Loan shall bear interest
for each day during each Interest Period with respect thereto at a rate per annum equal to the
Eurodollar Rate determined for such day plus the Applicable Margin.

(b) Each ABR Loan and each Swingline Loan shall bear interest at a rate per annum equal to the
ABR plus the Applicable Margin.

(c) (i) If all or a portion of the principal amount of any Loan or Reimbursement Obligation
shall not be paid when due (whether at the stated maturity, by acceleration or otherwise), all
outstanding Loans and Reimbursement Obligations (whether or not overdue) shall bear interest at a
rate per annum equal to (x) in the case of the Loans, the rate that would otherwise be applicable
thereto pursuant to the foregoing provisions of this Section plus 2% or (y) in the case of
Reimbursement Obligations, the rate applicable to ABR Loans plus 2%, and (ii) if all or a
portion of any interest payable on any Loan or Reimbursement Obligation or any commitment fee or
other amount payable hereunder shall not be paid when due (whether at the stated maturity, by
acceleration or otherwise), such overdue amount shall bear interest at a rate per annum equal to
the rate then applicable to ABR Loans plus 2%, in each case, with respect to clauses (i)
and (ii) above, from the date of such non-payment until such amount is paid in full (as well after
as before judgment).

(d) Interest shall be payable in arrears on each Interest Payment Date, provided that
interest accruing pursuant to paragraph (c) of this Section shall be payable from time to time on
demand.

(e) In the event that any financial statement delivered pursuant to Section 6.1 or any
Compliance Certificate is shown to be inaccurate (regardless of whether this Agreement or the
Commitments are in effect when such inaccuracy is discovered), and such inaccuracy, if corrected,
would have led to the application of a higher or lower Applicable Margin for any period (an
“Applicable Period”) than the Applicable Margin applied for such Applicable Period, the
Borrower shall immediately (i) deliver to the Administrative Agent a corrected Compliance
Certificate for such Applicable Period, (ii) determine the Applicable Margin for such Applicable
Period based upon the corrected Compliance Certificate and (iii) immediately pay to the
Administrative Agent for the benefit of the Lenders the net accrued additional interest and other
fees, if any, owing as a result of such modifications to the Applicable Margin for such Applicable
Period, which payment shall be promptly distributed by the Administrative Agent to the Lenders
entitled thereto.

 

25

 

2.10 Computation of Interest and Fees. (a) Interest and fees payable pursuant
hereto shall be calculated on the basis of a 360-day year for the actual days elapsed, except that,
with respect to ABR Loans the rate of interest on which is calculated on the basis of the Prime
Rate, the interest thereon shall be calculated on the basis of a 365- (or 366-, as the case may be)
day year for the actual number of days elapsed. The Administrative Agent shall as soon as
practicable notify the Borrower and the relevant Lenders of each determination of a Eurodollar
Rate. Any change in the interest rate on a Loan resulting from a change in the ABR or the
Eurocurrency Reserve Requirements shall become effective as of the opening of business on the day
on which such change becomes effective. The Administrative Agent shall as soon as practicable
notify the Borrower and the relevant Lenders of the effective date and the amount of each such
change in interest rate.

(b) Each determination of an interest rate by the Administrative Agent pursuant to any
provision of this Agreement shall be conclusive and binding on the Borrower and the Lenders in the
absence of manifest error. The Administrative Agent shall, at the request of the Borrower, deliver
to the Borrower a statement showing the quotations used by the Administrative Agent in determining
any interest rate pursuant to Section 2.9(a).

2.11 Inability to Determine Interest Rate. If prior to the first day of any Interest
Period:

(a) the Administrative Agent shall have determined (which determination shall be conclusive
and binding upon the Borrower) that, by reason of circumstances affecting the relevant market,
adequate and reasonable means do not exist for ascertaining the Eurodollar Rate for such Interest
Period, or

(b) the Administrative Agent shall have received notice from the Majority Lenders that the
Eurodollar Rate determined or to be determined for such Interest Period will not adequately and
fairly reflect the cost to such Lenders (as conclusively certified by such Lenders) of making or
maintaining their affected Loans during such Interest Period, the Administrative Agent shall give
telecopy or telephonic notice thereof to the Borrower and the relevant Lenders as soon as
practicable thereafter. If such notice is given (x) any Eurodollar Loans requested to be made on
the first day of such Interest Period shall be made as ABR Loans, (y) any Loans that were to have
been converted on the first day of such Interest Period to Eurodollar Loans shall be continued as
ABR Loans and (z) any outstanding Eurodollar Loans shall be converted, on the last day of the
then-current Interest Period, to ABR Loans. Until such notice has been withdrawn by the
Administrative Agent, no further Eurodollar Loans shall be made or continued as such, nor shall the
Borrower have the right to convert Loans to Eurodollar Loans.

2.12 Pro Rata Treatment and Payments. (a) Each borrowing by the Borrower from the
Lenders hereunder, each payment by the Borrower on account of any commitment fee and any reduction
of the Commitments of the Lenders shall be made pro rata according to the
respective Applicable Percentages, as the case may be, of the relevant Lenders, provided
that payments with respect to Swingline Loans shall be for the account of the Swingline Lender
unless a Lender has funded its participation in such Swingline Loan, in which case such payments
shall be for the account of the funding Lender.

 

26

 

(b) Each payment (including each prepayment) by the Borrower on account of principal of and
interest on the Revolving Loans shall be made pro rata according to the respective
outstanding principal amounts of the Revolving Loans then held by the Lenders.

(c) All payments (including prepayments) to be made by the Borrower hereunder, whether on
account of principal, interest, fees or otherwise, shall be made without setoff, deduction or
counterclaim and shall be made prior to 12:00 Noon, New York City time, on the due date thereof to
the Administrative Agent, for the account of the Lenders, at the Funding Office, in Dollars and in
immediately available funds, except that payments pursuant to Sections 2.13, 2.14, 2.15 and 10.5
shall be made directly to the Persons entitled thereto. The Administrative Agent shall distribute
such payments to each relevant Lender promptly upon receipt in like funds as received. If any
payment hereunder (other than payments on the Eurodollar Loans) becomes due and payable on a day
other than a Business Day, such payment shall be extended to the next succeeding Business Day. If
any payment on a Eurodollar Loan becomes due and payable on a day other than a Business Day, the
maturity thereof shall be extended to the next succeeding Business Day unless the result of such
extension would be to extend such payment into another calendar month, in which event such payment
shall be made on the immediately preceding Business Day. In the case of any extension of any
payment of principal pursuant to the preceding two sentences, interest thereon shall be payable at
the then applicable rate during such extension.

(d) Unless the Administrative Agent shall have been notified in writing by any Lender prior to
a borrowing that such Lender will not make the amount that would constitute its share of such
borrowing available to the Administrative Agent, the Administrative Agent may assume that such
Lender is making such amount available to the Administrative Agent, and the Administrative Agent
may, in reliance upon such assumption, make available to the Borrower a corresponding amount. If
such amount is not made available to the Administrative Agent by the required time on the Borrowing
Date therefor, such Lender shall pay to the Administrative Agent, on demand, such amount with
interest thereon, at a rate equal to the greater of (i) the Federal Funds Effective Rate and (ii) a
rate determined by the Administrative Agent in accordance with banking industry rules on interbank
compensation, for the period until such Lender makes such amount immediately available to the
Administrative Agent. A certificate of the Administrative Agent submitted to any Lender with
respect to any amounts owing under this paragraph shall be conclusive in the absence of manifest
error. If such Lender’s share of such borrowing is not made available to the Administrative Agent
by such Lender within three Business Days after such Borrowing Date, the Administrative Agent shall
also be entitled to recover such amount with interest thereon at the rate per annum applicable to
ABR Loans, on demand, from the Borrower.

(e) Unless the Administrative Agent shall have been notified in writing by the Borrower prior
to the date of any payment due to be made by the Borrower hereunder that the Borrower will not make
such payment to the Administrative Agent, the Administrative Agent may assume that the Borrower is
making such payment, and the Administrative Agent may, but shall not be required to, in reliance
upon such assumption, make available to the Lenders their respective pro rata
shares of such prepayment. If such payment is not made to the Administrative Agent by the Borrower
within three Business Days after such due date, the Administrative Agent shall be entitled to
recover, on demand, from each Lender to which any amount which was made available pursuant to the
preceding sentence, such amount with interest thereon at the rate per annum equal to the daily
average Federal Funds Effective Rate. Nothing herein shall be deemed to limit the rights of the
Administrative Agent or any Lender against the Borrower.

 

27

 

2.13 Requirements of Law. (a) If the adoption of or any change in any Requirement
of Law or in the interpretation or application thereof or compliance by any Lender with any request
or directive (whether or not having
the force of law) from any central bank or other Governmental Authority made subsequent to the
date hereof:

(i) shall subject any Lender to any tax of any kind whatsoever with respect to this
Agreement, any Letter of Credit, any Application or any Eurodollar Loan made by it, or
change the basis of taxation of payments to such Lender in respect thereof (except for
Non-Excluded Taxes covered by Section 2.14 and changes in the rate of tax on the overall net
income of such Lender);

(ii) shall impose, modify or hold applicable any reserve, special deposit, compulsory
loan or similar requirement against assets held by, deposits or other liabilities in or for
the account of, advances, loans or other extensions of credit by, or any other acquisition
of funds by, any office of such Lender that is not otherwise included in the determination
of the Eurodollar Rate; or

(iii) shall impose on such Lender any other condition;

and the result of any of the foregoing is to increase the cost to such Lender, by an amount
that such Lender deems to be material, of making, converting into, continuing or maintaining
Eurodollar Loans or issuing or participating in Letters of Credit or Swingline Loans, or to reduce
any amount receivable hereunder in respect thereof, then, in any such case, the Borrower shall
promptly pay such Lender, upon its demand, any additional amounts necessary to compensate such
Lender for such increased cost or reduced amount receivable. If any Lender becomes entitled to
claim any additional amounts pursuant to this paragraph, it shall promptly notify the Borrower
(with a copy to the Administrative Agent) of the event by reason of which it has become so entitled
which notice shall include computations reflecting the amounts owed under this Section 2.13(a).

(b) If any Lender shall have determined that the adoption of or any change in any Requirement
of Law regarding capital adequacy or in the interpretation or application thereof or compliance by
such Lender or any corporation controlling such Lender with any request or directive regarding
capital adequacy (whether or not having the force of law) from any Governmental Authority made
subsequent to the date hereof shall have the effect of reducing the rate of return on such Lender’s
or such corporation’s capital as a consequence of its obligations hereunder or under or in respect
of any Letter of Credit to a level below that which such Lender or such corporation could have
achieved but for such adoption, change or compliance (taking into consideration such Lender’s or
such corporation’s policies with respect to capital adequacy) by an amount deemed by such Lender to
be material, then from time to time, after submission by such Lender to the Borrower (with a copy
to the Administrative Agent) of a written request therefor which request shall include computations
reflecting the amounts owed under this Section 2.13(b), the Borrower shall pay to such Lender such
additional amount or amounts as will compensate such Lender or such corporation for such reduction.

(c) A certificate as to any additional amounts payable pursuant to this Section submitted by
any Lender to the Borrower (with a copy to the Administrative Agent) shall be conclusive in the
absence of manifest error. Notwithstanding anything to the contrary in this Section, the Borrower
shall not be required to compensate a Lender pursuant to this Section for any amounts incurred more
than nine months prior to the date that such Lender notifies the Borrower of such Lender’s
intention to claim compensation therefor; provided that, if the circumstances giving rise
to such claim have a retroactive effect, then such nine-month period shall be extended to include
the period of such retroactive effect. The obligations of the Borrower pursuant to this Section
shall survive the termination of this Agreement and the payment of the Loans and all other amounts
payable hereunder.

 

28

 

For the purposes of this Section 2.13, the Dodd Frank Wall Street Reform and Consumer
Protection Act, Basel III and all rules, regulations, orders, requests, guidelines or directives
promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision
(or any successor or similar authority) or the United States or foreign Governmental Authorities in
connection therewith are deemed to have been adopted and gone into effect after the date of this
Agreement.

2.14 Taxes. (a) All payments made by the Borrower under this Agreement shall be made
free and clear of, and without deduction or withholding for or on account of, any present or future
income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions or withholdings,
now or hereafter imposed, levied, collected, withheld or assessed by any Governmental Authority,
excluding net income taxes and franchise taxes (imposed in lieu of net income taxes) imposed on the
Administrative Agent or any Lender as a result of a present or former connection between the
Administrative Agent 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 enforced, this Agreement or any other
Loan Document). If any such non-excluded taxes, levies, imposts, duties, charges, fees, deductions
or withholdings (“Non-Excluded Taxes”) or Other Taxes are required to be withheld from any
amounts payable to the Administrative Agent or any Lender hereunder, the amounts so payable to the
Administrative Agent or such Lender shall be increased to the extent necessary to yield to the
Administrative Agent or such Lender (after payment of all Non-Excluded Taxes and Other Taxes)
interest or any such other amounts payable hereunder at the rates or in the amounts specified in
this Agreement, provided, however, that the Borrower shall not be required to
increase any such amounts payable to any Lender with respect to any Non-Excluded Taxes (i) that are
attributable to such Lender’s failure to comply with the requirements of paragraph (d) or (e) of
this Section or (ii) that are United States withholding taxes imposed on amounts payable to such
Lender at the time such Lender becomes a party to this Agreement, except to the extent that such
Lender’s assignor (if any) was entitled, at the time of assignment, to receive additional amounts
from the Borrower with respect to such Non-Excluded Taxes pursuant to this paragraph.

(b) In addition, the Borrower shall pay any Other Taxes to the relevant Governmental Authority
in accordance with applicable law.

(c) Whenever any Non-Excluded Taxes or Other 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 the relevant Lender, as the case may be, a certified copy of an original official
receipt received by the Borrower showing payment thereof. If the Borrower fails to pay any
Non-Excluded Taxes or Other Taxes when due to the appropriate taxing authority or fails to remit to
the Administrative Agent the required receipts or other required documentary evidence, the Borrower
shall indemnify the Administrative Agent and the Lenders for any incremental taxes, interest or
penalties that may become payable by the Administrative Agent or any Lender as a result of any such
failure. The Borrower shall indemnify the Administrative Agent and each Lender, within 10 days
after written demand thereof, for the full amount of any Non-Excluded Taxes or Other Taxes
(including Non-Excluded Taxes and Other Taxes imposed or asserted on or attributed to amounts
payable under this Section 2.17) paid by the Administrative Agent or such Lender, as the case may
be, and any penalties, interest and reasonable expenses arising therefrom or with respect thereto,
whether or not such Non-Excluded Taxes or Other 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 on its own behalf
or on behalf of a Lender, shall be conclusive absent manifest error.

 

29

 

(d) Each Lender (or Transferee) that is not a “U.S. Person” as defined in Section 7701(a)(30)
of the Code (a “Non-U.S. Lender”) shall deliver to the Borrower and the Administrative
Agent (or, in the case of a Participant, to the Lender from which the related participation shall
have been purchased) two copies of either U.S. Internal Revenue Service Form W-8BEN or Form W-8ECI,
or, 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”, a statement
substantially in the form of Exhibit G and a Form W-8BEN, or any subsequent versions
thereof or successors thereto, properly completed and duly executed by such Non-U.S. Lender
claiming complete exemption from, or a reduced rate of, U.S. federal withholding tax on all
payments by the Borrower under this Agreement and the other Loan Documents. Such forms shall be
delivered by each Non-U.S. Lender on or before the date it becomes a party to this Agreement (or,
in the case of any Participant, on or before the date such Participant purchases the related
participation). In addition, each Non-U.S. Lender shall deliver such forms promptly upon the
obsolescence or invalidity of any form previously delivered by such Non-U.S. Lender. Each Non-U.S.
Lender shall promptly notify the Borrower at any time it determines that it is no longer in a
position to provide any previously delivered certificate to the Borrower (or any other form of
certification adopted by the U.S. taxing authorities for such purpose). Notwithstanding any other
provision of this paragraph, a Non-U.S. Lender shall not be required to deliver any form pursuant
to this paragraph that such Non-U.S. Lender is not legally able to deliver.

(e) A Lender that is entitled to an exemption from or reduction of non-U.S. withholding tax
under the law of the jurisdiction in which the Borrower is located, or any treaty to which such
jurisdiction is a party, with respect to payments under this Agreement shall deliver to the
Borrower (with a copy to the Administrative Agent), at the time or times prescribed by applicable
law or reasonably requested by the Borrower, such properly completed and executed documentation
prescribed by applicable law as will permit such payments to be made without withholding or at a
reduced rate, provided that such Lender is legally entitled to complete, execute and
deliver such documentation and in such Lender’s judgment such completion, execution or submission
would not materially prejudice the legal position of such Lender.

(f) If the Administrative Agent or any Lender determines, in its sole discretion, that it has
received a refund of any Non-Excluded Taxes or Other Taxes as to which it has been indemnified by
the Borrower or with respect to which the Borrower has paid additional amounts pursuant to this
Section 2.14, it shall pay over such refund to the Borrower (but only to the extent of indemnity
payments made, or additional amounts paid, by the Borrower under this Section 2.14 with respect to
the Non-Excluded Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket
expenses of the Administrative Agent or such Lender and without interest (other than any interest
paid by the relevant Governmental Authority with respect to such refund); provided, that
the Borrower, upon the request of the Administrative Agent or such Lender, agrees to repay the
amount paid over to the Borrower (plus any penalties, interest or other charges imposed by the
relevant Governmental Authority) to the Administrative Agent or such Lender in the event the
Administrative Agent or such Lender is required to repay such refund to such Governmental
Authority. This paragraph shall not be construed to require the Administrative Agent or any Lender
to make available its tax returns (or any other information relating to its taxes which it deems
confidential) to the Borrower or any other Person.

 

30

 

(g) If a payment made to a Lender or Issuing Lender under this Agreement or any other Loan
Document would be subject to U.S. federal withholding of Taxes imposed by FATCA if such Lender were
to fail to comply with the applicable reporting requirements of FATCA (including those contained in
Section 1471(b) or 1472(b) of the Code, as applicable), such Lender or Issuing Lender shall deliver
to the Borrower and the Administrative Agent, at the time or times prescribed by law and at such
time or times reasonably requested by either the Borrower or the Administrative Agent, such
documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of
the Code) and such additional documentation reasonably requested by either the Borrower or the
Administrative Agent, as applicable, as may be necessary for either the Borrower or the
Administrative Agent, as applicable, to comply with its obligations under FATCA, to determine that
such Lender or Issuing Lender has complied with such Lender’s or Issuing Lender’s obligations under
FATCA or to determine the amount to deduct and withhold from such payment.

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

2.15 Indemnity. The Borrower agrees to indemnify each Lender for, and to hold each
Lender harmless from, any loss or expense that such Lender may sustain or incur as a consequence of
(a) default by the Borrower in making a borrowing of, conversion into or continuation of Eurodollar
Loans after the Borrower has given a notice requesting the same in accordance with the provisions
of this Agreement, (b) default by the Borrower in making any prepayment of or conversion from
Eurodollar Loans after the Borrower has given a notice thereof in accordance with the provisions of
this Agreement or (c) the making of a prepayment of Eurodollar Loans on a day that is not the last
day of an Interest Period with respect thereto. Such indemnification may include an amount equal
to the excess, if any, of (i) the amount of interest that would have accrued on the amount so
prepaid, or not so borrowed, converted or continued, for the period from the date of such
prepayment or of such failure to borrow, convert or continue to the last day of such Interest
Period (or, in the case of a failure to borrow, convert or continue, the Interest Period that would
have commenced on the date of such failure) in each case at the applicable rate of interest for
such Loans provided for herein (excluding, however, the Applicable Margin included therein, if any)
over (ii) the amount of interest (as reasonably determined by such Lender) that would have
accrued to such Lender on such amount by placing such amount on deposit for a comparable period
with leading banks in the interbank eurodollar market. A certificate as to any amounts payable
pursuant to this Section and including the basis therefor and a calculation of such amount, all in
reasonable detail, submitted to the Borrower by any Lender shall be conclusive in the absence of
manifest error. This covenant shall survive the termination of this Agreement and the payment of
the Loans and all other amounts payable hereunder.

2.16 Change of Lending Office. Each Lender agrees that, upon the occurrence of any
event giving rise to the operation of Section 2.13 or 2.14(a) 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 with the
object of avoiding the consequences of such event; provided, that such designation is made
on terms that, in the sole judgment of such Lender, cause such Lender and its lending office(s) to
suffer no economic, legal or regulatory disadvantage, and provided, further, that
nothing in this Section shall affect or postpone any of the obligations of the Borrower or the
rights of any Lender pursuant to Section 2.13 or 2.14(a).

 

31

 

2.17 Replacement of Lenders. The Borrower shall be permitted to replace any Lender
that (a) requests reimbursement for amounts owing pursuant to Section 2.13 or 2.14(a), (b) becomes
a Defaulting Lender (in such case, for so long as such Lender is a Defaulting Lender) or (c) does
not consent to any proposed amendment, supplement, modification, consent or waiver of any provision
of this Agreement or any other Loan Document that requires the consent of each of the Lenders or
each of the Lenders affected thereby (so long as the consent of the Majority Lenders (with the
percentage in such definition, for this purpose,
being deemed to be 80% of the aggregate amount of the Commitments) has been obtained), with a
replacement 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) prior to any such replacement, such Lender shall have taken no
action so as to eliminate the continued need for payment of amounts owing pursuant to Section 2.13
or 2.14(a), (iv) the replacement financial institution shall purchase, at par, all Revolving Loans
and other amounts owing to such replaced Lender on or prior to the date of replacement, (v) the
Borrower shall be liable to such replaced Lender under Section 2.15 if any Eurodollar Loan owing to
such replaced Lender shall be purchased other than on the last day of the Interest Period relating
thereto, (vi) the replacement financial institution shall be reasonably satisfactory to the
Administrative Agent and each Issuing Lender, (vii) the replaced Lender shall be obligated to make
such replacement in accordance with the provisions of Section 10.6 (provided that the Borrower
shall be obligated to pay the registration and processing fee referred to therein), (viii) until
such time as such replacement shall be consummated, the Borrower shall pay all additional amounts
(if any) required pursuant to Section 2.13 or 2.14(a), as the case may be, and (ix) 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.

2.18 Defaulting Lenders. Notwithstanding any provision of this Agreement to the
contrary, if any Lender becomes a Defaulting Lender, then the following provisions shall apply for
so long as such Lender is a Defaulting Lender:

(a) Commitment fees shall cease to accrue on the unfunded portion of the Commitment of such
Defaulting Lender pursuant to Section 2.3;

(b) the Commitment of such Defaulting Lender shall not be included in determining whether all
Lenders or the Majority Lenders have taken or may take any action hereunder (including any consent
to any amendment or waiver pursuant to Section 10.01), provided that any waiver, amendment or
modification that (x) reduces the amounts of any fees payable hereunder or the amount of principal
of or the rate at which interest is payable on the Revolving Loans, (y) increases the Defaulting
Lender’s Commitment or (z) extends the dates fixed for payments of principal or interest on the
Loans shall require the approval or consent of such Defaulting Lender;

(c) if any L/C Obligations exist at the time a Lender becomes a Defaulting Lender then:

(i) all or any part of such Defaulting Lender’s L/C Exposure shall be reallocated
ratably among the non-Defaulting Lenders in accordance with their respective Commitments and
this obligation to reallocate shall be absolute and unconditional under any and all
circumstances and irrespective of any setoff, counterclaim or defense to reallocation that
any non-Defaulting Lender may have or have had against an Issuing Lender, the Borrower or
any other Lender (including the Defaulting Lender); provided that such L/C Exposure shall be
reallocated among the non-Defaulting Lenders only to the extent that (x) the sum of all
non-Defaulting Lenders’ Loans and all non-Defaulting Lenders’ L/C Exposure plus such
Defaulting Lender’s L/C Exposure does not exceed the total of all non-Defaulting Lenders’
Commitments, (y) the sum of each non-Defaulting Lender’s Loans and such non-Defaulting
Lender’s L/C Exposure plus its reallocated share of such Defaulting Lender’s L/C Exposure
does not exceed such non-Defaulting Lender’s Commitment and (z) the conditions set forth in
Section 5.2 are satisfied at such time;

 

32

 

(ii) if in accordance with the immediately foregoing clause (i) of this Section
2.18(c), the reallocation described therein cannot, or can only partially, be effected, the
Borrower shall, within one Business Day following notice by the Administrative Agent,
provide cash collateral to the Administrative Agent in an amount equal to 100% of such
Defaulting Lender’s L/C Exposure (after giving effect to any partial reallocation pursuant
to clause (i) above) for so long as such L/C Exposure is outstanding;

(iii) if the Borrower cash collateralizes any portion of such Defaulting Lender’s L/C
Exposure pursuant to this Section 2.18(c), the Borrower shall not be required to pay any
fees to such Defaulting Lender pursuant to Section 3.3 with respect to such Defaulting
Lender’s L/C Exposure during the period such Defaulting Lender’s L/C Exposure is cash
collateralized;

(iv) if the L/C Exposure of the non-Defaulting Lenders are reallocated pursuant to
Section 2.18(c)(i), then during the period of such reallocation the fees payable to the
Lenders pursuant to Section 3.3 and (b) shall be adjusted in accordance with such
non-Defaulting Lenders’ Applicable Percentages; and

(v) to the extent that any Defaulting Lender’s L/C Exposure are neither cash
collateralized nor reallocated pursuant to Section 2.13(c), then, without prejudice to any
rights or remedies of an Issuing Lender or any Lender hereunder, the portion of Letter of
Credit fees payable under Section 3.3 corresponding to such Defaulting Lender’s L/C Exposure
that are neither so cash collateralized nor reallocated shall be payable to an Issuing
Lender until such L/C Exposure are cash collateralized and/or reallocated;

(d) If any Swingline Exposure exists at the time a Lender becomes a Defaulting Lender then:

(i) all or any part of such Defaulting Lender’s Swingline Exposure shall be reallocated
among the non-Defaulting Lenders in accordance with their respective Revolving Exposures
(calculated without regard to such Defaulting Lender’s Commitment) but only to the extent
(x) the sum of all non-Defaulting Lenders’ Revolving Exposures plus such Defaulting Lender’s
L/C Exposure does not exceed the total of all non-Defaulting Lenders’ Commitments and (y)
the conditions set forth in Section 5.2 are satisfied at such time;

(ii) if the reallocation described in clause (i) above cannot, or can only partially,
be effected, then the Borrower shall within one (1) Business Day following notice by the
Administrative Agent cash collateralize such Defaulting Lender’s Swingline Exposure (after
giving effect to any partial reallocation pursuant to clause (i) above) in accordance with
the procedures set forth in Section 5.2 for so long as such Swingline Exposure is
outstanding; or

(iii) if the Swingline Exposure of the non-Defaulting Lenders is reallocated pursuant
to this Section 2.18(d), then the fees payable to the Lenders pursuant to Section 2.3 shall
be adjusted in accordance with such non-Defaulting Lenders’ Applicable Percentages
(calculated without regard to such Defaulting Lender’s Commitment);

 

33

 

(e) so long as any Lender is a Defaulting Lender, an Issuing Lender shall not be required to
issue, amend or increase any Letter of Credit, unless it is satisfied that the related exposure
will be 100% covered by the Commitments of the non-Defaulting Lenders and/or cash collateral that
will be provided by the Borrower, and participating interests in any such newly issued or increased
Letter of
Credit shall be allocated among non-Defaulting Lenders in a manner consistent with Section
2.18(c)(i) (and Defaulting Lenders shall not participate therein); and

(f) any amount due and payable to such Defaulting Lender hereunder (whether on account of
principal, interest, fees or otherwise and including any amount that would otherwise be payable to
such Defaulting Lender) shall, to the extent permitted by applicable law, in lieu of being
distributed to such Defaulting Lender, be retained by the Administrative Agent in a segregated
account and, subject to any applicable requirements of law, be applied at such time or times as may
be determined by the Administrative Agent (i) first, to the payment of any amounts owing by such
Defaulting Lender to the Administrative Agent hereunder; (ii) second, to the payment of any amounts
owing by such Defaulting Lender to any Issuing Lender hereunder, (iii) third, to the funding of any
Loan or the funding or cash collateralization of any participating interest in any Letter of Credit
or Swingline Loan in respect of which such Defaulting Lender has failed to fund its portion thereof
as required by this Agreement, (iv) fourth, if so determined by the Administrative Agent and the
Borrower, held in such account as cash collateral for future funding obligations of the Defaulting
Lender under this Agreement, (v) fifth, pro rata, to the payment of any amounts owing to the
Borrower or the Lenders as a result of any judgment of a court of competent jurisdiction obtained
by the Borrower or any Lender against such Defaulting Lender as a result of such Defaulting
Lender’s breach of its obligations under this Agreement and (vi) sixth, to such Defaulting Lender
or as otherwise directed by a court of competent jurisdiction; provided that if such payment is (x)
a prepayment of the principal amount of any Loans or reimbursement obligations in respect of a
Defaulting Lender’s L/C Exposure and (y) made at a time when the conditions set forth in Section
5.2 are satisfied, such payment shall be applied solely to prepay the Loans of, and reimbursement
obligations owed to, all non-Defaulting Lenders pro rata prior to being applied to the prepayment
of any Loans, or reimbursements obligations owed to, any Defaulting Lender. In the event that the
Administrative Agent, the Borrower and an Issuing Lender each agrees that a Defaulting Lender has
adequately remedied all matters that caused such Lender to be Defaulting Lender, then the L/C
Exposure of the Lenders shall be readjusted to reflect the inclusion of such Lender’s Commitment
and on such date such Lender shall purchase at par such of the Revolving Loans of the other Lenders
as necessary in order for such Lender to hold such Revolving Loans in accordance with its
Applicable Percentage.

It is expressly agreed and acknowledged that the provisions of this Section 2.18 and their
application are not intended to, and shall not, prejudice in any way the rights and remedies of any
Loan Party against a Defaulting Lender.

2.19 General. When used in this Section 2, the term “certificate” shall mean a
certificate that includes (to the extent applicable), in reasonable detail, (i) a description of
the reason(s) substantiating the action being taken by a Lender and (ii) a calculation of any
amounts payable by the Borrower to such Lender. It is also agreed that at any time that any Lender
exercises its rights pursuant to Sections 2.11, 2.13 or 2.14, it shall do so not only with respect
to the Borrower but in accordance with its policies or other requirements applicable to borrowers
similarly situated to the Borrower.

 

34

 

SECTION 3. LETTERS OF CREDIT

3.1 L/C Commitment. (a) Subject to the terms and conditions hereof, the Issuing
Lender, in reliance on the agreements of the other Lenders set forth in Section 3.4(a), agrees to
issue letters of credit (“Letters of Credit”) for the account of the Borrower or any
Subsidiary on any Business Day during the Commitment Period in such form as may be approved from
time to time by the Issuing Lender; provided that the
Issuing Lender shall have no obligation to issue any Letter of Credit if, after giving effect
to such issuance, (i) the L/C Obligations would exceed the L/C Commitment or (ii) the aggregate
amount of the Available Commitments would be less than zero. Letters of Credit may be denominated
in Dollars or in any Foreign Currency and shall expire no later than the date that is five
Business Days prior to the Termination Date. To determine compliance with the requirements of the
foregoing sentence as to the L/C Commitment and the Available Commitments, Letters of Credit
denominated in a currency other than Dollars shall be converted to Dollars in accordance with the
Reuters Exchange Rate on the date of issuance thereof. Thereafter, the amount of any such Letters
of Credit denominated in a Foreign Currency shall be converted to Dollars as of the last day of
each fiscal quarter until the expiration of any such Letter of Credit. In the event that
fluctuations in the Reuters Exchange Rate applicable to the conversion from the applicable Foreign
Exchange to Dollars result in the L/C Commitment or the Available Commitments being exceeded as of
the end of any such fiscal quarter, Borrower agrees to provide cash collateral in the amount of
such excess for such period as such excess may exist. Any Letter of Credit with a one-year term
may provide for the renewal thereof for additional one-year periods (which shall in no event extend
beyond the date that is five Business Days prior to the Termination Date).

(b) The Issuing Lender shall not at any time be obligated to issue any Letter of Credit if
such issuance would conflict with, or cause the Issuing Lender or any L/C Participant to exceed any
limits imposed by, any applicable Requirement of Law.

(c) The parties hereto agree that the Existing Letters of Credit will automatically, without
any further action on the part of any Person, be deemed to be Letters of Credit issued hereunder on
the Closing Date for the account of the Borrower.

3.2 Procedure for Issuance of Letter of Credit. The Borrower may from time to time
request that the Issuing Lender issue a Letter of Credit by delivering to the Issuing Lender at its
address for notices specified herein an Application therefor, completed to the satisfaction of the
Issuing Lender, and such other certificates, documents and other papers and information as the
Issuing Lender may request. Upon receipt of any Application, the Issuing Lender will process such
Application and the certificates, documents and other papers and information delivered to it in
connection therewith in accordance with its customary procedures and shall promptly issue the
Letter of Credit requested thereby (but in no event shall the Issuing Lender be required to issue
any Letter of Credit earlier than two Business Days after its receipt of the Application therefor
and all such other certificates, documents and other papers and information relating thereto) by
issuing the original of such Letter of Credit to the beneficiary thereof or as otherwise may be
agreed to by the Issuing Lender and the Borrower. The Issuing Lender shall furnish a copy of such
Letter of Credit to the Borrower promptly following the issuance thereof. The Issuing Lender shall
promptly furnish to the Administrative Agent, who shall in turn promptly furnish to the Lenders,
notice of the issuance of each Letter of Credit (including the amount thereof).

3.3 Fees and Other Charges. (a) The Borrower will pay a fee on the face amount of all
outstanding Financial Letters of Credit at a per annum rate equal to the Applicable Margin then in
effect with respect to Eurodollar Loans and a fee on the face amount of all outstanding Performance
Letters of Credit at a per annum rate as set forth in the table below, such fees to be shared
ratably among the Lenders and payable quarterly in arrears on each Fee Payment Date after the
issuance date. For purposes of calculating such fees, the face amount of Letters of Credit
denominated in a Foreign Currency shall be converted to Dollars in accordance with the Reuters
Exchange Rate as in effect on the payment due date of such fees.

 

35

 

	 	 	 	 	 	 	 
	Level	 	Consolidated Leverage Ratio	 	Performance L/C Fee	 
	I
	 	Less than 1.00x	 	 	1.25	%
	II
	 	Greater than or equal to 1.00x but less than 1.50x	 	 	1.50	%
	III
	 	Greater than or equal to 1.50x but less than 2.00x	 	 	1.75	%
	IV
	 	Greater than or equal to 2.00x but less than 2.50x	 	 	2.00	%
	V
	 	Greater than or equal to 2.50x but less than 3.00x	 	 	2.25	%
	VI
	 	Greater than or equal to 3.00x	 	 	2.50	%

(b) In addition to the foregoing fees, the Borrower shall pay or reimburse the Issuing Lender
for such normal and customary costs and expenses as are incurred or charged by the Issuing Lender
in issuing, negotiating, effecting payment under, amending or otherwise administering any Letter of
Credit.

3.4 L/C Participations. (a) The Issuing Lender irrevocably agrees to grant and
hereby grants to each L/C Participant, and, to induce the Issuing Lender to issue Letters of
Credit, each L/C Participant irrevocably agrees to accept and purchase and hereby accepts and
purchases from the Issuing Lender, on the terms and conditions set forth below, for such L/C
Participant’s own account and risk an undivided interest equal to such L/C Participant’s Applicable
Percentage in the Issuing Lender’s obligations and rights under and in respect of each Letter of
Credit and the amount of each draft paid by the Issuing Lender thereunder. Each L/C Participant
agrees with the Issuing Lender that, if a draft is paid under any Letter of Credit for which the
Issuing Lender is not reimbursed in full by the Borrower in accordance with the terms of this
Agreement, such L/C Participant shall pay to the Issuing Lender upon demand at the Issuing Lender’s
address for notices specified herein an amount equal to such L/C Participant’s Applicable
Percentage of the amount of such draft, or any part thereof, that is not so reimbursed,
provided that, if such reimbursement obligation is in connection with a Letter of Credit
issued in a Foreign Currency, the amount of such reimbursement obligation shall be paid in Dollars,
such amount to be determined by converting such Foreign Currency draw to Dollars using the Reuters
Exchange Rate on the date on which the Letter of Credit was issued. Each L/C Participant’s
obligation to pay such amount shall be absolute and unconditional and shall not be affected by any
circumstance, including (i) any setoff, counterclaim, recoupment, defense or other right that such
L/C Participant may have against the Issuing Lender, the Borrower or any other Person for any
reason whatsoever, (ii) the occurrence or continuance of a Default or an Event of Default or the
failure to satisfy any of the other conditions specified in Section 5, (iii) any adverse change in
the condition (financial or otherwise) of the Borrower, (iv) any breach of this Agreement or any
other Loan Document by the Borrower, any other Loan Party or any other L/C Participant or (v) any
other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing

(b) If any amount required to be paid by any L/C Participant to the Issuing Lender pursuant to
Section 3.4(a) in respect of any unreimbursed portion of any payment made by the Issuing Lender
under any Letter of Credit is not paid to the Issuing Lender within three Business Days after the
date such payment is due, such L/C Participant shall pay to the Issuing Lender on demand an amount
equal to the product of (i) such amount, times (ii) the daily average Federal Funds Effective Rate
during the period from and including the date such payment is required to the date on which such
payment is immediately available to the Issuing Lender, times (iii) a fraction the numerator of
which is the number of days that elapse during such period and the denominator of which is 360. If
any such amount required to be paid by any L/C Participant pursuant to Section 3.4(a) is not made
available to the Issuing Lender by such L/C Participant within three Business Days after the date
such payment is due, the Issuing Lender shall be entitled to recover from such L/C Participant, on
demand, such amount with interest thereon
calculated from such due date at the rate per annum applicable to ABR Loans. A certificate of
the Issuing Lender submitted to any L/C Participant with respect to any amounts owing under this
Section shall be conclusive in the absence of manifest error.

 

36

 

(c) Whenever, at any time after the Issuing Lender has made payment under any Letter of Credit
and has received from any L/C Participant its pro rata share of such payment in
accordance with Section 3.4(a), the Issuing Lender receives any payment related to such Letter of
Credit (whether directly from the Borrower or otherwise, including proceeds of collateral applied
thereto by the Issuing Lender), or any payment of interest on account thereof, the Issuing Lender
will distribute to such L/C Participant its pro rata share thereof;
provided, however, that in the event that any such payment received by the Issuing
Lender shall be required to be returned by the Issuing Lender, such L/C Participant shall return to
the Issuing Lender the portion thereof previously distributed by the Issuing Lender to it.

3.5 Reimbursement Obligation of the Borrower. If any draft is paid under any Letter
of Credit, the Borrower shall reimburse the Issuing Lender for the amount of (a) the draft so paid
and (b) any taxes, fees, charges or other costs or expenses incurred by the Issuing Lender in
connection with such payment, not later than 12:00 Noon, New York City time, on (i) the Business
Day that the Borrower receives notice of such draft, if such notice is received on such day prior
to 10:00 A.M., New York City time, or (ii) if clause (i) above does not apply, the Business Day
immediately following the day that the Borrower receives such notice. Each such payment shall be
made to the Issuing Lender at its address for notices referred to herein in Dollars (and in the
case of a Letter of Credit denominated in a Foreign Currency, such Foreign Currency) and in
immediately available funds. Interest shall be payable on any such amounts from the date on which
the relevant draft is paid until payment in full at the rate set forth in (x) until the Business
Day next succeeding the date of the relevant notice, Section 2.9(b) and (y) thereafter, Section
2.9(c).

3.6 Obligations Absolute. The Borrower’s obligations under this Section 3 shall be
absolute and unconditional under any and all circumstances and irrespective of any setoff,
counterclaim or defense to payment that the Borrower may have or have had against the Issuing
Lender, any beneficiary of a Letter of Credit or any other Person. The Borrower also agrees with
the Issuing Lender that the Issuing Lender shall not be responsible for, and the Borrower’s
Reimbursement Obligations under Section 3.5 shall not be affected by, among other things, 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, or 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 or any claims whatsoever of the Borrower against any beneficiary of such
Letter of Credit or any such transferee. The Issuing Lender shall not be liable for any error,
omission, interruption or delay in transmission, dispatch or delivery of any message or advice,
however transmitted, in connection with any Letter of Credit, except for errors or omissions found
by a final and nonappealable decision of a court of competent jurisdiction to have resulted from
the gross negligence or willful misconduct of the Issuing Lender. The Borrower agrees that any
action taken or omitted by the Issuing Lender under or in connection with any Letter of Credit or
the related drafts or documents, if done in the absence of gross negligence or willful misconduct,
shall be binding on the Borrower and shall not result in any liability of the Issuing Lender to the
Borrower.

 

37

 

3.7 Letter of Credit Payments. If any draft shall be presented for payment under any
Letter of Credit, the Issuing Lender shall promptly notify the Borrower of the date and amount
thereof. The responsibility of the
Issuing Lender 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
Letter of Credit in connection with such presentment are substantially in conformity with such
Letter of Credit.

3.8 Applications. To the extent that any provision of any Application related to any
Letter of Credit is inconsistent with the provisions of this Section 3, the provisions of this
Section 3 shall apply.

SECTION 4. REPRESENTATIONS AND WARRANTIES

To induce the Administrative Agent and the Lenders to enter into this Agreement and to make
the Loans and issue or participate in the Letters of Credit, the Borrower hereby represents and
warrants to the Administrative Agent and each Lender, as of the Closing Date and as of any date
that the representations and warranties set for the below are made or deemed to be made, that:

4.1 Financial Condition. The audited consolidated balance sheets of the Borrower as
at December 31, 2008, December 31, 2009 and December 31, 2010, and the related consolidated
statements of income and of cash flows for the fiscal years ended on such dates, reported on and
accompanied by an unqualified report from Deloitte & Touche LLP, present fairly the consolidated
financial condition of the Borrower as at such dates and the consolidated results of its operations
and its consolidated cash flows for the respective fiscal years then ended. The unaudited
consolidated balance sheet of the Borrower as at June 30, 2011 and the related unaudited
consolidated statements of income and cash flows for the six-month period ended on such date
present fairly the consolidated financial condition of the Borrower as at such date, the
consolidated results of its operations and its consolidated cash flows for the six-month period
then ended (subject to normal year-end audit adjustments). All such financial statements,
including the related schedules and notes thereto, have been prepared in accordance with GAAP
applied consistently throughout the periods involved (subject to normal year-end audit adjustments
and except as approved by the aforementioned firm of accountants and disclosed therein). No Group
Member has any material Guarantee Obligations, contingent liabilities of material liabilities for
taxes or any long term leases or unusual forward or long term commitments, including any interest
rate or foreign currency swap or exchange transaction or other obligation in respect of
derivatives, that are not reflected in the most recent financial statements referred to in this
paragraph. During the period from December 31, 2010 to and including the date hereof there has
been no Disposition by any Group Member of any material part of its business or property that has
not been disclosed by Borrower to the Administrative Agent.

4.2 No Change. Since December 31, 2010, there has been no development or event that
has had or could reasonably be expected to have a Material Adverse Effect.

 

38

 

4.3 Existence; Compliance with Law. Each Group Member (a) is duly organized, validly
existing and in good standing under the laws of the jurisdiction of its organization, (b) has the
power and authority, and the legal right, to own and operate its property, to lease the property it
operates as lessee and to conduct the business in which it is currently engaged, (c) is duly
qualified as a foreign corporation or other organization and in good standing under the laws of
each jurisdiction where its ownership, lease or operation of property or the
conduct of its business requires such qualification, except to the extent failure to so
qualify or be in good standing could not reasonably be expected to have a Material Adverse Effect
and (d) is in compliance with all Requirements of Law except to the extent that the failure to
comply therewith could not, in the aggregate, reasonably be expected to have a Material Adverse
Effect.

4.4 Power; Authorization; Enforceable Obligations. Each Loan Party has the power and
authority, and the legal right, to make, deliver and perform the Loan Documents to which it is a
party and, in the case of the Borrower, to obtain extensions of credit hereunder. Each Loan Party
has taken all necessary organizational action to authorize the execution, delivery and performance
of the Loan Documents to which it is a party and, in the case of the Borrower, to authorize the
extensions of credit on the terms and conditions of this Agreement. No consent or authorization
of, filing with, notice to or other act by or in respect of, any Governmental Authority or any
other Person is required in connection with the extensions of credit hereunder or with the
execution, delivery, performance, validity or enforceability of this Agreement or any of the Loan
Documents, except (i) consents, authorizations, filings and notices described in Schedule
4.4, which consents, authorizations, filings and notices have been obtained or made and are in
full force and effect and (ii) the filings referred to in Section 4.19. Each Loan Document has
been duly executed and delivered on behalf of each Loan Party party thereto. This Agreement
constitutes, and each other Loan Document upon execution will constitute, a legal, valid and
binding obligation of each Loan Party party thereto, enforceable against each such Loan Party in
accordance with its terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’
rights generally and by general equitable principles (whether enforcement is sought by proceedings
in equity or at law).

4.5 No Legal Bar. The execution, delivery and performance of this Agreement and the
other Loan Documents, the issuance of Letters of Credit, the borrowings hereunder and the use of
the proceeds thereof will not violate any Requirement of Law or any Contractual Obligation of any
Group Member and will not result in, or require, the creation or imposition of any Lien on any of
their respective properties or revenues pursuant to any Requirement of Law or any such Contractual
Obligation (other than the Liens created by the Security Documents). No Requirement of Law or
Contractual Obligation applicable to the Borrower or any of its Subsidiaries could reasonably be
expected to have a Material Adverse Effect.

4.6 Litigation. No litigation, investigation or proceeding of or before any
arbitrator or Governmental Authority is pending or, to the knowledge of the Borrower, threatened by
or against any Group Member or against any of their respective properties or revenues (a) with
respect to any of the Loan Documents or any of the transactions contemplated hereby or thereby, or
(b) that could reasonably be expected to have a Material Adverse Effect.

 

39

 

4.7 No Default. No Group Member is in default under or with respect to any of its
Contractual Obligations in any respect that could reasonably be expected to have a Material Adverse
Effect. No Default or Event of Default has occurred and is continuing.

4.8 Ownership of Property; Liens. Each Group Member has title in fee simple to, or a
valid leasehold interest in, all its real property, and good title to, or a valid leasehold
interest in, all its other property, and none of such property is subject to any Lien except (i) as
set forth in the title policies and/or endorsements delivered in connection with the Original
Credit Agreement or the First Amended and Restated Credit Agreement and (ii) as permitted by
Section 7.3.

4.9 Intellectual Property. Each Group Member owns, or is licensed to use, all
Intellectual Property necessary for the conduct of its business as currently conducted. No
material claim has been asserted and is pending by any Person challenging or questioning the use of
any Intellectual Property or the validity or effectiveness of any Intellectual Property, nor does
the Borrower know of any valid basis for any such claim. The use of Intellectual Property by each
Group Member does not infringe on the rights of any Person in any material respect.

4.10 Taxes. Each Group Member has filed or caused to be filed all Federal, state and
other material tax returns that are required to be filed and has paid all taxes shown to be due and
payable on said returns or on any assessments made against it or any of its property and all other
taxes, fees or other charges imposed on it or any of its property by any Governmental Authority
(other than any the amount or validity of which are currently being contested in good faith by
appropriate proceedings and with respect to which reserves in conformity with GAAP have been
provided on the books of the relevant Group Member); to the Borrower’s knowledge, no tax Lien has
been filed and no claim is being asserted, with respect to any such tax, fee or other charge.

4.11 Federal Regulations. No part of the proceeds of any Loans, and no other
extensions of credit hereunder, will be used (a) for “buying” or “carrying” any “margin stock”
(within the respective meanings of each of the quoted terms under Regulation U) in violation of
Regulation U. If requested by any Lender or the Administrative Agent, the Borrower will furnish to
the Administrative Agent and each Lender a statement to the foregoing effect in conformity with the
requirements of FR Form G-3 or FR Form U 1, as applicable, referred to in Regulation U.

4.12 Labor Matters. Except as, in the aggregate, could not reasonably be expected to
have a Material Adverse Effect: (a) there are no strikes or other labor disputes against any Group
Member pending or, to the knowledge of the Borrower, threatened; (b) hours worked by and payment
made to employees of each Group Member have not been in violation of the Fair Labor Standards Act
or any other applicable Requirement of Law dealing with such matters; and (c) all payments due from
any Group Member on account of employee health and welfare insurance have been paid or accrued as a
liability on the books of the relevant Group Member.

 

40

 

4.13 ERISA. (a) Except as could not reasonably be expected, individually or in the
aggregate, to have a Material Adverse Effect: (i) each Group Member and each Commonly Controlled
Entity is in
compliance with the applicable provisions of ERISA and the provisions of the Code relating to
Plans and the regulations and published interpretations thereunder; (ii) no ERISA Event has
occurred or is reasonably expected to occur; and (iii) all amounts required by applicable law with
respect to, or by the terms of, any retiree welfare benefit arrangement maintained by any Group
Member or any Commonly Controlled Entity or to which any Group Member or any Commonly Controlled
Entity has an obligation to contribute have been accrued in accordance with Statement of Financial
Accounting Standards No. 106. The present value of all accumulated benefit obligations under each
Pension Plan (based on the assumptions used for purposes of Statement of Financial Accounting
Standards No. 87) did not, as of the date of the most recent financial statements reflecting such
amounts, exceed by more than a material amount the fair market value of the assets of such Pension
Plan allocable to such accrued benefits.

(b) Except as, in the aggregate, could not reasonably be expected to have a Material Adverse
Effect, (i) all employer and employee contributions required by applicable law or by the terms of
any Foreign Benefit Arrangement or Foreign Plan have been made, or, if applicable, accrued in
accordance with normal accounting practices; (ii) the accrued benefit obligations of each Foreign
Plan required to be funded (based on those assumptions used to fund such Foreign Plan) with respect
to all current and former participants do not exceed by more than a material amount the fair market
value of the assets of such Foreign Plan allocable to such accrued benefits, and all amounts
required by applicable law to provide benefits with respect to all current and former participants
under each Foreign Plan not required to be funded (based on applicable assumptions) have been
accrued in accordance with applicable law and are reflected on the most recent financial statements
of the applicable Loan Party or any ERISA Affiliate; (iii) each Foreign Plan that is required to be
registered has been registered and has been maintained in good standing with applicable regulatory
authorities; and (iv) each such Foreign Benefit Arrangement and Foreign Plan is in compliance (A)
with all material provisions of applicable law and all material applicable regulations and
published interpretations thereunder with respect to such Foreign Benefit Arrangement or Foreign
Plan and (B) with the terms of such plan or arrangement.

4.14 Investment Company Act; Other Regulations. No Loan 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. No Loan Party is subject to regulation under any
Requirement of Law (other than Regulation X of the Board) that limits its ability to incur
Indebtedness.

4.15 Subsidiaries. Except as disclosed to the Administrative Agent by the Borrower in
writing from time to time after the Closing Date, (a) Schedule 4.15 sets forth the name and
jurisdiction of incorporation of each Subsidiary and the percentage of each class of Capital Stock
issued by such Subsidiary and owned by any Loan Party and (b) there are no outstanding
subscriptions, options, warrants, calls, rights or other agreements or commitments (other than
directors’ qualifying shares) of any nature relating to the Capital Stock issued by any Subsidiary.

 

41

 

4.16 Use of Proceeds. The proceeds of the Loans and the Letters of Credit, shall be
used to finance the working capital needs and general corporate purposes of the Borrower and its
Subsidiaries, including but not limited to, Permitted Capital Stock Repurchases so long as no
violation of Regulation U results therefrom, and other uses not prohibited by this Agreement.

4.17 Environmental Matters. Except as, in the aggregate, could not reasonably be
expected to have a Material Adverse Effect:

(a) the facilities and properties owned, leased or operated by any Group Member (the
“Properties”) do not contain, and have not previously contained, any Materials of
Environmental Concern in amounts or concentrations or under circumstances that constitute or
constituted a violation of, or could reasonably be expected to create liability under, any
applicable Environmental Law in effect as of the date this representation is made or deemed made;

(b) no Group Member has received or is aware of any written notice of violation, alleged
violation, non-compliance, liability or potential liability under any applicable Environmental Laws
with regard to any of the Properties or the business operated by any Group Member (the
“Business”), nor does the Borrower have knowledge or reason to believe that any such notice
will be received or is being threatened;

(c) Materials of Environmental Concern have not been transported or disposed of from the
Properties in violation of, or in a manner or to a location that could reasonably be expected to
create liability under, any applicable Environmental Law in effect as of the date this
representation is made or deemed made, nor have any Materials of Environmental Concern been
generated, treated, stored or disposed of at, on or under any of the Properties in violation of, or
in a manner that could reasonably be expected to create liability under, any applicable
Environmental Law in effect as of the date this representation is made or deemed made;

(d) no judicial proceeding or governmental or administrative action is pending or, to the
knowledge of the Borrower, threatened, under any applicable Environmental Law to which any Group
Member is or will be named as a party with respect to the Properties or the Business; nor are there
any consent decrees or other decrees, consent orders, administrative orders or other orders or
other administrative or judicial requirements outstanding under, any applicable Environmental Law
with respect to the Properties or the Business;

(e) there has been no release or threat of release of Materials of Environmental Concern at or
from the Properties, or arising from or related to the operations of any Group Member in connection
with the Properties or otherwise in connection with the Business in violation, or in amounts or in
a manner that could reasonably be expected to create liability under any applicable Environmental
Law in effect as of the date this representation is made or deemed made; and

(f) the Properties and all operations at the Properties are in compliance, and have in the
last five years been in compliance, with all applicable Environmental Laws, and there is no
contamination at, under or about the Properties in violation of any applicable Environmental Law
with respect to the Properties or the Business.

 

42

 

4.18 Accuracy of Information, etc. No statement or information contained in this
Agreement, any other Loan Document or any other document, certificate or statement furnished by or
on behalf of any Loan Party to the Administrative Agent or the Lenders, or any of them, for use in
connection with the transactions contemplated by this Agreement or the other Loan Documents,
contained as of the date such statement, information, document or certificate was so furnished, any
untrue statement of a material fact or omitted to state a material fact necessary to make the
statements contained herein or therein not misleading. The
projections, annual budgets and pro forma financial information contained in
the materials referenced above are based upon good faith estimates and assumptions believed by
management of the Borrower to be reasonable at the time made, it being recognized by the
Administrative Agent and the Lenders that such financial information as it relates to future events
is not to be viewed as fact and that actual results during the period or periods covered by such
financial information may differ from the projected results set forth therein by a material amount.
There is no fact known to any Loan Party that could reasonably be expected to have a Material
Adverse Effect that has not been expressly disclosed herein, in the other Loan Documents or in any
other documents, certificates and statements furnished to the Administrative Agent and the Lenders
for use in connection with the transactions contemplated hereby and by the other Loan Documents.

4.19 Security Documents. (a) The Guarantee and Collateral Agreement is effective to
create in favor of the Administrative Agent, for the benefit of the Lenders, a legal, valid and
enforceable security interest in the Collateral described therein and proceeds thereof. In the
case of the Pledged Stock described in the Guarantee and Collateral Agreement, when stock
certificates representing such Pledged Stock are delivered to the Administrative Agent, and in the
case of the other Collateral described in the Guarantee and Collateral Agreement, when financing
statements and other filings specified on Schedule 4.19(a) in appropriate form are filed in
the offices specified on Schedule 4.19(a), the Guarantee and Collateral Agreement shall
constitute a perfected Lien on, and security interest in, all right, title and interest of the Loan
Parties in such Collateral and the proceeds thereof, as security for the Obligations (as defined in
the Guarantee and Collateral Agreement), in each case prior and superior in right to any other
Person (except, in the case of Collateral other than Pledged Stock, Liens permitted by Section
7.3).

(b) Each of the Existing Mortgages is effective to create in favor of the Administrative
Agent, for the benefit of the Lenders, a legal, valid and enforceable Lien on the Mortgaged
Properties described therein and proceeds thereof, and when the Mortgage Amendments are filed in
the offices specified on Schedule 4.19(b), each of the Existing Mortgages shall constitute
a perfected Lien on, and security interest in, all right, title and interest of the Loan Parties in
the Existing Mortgaged Properties and the proceeds thereof, as security for the Obligations (as
defined in the relevant Mortgage), in each case prior and superior in right to any other Person.

4.20 Solvency. After giving effect to the transactions contemplated hereby, the
Borrower and the Subsidiary Guarantors, taken as a whole, are Solvent.

 

43

 

SECTION 5. CONDITIONS PRECEDENT

5.1 Conditions to Closing Date. The amendments to the Existing Credit Agreement
effected hereby and the obligations of the Lenders to make or maintain Loans and of the Issuing
Lender to issue Letters of Credit shall not become effective until the date on which each of the
following conditions is satisfied:

(a) Credit Agreement; Guarantee and Collateral Agreement. The Administrative Agent
shall have received (i) this Agreement, executed and delivered by the Administrative Agent, the
Borrower and each Person listed on Schedule 1.1A, and (ii) the Guarantee and Collateral
Agreement, executed and delivered by the Borrower and each Subsidiary Guarantor.

(b) Financial Statements. The Lenders shall have received (i) audited consolidated
financial statements of the Borrower for the 2008, 2009 and 2010 fiscal years and (ii) unaudited
interim consolidated financial statements of the Borrower for each fiscal quarter ended after
December 31, 2010 and filed with the SEC.

(c) Projections. The Lenders shall have received satisfactory projections (including
a projected balance sheet, income statement and cash flow statement together with detailed
management assumptions) through 2016 (which condition the Administrative Agent acknowledges has
already been satisfied upon the execution hereof).

(d) Approvals. All material governmental and third party approvals necessary in
connection with the continuing operations of the Group Members and the transactions contemplated
hereby, if any, shall have been obtained on satisfactory terms and be in full force and effect.
There shall not exist any action, investigation, litigation or proceeding pending or threatened in
any court or before any arbitrator or governmental authority that could reasonably be expected to
have a Material Adverse Effect or a material adverse effect on any of the transactions contemplated
hereby.

(e) Lien Searches. The Administrative Agent shall have received the results of a
recent lien search in each of the jurisdictions where the Loan Parties are organized, and such
search shall reveal no Liens on any of the assets of the Loan Parties except for Liens permitted by
Section 7.3 or discharged on or prior to the Closing Date pursuant to documentation satisfactory to
the Administrative Agent.

(f) Fees. The Lenders, the Arrangers and the Administrative Agent shall have received
all fees required to be paid on the Closing Date, and all reasonable out-of-pocket expenses for
which invoices have been presented (including the reasonable fees and expenses of legal counsel),
on or before the Closing Date. All such amounts will be paid with proceeds of Loans made on the
Closing Date and will be reflected in the funding instructions given by the Borrower to the
Administrative Agent on or before the Closing Date.

(g) Closing Certificates; Certified Certificate of Incorporation; Good Standing
Certificates. The Administrative Agent shall have received (i) an omnibus officers’
certificate executed by the Borrower in substantially the form of Exhibit C-1, (ii) a secretary’s
certificate of each Loan Party, dated the Closing Date, substantially in the form of Exhibit C-2,
with appropriate insertions and attachments, including the certificate of incorporation of each
Loan Party that is a corporation certified by the relevant authority of the jurisdiction of
organization of such Loan Party and (iii) a long form good standing certificate for each Loan Party
from its jurisdiction of organization.

 

44

 

(h) Legal Opinions. The Administrative Agent shall have received an executed legal
opinion of (i) Andrews Kurth LLP, counsel to the Borrower and its Subsidiaries, substantially in
the form of Exhibit F-1 and (ii) Mark Airola, Esq., Borrower’s General Counsel, substantially in
the form of Exhibit F-2.

(i) Pledged Stock; Stock Powers; Pledged Notes. To the extent not already delivered,
the Administrative Agent shall have received (i) the certificates representing the shares of
Capital Stock pledged pursuant to the Guarantee and Collateral Agreement, together with an undated
stock power for each such certificate executed in blank by a duly authorized officer of the pledgor
thereof and (ii) each promissory note (if any) pledged to the Administrative Agent pursuant to the
Guarantee and Collateral Agreement endorsed (without recourse) in blank (or accompanied by an
executed transfer form in blank) by the pledgor thereof.

(j) Filings, Registrations and Recordings. Each document (including any Uniform
Commercial Code financing statement) required by the Security Documents or under law and reasonably
requested by the Administrative Agent to be filed, registered or recorded in order to create in
favor of the Administrative Agent, for the benefit of the Lenders, a perfected Lien on the
Collateral described therein, prior and superior in right to any other Person (other than with
respect to Liens expressly permitted by Section 7.3), shall be in proper form for filing,
registration or recordation.

(k) Mortgages, etc. (i) With respect to each Mortgaged Property listed on
Schedule 1.1(b), (each an “Existing Mortgaged Property”), the Administrative Agent
shall have received an amendment (each a “Mortgage Amendment”), to each Existing Mortgage
in form and substance reasonably satisfactory to the Administrative Agent.

(ii) The Administrative Agent shall have received evidence satisfactory to it that all
charges for mortgage recording tax, and all related expenses, if any, have been paid.

(iii) If requested by the Administrative Agent, the Administrative Agent shall have
received confirmation that the Borrower has received the notice required pursuant to Section
208.25(i) of Regulation H of the Board.

(l) Insurance. The Administrative Agent shall have received insurance certificates
satisfying the requirements of Section 5.2(b) of the Guarantee and Collateral Agreement.

For the purpose of determining compliance with the conditions specified in this Section 5.1, each
Lender that has signed this Agreement shall be deemed to have accepted, and to be satisfied with,
each document or other matter required under this Section 5.1 unless the Administrative Agent shall
have received written notice from such Lender prior to the proposed Closing Date specifying its
objection thereto.

5.2 Conditions to Each Extension of Credit. The agreement of each Lender to make any
extension of credit requested to be made by it on any date (including its initial extension of
credit) is subject to the satisfaction of the following conditions precedent:

(a) Representations and Warranties. Each of the representations and warranties
made by any Loan Party in or pursuant to the Loan Documents shall be true and correct in all
material respects on and as of such date as if made on and as of such date (provided that if
any representation or warranty is qualified in any respect by materiality, then such
representation and warranty shall be true and correct).

 

45

 

(b) No Default. No Default or Event of Default shall have occurred and be
continuing on such date or after giving effect to the extensions of credit requested to be
made on such date.

Each borrowing by and issuance of a Letter of Credit on behalf of the Borrower hereunder shall
constitute a representation and warranty by the Borrower as of the date of such extension of credit
that the conditions contained in this Section 5.2 have been satisfied.

SECTION 6. AFFIRMATIVE COVENANTS

The Borrower hereby agrees that, so long as the Commitments remain in effect, any Letter of
Credit remains outstanding or any Loan or other amount is owing to any Lender or the Administrative
Agent hereunder, the Borrower shall and, as applicable, shall cause its Subsidiaries to:

6.1 Financial Statements. The Borrower shall furnish to the Administrative Agent and
each Lender:

(a) as soon as available, but in any event within 60 days after the end of each fiscal year of
the Borrower, a copy of (i) the audited consolidated balance sheet of the Borrower and its
consolidated Subsidiaries as at the end of such year and the related audited consolidated
statements of income and of cash flows for such year, setting forth in each case in comparative
form the figures for the previous year, reported on without a “going concern” or like qualification
or exception, or qualification arising out of the scope of the audit, by Deloitte & Touche LLP or
other independent certified public accountants of nationally recognized standing and (ii) the
unaudited consolidating balance sheet of the Borrower and its consolidated Subsidiaries as at the
end of such year and the related unaudited consolidating statements of income and of cash flows for
such year, setting forth in each case in comparative form the figures for the previous year; and

(b) as soon as available, but in any event not later than 45 days after the end of each of the
first three quarterly periods of each fiscal year of the Borrower, the unaudited consolidated
balance sheet of the Borrower and its consolidated Subsidiaries as at the end of such quarter and
the related unaudited consolidated statements of income and of cash flows for such quarter and the
portion of the fiscal year through the end of such quarter, setting forth in each case in
comparative form the figures for the previous year, certified by a Responsible Officer as being
fairly stated in all material respects (subject to normal year-end audit adjustments).

All such financial statements shall be complete and correct in all material respects and shall be
prepared in reasonable detail and in accordance with GAAP applied (except as approved by such
accountants or officer, as the case may be, and disclosed in reasonable detail therein)
consistently throughout the periods reflected therein and with prior periods.

Documents required to be delivered pursuant to Section 6.1(a) and (b) (to the extent such documents
are filed with the SEC) may be delivered electronically and if so delivered, shall be considered
delivered on the earliest of the date: (i) on which the Borrower posts such documents, or provides
a link thereto on the Borrower’s website on the Internet at www.newpark.com; (ii) on which such
documents are posted on the Borrower’s behalf on an Internet or intranet website, if any, to which
each Lender and the Administrative Agent have access (whether a commercial, third-party website or
sponsored by the Administrative Agent); or (iii) electronically filed with the SEC. The
Administrative Agent shall have no obligation to maintain copies of the documents referred to in
Sections 6.1(a) and (b), and in any event the Administrative Agent shall have no obligation to
request the delivery of the documents referred to in Section 6.1(a) or (b).

 

46

 

6.2 Certificates; Other Information. The Borrower shall furnish to the Administrative
Agent and each Lender:

(a) concurrently with the delivery of any financial statements pursuant to Section 6.1, (i) a
certificate of a Responsible Officer stating that, to the best of each such Responsible Officer’s
knowledge, each Loan Party during such period has observed or performed all of its covenants and
other agreements and satisfied every condition contained in this Agreement and the other Loan
Documents to which it is a party to be observed, performed or satisfied by it, and that such
Responsible Officer has obtained no knowledge of any Default or Event of Default except as
specified in such certificate and (ii) in the case of quarterly or annual financial statements, (x)
a Compliance Certificate containing all information and calculations necessary for determining
compliance with the provisions of this Agreement
referred to therein as of the last day of the fiscal quarter or fiscal year of the Borrower,
as the case may be, and (y) to the extent not previously disclosed to the Administrative Agent, (1)
a description of any change in the jurisdiction of organization of any Loan Party, (2) a list of
any material Intellectual Property acquired by any Loan Party which has been registered with the
U.S. Patent and Trademark Office or the U.S. Copyright Office as of the date of such certificate
and (3) a description of any Person that has become a Group Member, in each case since the date of
the most recent report delivered pursuant to this clause (y) (or, in the case of the first such
report so delivered, since the Closing Date);

(b) promptly following receipt thereof, copies of (i) any documents described in Section
101(k) of ERISA that any Group Member or any Commonly Controlled Entity may request with respect to
any Multiemployer Plan and (ii) any notices described in Section 101(l) of ERISA that any Group
Member of any Commonly Controlled Entity may request with respect to any Multiemployer Plan;
provided, that if the Group Members or any Commonly Controlled Entity has not requested such
documents or notices from the administrator or sponsor of the applicable Multiemployer Plan, then,
upon reasonable request of the Administrative Agent, the Group Members and/or their Commonly
Controlled Entities shall promptly make a request for such documents or notices from such
administrator or sponsor and the Borrower shall provide copies of such documents and notices
promptly after receipt thereof;

(c) promptly upon the Administrative Agent’s or any Lender’s request, a copy of the Borrower’s
most recently approved annual budget; and

(d) promptly, such additional financial and other information as any Lender may from time to
time reasonably request.

6.3 Payment of Obligations. The Borrower shall, and shall cause each of its
Subsidiaries to, pay, discharge or otherwise satisfy at or before maturity or before they become
delinquent, as the case may be, all its material obligations of whatever nature, except where the
amount or validity thereof is currently being contested in good faith by appropriate proceedings
and reserves in conformity with GAAP with respect thereto have been provided on the books of the
relevant Group Member.

6.4 Maintenance of Existence; Compliance. The Borrower shall, and shall cause each of
its Subsidiaries to: (a)(i) pay, preserve, renew and keep in full force and effect its
organizational existence and (ii) take all reasonable action to maintain all rights, privileges and
franchises necessary or desirable in the normal conduct of its business, except, (A) in each case,
as otherwise permitted by Section 7.4 and (B) in the case of clause (ii) above, to the extent that
failure to do so could not reasonably be expected to have a Material Adverse Effect; and (b) comply
with all Contractual Obligations and Requirements of Law, except to the extent that failure to
comply therewith could not, in the aggregate, reasonably be expected to have a Material Adverse
Effect.

 

47

 

6.5 Maintenance of Property; Insurance. The Borrower shall, and shall cause each of
its Subsidiaries to, (a) keep all property useful and necessary in its business in good working
order and condition, ordinary wear and tear excepted and (b) maintain with financially sound and
reputable insurance companies insurance on all such property in at least such amounts and against
at least such risks (but including in any event, public liability, product liability and business
interruption insurance) as are usually insured against in the same general area by companies
engaged in the same or a similar business.

6.6 Inspection of Property; Books and Records; Discussions. The Borrower shall, and
shall cause each of its Subsidiaries to, (a) keep proper books of records and account in which
full, true and correct entries in conformity with GAAP and all Requirements of Law shall be made of
all dealings and transactions in relation to its business and activities and (b) permit
representatives of the Administrative Agent or any Lender to visit and inspect any of its
properties and examine and make abstracts from any of its books and records at any reasonable time
and as often as may reasonably be desired and to discuss the business, operations, properties and
financial and other condition of the Group Members with officers and employees of the Group Members
and with their independent certified public accountants.

6.7 Notices. The Borrower shall promptly give notice to the Administrative Agent and
each Lender of:

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

(b) any (i) default or event of default under any Contractual Obligation of any Group Member
or (ii) litigation, investigation or proceeding that may exist at any time between any Group Member
and any Governmental Authority, that in either case, if not cured or if adversely determined, as
the case may be, could reasonably be expected to have a Material Adverse Effect;

(c) any litigation or proceeding affecting any Group Member (i) that, if adversely determined,
could reasonably be expected to have a Material Adverse Effect or (ii) which relates to any Loan
Document;

(d) the occurrence of any ERISA Event, as soon as possible and in any event within ten days
after the Borrower knows or has reason to know thereof; and

(e) any development or event that has had or could reasonably be expected to have a Material
Adverse Effect.

Each notice pursuant to this Section 6.7 shall be accompanied by a statement of a Responsible
Officer setting forth details of the occurrence referred to therein and stating what action the
relevant Group Member proposes to take with respect thereto.

 

48

 

6.8 Environmental Laws. The Borrower shall, and shall cause each of its Subsidiaries
to, (a) comply in all material respects with, and ensure compliance in all material respects by all
tenants and subtenants, if any, with, all applicable Environmental Laws, and obtain and comply in
all material respects with and maintain, and ensure that all tenants and subtenants obtain and
comply in all material respects with and maintain, any and all licenses, approvals, notifications,
registrations or permits required by applicable Environmental Laws.

(b) Conduct and complete all investigations, studies, sampling and testing, and all remedial,
removal and other actions required under applicable Environmental Laws and promptly comply in all
material respects with all lawful orders and directives of all Governmental Authorities regarding
applicable Environmental Laws.

6.9 Additional Collateral, etc. (a) With respect to any property acquired after the
Closing Date by the Borrower or any Subsidiary Guarantor (other than (1) any property described in
paragraph (b), (c) or (d) below and (2) any property subject to a Lien expressly permitted by
Section 7.3) as to which the Administrative Agent, for the benefit of the Lenders, does not have a
perfected Lien, the Borrower shall, and shall cause such Subsidiary Guarantor to, promptly (i)
execute and deliver to the Administrative Agent such amendments to the Guarantee and Collateral
Agreement or such other documents as the Administrative Agent deems necessary or advisable to grant
to the Administrative Agent, for the benefit of the Lenders, a Lien in such property and (ii) take
all actions necessary or advisable to grant to the Administrative Agent, for the benefit of the
Lenders, a perfected first priority Lien in such property, including the filing of Uniform
Commercial Code financing statements in such jurisdictions as may be required by the Guarantee and
Collateral Agreement or by law or as may be reasonably requested by the Administrative Agent.

(b) With respect to any fee interest in any real property having a net book value (together
with improvements thereon) in excess of $2,500,000 acquired after the Closing Date by any Group
Member other than an Excluded Foreign Subsidiary (other than any such real property subject to a
Lien expressly permitted by Section 7.3), such Group Member shall promptly (i) execute and deliver
a first priority Mortgage, in favor of the Administrative Agent, for the benefit of the Lenders,
covering such real property, (ii) if requested by the Administrative Agent, provide the Lenders
with (x) title and extended coverage insurance covering such real property in an amount at least
equal to the purchase price of such real property (or such lesser amount as shall be reasonably
specified by the Administrative Agent) as well as a current ALTA survey thereof, together with a
surveyor’s certificate, (y) any consents or estoppels reasonably deemed necessary or advisable by
the Administrative Agent in connection with such Mortgage and (z) if such real property is located
in an area that has been identified by the Secretary of Housing and Urban Development as an area
having special flood hazards, (A) a policy of flood insurance that covers such real property and is
written in an amount not less than the outstanding principal amount of the indebtedness secured by
the Mortgage on such real property that is reasonably allocable to such real property or the
maximum limit of coverage made available with respect to such real property under the National
Flood Insurance Act of 1968, whichever is less and (B) confirmation that the Borrower has received
the notice required pursuant to Section 208.25(i) of Regulation H of the Board, each of the
foregoing in form and substance reasonably satisfactory to the Administrative Agent and (iii) if
requested by the Administrative Agent, deliver to the Administrative Agent legal opinions relating
to the matters described above, which opinions shall be in form and substance, and from counsel,
reasonably satisfactory to the Administrative Agent.

 

49

 

(c) With respect to any new Material Domestic Subsidiary created or acquired after the Closing
Date by any Group Member (or any Domestic Subsidiary which becomes a Material Domestic Subsidiary),
such Group Member shall promptly (A) execute and deliver to the Administrative Agent such
amendments to the Guarantee and Collateral Agreement as the Administrative Agent deems necessary or
advisable to grant to the Administrative Agent, for the benefit of the Lenders, a perfected first
priority Lien in the Capital Stock issued by such new Material Domestic Subsidiary and owned by any
Group Member, (B) deliver to the Administrative Agent the certificates representing such Capital
Stock, together with undated stock powers, in blank, executed and delivered by a duly authorized
officer of such Group Member, (C) cause such new Material Domestic Subsidiary (1) to become a party
to the Guarantee and Collateral Agreement, (2) to take such actions necessary or advisable to grant
to the Administrative Agent for the benefit of the Lenders a perfected first priority Lien in the
Collateral described in the Guarantee and Collateral Agreement and owned by such new Material
Domestic Subsidiary, including the filing of Uniform Commercial Code financing statements in such
jurisdictions as may be required by the Guarantee and Collateral Agreement or by law or as may be
requested by the Administrative Agent and (3) to deliver to the Administrative Agent a certificate
of such new Material
Domestic Subsidiary, substantially in the form of Exhibit C-2, with appropriate insertions and
attachments and (D) deliver to the Administrative Agent such legal opinions as the Administrative
Agent may reasonably request relating to the matters described above, which opinions shall be in
form and substance, and from counsel, reasonably satisfactory to the Administrative Agent.

(d) With respect to any new Excluded Foreign Subsidiary created or acquired after the Closing
Date by any Group Member (other than by any Group Member that is an Excluded Foreign Subsidiary)
which satisfies the assets or revenue requirements set forth in the definition of “Material
Domestic Subsidiary” (subject to the provisos therein set forth), such Group Member shall promptly
(i) execute and deliver documentation as the Administrative Agent deems necessary or advisable to
grant to the Administrative Agent, for the benefit of the Lenders, a perfected first priority Lien
in the Capital Stock issued by such new Excluded Foreign Subsidiary and owned by any such Group
Member (provided that in no event shall more than 66% of the total outstanding voting Capital Stock
issued by any such new Excluded Foreign Subsidiary be required to be so pledged), (ii) deliver to
the Administrative Agent the certificates representing such Capital Stock, together with undated
stock powers, in blank, executed and delivered by a duly authorized officer of such Group Member,
and take such other action as may be necessary or, in the opinion of the Administrative Agent,
desirable to perfect the Administrative Agent’s Lien therein and (iii) deliver to the
Administrative Agent legal opinions relating to the matters described above as the Administrative
Agent may reasonably request, which opinions shall be in form and substance, and from counsel,
reasonably satisfactory to the Administrative Agent.

SECTION 7. NEGATIVE COVENANTS

The Borrower hereby agrees that, so long as the Commitments remain in effect, any Letter of
Credit remains outstanding or any Loan or other amount is owing to any Lender or the Administrative
Agent hereunder, the Borrower shall not, and shall not permit any of its Subsidiaries to, directly
or indirectly:

7.1 Financial Condition Covenants.

(a) Consolidated Leverage Ratio. Permit the Consolidated Leverage Ratio as at the
last day of any period of four consecutive fiscal quarters of the Borrower to exceed 4.0 to 1.0.

 

50

 

(b) Senior Secured Leverage Ratio. Permit the Senior Secured Leverage Ratio as of the
last day of any period of four consecutive fiscal quarter of the Borrower to exceed 3.0 to 1.0.

(c) Interest Coverage Ratio. Permit the Interest Coverage Ratio as of the last day of
any period of four consecutive fiscal quarter of the Borrower to be less than 2.5 to 1.0.

7.2 Indebtedness. Create, issue, incur, assume, become liable in respect of or suffer
to exist any Indebtedness, except:

(a) Indebtedness of any Loan Party pursuant to any Loan Document (including after any increase
of the Commitments pursuant to Section 2.1(c));

(b) Indebtedness of the Borrower to any Subsidiary and of any Subsidiary to the Borrower or
any other Subsidiary;

(c) Guarantee Obligations incurred in the ordinary course of business by the Borrower or any
of its Subsidiaries of obligations of any Subsidiary to the extent such obligations are permitted
to be incurred hereunder;

(d) Indebtedness outstanding on the date hereof and listed on Schedule 7.2(d) and any
refinancings, refundings, renewals or extensions thereof (without increasing, or shortening the
maturity of, the principal amount thereof);

(e) Indebtedness (including, without limitation, Capital Lease Obligations) secured by Liens
permitted by Section 7.3(g) in an aggregate principal amount not to exceed $10,000,000 at any one
time outstanding;

(f) Indebtedness of any Foreign Subsidiary (i) to any Loan Party, provided that the loan or
advance is permitted by Section 7.7 or (ii) to any other Foreign Subsidiary;

(g) unsecured Indebtedness of the Borrower or any of its Subsidiaries in an aggregate
principal amount (for the Borrower and all Subsidiaries) not to exceed $300,000,000 at any one time
outstanding; provided that (i) after giving effect to such Indebtedness, on a pro forma
basis, the Borrower is in compliance with Section 7.1 as of the last day of the immediately
preceding fiscal quarter for which financial statements have been delivered pursuant to Section 6.1
and (ii) such Indebtedness has a final maturity date that is at least 91 days after the Termination
Date;

(h) Indebtedness of any Foreign Subsidiary to any Person other than the Borrower or any
Subsidiary in an aggregate principal amount not to exceed $10,000,000 at any time outstanding;
provided that such Indebtedness is not guaranteed by the Borrower or any other Loan Party;
and

(i) additional Indebtedness, including Attributable Debt, of the Borrower or any of its
Subsidiaries in an aggregate principal amount (for the Borrower and all Subsidiaries) not to exceed
$40,000,000 at any one time outstanding.

 

51

 

7.3 Liens. Create, incur, assume or suffer to exist any Lien upon any of its property
(other than treasury stock of the Borrower to the extent Regulation U would be violated by
restrictions under this Section 7.3), whether now owned or hereafter acquired, except:

(a) Liens for taxes not yet due or that are being contested in good faith by appropriate
proceedings, provided that adequate reserves with respect thereto are maintained on the
books of the Borrower or its Subsidiaries, as the case may be, in conformity with GAAP;

(b) carriers’, landlord’s, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other
like Liens arising in the ordinary course of business that are not overdue for a period of more
than 30 days or that are being contested in good faith by appropriate proceedings;

(c) pledges or deposits in connection with workers’ compensation, unemployment insurance and
other social security legislation and inchoate Liens in connection with workers’ compensation,
unemployment insurance or other social security, old age pension or public liability obligations
which are not delinquent or which are being contested in good faith by appropriate action and for
which adequate reserves have been maintained in accordance with GAAP;

(d) deposits to secure the performance of bids, trade contracts (other than for borrowed
money), leases, statutory obligations, surety and appeal bonds, performance bonds and other
obligations of a like nature incurred in the ordinary course of business;

(e) easements, rights-of-way, restrictions and other similar encumbrances incurred in the
ordinary course of business that, in the aggregate, are not substantial in amount and that do not
in any case materially detract from the value of the property subject thereto or materially
interfere with the ordinary conduct of the business of the Borrower or any of its Subsidiaries;

(f) Liens in existence on the date hereof listed on Schedule 7.3(f), securing
Indebtedness permitted by Section 7.2(d), provided that no such Lien is spread to cover any
additional property after the Closing Date and that the amount of Indebtedness secured thereby is
not increased;

(g) Liens securing Indebtedness of the Borrower or any other Subsidiary in an aggregate
principal amount not to exceed the amount permitted under Section 7.2(e) to finance the acquisition
of fixed or capital assets, provided that (i) such Liens shall be created substantially
simultaneously with the acquisition of such fixed or capital assets, (ii) such Liens do not at any
time encumber any property other than the property financed by such Indebtedness and (iii) the
amount of Indebtedness secured thereby is not increased;

(h) Liens created pursuant to the Loan Documents;

(i) any interest or title of a lessor under any lease entered into by the Borrower or any
other Subsidiary in the ordinary course of its business and covering only the assets so leased;

(j) Lien securing Indebtedness permitted by Section 7.2(h); provided that such Liens
only attach to the property of Foreign Subsidiaries;

(k) Liens on cash collateral in respect of letters of credit issued for the account of the
Borrower or any of its Subsidiaries and/or reimbursement obligations in respect thereof in an
aggregate principal amount not to exceed $15,000,000, subject, however to the
proviso set forth in Section 2.6;

 

52

 

(l) Liens arising solely by virtue of any statutory or common law provision relating to
banker’s liens, rights of set-off or similar rights and remedies and burdening only deposit
accounts or other funds maintained with a creditor depository institution, provided that no such
deposit account is a dedicated cash collateral account or is subject to restrictions against access
by the depositor in excess of those set forth by regulations promulgated by the Board;

(m) judgment and attachment Liens not giving rise to an Event of Default, provided that any
appropriate legal proceedings which may have been duly initiated for the appeal or other review of
such judgment shall not have been finally terminated or the period within which such proceeding may
be initiated shall not have expired and no action to enforce such Lien has been commenced;

(n) Liens arising in connection with the Drilling Fluids Real Estate Transaction on the real
property, related facilities and related personal property and rents that are the subject of the
Drilling Fluids Real Estate Transaction; and

(o) Liens not otherwise permitted by this Section so long as neither (i) the aggregate
outstanding principal amount of the obligations secured thereby nor (ii) the aggregate fair market
value (determined as of the date such Lien is incurred) of the assets subject thereto exceeds (as
to the Borrower and all Subsidiaries) $40,000,000 at any one time.

7.4 Fundamental Changes. Enter into any merger, consolidation or amalgamation, or
liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution), or Dispose of all
or substantially all of its property or business, except that:

(a) any Subsidiary of the Borrower may be merged or consolidated with or into the Borrower
(provided that the Borrower shall be the continuing or surviving corporation) or with or
into any Subsidiary Guarantor (provided that the Subsidiary Guarantor shall be the
continuing or surviving corporation);

(b) any Subsidiary of the Borrower may Dispose of any or all of its assets (i) to the Borrower
or any Subsidiary Guarantor (upon voluntary liquidation or otherwise) or (ii) pursuant to a
Disposition permitted by Section 7.5;

(c) any Investment expressly permitted by Section 7.7 may be structured as a merger,
consolidation or amalgamation; and

(d) any Subsidiary may liquidate (i) if the Board of Directors of the Borrower determines in
good faith that such liquidation is in the best interest of the Borrower and is not materially
disadvantageous to the Lenders and if any material assets of such Subsidiary are transferred to a
Loan Party or (ii) if such Subsidiary’s material assets have been Disposed of prior to Closing Date
or are Disposed of in a Disposition permitted hereunder.

7.5 Disposition of Property. Dispose of any of its property whether now owned or
hereafter acquired (other than treasury stock of the Borrower (i) issued pursuant to any employee
or director benefit plan approved by the shareholders of the Borrower or (ii) to the extent
Regulation U would be violated by restrictions under this Section 7.5) or, in the case of any
Subsidiary, issue or sell any shares of such Subsidiary’s Capital Stock to any Person, except:

(a) the Disposition of obsolete or worn out property or equipment no longer used or useful in
the business of the Group Members, in each case in the ordinary course of business;

 

53

 

(b) the sale of inventory (including wooden and composite mats removed from the Borrower’s or
its Subsidiaries’ rental fleet and sold as used mats) in the ordinary course of business;

(c) Dispositions permitted by clause (i) of Section 7.4(b) and Dispositions of Cash
Equivalents for cash or other Cash Equivalents;

(d) the sale or issuance of any Subsidiary’s Capital Stock to the Borrower or any Subsidiary
Guarantor;

(e) the Disposition of other property (including, but not limited to, the Capital Stock issued
by any Subsidiary) having a book value in the aggregate not to exceed 5% of Consolidated Tangible
Net Assets per fiscal year and 15% of Consolidated Tangible Net Assets during the term of this
Agreement; and

(f) disposition of assets pursuant the Drilling Fluids Real Estate Transaction.

7.6 Restricted Payments. Declare or pay any dividend (other than dividends payable
solely in common stock of the Person making such dividend) on, or make any payment on account of,
or set apart assets for a sinking or other analogous fund for, the purchase, redemption,
defeasance, retirement or other acquisition of, any Capital Stock issued by the Borrower, whether
now or hereafter outstanding, or make any other distribution in respect thereof, either directly or
indirectly, whether in cash or property or in obligations of any Group Member (collectively,
“Restricted Payments”), except that the Borrower may repurchase or redeem its Capital Stock
in an aggregate amount not in excess of the sum of (i) $50,000,000, (ii) 50% of Consolidated Net
Income (or 100% of net loss) for the period from October 1, 2011 to the end of the most recent
fiscal quarter prior to such date of determination, for which financial statements are publicly
available and (iii) 75% of the net cash proceeds of all common shares of Capital Stock issued by
the Borrower after the Closing Date less the aggregate amount of any cash payments made to redeem
or repay any Senior Notes under Section 7.15 since the Closing Date (other than with the net cash
proceeds of Permitted Refinancing Debt or Capital Stock ) (each such repurchase or redemption, a
“Permitted Capital Stock Repurchase”); provided that (i) after giving effect to
such Permitted Capital Stock Repurchase, on a pro forma basis, the Borrower is in compliance with
Section 7.1 as of the last day of the immediately preceding fiscal quarter for which financial
statements are publicly available and (ii) no Default or Event of Default has occurred and is
continuing or would result from such Permitted Capital Stock Repurchase.

7.7 Investments. Make any advance, loan, extension of credit (by way of guaranty or
otherwise) or capital contribution to, or purchase any Capital Stock, bonds, notes, debentures or
other debt securities of, or any assets constituting a business unit of, or make any other
investment in, any Person (all of the foregoing, “Investments”), except:

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

(b) investments in Cash Equivalents and other Investments existing on the Closing Date;

 

54

 

(c) Guarantee Obligations permitted by Section 7.2;

(d) loans and advances to employees of any Group Member in the ordinary course of business
(including for travel, entertainment and relocation expenses) in an aggregate amount for all Group
Members not to exceed $2,500,000 at any one time outstanding;

(e) Investments in assets useful in the business of the Borrower and its Subsidiaries made by
the Borrower or any of its Subsidiaries with the proceeds of any Disposition permitted by Section
7.5;

(f) intercompany Investments by any Group Member in the Borrower or any Person that, prior to
such investment, is a Wholly Owned Subsidiary Guarantor;

(g) Permitted Acquisitions and the formation of Wholly Owned Subsidiaries of the Borrower in
connection with Permitted Acquisitions; and

(h) in addition to Investments otherwise expressly permitted by this Section, any Investment
made after the Closing Date by the Borrower or any of its Subsidiaries which is a Foreign Permitted
Acquisition or an Investment in a Person who is not a Subsidiary (after giving effect to such
Investment); provided that the aggregate amount of all Foreign Permitted Acquisitions and
Investments in
non-Subsidiaries does not exceed 15% of Consolidated Tangible Net Assets (calculated as of the
date such Investment is made based on the most recently delivered financial statements).

7.8 Transactions with Affiliates. Enter into any transaction, including any purchase,
sale, lease or exchange of property, the rendering of any service or the payment of any management,
advisory or similar fees, with any Affiliate (other than the Borrower or any Subsidiary Guarantor)
unless such transaction is (a) otherwise permitted under this Agreement, (b) in the ordinary course
of business of the relevant Group Member and (c) upon fair and reasonable terms no less favorable
to the relevant Group Member than it would obtain in a comparable arm’s length transaction with a
Person that is not an Affiliate; provided, however, that the foregoing limitations
shall not apply to transactions between or among Subsidiary Guarantors nor transactions between the
Borrower and any Subsidiary Guarantor.

7.9 Sales and Leasebacks. Enter into any arrangement with any Person providing for
the leasing by any Group Member of real or personal property that has been or is to be sold or
transferred by such Group Member to such Person or to any other Person to whom funds have been or
are to be advanced by such Person on the security of such property or rental obligations of such
Group Member except with respect to (i) personal property Disposed of in a Disposition permitted by
Section 7.5 and (ii) the Drilling Fluids Real Estate Transaction.

7.10 Swap Agreements. Enter into any Swap Agreement, except (a) Swap Agreements
entered into to hedge or mitigate risks to which the Borrower or any Subsidiary has actual exposure
(other than those in respect of Capital Stock) and (b) Swap Agreements entered into in order to
effectively cap, collar or exchange interest rates (from fixed to floating rates, from floating
rates to fixed rates, from one floating rate to another floating rate or otherwise) with respect to
any interest-bearing liability or investment of the Borrower or any Subsidiary.

 

55

 

7.11 Changes in Fiscal Periods. Permit the fiscal year of the Borrower to end on a
day other than December 31 or change the Borrower’s method of determining fiscal quarters.

7.12 Negative Pledge Clauses. Enter into or suffer to exist or become effective any
agreement that prohibits or limits the ability of any Group Member to create, incur, assume or
suffer to exist any Lien upon any of its property or revenues, whether now owned or hereafter
acquired, to secure its obligations under the Loan Documents to which it is a party other than (a)
this Agreement and the other Loan Documents and (b) any agreements governing any purchase money
Liens or Capital Lease Obligations otherwise permitted hereby (in which case, any prohibition or
limitation shall only be effective against the assets financed thereby) or the Drilling Fluids Real
Estate Transaction (in which case, any prohibition or limitation shall only be effective against
the real property, related facilities, related personal property and rents that the subject of the
Drilling Fluids Real Estate Transaction).

7.13 Clauses Restricting Subsidiary Distributions. Enter into or suffer to exist or become effective any consensual
encumbrance or restriction
on the ability of any Subsidiary of the Borrower to (a) make Restricted Payments in respect of any
Capital Stock issued by such Subsidiary held by, or pay any Indebtedness owed to, the Borrower or
any other Subsidiary of the Borrower, (b) make loans or advances to, or other Investments in, the
Borrower or any other Subsidiary of the Borrower or (c) transfer any of its assets to the Borrower
or any other Subsidiary of the Borrower, except for such encumbrances or restrictions existing
under or by reason of (i) any restrictions existing under the Loan Documents, (ii) any restrictions
with respect to a Subsidiary imposed pursuant to an agreement that has been entered into in
connection with the Disposition of all or substantially all of the Capital Stock or assets of such
Subsidiary and (iii) any restrictions with respect to a Subsidiary or Subsidiaries created,
acquired or otherwise the specific and exclusive purpose of which is, to effect the Drilling Fluids
Real Estate Transaction, provided that the only assets or other property of such Subsidiary
or Subsidiaries subject to such restrictions are the real property, related facilities, related
personal property and rents that are the subject of the Drilling Fluids Real Estate Transaction.

7.14 Lines of Business. Enter into any business, either directly or through any
Subsidiary, except for those businesses in which the Borrower and its Subsidiaries are engaged on
the date of this Agreement or that are reasonably related thereto.

7.15 Redemption of Senior Notes; Amendment of Indenture. The Borrower will not, and
will not permit any Subsidiary to, prior to the date that is ninety-one (91) days after the
Termination Date: (i) call, make or offer to make any optional or voluntary Redemption of or
otherwise optionally or voluntarily Redeem (whether in whole or in part) the Senior Notes or any
Permitted Refinancing Debt in respect thereof; provided that the Borrower may prepay the Senior
Notes with (A) the proceeds of any Permitted Refinancing Debt, (B) the net cash proceeds of any
sale of Capital Stock (other than Disqualified Capital Stock) of the Borrower or (C) other cash on
hand to the extent the Borrower could make a Restricted Payment under Section 7.6, or (ii) amend,
modify, waive or otherwise change, consent or agree to any amendment, modification, waiver or other
change to, any of the terms of the Senior Notes, any Permitted Refinancing Debt or the Indenture if
(A) the effect thereof would be to shorten the maturity or average life or increase the amount of
any payment of principal thereof or increase the rate or shorten any period for payment of interest
thereon or (B) such action requires the payment of a material consent fee (howsoever described),
provided that the foregoing shall not prohibit the execution of supplemental indentures associated
with the incurrence of additional notes to the extent permitted by Section 7.2(g), the execution of
other indentures or agreements in connection with the issuance of Permitted Refinancing Debt or the
execution of supplemental indentures to add guarantors if required by the terms of any Indenture
provided such Person is a Subsidiary Guarantor.

 

56

 

SECTION 8. EVENTS OF DEFAULT

If any of the following events shall occur and be continuing:

(a) the Borrower shall fail to pay any principal of any Loan or Reimbursement Obligation when
due and payable in accordance with the terms hereof; or the Borrower shall fail to pay any interest
on any Loan or Reimbursement Obligation, or any other amount payable hereunder or under any other
Loan Document, within five days after any such interest or other amount becomes due and payable in
accordance with the terms hereof; or

(b) any representation or warranty made or deemed made by any Loan Party herein or in any
other Loan Document or that is contained in any certificate, document or financial or other
statement furnished by it at any time under or in connection with this Agreement or any such other
Loan Document shall prove to have been inaccurate in any material respect on or as of the date made
or deemed made; or

(c) any Loan Party shall default in the observance or performance of any agreement contained
in clause (i) or (ii) of Section 6.4(a) (with respect to the Borrower only), Section 6.7(a) or
Section 7 of this Agreement or Sections 5.5 and 5.7(b) of the Guarantee and Collateral Agreement;
or

(d) any Loan Party shall default in the observance or performance of any other agreement
contained in this Agreement or any other Loan Document (other than as provided in paragraphs (a)
through (c) of this Section), and such default shall continue unremedied for a period of 30 days
after notice to the Borrower from the Administrative Agent or the Majority Lenders; or

(e) any Group Member shall (i) default in making any payment of any principal of any
Indebtedness (including any Guarantee Obligation, but excluding the Loans) on the scheduled or
original due date with respect thereto; or (ii) default in making any payment of any interest on
any such Indebtedness beyond the period of grace, if any, provided in the instrument or agreement
under which such Indebtedness was created; or (iii) default in the observance or performance of any
other 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, the effect of which default or other event or condition is to cause, or to permit the holder
or beneficiary of such Indebtedness (or a trustee or agent on behalf of such holder or beneficiary)
to cause, with the giving of notice if required, such Indebtedness to become due prior to its
stated maturity or (in the case of any such Indebtedness constituting a Guarantee Obligation) to
become payable; provided, that a default, event or condition described in clause (i), (ii)
or (iii) of this paragraph (e) shall not at any time constitute an Event of Default unless, at such
time, one or more defaults, events or conditions of the type described in clauses (i), (ii) and
(iii) of this paragraph (e) shall have occurred and be continuing with respect to Indebtedness the
outstanding principal amount of which exceeds in the aggregate $25,000,000 and any applicable grace
periods, if any, shall have expired; or

 

57

 

(f) (i) any Group Member shall commence any case, proceeding or other action (A) under any
existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy,
insolvency, reorganization or relief of debtors, seeking to have an order for relief entered with
respect to it, or seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization,
arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with
respect to it or its debts, or (B) seeking appointment of a receiver, trustee, custodian,
conservator or other similar official for it or for all or any substantial part of its assets, or
any Group Member shall make a general assignment for the benefit of its creditors; or (ii) there
shall be commenced against any Group Member any case, proceeding or other action of a nature
referred to in clause (i) above that (A) results in the entry of an order for relief or any such
adjudication or appointment or (B) remains undismissed or undischarged for a period of 60 days; or
(iii) there shall be commenced against any Group Member any case, proceeding or other action
seeking issuance of a warrant of attachment, execution, distraint or similar process against all or
any substantial part of its assets that results in the entry of an order for any such relief that
shall not have been vacated, discharged, or stayed or bonded pending appeal within 60 days from the
entry thereof; or (iv) any Group Member shall take any action in furtherance of, or indicating its
consent to, approval of, or acquiescence in, any of the acts set forth in clause (i), (ii), or
(iii) above; or (v) any Group Member shall generally not, or shall be unable to, or shall admit in
writing its inability to, pay its debts as they become due; or

(g) (i) an ERISA Event shall have occurred, (ii) a trustee shall be appointed by a United
States district court to administer any Pension Plan, (iii) the PBGC shall institute proceedings to
terminate
any Pension Plan(s), or (iv) any Group Member or any Commonly Controlled Entity shall have
been notified by the sponsor of a Multiemployer Plan that it has incurred or will be assessed
Withdrawal Liability to such Multiemployer Plan and such entity does not have reasonable grounds
for contesting such Withdrawal Liability or is not contesting such Withdrawal Liability in a timely
and appropriate manner; and in each case in clauses (i) through (iv) above, such event or
condition, when taken together with all other such events or conditions, if any, could, in the
judgment of the Majority Lenders, reasonably be expected to result in a Material Adverse Effect; or

(h) one or more judgments or decrees shall be entered against any Group Member involving in
the aggregate a liability (not paid or fully covered by insurance as to which the relevant
insurance company has acknowledged coverage) of $25,000,000 or more, and all such judgments or
decrees shall not have been vacated, discharged, stayed or bonded pending appeal within 30 days
from the entry thereof; or

(i) any of the Loan Documents shall cease, for any reason, to be in full force and effect, or
any Loan Party shall so assert, or any Lien on a material portion of the Collateral created by any
of the Security Documents shall cease to be enforceable and of the same effect and priority
purported to be created thereby; or

(j) the guarantee contained in Section 2 of the Guarantee and Collateral Agreement shall
cease, for any reason, to be in full force and effect or any Loan Party shall so assert; or

(k) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)) shall become, or obtain
rights (whether by means of warrants, options or otherwise) to become, the “beneficial owner” (as
defined in Rules 13(d)-3 and 13(d) 5 under the Exchange Act), directly or indirectly, of more than
30% of the outstanding common stock of the Borrower; but it is agreed and acknowledged that neither
an “ownership change” for purposes of Section 382 of the Code nor the Borrower’s disclosure of same
in its filings with the SEC or otherwise shall constitute a Default or an Event of Default (unless
a Default or Event of Default under this Section 8(k) shall have otherwise occurred);

 

58

 

then, and in any such event, (A) if such event is an Event of Default specified in clause (i) or
(ii) of paragraph (f) above with respect to the Borrower, automatically the Commitments shall
immediately terminate and the Loans (with accrued interest thereon) and all other amounts owing
under this Agreement and the other Loan Documents (including all amounts of L/C Obligations,
whether or not the beneficiaries of the then outstanding Letters of Credit shall have presented the
documents required thereunder) shall immediately become due and payable, and (B) if such event is
any other Event of Default, either or both of the following actions may be taken: (i) with the
consent of the Majority Lenders, the Administrative Agent may, or upon the request of the Majority
Lenders, the Administrative Agent shall, by notice to the Borrower declare the Commitments to be
terminated forthwith, whereupon the Commitments shall immediately terminate; and (ii) with the
consent of the Majority Lenders, the Administrative Agent may, or upon the request of the Majority
Lenders, the Administrative Agent shall, by notice to the Borrower, declare the Loans (with accrued
interest thereon) and all other amounts owing under this Agreement and the other Loan Documents
(including all amounts of L/C Obligations, whether or not the beneficiaries of the then outstanding
Letters of Credit shall have presented the documents required thereunder) to be due and payable
forthwith, whereupon the same shall immediately become due and payable. With respect to all
Letters of Credit with respect to which presentment for honor shall not have occurred at the time
of an acceleration pursuant to this paragraph, the Borrower shall at such time deposit in a cash
collateral account opened by the Administrative Agent an amount equal to the aggregate then undrawn
and unexpired amount of such Letters of Credit. Amounts held in such cash collateral account shall
be applied by the Administrative Agent to the payment of drafts drawn under such Letters
of Credit, and the unused portion thereof after all such Letters of Credit shall have expired or
been fully drawn upon, if any, shall be applied to repay other obligations of the Borrower
hereunder and under the other Loan Documents. After all such Letters of Credit shall have expired
or been fully drawn upon, all Reimbursement Obligations shall have been satisfied and all other
obligations of the Borrower hereunder and under the other Loan Documents shall have been paid in
full, the balance, if any, in such cash collateral account shall be returned to the Borrower (or
such other Person as may be lawfully entitled thereto). Except as expressly provided above in this
Section, presentment, demand, protest and all other notices of any kind are hereby expressly waived
by the Borrower.

SECTION 9. THE AGENTS

9.1 Appointment. Each Lender hereby irrevocably designates and appoints the
Administrative Agent as the agent of such Lender under this Agreement and the other Loan 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 Loan 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 Loan 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 Loan Document or otherwise exist against the Administrative Agent.

9.2 Delegation of Duties. The Administrative Agent may execute any of its duties
under this Agreement and the other Loan Documents by or through agents or attorneys-in-fact and
shall be entitled to advice of counsel concerning all matters pertaining to such duties. The
Administrative Agent shall not be responsible for the negligence or misconduct of any agents or
attorneys-in-fact selected by it with reasonable care.

 

59

 

9.3 Exculpatory Provisions. Neither any Agent nor Lender nor any of their respective
officers, directors, employees, agents, advisors, attorneys-in-fact or affiliates shall be (i)
liable for any action lawfully taken or omitted to be taken by it or such Person under or in
connection with this Agreement or any other Loan Document (except to the extent that any of the
foregoing are found by a final and nonappealable decision of a court of competent jurisdiction to
have resulted from its or such Person’s own gross negligence or willful misconduct) or (ii)
responsible in any manner to any of the Lenders for any recitals, statements, representations or
warranties made by any Loan Party or any officer thereof contained in this Agreement or any other
Loan Document or in any certificate, report, statement or other document referred to or provided
for in, or received by the Agents under or in connection with, this Agreement or any other Loan
Document or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of
this Agreement or any other Loan Document or for any failure of any Loan Party a party thereto to
perform its obligations hereunder or thereunder. The Agents shall not be under any obligation to
any Lender to ascertain or to inquire as to the observance or performance of any of the agreements
contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the
properties, books or records of any Loan Party.

9.4 Reliance by Administrative Agent. The Administrative Agent shall be entitled to
rely, and shall be fully protected in relying, upon any instrument, writing, resolution, notice,
consent, certificate, affidavit, letter, telecopy or email 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. The Administrative Agent may deem and treat the payee of any Note 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 shall be fully justified in failing
or refusing to take any action under this Agreement or any other Loan Document unless it shall
first receive such advice or concurrence of the Majority Lenders (or, if so specified by this
Agreement, all 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 shall in all
cases be fully protected in acting, or in refraining from acting, under this Agreement and the
other Loan Documents in accordance with a request of the Majority Lenders (or, if so specified by
this Agreement, all 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 Revolving Loans.

9.5 Notice of Default. The Administrative Agent shall not be deemed to have knowledge
or notice of the occurrence of any Default or Event of Default unless the Administrative Agent 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, the Administrative Agent 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 Majority Lenders (or, if so specified by this
Agreement, all 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.

 

60

 

9.6 Non-Reliance on Agents and Other Lenders. Each Lender expressly acknowledges that
neither the Agents nor any of their respective officers, directors, employees, agents, advisors,
attorneys-in-fact or affiliates have made any representations or warranties to it and that no act
by any Agent hereafter taken, including any review of the affairs of a Loan Party or any affiliate
of a Loan Party, shall be deemed to constitute any representation or warranty by any Agent to any
Lender. Each Lender represents to the Agents that it has, independently and without reliance upon
any 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 Loan Parties and their affiliates and
made its own decision to make its Loans hereunder and enter into this Agreement. Each Lender also
represents that it will, independently and without reliance upon any 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 Loan 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 Loan Parties and their affiliates. Except for notices, reports and other
documents expressly required to be furnished to the Lenders by the Administrative Agent hereunder,
the Administrative Agent shall not
have any duty or responsibility to provide any Lender with any credit or other information
concerning the business, operations, property, condition (financial or otherwise), prospects or
creditworthiness of any Loan Party or any affiliate of a Loan Party that may come into the
possession of the Administrative Agent or any of its officers, directors, employees, agents,
advisors, attorneys-in-fact or affiliates.

9.7 Indemnification. The Lenders agree to indemnify each Agent and its officers,
directors, employees, affiliates, agents, advisors and controlling persons (each, an “Agent
Indemnitee”) (to the extent not reimbursed by the Borrower and without limiting the obligation
of the Borrower to do so), ratably according to their respective Applicable Percentages in effect
on the date on which indemnification is sought under this Section (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 such Applicable Percentages immediately prior to such date),
from and against any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind whatsoever that may at any time
(whether before or after the payment of the Loans) be imposed on, incurred by or asserted against
such Agent Indemnitee in any way relating to or arising out of, the Commitments, this Agreement,
any of the other Loan 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 such Agent
Indemnitee 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 that are found by a final
and nonappealable decision of a court of competent jurisdiction to have resulted from such Agent
Indemnitee’s gross negligence or willful misconduct. The agreements in this Section shall survive
the payment of the Loans and all other amounts payable hereunder.

9.8 Agent in Its Individual Capacity. Each Agent and its affiliates may make loans
to, accept deposits from and generally engage in any kind of business with any Loan Party as though
such Agent were not an Agent. With respect to its Loans made or renewed by it and with respect to
any Letter of Credit issued or participated in by it, each Agent shall have the same rights and
powers under this Agreement and the other Loan Documents as any Lender and may exercise the same as
though it were not an Agent, and the terms “Lender” and “Lenders” shall include each Agent in its
individual capacity.

 

61

 

9.9 Successor Administrative Agent. The Administrative Agent may resign as
Administrative Agent upon 10 days’ notice to the Lenders and the Borrower and otherwise in
accordance with the terms of this Section 9.9. If the Administrative Agent shall resign as
Administrative Agent under this Agreement and the other Loan Documents, then the Majority Lenders
shall appoint from among the Lenders a successor agent for the Lenders, which successor agent shall
(unless an Event of Default under Section 8(a) or Section 8(f) with respect to the Borrower shall
have occurred and be continuing) be subject to approval by the Borrower (which approval shall not
be unreasonably withheld or delayed), whereupon such successor agent shall succeed to the rights,
powers and duties of the Administrative Agent, and the term “Administrative Agent” shall mean such
successor agent effective upon such appointment and approval, and the former Administrative Agent’s
rights, powers and duties as Administrative Agent shall be terminated, without any other or further
act or deed on the part of such former Administrative Agent or any of the parties to this
Agreement. If no successor agent has accepted appointment as Administrative Agent by the date that
is 10 days following a retiring Administrative Agent’s notice of resignation, the retiring
Administrative Agent’s resignation shall nevertheless thereupon become effective, and the Lenders
shall assume and
perform all of the duties of the Administrative Agent hereunder until such time, if any, as
the Majority Lenders appoint a successor agent as provided for above. After any retiring
Administrative Agent’s resignation as Administrative Agent, the provisions of this Section 9 and of
Section 10.5 shall continue to inure to its benefit.

9.10 Documentation Agent and Syndication Agent. Neither the Documentation Agent nor
the Syndication Agent shall have any duties or responsibilities hereunder in its capacity as such.

SECTION 10. MISCELLANEOUS

10.1 Amendments and Waivers. Neither this Agreement, any other Loan Document, nor any
terms hereof or thereof may be amended, supplemented or modified except in accordance with the
provisions of this Section 10.1. The Majority Lenders and each Loan Party party to the relevant
Loan Document may, or, with the written consent of the Majority Lenders, the Administrative Agent
and each Loan Party party to the relevant Loan Document may, from time to time, (a) enter into
written amendments, supplements or modifications hereto and to the other Loan Documents for the
purpose of adding any provisions to this Agreement or the other Loan Documents or changing in any
manner the rights of the Lenders or of the Loan Parties hereunder or thereunder or (b) waive, on
such terms and conditions as the Majority 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 Loan
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 (i)
forgive the principal amount or extend the final scheduled date of maturity of any Loan or reduce
the stated rate of any interest or fee payable hereunder (except (x) in connection with the waiver
of applicability of any post-default increase in interest rates (which waiver shall be effective
with the consent of the Majority Lenders) and (y) that any amendment or modification of defined
terms used in the financial covenants in this Agreement shall not constitute a reduction in the
rate of interest or fees for purposes of this clause (i)) or extend the scheduled date of any
payment thereof, or increase the amount or extend the expiration date of any Lender’s Commitment,
in each case without the

 

62

 

written consent of each Lender directly affected thereby; (ii) eliminate or reduce the voting rights of any Lender under this Section 10.1 without the written consent of
such Lender; (iii) consent to the assignment or transfer by the Borrower of any of its rights and
obligations under this Agreement and the other Loan Documents, release all or substantially all of
the Collateral or release all or substantially all of the Subsidiary Guarantors from their
obligations under the Guarantee and Collateral Agreement, in each case without the written consent
of all Lenders; (iv) amend, modify or waive any provision of Section 2.12 without the written
consent of each of the Lenders directly affected thereby; (v) reduce the percentage specified in
the definition of Majority Lenders without the written consent of all Lenders; (vi) amend, modify
or waive any provision of Section 9 or any other provision of any Loan Document that affects the
Administrative Agent without the written consent of the Administrative Agent; or (vii) amend,
modify or waive any provision of Section 3 without the written consent of the Issuing Lender. Any
such waiver and any such amendment, supplement or modification shall apply equally to each of the
Lenders and shall be binding upon the Loan Parties, the Lenders, the Administrative Agent and all
future holders of the Loans. In the case of any waiver, the Loan Parties, the Lenders and the
Administrative Agent shall be restored to their former position and rights hereunder and under the
other Loan Documents, and any Default or Event of Default waived shall be deemed to be cured and
not continuing; but no such waiver shall extend to any subsequent or other Default or Event of
Default, or impair any right consequent thereon.

10.2 Notices. All notices, requests and demands to or upon the respective parties
hereto to be effective shall be in writing (including by telecopy), and, unless otherwise expressly
provided herein, shall be deemed to have been duly given or made when delivered, or three Business
Days after being deposited in the mail, postage prepaid, or, in the case of telecopy notice, when
received, addressed as follows in the case of the Borrower and the Administrative Agent, and as set
forth in an administrative questionnaire delivered to the Administrative Agent in the case of the
Lenders, or to such other address as may be hereafter notified by the respective parties hereto:

	 	 	 	 	 	 	 	 	 	 
	 
	 	Borrower:	 	Newpark Resources, Inc.	 
	 
	 	 	 	 	 	2700 Research Forest Dr., Suite 100	 
	 
	 	 	 	 	 	The Woodlands, TX  77381	 
	 
	 	 	 	 	 	Attention: Treasurer	 
	 
	 	 	 	 	 	Telecopy: (281) 362-6801	 
	 
	 	 	 	 	 	Telephone: (281) 362-6841	 
	 
	 	 	 	 	 	Email: bfeldott@newpark.com	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	with a copy to:	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	Newpark Resources, Inc.	 
	 
	 	 	 	 	 	2700 Research Forest Dr., Suite 100	 
	 
	 	 	 	 	 	The Woodlands, TX  77381	 
	 
	 	 	 	 	 	Attention: General Counsel	 
	 
	 	 	 	 	 	Telecopy: (281) 362-6801	 
	 
	 	 	 	 	 	Telephone: (281) 362-6818	 
	 
	 	 	 	 	 	Email: mairola@newpark.com	 

 

63

 

	 	 	 	 	 	 	 	 	 	 
	 
	 	Administrative Agent:	 	JPMorgan Chase Bank, N.A.	 
	 
	 	 	 	 	 	Loan and Agency Services	 
	 
	 	 	 	 	 	10 South Dearborn, Floor 7	 
	 
	 	 	 	 	 	Chicago, IL  60603-2300	 
	 
	 	 	 	 	 	Attention: Sherese J. Cork	 
	 
	 	 	 	 	 	Telecopy: 1 (888) 303-9732	 
	 
	 	 	 	 	 	Telephone: (312) 732-4843	 
	 
	 	 	 	 	 	Email: sherese.cork@jpmchase.com	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	with a copy to:	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	JPMorgan Chase Bank, N.A.	 
	 
	 	 	 	 	 	712 Main Street, 12th Floor	 
	 
	 	 	 	 	 	Houston, TX 77002	 
	 
	 	 	 	 	 	Attention: Mona Foch	 
	 
	 	 	 	 	 	Telecopy: (713) 216-7794	 

provided that any notice, request or demand to or upon the Administrative Agent or the
Lenders shall not be effective until received and it being expressly agreed and acknowledged that
notice received by a recipient designated to receive a copy as set forth above shall not constitute
notice for purposes hereof unless and until notice is also provided as otherwise set forth above.

Notices and other communications to the Lenders hereunder may be delivered or furnished by
electronic communications pursuant to procedures approved by the Administrative Agent;
provided that the foregoing shall not apply to notices pursuant to Section 2 unless
otherwise agreed by the Administrative Agent and the applicable Lender. The Administrative Agent
or the Borrower may, in its discretion, agree to accept notices and other communications to it
hereunder by electronic communications pursuant to procedures approved by it; provided that
approval of such procedures may be limited to particular notices or communications.

10.3 No Waiver; Cumulative Remedies. No failure to exercise and no delay in
exercising, on the part of the Administrative Agent or any Lender, any right, remedy, power or
privilege hereunder or under the other Loan 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.

10.4 Survival of Representations and Warranties. All representations and warranties
made hereunder, in the other Loan 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 and other extensions of credit hereunder.

 

64

 

10.5 Payment of Expenses and Taxes. The Borrower agrees (a) to pay or reimburse the
Administrative Agent for all its reasonable 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 Loan 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 fees and disbursements of counsel to the
Administrative Agent and filing and recording fees and expenses, with statements with respect to
the foregoing to be submitted to the Borrower at least three (3) Business Days prior to the Closing
Date (in the case of amounts to be paid on the Closing Date) and from time to time thereafter on a
quarterly basis or such other periodic basis as the Administrative Agent shall deem appropriate,
(b) to pay or reimburse each Lender and the Administrative Agent for all its out-of-pocket costs
and expenses incurred in connection with the enforcement or preservation of any rights under this
Agreement, the other Loan Documents and any such other documents, including the fees and
disbursements of counsel (including the allocated fees and expenses of in-house counsel) to each
Lender and of counsel to the Administrative Agent, (c) to pay, indemnify, and hold each Lender and
the Administrative Agent harmless from, any and all recording and filing fees and any and all
liabilities with respect to, or resulting from any delay in paying, stamp, excise and other taxes,
if any, that may be payable or determined to be payable in connection with the execution and
delivery of, or consummation or administration of any of the transactions contemplated by, or any
amendment, supplement or modification of, or any waiver or consent under or in respect of, this
Agreement, the other Loan Documents and any such other documents and (d) to pay, indemnify, and
hold each Lender and the Administrative Agent and their respective officers, directors, employees,
affiliates, agents, advisors and controlling persons (each, an “Indemnitee”) harmless from
and against any and all other liabilities, obligations, losses, damages, penalties, actions,
judgments, suits or reasonable costs, expenses or disbursements of any kind or nature whatsoever
with respect to the execution, delivery, enforcement, performance and administration of this
Agreement, the other Loan Documents and any such other
documents, including any of the foregoing relating to the use of proceeds of the Loans, the
issuance of or participation in Letters of Credit or the violation of, noncompliance with or
liability under, any Environmental Law applicable to the operations of any Group Member or any of
the Properties and the reasonable fees and expenses of legal counsel in connection with claims,
actions or proceedings by any Indemnitee against any Loan Party under any Loan Document (all the
foregoing in this clause (d), collectively, the “Indemnified Liabilities”),
provided, that the Borrower shall have no obligation hereunder to any Indemnitee with
respect to Indemnified Liabilities to the extent such Indemnified Liabilities are found by a final
and nonappealable decision of a court of competent jurisdiction to have resulted from the gross
negligence or willful misconduct of such Indemnitee. Without limiting the foregoing, and to the
extent permitted by applicable law, the Borrower agrees not to assert and to cause its Subsidiaries
not to assert, and hereby waives and agrees to cause its Subsidiaries to waive, all rights for
contribution or any other rights of recovery with respect to all claims, demands, penalties, fines,
liabilities, settlements, damages, costs and expenses of whatever kind or nature, under or related
to Environmental Laws that any of them might have by statute or otherwise against any Indemnitee.
All amounts due under this Section 10.5 shall be payable not later than 30 days after written
demand therefor. Statements payable by the Borrower pursuant to this Section 10.5 shall be
submitted to the Borrower in accordance with Section 10.2. The agreements in this Section 10.5
shall survive repayment of the Loans and all other amounts payable hereunder.

10.6 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 Issuing Lender 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 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.

 

65

 

(b) (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign
to one or more assignees (each, an “Assignee”) 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 (such consent not to
be unreasonably withheld or delayed), provided that no consent
of the Borrower shall be required for an assignment to a Lender,
an affiliate of a Lender, an Approved Fund (as defined below)
or, if an Event of Default has occurred and is continuing, any
other Person, and provided further that the Borrower shall be
deemed to have consented to any such assignment unless it shall
object thereto by written notice to the Administrative Agent
within five (5) Business Days after having received notice
thereof; and

	 	(B)	 	the Administrative Agent (such
consent not to be unreasonably withheld or delayed).

(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 Commitments or
Loans, the amount of the Commitments or Loans of the
assigning Lender subject to each such assignment (determined
as of the date the Assignment and Assumption with respect to
such assignment is delivered to the Administrative Agent)
shall not be less than $5,000,000 unless each of the Borrower
and the Administrative Agent otherwise consent,
provided that (1) no such consent of the Borrower
shall be required if an Event of Default has occurred and is
continuing and (2) such amounts shall be aggregated in
respect of each Lender and its affiliates or Approved Funds,
if any;

	 	(B)	 	(1) the parties to each
assignment shall execute and deliver to the Administrative Agent
an Assignment and Assumption, together with a processing and
recordation fee of $3,500 and (2) the assigning Lender shall
have paid in full any amounts owing by it to the Administrative
Agent;

	 	(C)	 	the Assignee, if it shall not be
a Lender prior to such assignment, shall deliver to the
Administrative Agent an administrative questionnaire in which
the Assignee designates one or more credit contacts to whom all
syndicate-level information (which may contain material
non-public information about the Borrower and its Affiliates and
their related parties or their respective securities) will be
made available and who may receive such information in
accordance with the assignee’s compliance procedures and
applicable laws, including Federal and state securities laws;
and

	 	(D)	 	no assignment may be made to the
Borrower or any of its Affiliates.

 

66

 

For the purposes of this Section 10.6, “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 of its business and that is administered or
managed by (a) a Lender, (b) an affiliate of a Lender or (c) an entity or an affiliate of an entity
that administers or manages a Lender.

(iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) below,
from and after the effective date specified in each Assignment and Assumption, the Assignee
thereunder shall be a party hereto and, to the extent of the interest assigned by such
Assignment and Assumption, 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 Assumption, be released from its obligations under this Agreement (and, in
the case of an Assignment and Assumption 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 2.13, 2.14, 2.15 and 10.5). Any
assignment or transfer by a Lender of rights or obligations under this Agreement that does
not comply with this Section 10.6 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.

(iv) The Administrative Agent, acting for this purpose as an agent of the Borrower,
shall maintain at one of its offices a copy of each Assignment and Assumption 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 L/C Obligations owing to, each Lender
pursuant to the terms hereof from time to time (the “Register”). The entries in the
Register shall be conclusive, absent manifest error, and the Borrower, the Administrative
Agent, the Issuing Lender and the Lenders may 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, notwithstanding notice to the contrary.

(v) Upon its receipt of a duly completed Assignment and Assumption 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 and any written consent to such assignment
required by paragraph (b) of this Section, the Administrative Agent shall accept such
Assignment and Assumption and record the information contained therein in the Register. No
assignment shall be effective for purposes of this Agreement unless it has been recorded in
the Register as provided in this paragraph.

(c) (i) Any Lender may, without the consent of the Borrower or the Administrative Agent,
sell participations to one or more banks or other entities (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
Administrative Agent, the Issuing Lender 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 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; provided that such agreement may
provide that such Lender will not, without the consent of the Participant, agree to any amendment,
modification or waiver that (1) requires the consent of each Lender directly affected thereby
pursuant to the proviso to the second sentence of Section 10.1 and (2) directly affects such
Participant. Subject to paragraph (c)(ii) of this Section, the Borrower agrees that each
Participant shall be entitled to the benefits of Sections 2.13, 2.14 and 2.15 to the same extent as
if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this
Section. To the extent permitted by law, each Participant also shall be entitled to the benefits
of Section 10.7(b) as though it were a Lender, provided such Participant shall be subject to
Section 10.7(a) as though it were a Lender.

 

67

 

(ii) A Participant shall not be entitled to receive any greater payment under Section
2.13 or 2.14 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. Any Participant that is a
Non-U.S. Lender shall not be entitled to the benefits of Section 2.14 unless such
Participant complies with Section 2.14(d).

(d) Any Lender may 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 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.

(e) The Borrower, upon receipt of written notice from the relevant Lender, agrees to issue
Notes to any Lender requiring Notes to facilitate transactions of the type described in paragraph
(d) above.

(f) Notwithstanding the foregoing, any Conduit Lender may assign any or all of the Loans it
may have funded hereunder to its designating Lender without the consent of the Borrower or the
Administrative Agent and without regard to the limitations set forth in Section 10.6(b). The
Borrower, each Lender and the Administrative Agent hereby confirms that it will not institute
against a Conduit Lender or join any other Person in instituting against a Conduit Lender any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding under any state
bankruptcy or similar law, for one year and one day after the payment in full of the latest
maturing commercial paper note issued by such Conduit Lender; provided, however, that each
Lender designating any Conduit Lender hereby agrees to indemnify, save and hold harmless each other
party hereto for any loss, cost, damage or expense arising out of its inability to institute such a
proceeding against such Conduit Lender during such period of forbearance.

10.7 Adjustments; Set-off. (a) Except to the extent that this Agreement, any other
Loan Document or a court order expressly provides for payments to be allocated to a particular
Lender or to the Lenders, if any Lender (a “Benefitted Lender”) shall receive any payment
of all or part of the Obligations owing to it (other than in connection with an assignment made
pursuant to Section 10.6), 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
8(f), or otherwise), in a greater proportion than any such payment to or collateral received by any
other Lender, if any, in respect of the Obligations owing to such other Lender, such Benefitted
Lender shall purchase for cash from the other Lenders a participating interest in such portion of
the Obligations owing to each such other Lender, or shall provide such other Lenders with the
benefits of any such collateral, as shall be necessary to cause such Benefitted Lender to share the
excess payment or benefits of such collateral 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 Benefitted Lender, such purchase shall be rescinded, and the purchase price and
benefits returned, to the extent of such recovery, but without interest.

 

68

 

(b) In addition to any rights and remedies of the Lenders provided by law, each Lender shall
have the right, without notice to the Borrower, any such notice being expressly waived by the
Borrower to the extent permitted by applicable law, upon any Obligations becoming due and payable
by the Borrower (whether at the stated maturity, by acceleration or otherwise), to apply to the
payment of such Obligations, by setoff or otherwise, 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, any affiliate thereof or any of their
respective branches or agencies 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 application made
by such Lender, provided that the failure to give such notice shall not affect the validity
of such application.

10.8 Counterparts. This Agreement may be executed by one or more of the parties to
this Agreement on any number of separate counterparts, and all of said counterparts taken together
shall be deemed to constitute one and the same instrument. Delivery of an executed signature page
of this Agreement by facsimile or email transmission shall be effective as delivery of a manually
executed counterpart hereof.
A set of the copies of this Agreement signed by all the parties shall be lodged with the
Borrower and the Administrative Agent.

10.9 Severability; Maximum Lawful Rate. 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. Notwithstanding anything to the
contrary contained in any Loan Document, the interest paid or agreed to be paid under the Loan
Documents shall not exceed the maximum rate of non-usurious interest permitted by applicable Law
(the “Maximum Rate”). If the Administrative Agent or any Lender shall receive interest in
an amount that exceeds the Maximum Rate, the excess interest shall be applied to the principal on
the Loans or, if it exceeds such unpaid principal, refunded to the Borrower. In determining
whether the interest contracted for, charged, or received by the Administrative Agent or a Lender
exceeds the Maximum Rate, such Person may, to the extent permitted by applicable law, (a)
characterize any payment that is not principal as an expense, fee, or premium rather than interest,
(b) exclude voluntary prepayments and the effects thereof and (c) amortize, prorate, allocate, and
spread in equal or unequal parts the total amount of interest throughout the contemplated term of
the Obligations hereunder.

10.10 Integration. This Agreement and the other Loan Documents represent the entire
agreement of the Borrower, the Administrative Agent and the Lenders with respect to the subject
matter hereof and thereof, and there are no promises, undertakings, representations or warranties
by the Administrative Agent or any Lender relative to the subject matter hereof not expressly set
forth or referred to herein or in the other Loan Documents.

10.11 Governing Law. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE
LAW OF THE STATE OF NEW YORK.

 

69

 

10.12 Submission To Jurisdiction; Waivers. To the extent permitted by applicable law,
the Borrower hereby irrevocably and unconditionally:

(a) submits for itself and its property in any legal action or proceeding relating to this
Agreement and the other Loan 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 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 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 the Borrower, as the case may be at its address set forth in Section 10.2 or at such
other address of which the Administrative Agent shall have been notified pursuant thereto;

(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 any special, exemplary,
punitive or consequential damages.

10.13 Acknowledgements. The Borrower hereby acknowledges that:

(a) it has been advised by counsel in the negotiation, execution and delivery of this
Agreement and the other Loan Documents;

(b) neither the Administrative 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 Loan
Documents, and the relationship between Administrative 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 Loan Documents or otherwise exists by
virtue of the transactions contemplated hereby among the Lenders or among the Borrower and the
Lenders.

10.14 Releases of Guarantees and Liens. (a) Notwithstanding anything to the contrary
contained herein or in any other Loan Document, the Administrative Agent is hereby irrevocably
authorized by each Lender (without requirement of notice to or consent of any Lender except as
expressly required by Section 10.1) to take any action requested by the Borrower having the effect
of releasing any Collateral or guarantee obligations (i) to the extent necessary to permit
consummation of any transaction not prohibited by any Loan Document or that has been consented to
in accordance with Section 10.1 or (ii) under the circumstances described in paragraph (b) below.
The Administrative Agent agrees, at the sole expense of the Borrower, to take all actions
reasonably requested by the Borrower to effect such release or releases.

 

70

 

(b) At such time as the Loans, the Reimbursement Obligations and the other obligations under
the Loan Documents (other than obligations under or in respect of Swap Agreements) shall have been
paid in full in cash, the Commitments have been terminated and no Letters of Credit shall be
outstanding, the Collateral shall be released from the Liens created by the Security Documents, and
the Security Documents and all obligations (other than those expressly stated to survive such
termination) of the Administrative Agent and each Loan Party under the Security Documents shall
terminate, all without delivery of any instrument or performance of any act by any Person.

10.15 Confidentiality. Each of the Administrative Agent and each Lender agrees to keep
confidential all non-public information provided to it by any Loan Party, the Administrative Agent
or any Lender pursuant to or in
connection with this Agreement that is designated by the provider thereof as confidential;
provided that nothing herein shall prevent the Administrative Agent or any Lender from
disclosing any such information (a) to the Administrative Agent, any other Lender or any affiliate
thereof, (b) subject to an agreement to comply with the provisions of this Section, to any actual
or prospective Transferee or any direct or indirect counterparty to any Swap Agreement (or any
professional advisor to such counterparty), (c) to its employees, directors, agents, attorneys,
accountants and other professional advisors or those of any of its affiliates on a need-to-know
basis, (d) upon the request or demand of any Governmental Authority, (e) in response to any order
of any court or other Governmental Authority or as may otherwise be required pursuant to any
Requirement of Law, (f) if requested or required to do so in connection with any litigation or
similar proceeding, (g) that has been publicly disclosed, (h) to the National Association of
Insurance Commissioners or any similar organization or any nationally recognized rating agency that
requires access to information about a Lender’s investment portfolio in connection with ratings
issued with respect to such Lender or (i) in connection with the exercise of any remedy hereunder
or under any other Loan Document.

Each Lender (a) acknowledges that information furnished to it pursuant to this Agreement or
the other Loan Documents may include material non-public information concerning the Borrower and
its Affiliates and their related parties or their respective securities and (b) confirms that it
(i) has developed compliance procedures regarding the use of material non-public information and
(ii) will handle such material non-public information in accordance with those procedures and
applicable law, including Federal and state securities laws.

All information, including requests for waivers and amendments, furnished by the Borrower or
the Administrative Agent pursuant to, or in the course of administering, this Agreement or the
other Loan Documents will be syndicate-level information, which may contain material non-public
information about the Borrower and its Affiliates and their related parties or their respective
securities. Accordingly, each Lender represents to the Borrower and the Administrative Agent that
it has identified in its administrative questionnaire a credit contact who may receive information
that may contain material non-public information in accordance with its compliance procedures and
applicable law, including Federal and state securities laws.

10.16 WAIVERS OF JURY TRIAL. THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS
HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING
RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

71

 

10.17 PATRIOT Act. (a) The 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 may be required to obtain, verify and record information
that identifies the Borrower, which information includes the name and address of the Borrower and
other information that will allow the Lender to identify the Borrower in accordance with the
Patriot Act.

(b) If the addition of any new Loan Party obliges the Lender to comply with “know your
customer” or similar identification procedures in circumstances where the necessary information is
not already available to it, the Borrower shall promptly upon the request of the Lender supply, or
procure the supply of, such documentation and other evidence as is reasonably requested by the
Lender (for itself or on behalf of any prospective new Lender) in order for the Lender or any
prospective new Lender to carry
out and be satisfied it has complied with all necessary “know your customer” or other similar
checks under all applicable Requirements of Law.

10.18 No Adverse Interpretation of Other Agreements. This Credit Agreement may not be
used to interpret another indenture, loan, security or debt agreement of the Borrower or any
Subsidiary thereof. No such indenture, loan, security or debt agreement may be used to interpret
this Credit Agreement.

10.19 No Fiduciary Duty. Each of the Administrative Agent, the Syndication Agent, the
Documentation Agents, each Lender and their Affiliates (collectively, solely for purposes of this
paragraph, the “Lenders”), may have economic interests that conflict with those of the Borrower.
The Borrower agrees that nothing in the Loan Documents or otherwise will be deemed to create an
advisory, fiduciary or agency relationship or fiduciary or other similar duty between the Lenders
and the Borrower, its stockholders or its Affiliates. The Borrower acknowledges and agrees that
(a) the transactions contemplated by the Loan Documents are arm’s-length commercial transactions
between the Lenders, on the one hand, and the Borrower, on the other, (b) in connection therewith
and with the process leading to such transaction each of the Lenders is acting solely as a
principal and not the agent or fiduciary of the Borrower, its management, stockholders, creditors
or any other person, (c) no Lender has assumed an advisory or fiduciary responsibility in favor of
the Borrower with respect to the transactions contemplated hereby or the process leading thereto
(irrespective of whether any Lender or any of its Affiliates has advised or is currently advising
the Borrower on other matters) or any other obligation to the Borrower except the obligations
expressly set forth in the Loan Documents and (d) the Borrower has consulted its own legal and
financial advisors to the extent it deemed appropriate. The Borrower further acknowledges and
agrees that it is responsible for making its own independent judgment with respect to such
transactions and the process leading thereto. The Borrower agrees that it will not claim that any
Lender has rendered advisory services of any nature or respect, or owes a fiduciary or similar duty
to the Borrower, in connection with such transaction or the process leading thereto.

 

72

 

10.20 Judgment Currency. (a) If for the purposes of obtaining judgment in any court it is necessary to convert a sum
due hereunder in Dollars into another currency, the parties hereto agree, to the fullest extent
that they may effectively do so, that the rate of exchange used shall be that at which in
accordance with normal banking procedures the Administrative Agent could purchase Dollars with such
other currency at JPMCB’s principal office in London at 11:00 a.m. (London time) on the Business
Day preceding that on which final judgment is given.

(b) If for the purposes of obtaining judgment in any court it is necessary to convert a sum
due hereunder in a foreign currency into Dollars, the parties agree to the fullest extent that they
may effectively do so, that the rate of exchange used shall be that at which in accordance with
normal banking procedures the Administrative Agent could purchase such foreign currency with
Dollars at JPMCB’s principal office in London at 11:00 a.m. (London time) on the Business Day
preceding that on which final judgment is given.

(c) The obligation of the Borrower in respect of any sum due from it in any currency (the
“Primary Currency”) to any Lender or the Administrative Agent hereunder shall,
notwithstanding any
judgment in any other currency, be discharged only to the extent that on the Business Day
following receipt by such Lender or the Administrative Agent (as the case may be), of any sum
adjudged to be so due in such other currency, such Lender or the Administrative Agent (as the case
may be) may in accordance with normal banking procedures purchase the applicable Primary Currency
with such other currency; if the amount of the applicable Primary Currency so purchased is less
than such sum due to such Lender or the Administrative Agent (as the case may be) in the applicable
Primary Currency, the Borrower agrees, as a separate obligation and notwithstanding any such
judgment, to indemnify such Lender or the Administrative Agent (as the case may be) against such
loss, and if the amount of the applicable Primary Currency so purchased exceeds such sum originally
due to any Lender or the Administrative Agent (as the case may be) in the applicable Primary
Currency, such Lender or the Administrative Agent (as the case may be) agrees to remit to the
Borrower such excess.

 

73

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered by their proper and duly authorized officers as of the day and year first above written.

	 	 	 	 	 
	 	NEWPARK RESOURCES, INC.,

as Borrower

 	 
	 	By:  	/s/ Gregg Piontek
 	 
	 	 	Name:  	Gregg Piontek 	 
	 	 	Title:  	Chief Financial Officer and Vice
President 	 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A.,

as Administrative Agent, as a Lender and as the

Swingline Lender

 	 
	 	By:  	/s/ Preeti Bhatnagar
 	 
	 	 	Name:  	Preeti Bhatnagar 	 
	 	 	Title:  	Authorized Officer 	 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.,

as Syndication Agent and as a Lender

 	 
	 	By:  	/s/ Adam Rose
 	 
	 	 	Name:  	Adam Rose 	 
	 	 	Title:  	Senior Vice President 	 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

 

	 	 	 	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Documentation Agent and as a Lender

 	 
	 	By:  	/s/ C. David Allman
 	 
	 	 	Name:  	C. David Allman 	 
	 	 	Title:  	Director 	 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

 

	 	 	 	 	 
	 	CAPITAL ONE, NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	/s/ Keith Morton
 	 
	 	 	Name:  	Keith Morton 	 
	 	 	Title:  	Vice President 	 

[Signature Page to Second Amended and Restated Credit Agreement]

 

 

 

	 	 	 	 	 
	 	COMERICA BANK,

as a Lender

 	 
	 	By:  	/s/ Cyd Dillahunty
 	 
	 	 	Name:  	Cyd Dillahunty 	 
	 	 	Title:  	Vice President 	 

[Signature Page to Second Amended and Restated Credit Agreement]Exhibit 4.1

Exhibit
4.1

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR
DISTRIBUTION THEREOF. NO SUCH SALE OR DISPOSITION MAY BE EFFECTED WITHOUT AN EFFECTIVE
REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE
COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933 AND APPLICABLE
STATE SECURITIES LAWS.

WARRANT TO PURCHASE

COMMON STOCK OF PROSPECT GLOBAL RESOURCES INC.

PROSPECT GLOBAL RESOURCES INC., a Nevada corporation (the “Company”), HEREBY CERTIFIES THAT,
for value received, VERY HUNGRY LLC, or registered assigns, is entitled to purchase up to 2,588,235
shares of Common Stock at a purchase price of $4.25 per share (the “Warrant Price”). As used
herein, the term “Common Stock” means the Company’s Common Stock, par value $0.001 per share, as
constituted on the date of original issue of this Warrant, and any shares of capital stock or other
property into which such shares of Common Stock may thereafter be changed or that may be issued in
respect of, in exchange for, or in substitution of such Common Stock by reason of any transaction
described in Section 7.1(a). As used herein, the term “Warrants” means this Warrant and all
warrants delivered in substitution or exchange for such warrants. The term “Warrant” means one of
the Warrants.

Section 1. Term of Warrants; Exercise of Warrants. Subject to the terms hereof, the holder
of this Warrant shall have the right, at any time hereafter until 5:00 p.m., Denver, Colorado time,
on the Termination Date (as defined below) to purchase from the Company up to the number of shares
of Common Stock which such holder may at the time be entitled to purchase pursuant to this Warrant,
upon surrender to the Company, at its address for receipt of notices pursuant to Section 11 hereof,
of this Warrant, together with the election to purchase form at the end hereof duly completed and
signed, accompanied by payment to the Company of the Warrant Price (as defined in and determined in
accordance with the provisions of Sections 7) for the number of shares with respect to which this
Warrant is then exercisable. Payment of the aggregate Warrant Price shall be made either by (i)
certified or cashier’s check or wire transfer or (ii) tendering Warrant Shares (as defined below)
having a Fair Market Value (as defined below) equal to the Warrant Price. As used herein, the term
“Termination Date” means the later of (a) November 22, 2012 or (b) if the Company offers its
securities in a public offering prior to such date, the date that is 180 days following the
expiration of any lock-up period applicable to the holder of this Warrant in connection with such
public offering. As used herein, the term “Business Day” means any day other than a Saturday or
Sunday or a day on which commercial banks are required or authorized by law to be closed in either
New York, New York or Denver, Colorado.

Notwithstanding any provisions herein to the contrary, if the fair market value of one share
of Common Stock is greater than the Warrant Price for one share of Common Stock (at the date of
calculation, as set forth below), in lieu of exercising this Warrant for cash, the holder may
elect to receive shares of Common Stock equal to the value (as determined below) of this Warrant
(or the portion thereof being canceled), computed using the following formula:

WS = WCS (FMV-WP)

FMV

 

 

 

WHERE:

	 	WS	 	

equals the number of Warrant Shares to be issued to the Holder;

	 
	 	WCS	 	

equals the number of shares of Common Stock purchasable under
the Warrant or, if only a portion of the Warrant is being exercised, the
portion of the Warrant being canceled (at the date of such calculation);

	 
	 	FMV	 	
equals the Fair Market Value (as defined below) of one share of
Common Stock (at the date of such calculation); and

	 
	 	WP	 	
equals the per share Warrant Price (as adjusted to the date of
such calculation) of the Warrant.

As used in this Section, the term “Fair Market Value” of each Warrant Share as of any date
shall be (i) if the Common Stock is not then listed on a national securities exchange the volume
weighted average price per share of Common Stock (as reported on the exchange, market or quotation
system on which shares of Common Stock are admitted to trading or listed) for the five consecutive
trading days ending on the Business Day prior to such exercise, (ii) if the Common Stock is then
listed on a national securities exchange, the last sale price in respect of the Common Stock on the
Nasdaq Global Market or any national securities exchange on which the Common Stock is then listed
at the close of trading on the Business Day prior to such exercise or (iii) if not so available,
Fair Market Value shall be determined as follows: (A) if the parties hereto can agree on the Fair
Market Value, such agreed upon value shall constitute the Fair Market Value; (B) if the parties
cannot reach an agreement as to the Fair Market Value within five (5) Business Days from the onset
of negotiations, then the Appraised Value (as defined below) shall constitute the Fair Market
Value. “Appraised Value” per Warrant Share as of a date specified herein shall mean the value of
such a share as of such date as determined by a nationally recognized valuation or appraisal firm
(an “Appraiser”) selected jointly by the holder of this Warrant and the Company. If the Company
and the holder of this Warrant cannot agree on a mutually acceptable Appraiser, then the Company
and the holder of this Warrant shall each choose one such Appraiser and the respective chosen firms
shall jointly select a third Appraiser, which shall make the determination. The Company and the
Warrant Holders shall each pay half of the costs and fees of each such Appraiser, and the decision
of the Appraiser making such determination of Appraised Value shall be final and binding on the
Company and all affected holders of Warrants. No discount shall be applied on account of any lack
of liquidity of the Common Stock, the Warrant or the Warrant Shares, including the fact that the
Warrants or Warrant Shares may constitute “restricted securities” for securities law purposes.

 

2

 

Upon such surrender of this Warrant and payment of such Warrant Price as aforesaid, the
Company shall issue and cause to be delivered with all reasonable dispatch to or upon the written
order of the holder of this Warrant and in such name or names as such holder may designate, a
certificate or certificates for the number of full shares of Common Stock so purchased, together
with cash, as provided in Section 8, with respect to any fractional shares of Common Stock
otherwise issuable upon such surrender. Such certificate or certificates shall be deemed to have
been issued and any person so designated to be named therein shall be deemed to have become a
holder of such shares of Common Stock as of the close of business on the date of the surrender of
this Warrant and, if applicable, payment of the Warrant Price as aforesaid, notwithstanding that
the certificates representing such shares shall not actually have been delivered or that the stock
transfer books of the Company shall then be closed.

This Warrant shall be exercisable, at the election of the holder of this Warrant, either in
full or from time to time in part. In the event that this Warrant is exercised with respect to
less than the aggregate number of shares of Common Stock this Warrant then entitles such holder to
purchase, the Company shall deliver to or upon the order of such holder hereof a new Warrant
evidencing the rights of such holder to purchase the unpurchased shares of Common Stock then called
for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant.
In the alternative, at the request of the holder upon any partial exercise of this Warrant,
appropriate notation may be made on this Warrant and the same shall be returned to such holder.

Section 2. Payment of Taxes. The Company shall pay all documentary stamp taxes, if any,
attributable to the initial issuance of the shares of Common Stock upon exercise of this Warrant,
provided that the Company shall not be required to pay any tax or taxes which may be payable with
respect to any secondary transfer of a Warrant or the shares of Common Stock issued upon exercise
of any Warrant, and in such case the Company shall not be required to issue or deliver any
certificates for shares of Common Stock, until the person requesting the same has paid to the
Company the amount of such tax or has established to the Company’s reasonable satisfaction that
such tax has been paid or that no such tax is due.

Section 3. Transferability.

Section 3.1 Registration. The Warrants shall be numbered and shall be registered on the
books of the Company maintained for such purpose (the “Warrant Register”).

Section 3.2 Transfer. Subject to compliance with Section 3.3, this Warrant and all rights
hereunder are transferable upon delivery hereof together with the assignment form at the end hereof
duly completed and signed by the holder hereof or such holder’s duly authorized attorney or
representative, or accompanied by proper evidence of succession, assignment or authority to
transfer, provided that any transferee of this Warrant shall expressly agree to be bound by the
terms and conditions hereof. Upon any registration of transfer of this Warrant, the Company shall
execute and deliver a new Warrant or Warrants as may be requested by such holder for the same
aggregate number of shares of Common Stock as this Warrant. As used herein, the term “Warrant
Shares” shall mean, collectively, the shares of Common Stock that may be acquired pursuant to the
exercise of this Warrant and any securities issued as a dividend on or other distribution with
respect to or in exchange or replacement for or upon any subdivision of any of said shares of
Common Stock.

 

3

 

Section 3.3 Limitations on Transfer of the Warrants and the Warrant Shares. If, at the time
of any transfer of this Warrant or any Warrant Shares, this Warrant or such Warrant Shares, as the
case may be, are not registered under the United States Securities Act of 1933, as
amended (the “Securities Act”), the Company may require as a condition precedent to allowing such
transfer that the holder or transferee of this Warrant or such Warrant Shares furnish to the
Company such information as, in the reasonable opinion of counsel to the Company, is necessary in
order to establish that such transfer or exchange may be made without registration under the
Securities Act, including a written statement that such holder or transferee will not sell or
otherwise dispose of this Warrant or such Warrant Shares purchased or acquired by him in any
transaction which would violate the Securities Act or any other securities laws.

Section 3.4 Legend on Warrant Shares. Each certificate for shares of Common Stock initially
issued upon exercise of this Warrant, unless at the time of exercise such shares are registered
under the Securities Act, shall bear the following legend:

“The securities represented by this Certificate have not been registered or
qualified under the Securities Act of 1933 or the securities laws of any other
jurisdiction and may not be sold, exchanged, hypothecated or transferred in any
manner except in compliance with said Act and other applicable laws.”

Any certificate issued at any time in exchange or substitution for any certificate bearing such
legend (except a new certificate issued upon completion of a sale or transfer pursuant to a
registration statement under the Securities Act of the securities represented thereby or pursuant
to rule 144 under the Securities Act) shall also bear the above legend unless counsel for the
Company renders a written legal opinion to the Company that the securities represented thereby need
no longer be subject to such restriction.

Section 4. Exchange of Warrant Certificate. Any Warrant certificate may be exchanged for
another certificate or certificates entitling the holder thereof to purchase a like aggregate
number of shares of Common Stock as this certificate then entitles such holder to purchase. Any
holder of a Warrant desiring to exchange such Warrant certificate shall make such request in
writing delivered to the Company, and shall surrender, properly endorsed, the certificate
evidencing the Warrant to be so exchanged. Thereupon, the Company shall execute and deliver one or
more new Warrant certificates as so requested.

Section 5. Mutilated or Missing Warrant. In case any Warrant certificate shall be mutilated,
lost, stolen or destroyed, the Company shall, at the request of the holder thereof, issue and
deliver in exchange and substitution for and upon cancellation of the mutilated certificate or
certificates, or in lieu of and substitution for the certificate or certificates lost, stolen or
destroyed, a new Warrant certificate or certificates of like tenor and representing an equivalent
right or interest, but only upon receipt of evidence satisfactory to the Company of such loss,
theft or destruction of such Warrant and indemnity, if requested, satisfactory to the Company. In
the case of the initial Purchaser, the initial Purchaser’s unsecured agreement of indemnity shall
be deemed satisfactory to the Company.

 

4

 

Section 6. Requirement of Availability of Shares of Common Stock. There are authorized and
available for issuance, and so long as any Warrant remains outstanding the Company shall at all
times keep authorized and available for issuance, such number of shares of the Company’s authorized
but unissued Common Stock as will be sufficient to permit the exercise in full of all outstanding
Warrants so as to ensure that the authorized capital of the Company comprises sufficient unissued
shares of Common Stock for issuance upon the exercise
in full of all outstanding Warrants and that such Common Stock may be issued by the Board of
Directors of the Company without any further authorization by the shareholders of the Company.
Every transfer agent for the Common Stock and other securities of the Company issuable upon the
exercise of the Warrants shall be irrevocably authorized and directed at all times to keep
available such number of authorized shares and other securities as will be sufficient for such
purpose. The Company shall supply any such transfer agent with duly executed stock and other
certificates for such purpose and shall provide or otherwise make available any cash which may be
payable as provided in Section 9.

Section 7. Adjustment of Warrant Price and Number of Shares. The number and kind of
securities purchasable upon the exercise of this Warrant and the Warrant Price shall be subject to
adjustment from time to time upon the happening of certain events, as follows:

Section 7.1 Adjustments. The number of shares purchasable upon the exercise of this Warrant
and the Warrant Price shall be subject to adjustment as follows:

(a) In case the Company shall (i) pay a dividend in Common Stock or make a distribution in
Common Stock, (ii) pay a liquidating cash dividend as so denominated in accordance with generally
accepted accounting principles, (iii) subdivide its outstanding Common Stock, (iv) combine its
outstanding Common Stock into a smaller number of shares of Common Stock, or (v) issue by
reclassification of its Common Stock, spin-off, split-up, recapitalization, merger, consolidation
or any similar corporate event or arrangement other securities of the Company, the number of shares
of Common Stock purchasable upon exercise of this Warrant immediately prior thereto shall be
adjusted so that the holder of this Warrant shall be entitled to receive the kind and number of
shares or other securities of the Company which it would have owned or would have been entitled to
receive after the happening of any of the events described above had this Warrant been exercised
immediately prior to the happening of such event and any record date with respect thereto. Any
adjustment made pursuant to this subsection (a) shall become effective immediately after the
effective date of such event retroactive to the record date, if any, for such event.

(b) No adjustment in the number of shares of Common Stock purchasable hereunder shall be
required unless such adjustment would require an increase or decrease of at least one percent in
the number of shares of Common Stock then purchasable upon the exercise of this Warrant, provided
that any adjustments which by reason of this subsection (d) are not required to be made immediately
shall be carried forward and taken into account in any subsequent adjustment.

(c) Whenever the number of shares of Common Stock purchasable upon the exercise of this
Warrant is increased or decreased as provided in this Section 7, the Warrant Price payable upon
exercise of this Warrant shall be adjusted by multiplying the Warrant Price in effect immediately
prior to such adjustment by a fraction, the numerator of which shall be the number of shares of
Common Stock purchasable upon exercise of this Warrant immediately prior to such adjustment, and
the denominator of which shall be the number of shares so purchasable immediately after such
adjustment.

 

5

 

(d) Whenever the number of shares of Common Stock purchasable upon the exercise of this
Warrant or the Warrant Price is adjusted as herein provided, the Company shall cause to
be promptly mailed to the holder by first-class mail, postage prepaid, notice of such adjustment or
adjustments and a certificate of an executive officer of the Company setting forth the number of
shares of Common Stock purchasable upon the exercise of this Warrant and the Warrant Price after
such adjustment, a brief statement of the facts requiring such adjustment and the computation by
which such adjustment was made.

(e) If, as a result of an adjustment made pursuant to this Section 7, the holder of this
Warrant shall become entitled to purchase any shares of the Company other than Common Stock,
thereafter the number of such other shares so purchasable upon exercise of this Warrant and the
Warrant Price of such shares shall be subject to adjustment from time to time in a manner and on
terms as nearly equivalent as practicable to the provisions of this Section 7 with respect to the
shares of Common Stock.

Section 7.2 No Adjustment in Certain Cases. No adjustments to the number of shares of Common
Stock issuable upon the exercise of this Warrant or the Warrant Price shall be made in connection
with the issuance of (a) Common Stock upon exercise of any of the Warrants or (b) stock options
granted to employees and directors of the Company for the purchase of a number of shares of Common
Stock as may from time to time be duly authorized by the Board of Directors.

Section 7.3 Statement on Warrants. This Warrant shall entitle the holder hereof to purchase
such number of shares of Common Stock at such Warrant Price as may be determined in accordance with
the terms hereof after giving effect to any adjustments in the number or kind of shares purchasable
upon the exercise hereof or the Warrant Price, as the case may be, notwithstanding that this
Warrant certificate may continue to express the same price and number and kind of shares as are
initially stated herein.

Section 7.4 No Dilution or Impairment. The Company will not, through any reorganization,
transfer of assets, consolidation, merger, dissolution or otherwise, avoid or seek to avoid the
observance or performance of any of the terms to be observed or performed hereunder by the Company,
but will at all times in good faith assist in carrying out all of the provisions of this Section 7.

Section 8. Fractional Interests. The Company shall not be required to issue fractional
shares of Common Stock on the exercise of any Warrant. If any fraction of a Share would, except
for the provisions of this Section 8, be issuable on the exercise of this Warrant (or specified
portions thereof), the Company at its election (i) shall pay an amount in cash equal to the then
current market price of a share of Common Stock (as determined in good faith by the Board of
Directors of the Company) multiplied by such fraction, or (ii) shall issue a full share of Common
Stock in lieu of such fractional share.

Section 9. No Rights as Shareholder; Notices. Nothing contained in this Warrant shall be
construed as conferring upon the holder or its transferees any rights as a shareholder of the
Company, including the right to vote, receive dividends, consent or receive notices as a
shareholder with respect to any meeting of shareholders for the election of directors of the
Company or any other matter.

 

6

 

Section 10. Notices. Any notice by the Company or the holder of this Warrant shall be in
writing and shall be deemed to have been duly given if hand delivered on the date of such delivery,
or on the Business Day after timely delivery to a recognized overnight courier that guarantees
overnight delivery, (a) if to the Company, at 600 17th Street, Suite 2800-South, Denver,
CO 80202, Attention: President, or at such other address as the Company may designate by notice to
each holder of Warrants at the time outstanding, with a copy to Jeff Knetsch, Brownstein Hyatt
Farber Schreck, LLP, Suite 2100, 410 17th Street, Denver, Colorado 80202, and (b) if to
any holder of Warrants, at the address of such holder as it appears on the Warrant Register.

Section 11. Successors. This Warrant shall bind and inure to the benefit of the Company and
its permitted successors and assigns hereunder and, in addition, shall inure to the benefit of and
be enforceable by all holders from time to time of the Warrants.

Section 12. Applicable Law. This Warrant shall be enforced in accordance with, and the
rights of the Company and the holder of this Warrant shall be governed by, the laws of the State of
Colorado (without regard to conflicts of laws principles thereof).

Section 13. Benefits of this Agreement. Nothing in this Warrant shall be construed to give
to any person or corporation other than the Company and the holder of this Warrant any legal or
equitable right, remedy or claim under this Warrant and this Warrant shall be for the sole and
exclusive benefit of the Company and the holder hereof.

Section 14. Availability of Information. As long as the Company is required to comply with
the reporting requirements of Section 13 or 15(d) of the Exchange Act, the Company will use it
reasonable best efforts to comply with all public information reporting requirements of the SEC
(including Rule 144 promulgated under the Securities Act) from time to time in effect and relating
to the availability of an exemption from the Securities Act for the sale of any such securities.
The Company will also cooperate with each holder of any Warrants in supplying such information as
may be necessary for such holder to complete and file any information reporting forms presently or
hereafter required by the SEC as a condition to the availability of an exemption from the
Securities Act for the sale of restricted securities.

Section 15. Amendment. This Warrant may be amended by the Company in any respect at any time
or from time to time upon the written consent of the holder of this Warrant.

IN WITNESS WHEREOF, the Company has executed this Warrant.

	 	 	 	 	 
	 	PROSPECT GLOBAL RESOURCES INC.

 	 
	 	By:  	/s/ Patrick Avery
 	 
	 	 	Patrick Avery 	 
	 	 	Chief Executive Officer 	 

 

7

 

	 	 	 	 	 

PROSPECT GLOBAL RESOURCES INC.

ELECTION TO PURCHASE

PROSPECT GLOBAL RESOURCES INC.

600 17th Street, Suite 2800-South

Denver, CO 80202

Attn: Chief Executive Officer

The undersigned hereby irrevocably elects to exercise the right of purchase represented by the
Warrant to which this Election to Purchase is attached for, and to purchase thereunder,
                                        
shares of Common Stock (or other securities) of the Company provided for therein, and
herewith makes payment for the Warrant Price by (check one of the following):

o certified or cashiers check or wire transfer; or

o tendering Warrant Shares having a Fair Market Value equal to the Warrant Price;

all at the price and on the terms specified in this Warrant and requests that certificates for said
shares (or other securities) be issued in the name of:

 

 

(Please Print Name and Address)

and, if said number of shares shall not be all the shares of Common Stock purchasable hereunder,
that a new Warrant certificate for the balance of said shares purchasable under the said Warrant be
registered in the name of the undersigned holder or its nominee as below indicated and delivered to
the address stated below:

Dated:
                                        ,                     

	 	 	 	 	 	 	 
	 

	 	Name of holder or

Nominee (Please Print):	 	 	 	 
	 

	 	 	 	 

	 	 

	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Signature:	 	 	 	 
	 

	 	 	 	 

	 	 

Signature Guaranteed:

 

8

 

(To be signed only upon assignment of Warrant)

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

 

 

(Name and Address of Assignee must be Printed or Typewritten)

the within Warrant, hereby irrevocably constituting and appointing                                         
Attorney to transfer said Warrant on the books of Prospect Global Resources Inc. with full power of
substitution in the premises.

Dated:
                                        ,                     

	 	 	 	 	 
	 
	 

	 	 

Signature of Registered Holder
	 	 

Signature Guaranteed:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00196-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00196-of-00352.parquet"}]]